major gifts myth busters: overcoming the seven most ......myth 2: metrics some of the most useful...
TRANSCRIPT
Major Gifts Myth Busters:
Overcoming the Seven Most Misleading Myths of Major Gifts
Karen Cairney October 4, 2016 – IoF Scotland Conference
Myths?
• There has been a dramatic increase in data-driven research and a more rigorous
pursuit of the science of philanthropy
• New and disruptive facts and realisations take aim at the “truths” we have held dear
for decades
• We now challenge our old practices and adopt new strategies and beliefs to optimise
major gifts efforts
• We have become……Myth Busters!
Let’s test our knowledge and think through ways to bust these myths….
MYTH 1: Gift Officer Activity
More visit activity from Gift Officers equals more £ raised.
THE
MYTH
MYTH 1: Gift Officer Activity
Gift officers with more realistic, attainable, and strategic
visit goals raise more money. Activity alone doesn’t
increase gifts. Strategic portfolio management and
individualised goal-setting does.
THE
TRUTH
Despite goals often set at 120+, high-performing gift officers
are often making only 80-100 visits a year (and soliciting
~25 major gifts). FAST
FACT
MYTH 1: Gift Officer Activity
Set visit goals individually and strategically based on the
composition of a portfolio and the gift officer’s plan for the
year.
Remember – the more attainable and realistic, the better the
results!
WHAT
TO DO?
MYTH 2: Metrics
When it comes to gift officer metrics, the bigger the better.
THE
MYTH
MYTH 2: Metrics
Some of the most useful metrics to drive major gifts
productivity are Close Rate and Percent of Solicited Gifts
Closed. These metrics tell us a great deal about the
success of our teams and individual gift officers. A very
high (or very low) percentage for either of these metrics
should generate a red flag – no one should be closing
100% of their gifts!
THE
TRUTH
Close Rates of 50%-70% and Percent Solicited Gift Value
of 50%-80% are typical for high-performing gift officers. FAST
FACT
MYTH 2: Metrics
Examine close rate and percent solicited gift value closed
for each gift officer. Remember, too low and too high are
both red flags!
Let the metrics guide you into a discussion with the gift
officer on how to strengthen their cultivation and ask
approach.
WHAT
TO DO?
MYTH 3: Career Pathing
The best way to promote and keep a high-performing gift officer is to make them a manager.
THE
MYTH
MYTH 3: Career Pathing
Many gift officers are ill-suited to management roles, in
temperament and skill, and often promoted without the
needed support. Perhaps more importantly, taking high-
performers and saddling them with management
responsibility is a sure-fire way to tank productivity and
success. Look for career growth opportunities involving
exposure to Boards, leaders, and top prospects, or special
development projects.
THE
TRUTH
Gift officers spending 80% or more of their time on frontline
fundraising will have the greatest returns and highest
productivity.
FAST
FACT
MYTH 3: Career Pathing
Develop non-management career paths for high-performing
gift officers that keep them focused on what they are best at
and allow them to have greater impact on the organisation.
Further, consider a managerial skills assessment or criteria
checklist to ensure those moving into management positions
are appropriately skilled and suited for the work.
WHAT
TO DO?
MYTH 4: Management
Don’t burden MGOs with lots of management meetings and discussions – send them out on the road and they’ll figure it out.
THE
MYTH
MYTH 4: Management
We now know that gift officers actually need a great deal of
coaching – seasoned and new alike – on subjects such as
prospect strategies, solicitation approaches, overcoming
barriers, and closing gifts. Many managers and leaders
often focus their attentions on a handful of needy low-
performers, and forget to invest the time and coaching
essential to nurture high-potential performers.
THE
TRUTH
Managers of high-performing teams cite coaching and
mentoring as the most impactful resources to strengthen
their team’s work.
FAST
FACT
MYTH 4: Management
Whether mentoring in-house, manager-driven, or an outside
coaching partner, invest in this essential coaching work for
your team. Spend the most time and energy around high-
potential performers.
WHAT
TO DO?
MYTH 5: Portfolio Size
A big portfolio allows gift officers to develop lots of relationships and ensure a healthy pipeline.
THE
MYTH
MYTH 5: Portfolio Size
Gift officers are not great at portfolio management, and
shouldn’t have to be. Development managers have been
dramatically reducing the size of portfolios, eliminating
dormant, unqualified, and long-term stewardship prospects,
to ensure gift officers can focus activity on key prospects in
cultivation and solicitation stages.
THE
TRUTH
Major gifts portfolio sizes have reduced from what were
national averages of over 160 prospects to averages closer to ~90 prospects.
FAST
FACT
MYTH 5: Portfolio Size
Review portfolios each year. Are the Top 50 prospects
closest to solicitation and in need of focused
cultivation identified and highlighted? Make sure the
portfolios aren't serving as cover for “relationship-
building” without real development strategy and solicitation activity.
WHAT
TO DO?
MYTH 6: Going it Alone
Major Gifts Officers are lone wolves – most of their work should be done solo and without a partner.
THE
MYTH
MYTH 6: Going it Alone
Partner up! Pairing gift officers with other fundraising
professionals, academic and practice leaders, Board
members, and volunteers create higher results than when
gift officers cultivate and solicit on their own.
THE
TRUTH
Gift officers are able to close more major gifts and for more
money when conducting asks and closes in partnership with
Deans, department chairs, and planned giving officers.
FAST
FACT
MYTH 6: Going it Alone
Encourage gift officers to make visits and solicit in
partnership with others. Consider creating a measurement
to positively report on the partnership work and activity of
the major gift officers.
WHAT
TO DO?
MYTH 7: Avoid Angry Prospects
People who have had a negative experience or are outwardly irritated with the organization are lost causes – don’t waste your time.
THE
MYTH
MYTH 7: Avoid Angry Prospects
Passion is better than ambivalence – that’s the principle at
work here. We actually know that prospects who are angry
or upset have more of a chance at becoming donors or
increasing their giving going forward, if that passion and
caring can be redirected to the positive.
THE
TRUTH
One of the often-cited catalysts for successful major and
principal gift conversations is starting a dialogue with
someone who has been upset in the past. FAST
FACT
MYTH 7: Avoid Angry Prospects
Conduct a portfolio and prospect review of prospects that
have been “avoided” because of negative experiences or
feelings. Consider approaching these prospects anew, with
an intent to learn and discuss why they feel passionately
about the issue.
WHAT
TO DO?
Extra Credit
What other major gifts myths have you
addressed or busted as a team?
– What was the myth?
– What was the truth?
– What strategy did you employ to bust the myth?
Your Myth Busters Checklist
Set visit goals individually and strategically based on the composition of a portfolio and
the gift officer’s plan for the year. Remember – the more attainable and realistic, the
better the results!
Examine close rate and percent solicited gift value closed for each gift officer.
Remember, too low and too high are both red flags! Let the metrics guide you into a
discussion with the gift officer on how to strengthen their cultivation and ask approach.
Review portfolios each year. Are the Top 50 prospects closest to solicitation and in need
of focused cultivation identified and highlighted? Make sure the portfolios aren't serving
as cover for “relationship-building” without real development strategy and solicitation
activity.
Develop non-management career paths for high-performing gift officers that keep them
focused on what they are best at and allow them to have greater impact on the
organisation. Further, consider a managerial skills assessment or criteria checklist to
ensure those moving into management positions are appropriately skilled and suited for
the work.
Your Myth Busters Checklist
Whether mentoring in-house, manager-driven, or an outside coaching partner, invest in
this essential coaching work for your team. Spend the most time and energy around
high-potential performers.
Encourage gift officers to make visits and solicit in partnership with others. Consider
creating a measurement to positively report on the partnership work and activity of the
major gift officers.
Conduct a portfolio and prospect review of prospects that have been “avoided”
because of negative experiences or feelings. Consider approaching these prospects
anew, with an intent to learn and discuss why they feel passionately about the issue.
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