whither private fund raising & development? or nobody told me id be raising money!

Whither Private Fund Raising & Development?

or

Nobody Told Me I’d Be Raising Money!

Don Gray, UW Foundation

As A Leader For My Department, I Expected to:

Recruit the Best Students Hire and Retain the Best Faculty Encourage Junior Faculty Cajole Senior Faculty Worry About Ratings Agonize Over Threatened Budgets Play Politics With My Dean


But Nobody Told Me I’d Have to Raise the Money for All This Stuff

$ Recruit the Best Students$ Hire and Retain the Best Faculty$ Encourage Junior Faculty$ Cajole Senior Faculty$ Worry About Ratings$ Agonize Over Threatened Budgets$ Play Politics With My Dean


So How Can I

Have the right attitude towards raising this money?

Understand what it’s all about? Internalize how to do it? Motivate others to help me? Learn to like doing it?


“You want to compose a good world. It is an honorable

and noble profession.”

- Maya Angelou



Gifts and Donations

A GIFT is a tangible symbol of feelings between people

A DONATION is a tangible symbol of support to a cause


Development and Fund Raising

A GIFT is to DEVELOPMENT

as

A DONATION is to FUND RAISING

Minor Point (or is it?):

a person making a gift is a giver

a person making a donation is a donor


Inappropriate Terms hit up put the arm on … squeeze loaded … should give … ought to give … owes us pass the hat get into his/her pockets


So How Can I




ANNUAL FUND DONATIONS Frequently Given and Asked For From Discretionary Income; Little Decision

Making; Decision is Immediate; Spouse Often Not Involved

2-5% of Annual Gross Income (To All) Sustaining/Operational Fund Direct Mail/Events/Telethon 90% of gifts; 10% of dollars Most major gifts come from annual fund donors


Importance of Annual Fund in Major Gift Activity

For all givers to universities who make a first “major gift” of $25,000 or more, – 75% made a first donation to the university of

$250 or less in response to the annual fund– 83% have made smaller level donations

(annual fund donations) for at least 5 years; almost 60% for at least 11 years

Concept of Annual Fund as Living Endowment ($100K annually equates to an endowment of $2 million)


MAJOR GIFTS

Infrequently Given and Asked For Made from Assets; Stop/Think Gift; Longer

for Decision; Spouse Involved Requires Development of Relationship Special, Targeted Projects 10-20x Annual Gift or 2-4% of Net Income-

Producing Assets 10% of gifts; 90% of dollars


Accounting Department Advantages in Major Gift Work

Accountants understand giving Accountants seldom give to any place within a

university other than to their accounting departments

Accounting firms tend to have matching gift programs

All partners are capable of major giving Accounting firms need your graduates as

employees Many accountants end up as CEO’s or CFO’s


Top Three Reasons People Give Major Gifts

Belief in Mission and Stability of the Organization

Sense of Civic Responsibility High Regard for Staff and Volunteer

Leadership

“Charitable giving isn’t the ultimate test of one’s humanity but it gives us some numbers to

play with.”


Bottom Three Reasons People Give Major Gifts

Guilt and Obligation Promotional Materials and Proposals Tax Considerations (probably more

important for accountants than others)


So How Can I




Successful Development

THE MYSTICAL MINGLING

OF

A JOYFUL GIVER

AN ARTFUL ASKER

A GRATEFUL RECIPIENT

The Cycle of Successful Development

Creating the Joyful Giver

Attention

Interest

Desire

Action

Making the Artful Ask

no,no,no

maybe

yes

acknowledge

Invoking the Grateful Recipient

Show Creativity

Additional Gift Interest

Iden

tific

atio

n

Initial Contact



So How Can I




Enlisting Support to Help

Educate your faculty on benefits of a successful program

Choose your external advisory board carefully, looking for the 5 W’s

Convince your dean that your success is his/her success

Be successful

The Five W’s of Being an Effective Advisory Board Member

Advisory Board

Work Wisdom

Wealth

Wallop

Wow



So How Can I




Learning to Enjoy Development Realize that everyone “out there” loves you You make great friends You make alumni/friends feel good You take your department to a new level You truly do “compose a good world” by

attracting the funds that can your department responsive to student, faculty, and program needs.

It is indeed noble work

February 5, 2001

Donald R. Gray

University of Wisconsin Foundation

The Cycle of Successful Development

Creating the Joyful Giver

Attention

Interest

Desire

Action


no,no,no

maybe

yes

acknowledge

Invoking the Grateful Recipient

Show Creativity

Additional Gift Interest

Iden

tific

atio

n

Initial Contact



Major Issues in Asking When is the timing right? How much do you ask for? Who makes the ask? Where is the best location to make an ask? How do you make an artful ask? Common pitfalls in making an ask? How do you respond to objection? How do you follow up? What do you do if the answer is “no”? What do you do if the answer is “yes”?


When is the timing right?

Should be a natural flow in the process (cycle)

Listen for signals: Listen, Listen, Listen

Develop a “touch” for knowing

Remember: this is an art, not a science


How much do you ask for? If you’ve had good prior contact,

you’ll have a good idea Ask for somewhat more than you

expect Ask specific amount or list of levels Expect to discuss Form of gift (payment period;

endowment or annual; combo with planned gift; etc.)

I haven’t got a clue!


Who makes the ask?

Whoever is most appropriate

Consider team approach

Caution when using volunteers:– need training

– often are uncomfortable

Let’s see, now, who gets this assignment?


Where is the ask made?

Wherever the potential giver is most comfortable

Avoid noisy restaurants Best places: donor’s home,

with spouse; office; club; dean’s or president’s office; favorite place on campus

Pay attention to setting; make it classy

home

officecampus

restaurant

?


How do you make an Artful Ask


Attitude is Everything


How do you make an Artful Ask

bestow honor/praise on potential giver show your organizational pride (knowledge,

commitment, passion) be considerate; ask for consideration state specific amount state specific purpose shut up

Is This an Artful Ask? bestow honor/praise show organizational

pride be considerate; ask for

consideration state specific amount state specific purpose shut up

Joe, we know you have a lot of money. Your career as a successful accountant is because of the education you received at good ol’ State U. We need your money because our accounting curriculum is in disrepair. We think you should establish a professorship in accounting. You get a whopping tax deduction, and all of us can use that, can’t we? By the way, how’s your golf game?


Is This An Artful Ask?

bestow honor/praise show organizational

pride be considerate; ask for

consideration state specific amount state specific purpose shut up

Joe, you are one of the most successful and most highly respected professionals in the field of accounting, and you bring honor to State U in so many ways. It would be a distinct privilege for State to have your name and reputation forever imprinted on our outstanding and growing accounting department. Would you consider a gift of $250,000 to establish the Joe Goodfellow Professorship in Accounting?


Would you hire Snoopy’s brother Spike as your development director?


What are the common pitfalls in asking? We talk too much Ask sounds cold or

inconsiderate We use words like “should”

and “ought” We ask apologetically and are

embarrassed Eye contact breaks down The ask is rushed We break the silence too soon

after ask is made

Hee Haw


How do you respond to objections? “I’m a bit strapped right now. You know, kids in

college, building a new house, the divorce is killing me, etc.”

“I give to so many different causes, I don’t know how I can expand to include the university”

“Oh my goodness, I don’t have that kind of money?”

“The last time I gave to your institution I didn’t even get a thank you letter!”

“What possible impact can my modest gift make?”


How do you follow up?

Seldom will you close a major gift on the asking call

Plan ahead for following up Before the meeting ends,

make sure the potential giver knows the next step: who will contact whom; when; contingencies


What do you do if the answer is “no”? Realize there are many reasons for a “no”:

– timing is bad– project is wrong– amount of ask is wrong– wrong person asked– not enough time “creating joyful giver”

Three “no’s” is halfway to a “yes” Be considerate, thank the person, continue

contact, listen for signals

Ugh


What do you do if the answer is “yes”?

Make sure all appropriate people say “thank you”

Design a creative plan to continue saying “thanks”

Continue visiting the giver and listening for next opportunity

Keep working the Cycle!!!!!

Yippee


Conclusion For successful development at your

department, you are– the catalyst– the cheerleader– the visionary

It’s your vision, your knowledge, your passion, and your enthusiasm that will make it succeed

Good luck and go forth joyfully, artfully, and gratefully. It is noble work!


But Be Careful: Different Strokes

Traditionalists (born prior to WWII) Boomers (born 1945 - 1965) X (Next) Gens (born 1966-1988) Echo Boomers (young-uns)

Each of these groups thinks differently and requires special understanding


Traditionalists Major life events forming their values and

thought patterns:– The Depression– World War II– The Atom Bomb

Attitudes toward giving– Sense of “giving something back”– Great loyalty to institutions they love– Quid pro Quo less important– Understand philanthropy


Boomers Major life events forming their values and

thought patterns:– Assassinations– Vietnam– Watergate– Questioning of Institutional Values

Attitudes toward giving– Show me why I should give– What’s in it for me?– Think social investment


X (Next) Generation Major life events forming their values and

thought patterns:– Computers and Technology– Economic Boom (never seen a bear market)– Impatient Society

Attitudes toward giving– Not yet sure, but– Will probably involve technology– Will inherit trillion– Think venture capital for social improvement

whither private fund raising & development? or nobody told me id be raising money!

Documents

u squeeze u

ratings u

assets u

dollars u

employees u

best faculty u

junior faculty u

giving u accountants