The Seven Keys to a Successful Major Gift Program

TheSevenKeystoaSuccessfulMajorGiftProgramVeritusGroupPage1

TheSevenKeystoaSuccessfulMajorGiftProgram

AnarticlefromVeritusGrouptohelpyousucceedatmajorgiftfundraising. byRichardPerryandJeffSchreifelsFindmoreWhitePaperslikethisatwww.VeritusGroup.com

Whatyouwilllearn

1. Whataretheattributesofasuccessfulmajorgiftprogram

2. Howtoevaluateamajorgiftprogram’ssuccess

3. Thekeyfoundationsforcreatingagreatmajorgiftprogram.


eopleoftenaskuswhatwethinkmakesforareallygoodmajorgiftprogram.Sometimesthis

questioncomesfromtheirfrustrationwithhowthingsarecurrentlygoing.Oftenit’sabout

wantingtomaketheirprogrambetter.

InthisdocumentyouwilllearnsevenindispensablecategoriesofworkthatweatVeritusbelieveare

requiredforanymajorgiftprogramtobesuccessfulinraisingsignificantdollarsforprogram,retaining

donorsandprovidingmeaningfulandfulfillingworkformajorgiftofficers.Weadd“retainingdonors”

and“providingmeaningfulworkforMGOs”tothe“raisingmoney,”creatingalistthatwecalltheMajor

GiftValueTriad–becauseallthreeoftheseareimportantpartsofhavingasuccessfulmajorgift

program:

1. Raisingthemoneyisimportant,asweallknow.

2. Butretainingdonorsisequallyimportant.Weseemostmajorgiftfileslosingfrom40‐60%oftheir

valuefromyeartoyear,withmillionsofdollarssimplyvanishingintoair;sokeepingdonorsisa

criticalvaluetothemajorgifteffort.

3. Andprovidingmeaningfulandfulfillingemploymentisalsoacriticalvalue.Ifyouarekeepingthe

donorsandraisingthemoneybutnotvaluingyourMGO,there’stroubleahead.Thetenureofmost

MGOslastsjustovertwoyears,sowecan’tsaywe’velearnedmuchaboutstewardingthisimportant

humanresource.Andthere’sadirectconnectionbetweenlosingyourMGOandlosingdonors.

Sowiththatsaid,let’sexaminethefirstoftheseimportantSevenKeys.

Key #1: Attributes of the Ideal Major Gift Organization

Itallstartswiththesethreecriticalelements–anabilitytoraisemoney(aby‐productofanon‐profitthat

isdoinggoodworkandadonatingpublicwhosupportsit);adeeplyheldbeliefthatdonorsarepartners,

notjustsourcesofcash(withastrongdesiretonurtureandretainthem);andabusinessenvironment

andculturethathonorsitsstaffandprovidesthemwithmeaningfulandfulfillingwork.

Ifyou’remissinganyofthesepoints,don’treadanymore.JuststartworkingongettingthisMajorGift

ValueTriadintoyourorganization.

Thenextcriticalareathattheidealmajorgiftorganizationhasisaclearunderstandingofthedifference

betweendirectmarketing,publicrelations,eventsandmajorgifts.

By“clearunderstanding”Imeanthattheleadersoftheorganizationhaveorganizedworkinamanner

thatrecognizesthatmajorgiftsisnotdirectmarketing,althoughattimesitmayusesomeDMstrategies;

isnotpublicrelations,althoughitwillseektopreserveandpromotethebrand;isnotevents,althoughat

timesitwilluseanevent(sparingly,please)torelatetocaseloaddonors;butitisaonetoone,very

personalstrategywherethesoleobjectiveistomatchadonor’sinterestsandpassionstotheneedsofthe

organization.

Therearesomanynon‐profitsthatdonothavethisright.Majorgiftsreportstothemanagerofdirect

marketing.Orpublicrelations,eventsandmajorgiftsarealllumpedintoonemanagementstructure.Or

P


theeventsmanagerleadsthemajorgiftagenda.Crazythingslikethat.Justcrazy.Whydo

managers/leadersdothis?

Allthatcanbeconcludedisthatit’signorance–ignoranceaboutwhatamajorgiftprogramisandhowit

works.Ortheremaybeabiastowardssomeothermarketingandcommunicationprogramthatkeepsthe

majorgiftprogram“subordinate”toitsagendasandobjectives.Whateveritis,it’spurefoolishness–a

recipefordisasterandfailure.Majorgiftsshouldbeanentitybyitself,reportingdirectlytothe

Director/VPforDevelopment–evenifit’saonepersondepartment.ItshouldnothavePR,Events,

VolunteerManagement–anyofthosethings–mixedin.Itshouldbesolelydedicatedtomanaging,

nurturing,upgradingandrelatingtomajordonors.Period.

Whomakesupthemajorgiftteam?Professionalswhorelatetoindividualmajordonors;otherswho

relatetofoundations;giftedteammemberswhohandlecorporationsandbusinesses;andtalentthat

handlesotherinstitutionslikeothernon‐profits,churches,synagogues,parishes,socialserviceclubs,

etc.Allofthese“types”ofmajorgiftsourceshaveonethingincommon:theyrequireaone‐to‐one,

personalapproach.Thatiswhyweincludetheminthemajorgift“house.”Everythingelsebelongsin

anotherhouse–yes,ahouseonthesame“development”street–but,assuredly,adifferenthouse.

Manytimeswhenwepresentthisconcepttomanagementandleadership,agreatdealofangst,debate

anddownrightargumentsensue.It’salmostasthoughwe’vebeenpromotingfundraisingheresyand

shouldbebannedfromthediscipline.It’sonlywhenwecanshowhowmillionsofdollarsarelosteach

yearandhundreds,sometimesthousands,ofdonorsaregoingawayeachyearthatourvoicecanbeheard

asoneofreasonandpracticality.Ourrelationshiptodonorsisasacredtrust.Itisamysteriousand

mysticalthing.Itissomethingtobevaluedandtreasured.Believethis,andthentakestepstoalignyour

organizationsothatitcanproperlyandeffectivelyhousetheidealmajorgiftprogram.

Key #2: Make Sure You Have the Facts!

Ialwaysliketostartanyendeavororanyplanwithfactgathering.Whatistrue?Whatisreal?Thoseare

importantquestionsbeforeyoujumpintoaction.Inmajorgifts,wegetsofocusedongettingthemoney

andreachingmanagementgoalsthatwehardlystoptofigureoutwhoweshouldberelatingto.“Fire!

Ready?Aim!”

Iknowthepressuretoreachyourmanagementgoalsisbearingdownonyou.Evenifitisn’t,youhave

thatinternalpressuretoachieve,toproveyouhavevalue,and,todogoodwork.Buthang

on!Stop!Analyzefirst.Whatistrue?Whatisreal?

AtVeritus,wespendagreatdealoftimetalkingaboutanalysisandhowimportantitisasthemajordriver

incaseloaddonorselectionandperformance.Whyisthissoimportant?Becausenotjustanydonoron

thecaseloadwilldo.Ifyou’regoingtohave,aswesuggest,150qualifieddonorsonyourcaseload,you’ll

needtostartwithatleastthreetimesthatnumberfromyourdonorfiletoqualifyacaseloadpooldownto

the150.And,ofallthedonorsonyourfile,youwillneedtoknowwhichonestoselect.Sohowdoyouget

towhatistrueandreal?Howdoyougettothefacts?Hereiswhatwethinkyouwillneedtodo:


1. Lookatyourdonorfileandfindthosedonorswhoareconsistentlygiving$1,000+cumulativelyover

recentcalendaryears(donorsthinkcalendar,notfiscal)–atleastthecurrentyearplusthreepast

years.

2. Pairthatinformationtoanywealth/assetinformationyouhave,todeterminecapacity.

3. Organizethisinformationbytypesofdonors(individualdonors,foundations,

corporations/businesses,otherorganizations).

4. Selectrecenthighgivers(actualgiving)thathavehighcapacity.

5. Keepaneyeonrecently‐lapsedhighgiversthathavehighcapacity.

6. Putallthosedonorsthathavethehighestrecentgiving,plushighcapacity,ontoyourcaseloadpool

list.

7. Putthislistthroughaqualifyingprocesstoarriveatyourqualifiedpool.

ThisishowyougettothefactsaboutWHOtoputonacaseloadpoolwhichwillthenbeputthrougha

qualificationprocess.Then,wesuggest,onceyouhaveaqualifiedcaseload,youdothissameanalysiswith

thecaseloadeverymonthtokeepaneyeonhowthedonorsareperformingandwhatremedialstepsyou

shouldtakeinmanagingthecaseload.

Noticethatthiswholeprocessisaboutcontinuallycrunchingthedata.Why?Touncoverwhatis

happeningwithdonorsandthenuseTHATasyourguidetoactionandplanning.Tobesure,allofthis

analysisiscomplex,andittakestime.Butitisanimportantkeyforsuccessinmajorgiftfundraising.

There’stheoldaxiom,“factsarefriendly.”Andtheyare.Butsometimestheyarereallyhardtocomeby.

Ifyoupursuethemwithdisciplineandenergy,youwillfindthattheytrulyarethefriendspeoplesaythey

are.

Key #3: Do You Have the Right Moves?

HaveyouheardoftheverycapableMGOwhoseeverydonoronhiscaseloadhasthesameinterestsand

passions?Soyouhearhimsaythatthere’snoneedtobediggingaroundformoreinformation,noneedto

createauniquemovesmanagementplanforeachdonor,because“alltheywanttodoishelp.”Well,of

course,alltheywanttodoishelp!Isn’tthatwhatgivingisallabout?

Butthisperson,whoissogoodinsomanyways,issolostonthispoint.AndsoaremanyotherMGOsin

toomanynon‐profitshereinNorthAmericaandEurope.That’swhythisKeyisabouthavingalltheright

“moves.”Becausehavingtherightstrategyspringsfromaclearunderstandingofthedonor’sinterests

andpassions.Ifyouwillsecurethatinformation,thenyoucanbeaboutDOINGtherightthingswiththe

donor.

Onceyourcaseloadisset,acontactplanshouldbecreatedforeverydonor–aplanthatisspecifictothem,

theirinterests,andtheirgivingpatterns.Ourphilosophyisthatamajordonorisonlyaskedonceortwice

duringayear,andthattheaskisbuttressedthroughouttheyearbyastreamofwhatwecall“touch

points.”Thesetouchpoints,aminimumofonepermonth(sometimesmore),includetacticssuchas:


Areportfromthe“frontline”whichmatchestheirinterestsandassuresthedonorsthattheirgifthas

madeadifference.

Aninternalmemothataddressessomeproblemorsituationintheprogramareathatthedonor

wouldbeinterestedin.Thisgivesthedonoraninsider’sview.

Anappropriategift.

Invitationstospecialbriefings.

Anewspaperornewsmagazineclippingthateitherdescribesaproblemthatyouaredealingwith

and/ortalksabouttheorganization.

Acopyofanactualletterfromapersonhelpedbyyourorganization.

Invitationstovisitprogramsites.

Personalvisits.

Telephonecallsorpostcards.

AreportfromtheChronicleofPhilanthropythatsaysgivingisdown,etc.

Avideooraudioclipthateithershowsaproblemorshowsasolution.

Abirthdayoranniversarycard.

Abookthatdealswithcompassionorcaring.

Anotefromvariousleadersintheorganization.

Apictureofapersonthathasbeenhelpedintheirareaofinterestalongwithapost‐itnotefromthe

MGOthatsayssomethingtotheeffectof:“Here’sapictureofJoe–apersonyourgivinghashelpedin

theXarea”alongwithabriefprojectreport.

Ane‐mailthatgivesasuccessstoryorsetsupaproblem.

Anoteonthedonor’sFacebookwall(oncetheyhaveacceptedyouasafriend)thatreportsonwhat

theirgivingisdoing.

…andscoresofother“touches”thatshowthedonorsthatyouarepresentwiththeminthisrelationship,

thatyoucare,thatyounoticewhentheygive,thatyouareopentotheirquestionsandconcerns,andthat

thisrelationshipisaboutpartnership,NOTaneconomicexchange.Allofthesepredeterminedmoves

shouldstrategicallyservethreeobjectives:

1. Totellthedonorhowhisorhergivingismakingadifference.

2. Togivethedonoraninsider’sviewofwhatyouaredoing.

3. Toset‐uptheask.

Infact,wesuggestthatyoumakealistofallyourplannedmovesforeachdonorandplaceeachmoveinto

oneofthethreecategoriesabovetoseeifyouhaveenoughmovesforeachone.Andaskyourselfthe

followingquestions:

1. AmItellingthedonoroftenenoughthathisgivingismakingadifference?Howoftenistoo

often?OK,ifyoutoldhimeveryday,thatmightgettobealittlemuch.Buttwoorthreetimesa

monthinsimple,low‐costwaysmightbejustright.Itdoesn’tneedtobeafancytypewrittenletter–it

canbeahandwrittennote.Itcanbeapostcard–orane‐mail,whichcostsnothingbutyourtime.


2. AmIgivingthedonoraninsider’sviewofwhatwearedoing?AmIlettingherknowhowtheproject

orprogramisgoing,goodandbadnews,howatechnicalapproachtotheproblemisworking,ornot

working?Insiderstuff.Notjusthigh‐levelblather,butrealdowninthetrenchesstuff.

3. AmIproperlysettinguptheask?Thisisaboutknowingwhereyouaregoing,asitrelatestothe

ask.Haveyoubeentalkingaboutaproblemthedonorisinterestedinsolvingoraddressing?Have

youbeendoingitformonths,sharinginfoonwhytheproblemorsituationneedstobedealtwith,

providingtechnicalinfoonthecausesandpossiblesolutions,andsharingthirdpartyopiniononwhat

theythinkandhowtodealwithit?Settinguptheaskisnotjustaonetimeevent–itisasequential

andlogicalprocessthatspansmanymonthsandbuilds.

Havingtherightmovesissocriticaltosuccessinmajorgifts,asitisinallrelationships.Youjustcan’tbe

thoughtlessinyourrelationshipswithyourboss,partner,spouse,subordinates,friends,etc.andexpect

themtobemeaningful.Weknowthis!Buttoooften,wejustputourhandsoutandgoforthemoney.

Whenyoustopandthinkaboutit,that’sprettyoffensive.Asweallknow,donorsarepartners,notsources

ofcash.Sotheydeserveathoughtfulandcaringapproachfromyou–astrategythatspringsfromtheir

interestsandpassions–onethatistailor‐madeforthemandhonorstheuniqueandwonderfulpeople

theyare.

Key #4: Develop Offers that Donors Want

"Donorsareapproachingphilanthropyinacompletelydifferentway.Theyaremakingdecisionsmore

thoughtfully.Theirgiftsarefollowingtheirownintendedpurposes.Donorsareseekingareturnontheir

philanthropicinvestments.Andtheydesireanincreasedlevelofpersonalization.Organizations

embracingthischangeareclimbingamountainofsuccesswithzenith,whileothers,forcingtheirown

modelsontotheirdonors,arefightinginthefoothills."(FundraisingAnalyticsbyJoshuaM.Birkholz)

Itisafactthatdonorsarechanging.Theyareexpectingmoreintheirrelationshipswiththeirfavorite

charities.Gonearethedayswhenadonorjustblindlygiveswithoutrequiringaccountabilityand

informationrelatedtothatgiving.Thatiswhyforward‐thinkingnonprofitsarespendingmoretime

figuringouthowtodevelopoffersthatdonorswant.

Nowifyoudon’tthinkyouneedanyofferstopresenttothemajordonorsonyourcaseload,thenstop

reading–youareallset.ButifyouarelikemostMGOs,thisareaisaseriousproblem.Youhaveavery

goodprogram.Youhaveagroupofgreatmajordonorswhoareeagertohelp.Andyouhavenothingto

talktothemabout.OR,ifyoudo,itispackagedinsuchaweakwaythatitwillbedifficultforyouto

presentit.Ifthisdescribeswhatisgoingonwithyou,thenstaywithmewhilewegothroughhowtosolve

it.

First,let’sstartatthebeginning.Anon‐profitexiststoservehumankindthroughavarietyofprograms.

Therearedirectprogramcostsassociatedwiththeseefforts.Andthereareoverheadcosts–nasty

overheadcosts–atleastthat’showmanyofusthinkaboutthem.


Thesumofallthesecostsequalsabudget.Forsakeofillustration,let’ssaythisbudgetis$1million.This

budgetisfundedthroughavarietyofmeans:somegovernmentgrants,somefoundationgrants,some

corporationgifts,someindividualcurrentgiftsandplannedgifts,etc.Forsakeofillustration,let’ssay

thereare10donorsourcecategorieswhogive$1milliontofundthebudget.Thisbudgetisdrawnupfor

organizationalpurposeswithorganizationalcategoriesandlabels.Thebroadcategoriesareprogramand

administration.

Again,forsakeofillustration,let’ssay$1millionisspentonthesumofthesecategoriesandforthe

programpartthereare10majorprogramcategorieswherewespend$700,000.Whatwehave,asaresult

ofthisexercise,is$1millioncominginfrom10majorsourcestofunda$1millionbudgetofwhich

$700,000isspentonprogramandtheremaining$300,000isspentonoverhead.Thereareseven

problemsthatcurrentlyexistwithinmostnon‐profitsasitrelatestobudgeting:

1. Thebudgetisdrawnupfororganizationalpurposes,notfordonors.Inthissense,thebudgetisnot

donor‐driven.Eventhoughthemajorityofthefundscomefromdonors,itisverydifficultforadonor

toseehowthe$1milliondividesdownintothe10programcategories.

2. Theprogrampartofthebudgetisunderstated,andthereforethefundraisersintheorganizationwill

befocusednotonraising$1million,but$700,000.Thiswillcausefinancialproblems.Whilethis

dynamicdoesNOToccurataconsciouslevel,becausethebudgetisorganizedthisway,thenetresult

isthatthefundraiseractuallyusestheprogramtargetof$700,000astheamounttoraise,ratherthan

thewholeamount.Thisjusthappensasanaturaloutcomeorresultofthestructurethathasbeenset

up.

3. Whileitisimportanttounderstandthedifferencebetweenoverheadanddirectprogramcosts,the

dangeristhatoverhead,overtime,willbeseenasanecessaryevilandnotasanintegralpartof

program.

4. Itisalmostimpossibleforfundraiserstorepresentwhattheorganizationdoesandquantifyit,

becausetheycannotgettothenumbers.Theresultofthisdynamicisthatdonorsarenotgiventhe

rightinformationthatwillmakethemsatisfieddonors.Anddissatisfieddonorsgoaway,whichis

why,inourworkonthemajorgiftprogramsaroundthecountry,wehaveuncoveredaverylargeand

dishearteningattritionofgooddonorsinmostmajorgiftfiles.

5. Itisdifficultforfundraiserstoraisefundsbecausethebudgetcannotbepresentedinwaysthatthe

donorrelatestoandsupports,i.e.,intermsofwhatisbeingdoneforpeople.

6. Becauseofthissituation,fundraisersanddonorswilltendtowanttofundprogramsthatareoutside

thebudget,causingevenmoreproblemsinternally.

7. Allofthiscreatesafinancialsituationthatyounger,moreinquisitiveandbusiness‐mindeddonorswill

findtroublingandsloppy,andtheorganizationrunstheriskoflosingsupportfromthisvery

importantandgrowingpublic.

Whilethesesevenpointsseemominousandmay,onthesurface,beoverlydramatic,thetruthisthatas

thecharitydonorpopulationbecomesyoungerandmoresophisticated,unlessthesesituationsare

addressed,manynon‐profitswillfacedifficultfinancialtimes.Why?Becausedonorswillwanttosee

thingstheirway,andtheywilldemandmoreaccountabilityforhowtheirmoneywasspent.Gonewillbe


thedayswhenadonorjustgivesbecause“Itrustthem.”Theremaybetrust,buttheywillwanttoverify

howthingsoperateand,moreimportantly,theywillbethinkingaboutwhatyourorganizationdoesin

termsofitsendresult,notjustinaccountingterms.ThisiswhyatVerituswehavecreatedaprocessand

protocolcalledtheProgramSupportPortfolio(PSP).Wehavechosenthesewordsbecauseofthe

specialmeaningassignedtoeachword:

Program:Thisisstrictlyaboutprogram–CURRENTprogramtheorganizationdoesforpeopleinan

integratedmanner.Andthisviewgoesdowntothesmallestoperatingunit,sothatdonorscangrasp

andsupportwhatishappeningatthesmallestorganizationallevel.Wehavehighlightedtheword

currentheretoemphasizethatthePSPprogramisaboutexistingbudgetedprograms,notnew

programs.ThepurposeofthePSPprogramistohelpfundraisingandcommunicationpersonnel

securefundsforbudgetedprograms.

Support:Thisisalsoabouthowacurrentprogramissupported.AnditmeansthatALLthecostsare

included,bothdirectandoverhead.Italsomeansthatdonorssupportthetotalityoftheprogram,not

justonepartofit.Intheexampleearlier,itmeansthat$1millioniscovered,notjust$700,000.

Portfolio:Thereisabroadselectionofthingsadonorcansupportinthecurrentprogram.Itcould

bechildren,youth,youngadults,couples,seniors.Orthedonorcouldlookatitasdrugrehab,single

parentcare,childcare,jobtraining,spiritualwork,housing,feeding,etc.–anynumberofwaysto

help.ThedonorcouldalsolookatitasalloftheabovePLUSaspecificPLACEthatheorsheis

interestedin.Italsomeansthattherearedifferent“pricepoints”toanyandallcategoriesofhelp.So,

ifthedonorwantsa$1,000project,shecanfindit.Orifitis$10,000or$3million,shecanalsofind

it.

Wewanttohavea“portfolio”ofcurrentprogramopportunitiesadonorcanfund.Portfolioisdefined

as,“Agroupofpossibleinvestmentsadonorcanhaveinanareatheyareinterestedin.”Tobeclear,each

programforsupportintheportfoliocontainsfourcriticalelements:

1. Programcategory

2. Peoplegrouphelped

3. Location

4. Pricepoint

WemustbeabletoofferthedonoracurrentprogramtosupportthatmeetscriteriainEACHofthefour

areasabove.Why?Becausethatisthewaydonorsthink.Ifoneisabletogetadonortosaywhathis

interestis,hewould,moreoftenthannot,say,“Iwanttosupporttheeducation(ProgramCategory)

programforchildren(PeopleGroup)inNewark(Location).AndIamwillingtoparticipatewithyouat

thistimeatthe$50,000(PricePoint)level.”Thisiswhyweneedtohaveallofthesepointsofinformation

decided/determinedinadvance,sowecanpresentourtotalbudget($1million)inallthewaysthat

logicallyfallintothefourcriticalelementsmentionedabove.Thiswillresultinatrulydonor‐driven

budgetthatwillresultingainingfullsupportforwhattheorganizationwantstodoinaspecificarea.

Nowthereisalotofdetailonhowtoexecutethiswithyourfinanceandprogrampeople.Butitcanbe

done.Andtheresultwillbethatyouwillhaveafilefullofprojectpossibilitiestopresenttoyourdonors–


projectsthatwillmatchwhotheyareandwhattheyareinterestedin.Thatwillkeepyourdonors

happy.Andweallknowthathappydonorswillstaywithyou.

Key #5: Turning Planned Giving into Strategic Giving

Withtrillionsofdollarstransferringfromonegenerationtoanotherinthenextfewdecades,planned

givingisanimportantpartoftheidealmajorgiftorganization.Ifyoudon’thaveplannedgivingasa

centralpartofyourmajorgiftorganization,youmustputoneinplace,notonlytohelpyourgooddonors

inthecriticalplanningtheymustdointhisarea,butalsotosecureadditionalfunding.

WeatVeritusarefortunatetohaveacolleague,AnneNash,whospecializesinStrategicGiftDesignand

AssetBasedFundraising.Whilealotofgoodcanbesaidabouttraditionalplannedgivingstrategies,the

progressivenon‐profitisaddingstrategicgivingadvicetotheirportfolioofofferstodonors.Anne’s

conceptisabouthelpingaffluentmajordonorsstructuretotheirwealthnowforpartialdistributionwhile

theyareliving,sothatitcanbenefitthemeconomicallyandbringalotofjoyandfulfillmentaswell.

It’ssortofliketurbo‐chargingthedonor’sannualandlegacygiving.Inthisconcept,younotonlyengage

withthedonorandhisorherattorney,butoftenwiththedonor’sfamily,businessassociatesandadvisors

–infact,anyonewhoisorcouldbepartofthedonor’seconomiclandscape.Thisapproachtakesyoufar

beyondthetraditionalaskingandgivingmodelsand,usingtaxandfinancialplanningtools,helpsthe

donorthinkcreativelyabouthowtousetheassetstheyhaveandcontrolasacriticalpartoftheirgiving.

AnotherthingAnneisobsessedwithistheintersectionofmajorgiftsandplannedgiving.Let’sfaceit,

thesetwo“camps”areoftenmanagedseparately,competewitheachotherfor“credit”andgenerallydo

nottalktoeachother.It’slikeyourfamilydoctor,thegeneralpractitioner,notevertalkingtoorrelating

tothespecialist!Crazy.We’retalkingaboutONEdonorhere–onedonorwhohascashandassets,and

whoiscurrentlylivingbuteventuallywillpass.It’sonething,nottwo.Butweoftendon’tmanageitthat

way.That’swhyAnnefeelssostronglyabouthowthesetwocometogether,andwhythepassagebetween

themmustbenavigatedcarefully–sinceitispopulatedwithyourverybestdonorswhomustbetreated

withgreatcareandhavetheprofessionalattentionandinteractiontheyareaccustomedto.Sothefirst

criticalpointsinturningplannedgivingintostrategicgivingare:

1. Makesurethefunctionsofplannedgivingandmajorgivingaretotallyintegrated.Eliminatetheusual

competitionintheseareas.Treatthedonorasoneperson,nottwohalves.

2. EnhanceyourplannedgivingprogramwiththeStrategicGiftDesignandAssetBasedFundraising

approach.

Thereisonemorereasontobeefupyourplannedgivingeffortsbeyondthetwopointsabove.Yourgood

serviceinthisareawillalsoprotectsomeofyourmostvaluabledonorsfromabuse.Letmeexplain.

LisaGibbs,writingintheAugust2011issueofMoneyMagazine,tellsusthatseniorslostnearly$3billion

in2010tofinancialpredators.Shegoesontotellthestoryofhowalocalinsuranceagent“persuadedArt

Tener,79,aretiredautodealerservicescheduler,toroll$113,000insavingshehadinannuitiesintonew

deferredannuitiesthathandcuffedthemoneyforupto16yearsdespiteaterminalillnessthatdoctors


saidmeantArthadlessthantwoyearstolive.”Art’ssonJim,52,said:“Insteadofenjoyingwhatturned

outtobethelastninemonthsofhislife,hedidn’thave$100tospare.”

Thearticlegoesontosay,“OneoutofeveryfiveolderAmericanshasbeensoldaninappropriate

investment,paidexcessivefeesforafinancialproductorservice,orbeenavictimoffraud,accordingtoa

2010studybytheInvestorProtectionTrust.”Letmebringthishometoyouinaverypersonalway.If

yourparentsarestillwithus,andelderly,askyourselfthislistofquestions(fromMoneyMagazine)which

aredesignedtodetermineiftheyareatriskofbeingdefraudedoutoftheirhardearnedmoney:

1. Dotheyownhighriskinvestmentssuchaspennystocks?

2. Dotheyvetthefinancialprostheyhire(say,checkingtheircredentialsordisciplinaryrecords)?

3. Havetheyattendeda“freelunch”seminar?

4. Havetheycalled800numbersinresponsetoadsofferingfreeinformation?

5. HavetheysignedupforaDoNotCalllist?

6. Dotheyreadtheirjunkmail?

7. Dotheyhaveaformalfinancialplaninplace?

8. Onfinancialdecisions,dotheylistentothelatesttipratherthanseekprofessionaladvice?

9. Havetheyrecentlyexperiencedafinancialsetback,seriousillness,deathinthefamilyoranotherlife

stress?

10. Dotheylivefarfromotherfamilymembersandnothaveawidecircleoflocalfriends?

Here’sthereasonIamincludingthetopicofabuseinthispost.Don’tthinkforonemomentthatevery

majordonoronyourfilehasavailabletothemtheservicesofadvisorsthatwillhelpthemnotonlyplan

butalsoavoidgettingtakenadvantage.Manydo.Butmanydonot.And,ifyouacceptAnne’spremisethat

majorgifts,whenholisticallyappliedtoyourgooddonors,includesALLtheadvicerelatedtothewealthof

anindividual,thenyouhavetoincludeinyourservicestodonorseverythingthatlooksatcurrentcash

andassets,futuredispositionofcashandassets,plansthatareinplaceorneedtobeputinplaceAND

protectionsagainstfraud.

Doesallofthissoundlikeyourdonorhasaverygoodfriendwatchingoutforeveryaspectoftheir

finances?Yes!That’sthepoint–apartnerwhowalkswiththem–andsomeonewhothinksholistically

aboutitall.Now,tobeclear,anMGOorPGOshouldnevertaketheplaceofalegalorprofessional

advisor.TheroleIamsuggestinghereisthatyouareagoodfriendwho,inessence,is“anothersetof

eyes”tomakesurethingsareinorderanddoneright.AlongwithAnneNash,ourgoodfriendand

colleague,DougMcDaniel,aplannedgivingguruwithTheSalvationArmy,hashelpedusunderstandthe

importantroleofplannedgivingintheorganization.Hisinputhashelpedframesomeofthequestionsyou

shouldaskyourselfwhenevaluatingyourprogram:

1. Areyouoperatingwiththerightphilosophy?Bythiswemeanaholisticapproachthattrulycaresfor

andservestheindividual,evenifitmeanshelpingthemgivetoorganizationsotherthanyours.

Includedinthisisaservicethatiswatchingoutforyourgooddonorsandmakingsuretheyarenot

victimsoffraud.


2. Doyouhavetherightprogramdesign?Besidesallthetraditionalplannedgivingmethodsand

approaches,doyouhaveinplaceaformofAnne’sStrategicGiftDesignandAssetBasedFundraising

approach?Andistheprogramtotallyintegratedwiththemajorgiftsprogram?Itmustbe!

3. Isyourcommunications/marketingplanstrategic?Doyouhaveacaseforsupportforplannedgiving

andregularconsistentmessaging?Doyouhavealeadgenerationandfollow‐upstrategythatactually

worksandiseffective?Mostplansweseeinthisareaarenoteffectiveanddonotwork.It’sno

wonderthatplannedgivingrevenueispracticallynon‐existent!

4. Doyouhaveawidearrayofgiftoptions?Therearesomanyofthem–youneedtobeabletooffer

alternativestoyourdonor.

5. Doyouhavetherightstaff?Selectingtherightstafforassigningtheplannedgivingfunctionsamong

staffiscritical.Evenexperiencedstaffneedongoingtraining,andentrylevelstaffwillneedmore.

6. Areyoumanagingproperly?Theprogrammustbemanagedtoassurebestpractices,toassure

integrationofeffort,toeliminatecompetitionbetweenMGOsandPGOs,andtomakesureeveryarea

ofplannedgivingisexecutedproperly.

7. Doyouhavecompetentandup‐to‐datetechnicalsupport?Someleveloflegalandtaxknowledgeina

narrowareaishelpfulwithinthestaffranks.Butwhatiscriticalisknowledgeofboundariesand

accesstoqualifiedexpertisewhenrequiredforparticularcases.

Ican’temphasizeenoughhowimportantitistomakesureyouarefollowingupinthisarea,bothforthe

revenueitcanbringtoyourgoodcause,andalsoforthegreatandneededserviceyoucanprovidetoyour

gooddonor.

Key #6: Treating Corporations and Foundations Just Like Individuals

“Corporations,businessesandfoundationsareanentirelydifferentanimal,”theDevelopmentDirector

saidwithsolidconvictionandnoroomfordiscussion.Therewasnowayweweregoingtoconvincehim

ofadifferentpointofview.Wetriedtomakethepointthatcorporations,businesses,foundationsand

otherorganizations(placesofworship,otherNGOs,serviceorganizations,etc.)werereallynodifferent

thananindividualmajordonor,buthewouldnothearit.

Sohereisthecaseforourpointofview:whytheidealmajorgiftteammustmakeaconcertedeffortto

treattheseimportantsegmentsoftheupperendofyouractivedonorfile,namelycorporationsand

foundations,justlikeindividuals.

Manymajorgiftpeoplelookatorganizations(mycatch‐allwordforcorporations,businesses,foundations

andotherorgs)asthesemysterious,impenetrable,impersonalstructuresthatareverydifficulttotalkto

anddealwith.WeatVeritushavealwayslookedatthemaspeople,pureandsimple.Justpeople.Think

aboutit.Anorganizationisnothingmorethanagroupofindividuals.Ithasapersonality,asetofvalues

andawayofdoingthings–justlikeaperson.Wetendtofocusonthegrantmakingrulesofan

organization,ratherthanonthefactthatbehindthoserulesandprocessesareagroupofindividualswho

actuallyhavebloodrunningthroughtheirveins,feelingsintheirheartsandthoughtsandvaluesintheir

heads,justlikeeveryoneofthemajordonorindividualsonyourcaseload.Let’slookatthismoreclosely:


Acorporationhasasetofvalues,otherthanjustprofit,thatdriveitsneedtogivesomeofitsmoney

away.Thereisagrowingtrendamongprogressivebusinessestobemoresociallyresponsible.

Leadersarerealizingthatthereisaconnectionbetweentheircharitableinterestsandactivitiesand

theirreputationandprofit.Bottom‐line:asetofvaluesdrivescharitablegiving–justlikean

individual!

Afoundationwasfoundedbyeitheranindividualorabusinesstofundasetofinterestsandpassions

–justlikeanindividual.

Anorganization,whetherit’saplaceofworship,asocialclub,anothernon‐profit,etc.,wasorganized

topursueasetofinterestsandvalues–justlikeanindividual.

AsetoforganizationsshouldbeonacaseloadandmanagedbyanMGOusingthesamemetrics,moves

managementapproaches,performancereporting,etc.astheMGOmanagingacaseloadofindividuals.

Aswe’vesaidallalong,aneffectivemajorgiftprogramstartswiththeMGOidentifying,thenservingthe

interestsandpassionsofanindividual.Itisnodifferentwithanorganization!TheONLYthingthatis

differentistheprocessofsecuringthefunds.Everythingelseisthesame–includingreporting

requirements.Onthispointofreportingrequirements,itissointerestingthatnon‐profitfundraiserswill

agreetheyneedtoreportbacktoorganizationalfunderswithdiscipline,accuracyandtimeliness–but

thosesamepeoplewillnotsetupreporting‐backsystemsforindividualdonors.Andthentheywonder

whythousandsofdonorsgoawayandmillionsofdollarsarelosteachyear!

Sothekeythingwithanorganizationistofindoutwhatthoseinterestsandpassionsare,andthenfigure

outhowtoservethem.(Notethattheremaybeadifferentsetofinterestsandpassionsfordifferent

divisions,departmentsorofficesoftheorganization.)

Herearethestepsyoucantaketodeveloporimprovethisareaofyourmajorgiftprogram:

1. Makesurethatorganizationalfundraisersarepartofthemajorgiftteam.Theyshouldnotbeisolated

fromtheindividualMGOsormanagedbyadifferentdepartment.Theyshouldbeanintegralpartof

themajorgiftteam.

2. Getridofthenotionthatyouhavetogetstuffyandintellectualinhowyoutalktoorganization

representatives.Itistruethattheywillrequiremoreprocess,proofofoutcomes,budgets,statsand

othernumbersandfacts.Butdon’tgetawayfromthecorefactthatyou,throughyourorganization,

arechanginglivesand/ortheenvironment,andthatthatisthemostimportantthingthetwoofyou

canbedoingtogether.Thisalsomeansthatyourcommunication,inadditiontothebusinessand

processcontentrequirement,shouldhaveemotionalcontentaswell.Youneedtofindthatcommon

groundofsharedvalues,passionsandinterests,andthentalkaboutthosesharedinterestsandvalues

usingstoriestomakeyourpoint.

3. Findandconnecttothedecision‐makerintheorganization.ThismayrequirematchingupyourCEO

orprogramheadwiththatperson.

4. Discoverthematchbetweenyourprogramobjectivesandtheorganization’sinterestsand

values.Youreallycan’tmoveforwardwithoutthiscriticalinformation.Thekeyquestiontoansweris

this:Whatobjectiveistheorganizationtryingtoachievethroughtheircharitablegiving?


5. Prepareaproposalthatshowshowtheirinterestsandvaluesmatchyourprogramobjectives,andbe

suretomeettheproposal,documentationandduediligencerequirementstheyhave.

6. Besuretoincludehowlivesortheenvironmentwillbechangedasaresultoftheirgiving,andhow

theirobjectiveswillbemet.

Whilefundraisingfromorganizationscanbecomplex,theprocessreallyboilsdowntothesesimple

points.Followthem,togetherwiththerequirementsofthefundingorganization,andyouwillbe

successfulIFyoucansuccessfullyshowthematchofvaluesandtheachievementoftheirobjectives.

Remember,thereareplentyoffundstobehadfromthisimportantsource.Oneofourclientsraisesover

$10millionayearthroughtheeffortsoftwoMGOsdealingwitharelativelyshortlistof

organizations!Thesefolkshavefiguredoutthecodewe’veoutlinedhere.

Youcansecurefundsfromorganizations.Makeacommitmenttomanageandrelatetoallthe

organizationsonyourfilethesamewayyouhaveorganizedyourselftodealwithyourindividualmajor

donors.Anddon’tforgetthatanorganizationhasaheartandface.Lookforit!

Key #7: What You Get Done Matters!

WewereshockedwhentheMGOclosedthedoorandtoldusabouthowhermanagerrelatedtoher.“No

oneeveraskedmeforagoalfortheyear,”shesaid.“Infact,Ididn’tevenhaveaworkplan.Myjob

descriptionwasvagueandgeneral.And–listentothis–mymanagerhardlyevercheckedintoseehow

thingsweregoing.”

Thatconversationhappenedquiteafewyearsago.Astimehasgoneon,wehavebecomelessshocked–

actuallynumbed–totherealitythatmanagementandaccountabilitydon’tseemtomattermuchinthe

fundraisingworld.Thatiswhythislastandfinalkeyoftheidealmajorgiftorganizationhastobethe

subjectofmanagementandaccountability.

Believeitornot,managementofaprocessandpeopleisasimportantasgettingthemoneyfor

program.However,youwouldneverknowitbylookingattheinnerworkingsofmanynon‐profits

today.Thereissolittlevalueplacedonsettinggoals,measuringprogressagainstthosegoalsandholding

peopleaccountabletodogoodandeffectivework.Thewholeissuecanbeextremelyfrustrating!

Wesitwithgoodfolkswhoaretryingtohelppeopleortheenvironmentthroughreallygoodprograms

andallwecanseeismoneybeinglost,laborbeingwasted,lazinessbeingrewarded,andalotofmindless

activitybeingtolerated.Sotheorganizationspiralsdown.Itissosad.Thatiswhythissubjectisso

important.Attimes,whenthesubjectofmanagementandaccountabilityisbroughtup,wecanseethe

defensivenessincrease,thebackstiffenandthatpreparationforconflictbegin.Allthisasifwewere

tryingtoactuallyruinsomeone’slifebysuggestingthatwhattheyaccomplishactuallymatters;thatwe

havearesponsibilitytoourdonorstousetheirmoneywisely,and,thatitisimportanttoknowweare

effective.

Let’sstopandthinkaboutthisforasecond.Weareallcertainlyintouchwiththatpartofourselvesthatis

unmotivatedandlazy–thepartthatwantstoplay–thepartthatisjustplainsickofworking–thepart


thatjustcan’tdosomeofthisjobaswellassomeoneelsecan–thepartthatistired,getsdiscouragedand

doesn’tknowhowtogoon.Weareallintouchwiththatpart.Wearealsointouchwiththefactthathow

wefeelaboutourselvesisdirectlyrelatedtoaconfluenceoftwothings:WHOweare(being)andWHAT

wegetdone(doing).Ifwehavethebeingpartright,butthedoingisoutofwhack,wecan’ttrulyloveand

respectourselves,whichmeanswe’renothappyandwewon’tdoverywellinalotofareasofourlives.

Youknowwhatthisislike.Youhavethenaggingfeelingthatthereisagapbetweenwhatisexpectedof

youandwhatyouareactuallydelivering.Thatgap–thatnastylittlegap–iswhatwilltearyoudown.

Thatisalsowhyitisimportantforakindandfriendlymanagementprocess(andperson)tocome

alongsideandgetridofthegap,sothatyouareperformingtoexpectations.WeatVeritushavenever

viewedmanagementandaccountabilityasapunitiveandnegativething,althoughmanymanagersuseit

thatway–totheirshameanddiscredit!Managementandaccountabilitysystemsandprocessesshouldbe

akind,honest,directwayofhelpingapersonmeetexpectations–theirownexpectations,andthe

expectationsofthegroup.

Whenmanagementandaccountabilityaredoneright,itisHELPFUL,notHURTFUL–andthatisa

beautifulthing!Anditisneeded.Why?Sothateverypersonontheteamdoeshisorherparttomeet

expectations–sothattheteamwillsucceed,andtheindividualpersonwillsucceed.Managementand

accountability,doneright,isanimportantkeyoftheidealmajorgiftorganizationbecause,withoutit,

leaderswillnotleadastheyshould,MGOswillnotperformastheyshould,andthefundsforprogramwill

notberaisedastheyshould.

Ourphilosophyandapproachtomanagementandaccountabilityisquitesimpleandiscoveredinthe

followingthreepoints:First,therehastobeaneconomicdestinationfortheteamandeachMGO.Callita

goal.Second,helpneedstobegiventoindividualMGOssothey:

…focusoncaseloadratherthanprospecting(noneallowed)–lovethedonoryouhave,nottheone

youmightpossiblyacquire.

…focusonretentionofdonorsfirst,thenupgrading.

…relatetodonorsoncaseloadasindividuals,ratherthanasclustersoragroup.

…keeplearninghowtodealwithobjectionsandproblems.

…keeplearninghowtostructureasksandproposals.

…value,understandandreportontheirperformanceinapositivemanner,notapunitiveone.

And,third,makesuremanagementreportinghappensinfiveareas:

1. Howthesamedonorslastyearareperformingthisyear.

2. Howthedonorsareperformingagainstindividualgoals.

3. Howmanyvisits,contactsandaskstheMGOismaking.

4. Reportonunusualgainsandlossesforanydonoronthecaseloadtomakesureothernumbersarenot

beingskewed.

5. HowtheMGOisperforming.


Justdothis,kindlyandpositively,andyouwillhavehappyandproductiveMGOs.Andweallknowthat

happyandproductiveMGOsequalshappydonors.Happydonorsmeansthatprogramsarefunded,which

iswhatweallsetouttodointhefirstplace!

InthisdocumentonThe7KeystoaSuccessfulMajorGiftProgramwehavetriedtoshowthatthe

entireeffortisnotjustaboutrevenuestreamsandstrategy.Itisalsoabouthowwethink,analyzeand

manage.Puttogether,the7Keysareapowerfulcombinationof“whatandhow”that,whenimplemented,

willgiveyouthesuccessyouaresearchingfor.

***

Veritus Group is a full-service mid and major gift consulting agency serving non-profits all over the world. We

help create, build and manage major gift and mid-level giving programs by combining donor-centered strategy

with solid management that is focused on accountability.

You can reach us on the Web at www.veritusgroup.com

or by contacting Jeff Schreifels at 267-254-2939 or [email protected].

More White Papers like these are available for free at www.veritusgroup.com/category/white-paper

The Seven Keys to a Successful Major Gift Program

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