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FundClass Archives:

Major Donors

Edited Digest of FundClass Topic #06, September 1997

Facilitated by Mary Thom Adams, Development Coordinator at Highlander Research and Education Center in Tennessee.

Opening Message by Mary Thom Adams

Major donor fundraising is all about building relationships. Fundraisers have only so much time, and far too many places to put it, but I enjoy most working with our major donors. They are the people in whom I can really invest. I can justify conversations of any length, visits, you name it. Many of our major donors are my friends; I know their families and we share the ups and downs of our lives. Oh yes, and once a year I ask them for a lot of money.

Having said that, I can also tell you that major donor fundraising is the donor work that often doesn't get done as well as it should, in my office and many others. There is a lot of good written material on fundraising out there with plenty of good advice . . . which I urge you to follow . . . but I'm aware that implementing that good advice is not easy.

To get started on this discussion, I'll walk you through the plan we have in my office for getting and keeping major donors. We develop a calendar of activities at the beginning of each fiscal year. On that calendar we schedule general contacts we will have with all major donors. For instance, they will get the newsletter, a monthly letter from our director, a holiday card, and two or three times during the year we will mail them an article or book or account of a workshop. Then I run a printout of all their names, addresses, and phone numbers, and put that in a notebook that has my development calendar, the year's goals, and the quarterly reports we generate. (I have found that if I put these most important items together, without a lot of other stuff, that I will be more likely to refer to the notebook every day, and therefore stay on top of deadlines.)

I try to set a goal of contacting at least one major donor a day. What does that mean? Well, it can be very direct. I call or write the person, or someone else in my organization calls or writes. Less direct, and no less important, is the time spent organizing an event that a major donor might attend. Most impotant to any major donor effort are the personal events. For us that is also the hardest to carry out. Our donors are spread out across the country, and my fundraising budget is not so widely spread! The solution is easy, but the implementation is not so easy: develop a pool of volunteers around the country to help you fundraise. They can go with you or another person from the organization to make visits. They can do lots, and will, if you take the time to get them involved and keep them involved. --- Mary Thom Adams ---

 

Making the Ask

One participant asked about the idea of making the ask of major-donors by direct mail instead of thru face-to-face meetings (not upgrading a donor, but a first-time ask). Mary Thom's reply: "The term direct mail implies mass communication to me, and I wouldn't advise that. I have used very personal letters to ask people for large gifts. However, usually I or someone else has a relationship with them, and can follow up a letter with a phone call. One organization I work with uses personal letters almost exclusively to make major donor solicitaitons. You might even tell the person you are asking that you would like to visit them in person as soon as you are able, but that at present your organization is just getting started and you have to watch every penny. I find that people appreciate frankness.

In answer to a question about the basic technique of asking for major donations, one participant wrote: The most effective major gift solicitation takes a personal meeting. A team of two is often most effective. Three on one seems to be too much. There should be a specific amount in mind based on the research and educated guess of the development person (perhaps gathers in a pre-solicitation visit or by talking to others on the Board).

Mary Thom agreed with these points, and added (in response to an auxiliary question about whether to ask for major gifts at a special event) that asking at an event can work, but making personal visits is better. Perhaps using the event to prime people to donate when you contact them . . . you don't want a $50 donation at the event when you were hoping for a $500 contribution, which you may get during a personal visit.

 

Cultivating Your Major Donors

Several people made the point that major donors must be cultivated. Once you have a name on the list of possible major donors (and names can come from a variety of sources: Board members, other staff in the organization, current donors, even local newspaper articles), you need to gather information on those people, or their company. What's their connection, or possible connection, with our organization? Who knows them? Who can we ask about them? What community groups do they support now? Do they play golf? What might appeal to them, or pique their interest? And on and on . . . Any info about a prospective donor should be added to your file on him/her, even if you don't think it is helpful . . . hard to tell now what will work for you two or three years from now!

 

Board Involvement

A big question involves getting your Board members and Executive Director involved in fundraising, which they are often reluctant to do. One writer said: My boss isn't a fan of hitting the trail and making the rounds of the major donors, but he does it because it comes with the territory of being the president [of a college]. If the top organization person isn't willing to make that effort, and isn't willing to look a donor in the eye and say "We are doing such important work that you should consider givigiving us $xxxx.xx", then I think there might be deeper problems within the organization that should be looked at. If he doesn't have time to do it, then he is too busy on tasks that are of lesser importance.

In terms of Board involvement, one of the first things that must happen is for each member of the Board to contribute. Once a Director has given, he/she can be proud to ask others to join in. It may help to include the value of the time he/she has given to the organization, but Board members should also give money. One writer said that when she computed the value of the time she'd given, added to the money she'd given, the total was enough to give her confidence in asking for major donations from others. (With the point made that in asking, you don't tell the prospective donor about this combination of time/money valuation, as you don't want to give a major donor the idea that if they give time, they can give less money. This is simply a confidence-booster for askers, esp. board members.)

Some participants find that if donors volunteer time, they are likely to give more money, as their investment in the organization is greater. Others responded that in their experience people give money because they don't have time to give (or don't want to use time that way).

A suggestion was made that Board members who are reluctant to ask for money start with a "guaranteed success" project to boost their self-confidence. Sounds good, but how do you come up with such a guaranteed success? When you have had a series of personal meetings with the donor, you have built a relationship, you know the organization and its mission is near and dear to their heart, and you know they have the capacity and inclination to make a gift. . . .you have found what about your organization is most important to them, and you have found who in your organization is most respected by this prospective donor . . . then that person makes the ask.

So, if each Board member can come up with the name of someone he/she knows at least somewhat (i.e. well enough to get in to see or have a phone call returned), you have the start of a "guaranteed success". Then build on that beginning thru a series of contacts until the Board member is ready to make the ask.

[Training your Board members may be necessary. . . at the very least, schedule time during several Board meetings for role-playing practice at asking.]

 

Getting Your First Major Donor

One writer asked about getting major donors for an organization that doesn't have any. . . one response: set a smallish amount for inital major gifts, say $150 or $200. Brainstorm at a Board meeting to come up with three or four names of people you feel could give at that level. Identify a fundraising committee to develop a plan to ask those people for that amount. When possible connect the person who came up with the name to the prospect . . . that connection should help. Over time, with cultivation, these donors can be moved up to larger gifts (upgraded), and may be a source of other major donors.

 

Donor Recognition

On the issue of donor recognition: Just how much do people need to be recognized? What works best? Answers: You can't say thank you enough. . . check out donor recognition walls if you have a publicly accessible building (Forsythe-French from Belton MO does a great job on this). Radio talk shows, tv local shows, and other public forums offer good ways to say thanks.

A recognition plan for major donors: thank you letters, possibly several from different people in the organization for large amounts; press releases, lists in your newsletter; special appreciation events just for major donors. . . you should talk to major donors about what kind of recognition, esp. public, they want (some people prefer to be quiet about their giving).

From a participant: We have a donor recognition wall, and every year around Christmas we have a dedication party for the new people on the wall . . . for all of those donors who have reached one of the levels of recognition . . . those new to the wall and those who have jumped from one level to the next.

And, finally, Mary Thom's remarks: . . . do some testing with your donors to determine their motivations for giving and their expectations for recognition. . . most of the donors for the organization I work for now do not want high-profile recognition, but do want to be kept current about our work. . . . Other groups of donors expect more flash, so you need to determine what your constituency needs.

 

The Importance of Silence During The Ask

How do you ASK for a major gift??? Several people asked about this crucial issue.

Mary Thom: I think I eased into asking by practicing on phonathons and working up to a big ask. Over time I learned that one of the most significant moments of asking for a large gift is the one immediately after the solicitation . . . silence is difficult, but at this moment is critical. I always emphasize to anyone preparing to solicit a major gift that the silence of that moment must be honored, and NOT RUSHED.

Another participant: I did my first face-to-face major donor ask as a volunteer for an organization to which I gave money that closely approximated the amount of the gift I was asking for. That sure made it easier. I personally felt invested in the organization and was able to be a convincing asker. Also I realized that the amount I was asking for was reasonable, since I myself gave. . . . As for the silence: it is a little scary, but necessary . . you had your say, now give the donor time to think about an answer. Practice how you are going to ask, and also practice waiting. Time yourself. See what it feels like so that you aren't surprised by it when you are actually faced with the silence.

And another writer: Silence is not the only factor, you must listen -- be prepared to hear the donor's objection, if there is one -- and have an answer for it. If the donor cannot think of a reason why they shouldn't make the gift -- and if they have a relationship with your organization and the capacity to give -- you will get the gift. In my first successful gift solicitation (for $50,000) while I waited after I made the ask, all I could hear was the ticking of a clock . . . 30 seconds seemed like an eternity. You may hear people describe this tense moment by saying "the first person to speak loses".

Someone else: The key to asking is to prepare yourself with knowledge of the donor and tools to use when you get the common replies to an ask. There's lots of advice out there, but I think the important thing is TO ASK. Once you get the words out, you'll be surprised how much easier it will be thereafter. Role-play a bit so you'll know what to say to whatever response you get.

Another writer: . . . staying silent after the ask shows your commitment to the mission and your confidence in it and yourself.

 

Who Does the Actual Asking?

Current thinking says that the development officer is the "support person", and the asker should be a Board member or other top organization person. But, there seems to be a trend toward the development person becoming the solicitor . . .

Mary Thom comments: . . . prior to my arrival, there was no development office and no one was asking for money. . . If I had waited to get enough volunteers in place to do the asking, I wouldn't have raised any money. . . . a good development officer can ask with as much commitment and compassion as anyone.

 

Whether To Ask At a House Party

There were several exchanges about an event. . . not a "special event", but an event tailored for major donors. This would be a small-ish event, for between a dozen and three dozen people, and often is a "house party", hosted by someone who is already donating to your organization, and who invites people they know who will, hopefully, do the same. . . the organization may also invite some donor/prospects, but it works well if the hosts have a nodding acquaintanceship with everyone, as this is primarily a social occasion.

Several questions were posed, about whether or not to make an ask there at the party, or wait and contact people later after this initial introduction to your cause. The answer, generally speaking, is 'it depends' . . . on the way an ask is made, and by whom it is made, and whether it was expected by the guests.

  • The ask should be made in a positive light, in the context of all the good the organization has done and why funds are needed; never in a desperate or threatening way ("if we don't get money right now, we're going under").
  • The person making the ask should be someone who's already made a major donation, if possible; the host of the party would be a good choice. In one case mentioned, the group planned ahead and got a donor to make a challenge gift of $10,000 if the other attendees would make gifts totalling that amount . . . but then did not have that donor make the ask!
  • And the guests need to be expecting an ask . . don't invite them to an event billed as an end of year celebration, and then spring an ask on them. One good model is the story one writer told of the hostess, a major donor herself, "enticing the invitees to attend by including a mouth-watering menu of what would be served, and a short sweet note indicating that this party would 'benefit Group X because it is so close to my heart'".

 

House Party Expenses

Another question was asked about charging a ticket price up front to this event . . . better would be finding someone to host it who is willing to incur the costs of the event in order to help the organization. . . the fact that the host is willing to do so helps to demonstrate to the guests his or her commitment and encourage similar commitment in them.

Another writer found a way around finding a generous host: found a host who provided the setting, some paper goods and kitchen space . . . then solicited some local restaurant for a "platter" of food each, showing off their best, of course; and a soda company donated the mixers. The organization bought wine and some liquor. A good way to spread the cost around.

And be sure to follow up with the guests at any such event. . those who didn't give should get a letter soon after the event, as should those who were invited but didn't attend.

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