MMB CFRE Flashcards: Domain 2 Securing the Gift
What are hidden costs of a Capital Campaign?
-Attrition of donors over time & attrition of pledges that did not come through due to chanage in market or personal finances.
Description of CASE
-The Case is bigger than the org's needs and bigger than the org itself. -Typically there is one LARGE Case for the org as a whole; from it, smaller individual case statements are developed for various constituencies and programs.
(4) Primary types of Fundraising programs **Ref Diagram P. 14 study guide
1. Annual Fund 2. Major Gifts 3. Capital Campaigns 4. Estate Planning
Steps for creating an integrated development plan:
1. Assessment of org NEEDS a). Program and annual operating needs b). Special Purpose Needs c). Capital Needs d). Endowment Needs 2. Evaluation of $$ needed to support programs and meet needs 3. Selection of appropriate FUNDRAISING PROGRAMS to raise required funds
Name the Benefits of Major Gift Campaigns.
1. Builds familiarity w/ organization to constituency/GP 2. Encourages donors to "Think Big" 3. Annual Giving grows to new levels as a natural reaction to MG campaign 4. Bolsters volunteer leadership 5. Increases organizations visibility 6. Enables donor pledges over several years
Speak to the Value of Major Gift Campaigns
1. Builds familiarity w/ organization to constituency/GP 2. Encourages donors to "Think Big" 3. Annual Giving grows to new levels as a natural reaction to MG campaign 4. Bolsters volunteer leadership 5. Increases organizations visibility 6. Enables donor pledges over several years 7. Hones skills of development staff 8. Unites constituency in common cause
Worthiness of the CAUSE should relate to:
1. Capacity to address probs 2. Ability to adjust focus & problem solving capabilities to meet changing markets or societal needs. 3. Relevancy to public need or problem and to its constituencies 4. Clear image of importance w/in own field and w/ in sphere of influence 5. Urgency to address prob/needs.
Securing the Gift:
1. Develop a compelling case for support involving stakeholders in order to communicate the rationale for supporting the orgs fundraising program. 2. Apply prospect research data to develop a solicitation plan for involvement for individual donors and/or donor groups 3. Design a comprehensive solicitation program to generate financial support for the organization's purpose. 4. Prepare donor-focused and segmented solicitation communications in order to influence and facilitate informed gift decisions. 5. Ask for and secure gifts from prospects in order to generate financial support for the organizations purpose. 6. Evaluate the solicitation program using appropriate criteria and methodology to produce accurate, analytical reports for effective decision making.
What techniques do annual funds use to make a solicitation?
1. Direct Marketing (mail, phone, email DRTV (direct response television) 2. Personal solicitation of major gifts 3. Recognition groups 4. Challenge Gifts 5. Grant Proposals 6. Special Events 7. Other --(ex affinity cards, etc)
What are the (5) basic/guiding principals relative to the Gift Range Chart?
1. First 2 gifts = 10% of goal, or 5% each 2. Next 4 gifts = additional 10% of goal 3. FLEXABILITY developed beyond this point is dependent on available prospects, gift history, and the key LAI factors (linkage, ability and interest) 4. Prospect to donor ratio = 5:1 @ top level and gradually reduces to 2:1 (moving toward pyramid base) 5. Most applicable with campaign goals $25k ++
Goal of Annual Fund
1. Get the gift 2. Repeat the gift 3. Upgrade the gift -Annual Fund seeks gift from donor income to address income needs of org-->Cash Gift
Annual Fund Action Plan Should include:
1. Goals & levels of gifts required to reach goals indicated on gift range chart 2. Resources Required 3. Establishment of gift clubs tied to levels of giving 4. Identification and Evaluation of prospects 5. Recruiting and training of volunteers 6. Scheduled meetings and events 7. Awards and Recognition Programs 8. Support Materials 9. Approved budget 10. Campaign calendar w/ clearly stated time scheduled for each phase of the campaign 11. Staff ready to support the project
What are the (4) basic functions of the Gift Range Chart?
1. Helps plan for/determine patterns of giving that will bubble up during successful campaign 2. Allows us to test/measure availability of donor/prospects at specific giving levels. 3. Devise that raises giving sights of donors and prospects 4. Means for evaluating the fundraising effort at the beginning and the end of campaign (I.e. How did outcome relate to plans?)
Success of Major Gift campaign depend on multiple factors. Name a few..
1. Institutional Readiness: (Reputation/credibility; Urgency of Case; Availability/readiness of board support; Solid pipeline/prospect database; Operational readiness of office/systems; Pre-Campaign Planning is VERY Imp//feasibility study, strategic plan, internal audit) 2. Constituent Readiness: (Org has stable/positive image; Accessible volunteers; Adequate # or prospects capable of making substantial gifts are cultivate and ready//AKA PIPELINE; Ongoing awareness/information/cultivation programs are in place; Completed external feasibility study measuring readiness)
Uses of Case Statement: (5)
1. Obtain Consensus: Welcomes feedback and creates ownership 2. Recruit volunteer leadership 3. Test the Market 4. Tell the story 5. Create fundraising material-- (spin offs of the Case statement as primary/larger fundraising material)
The Content of the case should centralize information about a variety of subjects, including:
1. Org needs 2. Cause 3. Mission 4. Goals 5. Objectives 6. Strategies & Task Plans 7. Governance 8. Staff Competence for the Mission 9. Financial History 10. Facilities
The Case Statement includes: (5)
1. Org's services, programs, objectives 2. How the fundraising goals support the org.; including how funds will be used, why reaching goal is vital to society and those served by the org; how success of the fundraising program will strengthen the org 3. Ways the org will remain productive in the future by its own efforts and the generosity of supporters 4. The diff the donor's support will make (the heart of the matter) 5. What the org must do to improve/change its activities, aims and value to society
The Purpose section of the case should include:
1. Orgs' aims, purposes, and mission 2. presents a case for current programs, 3. shows how new programs will benefit 4. show the org's impact on its community in a variety of ways, now and in the future.
Purpose of Annual Fund
1. Provide annual, repeated income for restricted and unrestricted programs 2. Establish patterns of giving/build donor loyalty 3. Acquire donors 4. Renew donor support annually 5. Cultivate donors to increase giving levels 6. Provide continuing list of top prospects/major gift prospects 7. Identify & involve leadership & volunteers 8. Allow for reiteration of organization's message each year 9. Promote sound stewardship practices
Purposes of Annual Fund: (9)
1. Provide annual, repeated income for restricted and unrestricted programs 2. Establish patterns of giving/build donor loyalty 3. Acquire donors 4. Renew donor support annually 5. Cultivate donors to increase giving levels 6. Provide continuing list of top prospects/major gift prospects 7. Identify & involve leadership & volunteers 8. Allow for reiteration of organization's message each year 9. Promote sound stewardship practices
Annual Fund is the primary fundraising method used to:
1. broaden support 2. upgrade giving levels 3. provide operating support
Typically, the case will have a particular focus... it might be one, two, or all three of these "Case Categories": **Refer to Case Categories Chart, P. 12 study guide
1. unrestricted operating support 2. restricted gifts for operations 3. restricted gifts for special needs - capital, endowment, or other
Annual Giving Campaign : (Best Practices)
2 or 3 annual gifts at top of annual fund gift range chart = 10% - 15% of GOAL Each gift = 5% of GOAL
Annual Fund operates on ________levels concurrently?
3 1. Get the gift 2. Repeat the gift 3. Upgrade the gift
The foundation of ALL Fundraising
Annual Fund
What is the typical planning period for Capital Campaigns?
Approximately 5-10 years
What type of campaign leads off w/ 1 gift ranging from 10%-20% of total campaign goal?
CAPITAL CAMPAIGN
Develop a compelling __________ for support involving stakeholders in order to communicate the rationale for supporting the orgz fundraising program.
CASE
The __________ is the expression of the cause, or why anyone should contribute to the advancement of the cause.
CASE
An organizations CASE is related to its ___________.
CAUSE
What is a written version of the case for a specific constituency or campaign, derived from the org's overall case?
Case Statement
What describes the org's goals and objectives and covers the programs and services it provides?
Case for Support
Because problems and needs exist in society, ________ emerge.
Causes
Practice Test Question Successful, Value based philanthropy and fundraising rely mostly on a ______________.
Compelling Mission Statement
Elements of the Development Process
Developing the case for support... prospect research... cultivation and constituency development, solicitation strategies... acknowledgement and recognition... gift management
Major Giving Definition
Gift of a significant amount (gift size depends on orgs needs and goals) **Purpose of Major Giving Program: -provide support for programs, projects and limited capital requirements, including equipment, or to add to an endowment fund
Who said this?... "The case statement is the one definitive piece of the whole campaign. It tells all that needs to be told, answers all the important questions, reviews the arguments for support, explains the proposed plan for raising the money, and shows how gifts may be made, and who the people are who vouch for the project, and who will give it leadership and direction".
Harold J Seymour, 1935, Noted fundraising pioneer
Prospect Research ________ cultivation and solicitation strategies:
INFORMS It Helps Us.... : 1. understand prospect's motivations and needs 2. present/offer meaningful giving opportunities 3. Tailor Fundraising strategy -Critical Balance Achieved: matching donor needs/interest with orgs needs -Expressing mission in ways that invite donors to participate in programs while meeting donor needs for (1) Recognition, (2) Sense of Belonging, and (3) Making a Difference
Planned Giving Definition
Integration of income, assets and estate planning concepts with an individual donor's plan for lifetime or testamentary giving ** Purpose of Planned Giving Program: 1. Organization: provides higher-level gifts and increased future stability, increased donor commitment 2. Donor: ways to give beyond the use of current assets; often provides significant estate tax benefits.
Linkage Ability Interest (LAI)--in relation to donor/org relationship timeline ** Diagram P. 15 of study guide
LAI= Prospect, donor, repeat donor
Linkage Involvement Advocacy (LIA)--in relation to donor/org relationship timeline ** Diagram P. 15 of study guide
LIA= upgraded donor, special gifts, major gifts, Big gifts, planned gift
Capital Campaign: (Best Practices)
Leads off w/ 1 gift ranging from 10%-20% of total campaign goal For this to happen, it requires 5 prospects from TOP 3%-5% of well developed donor base to be the major contributors
OBJECTIVE: Secure Special Gift and/or Leadership Gift ($1k+) ** Diagram P. 16 of study guide
METHOD/ACTIVITIES: -Continue Research -Involve through Linkages & Build Interest -Tell about Special Needs -Inform on how $$ is used -Solicit PERSONALLY -Acknowledge -Give Recognition
OBJECTIVE: Secure Planned Gift ** Diagram P. 16 of study guide
METHOD/ACTIVITIES: -Continue involvement -Strengthen Linkages and Involvement -Create feeling of belonging to and identification with org -Foster mutuality of interests
OBJECTIVE: Secure Major Gift ($10k ++) ** Diagram P. 16 of study guide
METHOD/ACTIVITIES: -Use all linkages -Add to Interests -Involve in Institutional planning & as advocate through cultivation -Ask -Acknowledge -Provide personal reports -Reward
OBJECTIVE: Secure BIG Gift ($100k ++) ** Diagram P. 16 of study guide
METHOD/ACTIVITIES: -Use all linkages+ -Validate as MG prospect -Add to Interests -Involve in Institutional planning & as advocate through cultivation -Ask -Acknowledge -Provide personal reports -Reward
OBJECTIVE: Convert Prospects into Donors ** Diagram P. 16 of study guide
METHOD/ACTIVITIES: -Build on Linkages -Test Interest -Solicit (by phone, mail or special event) -Acknowledge
OBJECTIVE: Convert Initial Giver into Repeat Giver ** Diagram P. 16 of study guide
METHOD/ACTIVITIES: -Build on interest and Linkages -Ask -Record -Acknowledge -Report use of gift & invite to renew
OBJECTIVE: Identify Prospects ** Diagram P. 16 of study guide
METHOD/ACTIVITIES: -Develop & Build lists -Identify & research constituency
OBJECTIVE: Increase Gift ** Diagram P. 16 of study guide
METHOD/ACTIVITIES: -Research -Build on interests and Linkages -Inform -Involve -Invite to renew/increase gift -Acknowledge -Give Recognition
OBJECTIVE: Qualify Prospects ** Diagram P. 16 of study guide
METHOD/ACTIVITIES: -Test list effectiveness -Identify Linkages -Refine prospect development
____________ ____________ typically come from donors who consistently give at a meaningful level.
Major Gifts
Practice Test Question In preparation of the case statement, which of the following important pieces of information should be included first?
Mission Statement of the Organization
What are the 3 key elements of a Case?
Org's Purpose, Content, Focus
Major Gifts--Definition
Philanthropically inspired gifts that have significant impact on entire development program.
What kind of data should be applied to develop a solicitation plan for involvement of individuals donors and/or donor groups?
Prospect Research Data
Case Statement Creation Guide
Reference Chart in Study guide; P 12-13
Gift Range Chart **Reference Diagram P.17 stud guide**
Statistical representations of patterns of giving--applies to annual giving campaigns & major giving campaigns even extending to capital, endowment and or comprehensive campaigns.
Major Gifts require the RIGHT PERSON asking the RIGHT PROSPECT at the RIGHT TIME. True or False?
TRUE
The vehicle for Major Giving is typically both income (cash) and assets which is typically completed over a period of time or "pledged". True or False ?
TRUE
The Development Process ** Diagram P. 15 of study guide
Think of this as a timeline in the donor/org relationship prospect-donor-repeat donor-upgraded donor- special gifts- major gifts - BIG gifts- Planned gift
Annual Fund Committee
Under the leadership of an influential and committed chair person, an annual fund committee should be recruited and trained to assume leadership roles in fulfilling the annual fund program by creating and carrying out an action plan
Why is it important to obtain feedback and ownership in developing the case statement?
allows for key groups to provide input, general agreement to emerge, identify questions that may be raised ahead of time allowing them to be addressed before they are brought up by others, enhance guy-in.
Capital Campaigns Definition
an intensive, organized fundraising effort to secure gifts for specific capital needs and executed within a specific time period+ **Purpose of Capital Capaigns: 1. Specifically targets building (ex funds for facilities) 2. Meet capital needs such as building construction, remodeling, expansion, special equipment, etc
Things to consider in case statement for Foundation constituents:
avoid formal printing... be prepared to fit the foundations' proposal format... address annual goals, hidden agendas, and stated areas of interest.
why is it important to test the market with your case statement?
determine how potential major donors feel about the org's direction and proposed development goals. Provides a vehicle to bring prospective major donors into the planning process and allows them to react to the proposed objectives, highlighting strengths and weaknesses as well as which components appeal to which constituents.
DRTV
direct response television -advertising that asks the "customer" to respond directly to the company. "Give directly to LSU F4F Campaign through our web page".
Things to consider in case statement for Corporate constituents:
emphasize any services you provide to the corp or its employees
Things to consider in case statement for Community Audience constituents:
emphasize economic contributions of your org to the community
A comprehensive solicitation program generates...
financial support for the organizations purpose
To ensure a successful case statement:
know about or collect org info... talk to everyone... know the expectations/interests of the target constituency... relinquish pride of authorship... and write, rewrite, rewrite, then rewrite!
5% -15% of donor base =
major gift prospects
The case statement should be reader-oriented, rather than
organization-oriented
Things to consider in case statement for major donor constituents:
point out you are looking for a few major givers, ask for advice and participation, state needs more briefly, emphasize leadership, be candid about request, develop low-key "insider" appearance that is not too slick
Annual Fund Definition
primary fundraising method used to broaden support, upgrade gift levels, and provide operating support for ongoing programs
ways to segment constituencies
strongest supporters, regular donors, those with greatest interest/ability to give, those most interested in campaign elements
The case is driven by...
the mission and strategic plan of the org.
The case helps make it possible to match
the org's needs to the donor's needs.
What is a "Quiet Phase" relative to capital campaign launch?
this is the non-public phase prior to public launch where 50% of campaign goal should be achieved BEFORE launching publicly. -Best Practices cautions against entering a mid level campaign phase and/or public phase until 50% of goal is reached.
The final case statement can be the basis of content for:
website, proposals, campaign prospectus, newsletters, individual presentations, brochures, appeals, press releases, speeches
Why is it important to recruit volunteer leadership in developing the case statement?
when prospective volunteers have questions, the case statement helps provide answers and gives them confidence in the plan and direction.