3 Keys To Receiving Ongoing Major Gifts

During campaign years institutions raise more money.  The research is clear on this.  A campaign focuses an institution and its donors on strategic priorities and gift income goals.  During a successful campaign, the case for support is concisely articulated and the institution places an extraordinary level of energy on the discovery, cultivation, solicitation, and stewardship of major gift donors.

But what about non-campaign major giving?  A primary indicator of a mature development program is the existence of an effective ongoing major gift program.  So that even outside of campaign years, major gifts continue to be received. To keep major gifts flowing every year, make sure the following 3 keys are implemented.

1.  A Case for Support – Do you regularly revise and ask major gift donors and prospects how they perceive your case for support?  Keep in mind that your case for support is different than your case statement.  Your case for support is the message.  It is why you are raising major gifts and how the identified major gift priorities will substantively advance your institution.  Your case for support is never about your needs.  It is about your mission, vision, and values and the priorities which will allow your institution to serve better.  Your case statement, on the other hand, refers to the document or vehicle you will use to deliver your case for support.  Some institutions still produce a multi-page, 4 color, case statement.  Others present their case statement using iPads.  You can have, simultaneously, a visually appealing case statement and an ineffective case for support.  To be effective, focus on crafting and seeking feedback on your case for support.

2.  An Organizational Structure That Encourages Activity  - How do you track and encourage ongoing activity with your major donor prospects?  How do you share information about donors and prospects among development team members?  Mature and ongoing major gift programs share similar organizational characteristics.  First, there are specific meetings that focus on prospect management and the upkeep of major gift officer portfolios.  These meetings occur at least monthly and are “command performances” for all development team members involved in major gifts.  The agenda for these meetings rarely deviates from discussions about prospects and strategies.  These meetings ensure that “getting out from behind the desk” happens regularly for all responsible for major gift donors.  Second, there is one person who is tasked with reporting on major gift officer activity. Regardless of the types of performance metrics you use, there is a staff member who reports regularly on the number of visits, solicitations, and gifts received (or other metrics) for each major gift officer. This structure helps to ensure accountability.  Finally, timely visit reports are completed after each substantive visit with a donor or prospect.  These reports are short but content-rich.  A rule of thumb is simple:  If you learned something during a visit that will be of value or will help explain the donor’s relationship with the institution 3 years from now, complete a visit report.  Anything less significant and it isn’t worth a major gift officer’s time to document.

3.  The Engagement of Institutional Leaders – Does your president participate in prospect management meetings?  Do your deans have portfolios that they actively manage?  Are governing board and/or foundation board members utilized during the cultivation, solicitation, and stewardship of prospects and donors?  The engagement of your institution’s leaders in the ongoing major gift program is key.  It signifies to donors and other constituents that major giving is important to the institution, even when the campaign is over.  Also, it encourages a sharing of information about donors and projects that can help both the major gift staff members as well as the institution’s leaders.  Finally, when institutional leaders are engaged, it helps ensure that major gift program progress continues.  If more resources are needed, for instance, there is a much better chance of obtaining them when leadership is involved.

When helping institutions assess their readiness to conduct a campaign, a typical weakness is the tenuous relationships between the institution and its top 100 donors.  ”We haven’t really continued the cultivation of our top donors since the last campaign,” is a common acknowledgment.  If you make the above 3 keys a priority, you will ensure that this won’t be a weakness of your institution.  And, most importantly, you’ll raise more money each year to help your institution transform lives.

 

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The Gamification of Giving

Spend time on Facebook each day?  Want to help your favorite charity?  You can now do both – simultaneously.  GamesThatGive (now owned by Facebook software company Vitrue), allows gamers the opportunity to support their favorite charities simply by playing online games.  The longer you play, the more money is donated by GamesThatGive.

For those who may not be aware of the specifics, here is how it works.  You play a GamesThatGive branded online game and GamesThatGive gives away 70% of the proceeds earned from ad revenue.  The amount you help raise for approved charities is determined by the amount of time you are on the site.  Needless to say, non-profits gladly steer donors to the gaming sites.  The ease of use and the quick return to non-profits make this gaming tactic very attractive.

But all that glitters isn’t necessarily gaming gold – or at least not the gold you really want.  While I understand the appeal of approaches like GamesThatGive, the concerns are significant.  Let me suggest two reasons why the gamification of giving may not be good for philanthropy and your institution.

  1. Gamification Doesn’t Educate Donors – Effective development professionals understand that our real work with donors is about educating more than it is asking.  Before we ever ask, we help donors better understand and appreciate the plight of those we serve and how, with their giving, we can serve better.  In addition, we work to educate our donors on the joys of giving!  Giving is good for people and part of our work is to encourage donors to be their best through the act of being generous.  The gamification of giving doesn’t give us much of a chance to do this educational work.
  2. Gamification Doesn’t Engage the Whole Donor – Of course, some might say the following:  ’Well, maybe we don’t educate the donors with gaming, but it is free and easy gift income, so that’s not all bad.’  Perhaps. . . but it ain’t very good, either!  Is money all you really want from your donors?  Really?  The vast majority of institutions that engage our firm want far more from their donors.  And I bet you do, too.  Whether it’s to call prospective students and encourage their enrollment.  Or, participating in  a donor thank-a-thon.  Or serving on a committee.  Or helping with an event.  Or a host of other volunteer activities.  Effective development leaders recognize the need to engage much more of the whole person than simply the pocketbook.  Gaming doesn’t focus your donors on how they can enhance their engagement with your institution.  Gaming focuses your donors on gaming.

Every day new technologies and social media apps create fresh opportunities for philanthropy.  I am very supportive of thinking through new ways to engage donors.  But as we digest all of these new opportunities we should regularly reflect on the real purpose of our work.  If it were all about fundraising, then gaming might make more sense.  But there is a reason we refer to our work as “development.”

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3 Simple Ways To Enhance Your Creativity

Advancement work regularly requires our best creativity.  Whether we are devising cultivation strategies for key major donor prospects, writing direct response solicitations, or designing case statements and campaign videos, each of us has to engage the most creative elements of ourselves consistently.

The problem, though, is that we tend to think of creativity incorrectly.  We believe creativity is something that strikes unexpectedly (like lightning).  Or we believe creativity is an in-born characteristic – something that one either has or doesn’t have.  Or, we view creativity as the process of putting forth something completely new.  But all of these beliefs are inaccurate.

The first two views encourage us to believe that there really isn’t much we can do to enhance our own creativity – we either have it (or get it) or we don’t.  The third idea – that being creativity means putting forth something completely new – discourages us because it makes the creative process seem so capacious.  How in the world can I make something truly new?  That job is just too big.  So, I don’t even try.

The reality, though, is that creativity can be nurtured and cultivated.  And here are three simple ways for you to enhance your creativity:

  1. Read Something That Stretches You – I’m not talking a magazine or a newspaper or a book of fiction.  I’m talking about a book of interesting ideas, a biography of an important historical figure, or an academic book in which you learn something new.   The truly creative person doesn’t create “new” ideas or things, they are inspired by what they learn, see, and experience and put together old ideas or techniques in fresh ways.  When we expose ourselves to new perspectives and experiences – and good books make this easy to do – we give our creative minds the fuel to operate.
  2. Go Green – Do you have live plants in your office or cubicle?  Can you see trees out your window?  Research has repeatedly shown that having a potted plant or two near where you work increases creativity – by as much as 15%! And if you can get outside more often the results are even more impressive.  We were designed to experience our natural environments, not simply sit behind our desks in sterile office settings.  So, get some real plant life in your environment.  And just so you know, fake plants don’t offer the same increase in creativity.
  3. Use Your Best Time – For most of us, our first order of official business each day is to sit at our computers and answer our emails.  As Seth Godin wrote recently, we are surrendering some of our best, most creative, and freshest time of the day to be reactive and not proactive.  Instead of doing something reactive when you first start your work day, use this precious time to work on that project that needs your best creativity.  When we are fresh, we give ourselves our best opportunity to be creative.

In our work as advancement professionals, we need to be more creative more often.  We need to be entrepreneurial and imaginative.  But being creative doesn’t have to be daunting.  By implementing these 3 simple ideas, you will give yourself the opportunities to be at your creative best.

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Why Variety Is Not The Spice of Your Case Statement

Gad Saad, in The Consuming Instinct, has penned an interesting and deep read around the notion of biologically-driven choices.  He discusses how our biology drives our consumption behaviors in ways far more important than culture or socialization alone can account.

I thought about our work as advancement professionals when Gad covered the “variety effect” and our consumption of food.   Essentially, research has shown, quite conclusively, that people will eat more when more choice or variety is offered.  It’s why you should stay away from buffets when you are watching your weight.  The more food choices on the menu or the plate, the more we are likely to eat.  He suggests this is an evolutionary choice based primarily on the reality that our species, for eons, had to worry constantly about caloric uncertainty.  We didn’t know when our next meal was coming, so if we had a chance to eat now, we took it.  And if we have the opportunity to eat A LOT now, we hoarded.  Hence, the variety effect.

This finding makes good sense.  The problem with commonsensical findings, though, is that they often get misued.  We do this all the time.  For instance, most take the “variety effect” out of context and apply it to all sorts of situations.  But it doesn’t always work.

For instance, with all else being held constant, the “variety effect” would suggest that more choices in the number of funds available in a 401-k retirement plan would mean more participation and/or more money held back for retirement.  However, studies show that each additional 10 funds made available to employees yield a 1.5 -2% less participation rate in the 401-k program.  In other words, more variety equals reduced participation.

So, we know that the variety effect doesn’t work in all situations.

Often I work with clients who attempt to apply the “variety effect” to fundraising.  Specifically, when putting together case statements, they think having many choices for where a gift could be made should be viewed positively by donors.  They want to include any number of capital and endowment projects, special programs, scholarships, and other ongoing annual support options.  The idea is, the more the merrier.  You even will hear advancement leaders use language normally ascribed to food when they say, “we want to give our donors a menu of options.”  More choice of where to put your gift should mean more giving by donors.

Except it doesn’t work.  The thinking is faulty.

After having conducted many interviews with major donors and prospects I’m convinced that the number of gift-giving options does not positively correlate with increased giving.  Instead, major donors want to see a clear connection between the institution’s strategic priorities and the campaign’s priorities.  In other words, “menus” of choices are viewed – more often than not – as institutional wish lists that suggest the institution hasn’t done the heavy lifting of strategic visioning and planning.  Menus suggest an attitude of, “we’ll ask for everything and see if we get something.”  This perception doesn’t encourage more giving, it retards it!

Of course, in most instances you need to have some variety in your campaign gift options.  Typically, you will want capital, endowment, and program priorities, as well as an inclusion of your annual fund.   But it is not the variety that is the key variable in encouraging more giving.  It is far more important to show donors how the particular priorities you’ve included in your campaign will strategically advance the institution.  The “variety effect” may give us bigger waistlines (if we aren’t careful), but it won’t give us bigger gifts.

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A Tale of Two Influences

Not long ago, I was in an airport looking forward to getting home after a long but productive week of client visits.  It was late on a Friday night and a far away but severe weather system had wrecked havoc with the friendly skies.  Although the weather at our location was perfect, a number of incoming flights were delayed, which, of course, delayed many outbound flights.  The airport gate which was hosting my flight was hosting three other flights scheduled to depart at about the same time.  As you might guess, a large number of tired and delayed passengers were packed in the small gate area of the airport.

As I watched the folks around me, I noticed a good deal of frustration.  Sure, it can be annoying to have your travel plans delayed as most of these passengers had.  But, I also watched as the airline representative behind the counter greeted every customer with a stern look and negative shakes of the head.  I couldn’t hear what she was saying, but I could see the results of her communication.  For flyer after flyer, the results were the same — people walked away more discouraged and frustrated than they were before interacting with her.

Finally, at about an hour and a half late, our flight was called to board.  My flying colleagues and I were about the escape the cramped confines of the airport gate for the cramped confines of our commuter plane.  As we boarded, I heard several passengers continuing to murmur about the flight delays and the poor customer service.  We loaded our bags above our heads and got settled in.

The pilot welcomed us on board over the PA system.  And then he told us that we’d have to wait even longer as airline mechanics investigated a problem with an on-board computer.  The sighs and groans were easily heard.

And then something magical happened.

The stewardess came over the PA and said, “We still don’t know yet when we’ll be leaving, but I’m going to be optimistic and go ahead with some of the pre-flight instructions.”  It wasn’t the message the plane’s passengers wanted to hear and more sighs were heard.  Then, the stewardess  started the pre-recorded flight instruction message and broadly smiled.  It was almost a goofy smile.  It was clearly out of place.

As the recorded voice began talking about not smoking, highlighted the location of the bathrooms and exits, and described how to use the seat as a flotation device, our stewardess smiled and began to perform for us.  She turned dramatically, she danced, she shook her index finger at us in that “no-no-no” manner.  She ran up and down the isle to show us where the exits and bathrooms were.  She was having fun.  Or at least she was faking it really well!

Witnessing this performance, you could tell a few passengers weren’t paying attention at first.  But then the plane grew more quiet as she presented the instructions to us.  I looked around and could see more and more people watching her and responding positively.  The murmurs began to be replaced by laughter and smiles.

And then she stopped.  She threw up an arm and paused as if a spotlight were on her.  The passengers – the very same passengers who just minutes before were expressing a couple of hours worth of frustrations – erupted in applause.   She bowed, still smiling.  We sat at the gate for another half hour, but the mood on the plane was palpably different and positive.  She had changed the whole feel of the evening.

Today you have the opportunity to change the responses of those in your shop.  You can be the customer service representative I saw in the airport who matched the passengers’ grumpiness with her own.  Or, you can be a climate changer and act like the stewardess on my flight.  Each of us has the capacity and the opportunities to influence the behavior of others.  If you decide to influence others positively, I guarantee you’ll have more success in your work as a development professional and you’ll have more fun!

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Manage The Mission, Not The People

How can you lead the members of your advancement team so that each performs even the most ordinary of tasks in extraordinary fashion?  How do you motivate staff members to be the best version of themselves day-in and day-out?  How do manage staff members so that they respond positively to new ideas or new strategies?

The hard answer is this – you can’t and you shouldn’t try.  People – high quality professionals – don’t want to be managed.  Your role as a an advancement leader is not to manage people.

Instead, your role is to help create an institution they care about so much they don’t require management.  Your role is to help create an advancement team culture so inspiring and valuable that motivational speeches are not needed.  Your role is to help establish goals so compelling that staff members don’t need reminders or instructions.

Truly inspirational leaders don’t focus on persuading or managing people.  Instead, they create movements the attract the very best from others.

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What You Know Is More Important Than What They Know

Time to make the call on the prospective donors.  You know which call it is – it’s the ask.  This is big.  In fact, it’s the biggest ask you’ve ever made of a prospect.  You’ve set up the meeting and a member of your Board will be with you.  You’ve created a call script.  You’ve even practiced it with the Board member.  You know the talking points and the messages cold.  You’ve got your case statement, a customized proposal, and you even have a hot-off-the-reel, super-cool video you plan to show her on your iPad.  You are ready.

But. . . .are they ready?

You answer this question silently by reviewing in your mind all of the materials you’ve sent to their attention.  They have shown up at more events this year than ever before so they know the case for support and the needs.  You have visited with them prior and you’ve had an opportunity to make the case and they have agreed that your institution is worthy of support.  Yes, they are ready, you say!

Well, maybe not.

When we ask ourselves the question, “are they ready to say yes to a gift solicitation?” we tend to answer it by reviewing a checklist in our minds of all the reasons why they should be ready.  They have heard the case – perhaps multiple times.  They understand our needs.  They attend events.  In other words, they know what they need to know to say ‘yes.’  We convince ourselves that they must be ready!

However, we often misunderstand a simple truth of the major gift giving process.  Namely, our role is not solely to get the prospect to better understand us.  Our role is to better understand them.

So, in answering the question, “are they ready to say ‘yes’ to a gift solicitation?” we should start by asking ourselves other questions.  Here are five of my favorites:

  1. What other institutions do they support and why?
  2. From whom did they learn to be generous?
  3. What is it about our institution that draws their support?
  4. How do they make decisions about where to give?  Who is involved in these decisions?
  5. Where do we rank as a priority in their giving?  And do they have current major commitments already in place with other institutions?

Of course, there are other good questions we should ask ourselves to see if our prospects are ready to respond affirmingly to us.  But these are a good start.

Do you know the answers to each of these questions for your major gift prospects?  If not, you probably aren’t ready to ask them.  Because what really matters is not what they know about us.  It’s what we know about them.

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Here’s a Resolution: Break Something Important In 2012

Forget about your stand-by New Year resolutions.

As humans, we seem incredibly poor at keeping them.  And, in the instances where we do keep them, they don’t seem to make much of a difference.  One year rolls into another and we find that we still want to get better at our work, we want to be a better spouse and parent, and we still need to stop procrastinating.  Those resolutions don’t seem to do us much good.

As to why our typical resolutions either don’t stick or don’t make much of a difference, there are many reasons.  We lose interest.  We get sidetracked.  We set goals too ambitiously or not ambitiously enough.  Our resolutions are too vague or too specific.  Life happens, etc.

But the biggest reason why our normal resolutions fail, I think, is because we aim to fix something that is broken.  We work on making stronger something that is a weakness.  And, for most of us, that is demoralizing.  There is a reason the area we have identified is a problem area for us.  It’s difficult.  It’s not fun.  And, in many instances, we just aren’t very good at whatever it is.  So, we quit doing it.  Its pretty simple.

And then we feel poorly about ourselves because our resolution didn’t quite work out.  And isn’t the whole resolution idea to improve and feel better in some area of your life?

So, this year, don’t resolve to do anything earth-changing or grandiose.  Do something that everyone can do.  Do something very simple.  And do something that will have a huge impact on your life and your work.

Just break something.

But don’t break something that is useless or insignificant.  Break something that matters.

Here is what I mean.

We make our most important progress when we build on our strengths – not when we attempt to strengthen an area of weakness.  Most are familiar with the old saying, “work to your strengths.”

But, just like our resolutions – when we aim to improve some aspect of our work or our lives, we typically look for the areas of weakness.  We seek out the gaps in performance.  We do well on this and that.  But over here, we struggle.  So, we plan strategies to enhance these areas of weakness.  Meanwhile, our strengths and areas that achieve high results go untouched.

If we are truly building on our strengths, we are going about this all wrong.  We should constantly work to assess and improve our areas of strength.  That’s how we’ll make our biggest impact as professionals and people.

So, in 2012, break something important!  In your development shop, do you have a special event or a direct response piece that historically has been a large part of your gift income?  Break it.  Plan for it as if you never did it before.  Don’t start from what you did last year.  Start from scratch.  Deconstruct it.  Rework it.  Scrutinize it.  Make it better.  Better than its ever been.  Birth it again.

Major progress happens when we take something that is a strength and we make it stronger.

Here’s to a Happy and Productive New Year!

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How Much Klout Do You Have?

Have you stumbled upon Klout.com yet?  It’s a quantitative value analysis of your online influence.  Every facebook “like,” every tweet, every published blog, every status update,  and photo comment adds to your value as an online influencer.  A higher score means you have more influence with others in the virtual realm.

Recently, I read an article on Mashable entitled, “7 Surefire Ways to Increase Your Klout Score.”  Here are the 7:

    1. Build a network.The key to increasing a Klout score is similar to finding success on the social web in general: Build a targeted, engaged network of people who would be legitimately interested in you and your content.
    2. Create meaningful content. Adopt a strategy to create or aggregate meaningful content that your network loves to share with others. Provide links!
    3. Engage. Actively engage with others in a helpful and authentic way. Ask questions, answer questions and create a dialogue with your followers.
    4. Don’t scheme. Any gaming behaviors that fall outside the basic strategies will eventually catch up to you. For example, specifically targeting conversations with high Klout influencers will probably be more annoying than successful. If you keep focused on your network strategy and your content strategy, you’ll succeed.
    5. Interact with everyone. Don’t be afraid to interact with Klout users with lower scores – it won’t hurt your own score. In fact, it helps build their score and in turn makes you more of an influencer.
    6. Publish. Remember, you don’t have to make a movie or be elected to office to have power now. All you need to do is publish. Access to free publishing tools such as blogs, video and Twitter have provided users with an opportunity to have a real voice, so take advantage of these many platforms.
    7. Keep at it. Don’t be discouraged by your score. It’s more important to just enjoy your social media experience and let the chips fall where they may.

Here’s an interesting development take on the above:  Look at the list again.  Change the title to, “7 Surefire Ways to Increase Success with Donors,” and replace the concept of “publish” with the idea of “communicate” – in which you use all available vehicles to communicate with your donors.

Now, instead of thinking only about social media and the online world, think about working with donors in the flesh-and-blood world of human-to-human contact.  Each of the above steps will make you a more influential development professional in the “real” world!

Here’s the reality:  Whether we use face-to-face visits, phone calls, emails, text messages, Twitter, facebook,  Google+, LinkedIn, videos, letters, cards, sign language, or smoke signals — engaging humans and encouraging them to act with generosity involves a similar process.

The communication platforms and environments may change.   But the human need to be heard, understood, and valued do not.  The ways to become more influential online don’t differ much from the ways to become more influential offline.

Now, go gain more klout (in both your virtual life and your real one)!

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The Celebrity, The Artist, And The Development Professional

In our world today, there are many who chase after acknowledgment without a proficiency in any art form.  Their goal is not to develop a craft, aptitude, or skill.  They simply want to be famous.  And, because a proficiency in an art is absent, others wonder aloud as to how these folk achieve any level of lasting recognition.  These are celebrities.

On the other hand, there are those who focus on a craft, developing skills and aptitudes, and endeavoring to grow their competence in a given set of activities.  They work at their craft when others lounge.  They create when others aren’t watching, practicing their craft happily in obscurity.  In some cases – many cases – for years.  They are driven and fulfilled by the process of creating something, not by the approval of others.  These are artists.

Of course, in some instances, artists gain fame and become celebrities.  The masses take to their work and the artist becomes known.  But becoming famous and a celebrity is never the goal.  Doing the art is the goal.

Artists who become celebrities are acknowledged based on their talent,  efforts, and accomplishments.  Think Frank Sinatra, Pablo Picasso, Katharine Hepburn, or Aretha Franklin.  We respect the effort they make to hone their craft and recognize their talent.  We pay attention to what they create.  We recognize their authenticity and call them professionals.

But those who scramble to attract attention without the mooring of accomplishment garner scorn.  We don’t respect them because they are perceived as not having put forth unusual effort to achieve anything of value.  We view them as faux celebrities, having earned the mantle dishonestly.  Think Kim Kardashian.

Similarly, the most effective development professionals share characteristics with artists, not celebrities.    They work at being active listeners.  They practice the art of inquiry and work to become cheerfully persistent.  They enjoy the process of building authentic relationships with donors and engaging others in a cause.   They toil in the philanthropic vineyard, sometimes very quietly, for years.  They don’t seek the spotlight.  In fact (like many artists), they can be very uncomfortable in the spotlight.

In short, they focus on the work, not the “reward” of the gift.  Like becoming a celebrity for the artist, receiving a gift for the development professional is not the driving force.  It is simply a by-product of good work and lots of practice.

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