Twelve Deadly Mistakes of Major-Gift Campaigns and How to Avoid Them!

Twelve “Deadly” Mistakes of Major-Gift Campaigns and How to Avoid Them! Presented by: Julia Ingraham Walker Thursday, April 23, 2009 1:00 – 2:30 p...
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Twelve “Deadly” Mistakes of Major-Gift Campaigns and How to Avoid Them!

Presented by:

Julia Ingraham Walker

Thursday, April 23, 2009

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Julia Ingraham Walker

Julia Walker has been active in fundraising for over 23 years. She served as vice president for advancement at Tulane University, where she ran a successful $250 million capital campaign. Now an independent fundraising consultant, she has helped her clients raise over $700 million. Her extensive client list includes arts and cultural organizations, museums, animal welfare groups, universities, and secondary schools. She presents seminars nationally on topics related to fundraising for capital campaigns and major gifts. Walker has published two books in the AFP/Wiley Fund Development Series - Nonprofit Essentials: The Capital Campaign and Nonprofit Essentials: Major Gifts and has a third book in the Nonprofit Essentials series, Jump-Starting the Stalled Fundraising Campaign, due out in June. Post-Katrina, Julia returned to New Orleans to help the region rebuild by raising money for education, the arts, the Louisiana SPCA, and other nonprofits.

Julia I. Walker Fundraising Consultant 2619 Nashville Ave. New Orleans LA 70115 504/861-8760 [email protected]

12 Deadly Mistakes Of Major Gift Campaigns and How to Avoid Them g Walker Julia Ingraham AFP Web/Audioconference April 23, 2009

About Julia Walker… • 25 years of fundraising experience • Independent Fundraising Consultant for past 10 years • Advised in campaigns that raised over $700M total • Author of three AFP/Wiley books on major gifts and campaigns

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Today’s Agenda • Introduction: Fundraising in the new economic environment • Part I: Six deadly mistakes in planning and preparation • Part II: Six deadly mistakes in campaign implementation • Question and Answer session

Introduction: Why you can’t afford to make any mistakes

FUNDRAISING IN THE NEW ECONOMIC ENVIRONMENT

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Weak Economic Climate • Climate of uncertainty hurts giving • Stock market has been best predictor of giving in the past • Most people give out of income • Proposed changes in gift tax deduction rates may threaten largest gifts

Changes in Donor Behavior • Larger gifts will be harder to close • Donors will focus their giving on a smaller number of nonprofits • Donors will continue to give in areas ey view e as a priority p o y they • Donors will give less from current income and assets

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How Can You Respond? • Don’t Don t stop asking, asking but stay flexible • Tighten your case and demonstrate urgency for your needs • Focus on keeping current and past donors do o s happy: appy S Stewardship e a ds p is s King g • Put more emphasis on planned giving

6 common mistakes in preparing for your major gift campaign and how to avoid them

PART I: PREPARATION AND PLANNING

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Preparation and Planning

• Mistake # 1: Not doing enough sight-raising with leadership prospects before the campaign starts

What is Sight-raising? A method of making larger gifts possible, through: • Building an expectation that bigger gifts will be part of your campaign Communicating u cat g tthat at e expectation pectat o to • Co all your leadership groups, including boards, committees, and prospects

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How to Raise Sights • Focus on the top-end of the gift table with your leadership • Communicate large new gifts quickly to your co you constituents s ue s • Establish a “reach” gift level among your board members and early supporters

More on Sight-Raising • Solicit a challenge gift and use it to match new gifts above a certain level • Solicit top prospects first to set the pace • Set your top recognition levels at a point that pushes expectations higher

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Preparation and Planning

• Mistake # 2: Not asking for large enough gifts at the top of the scale

$3M Gift Table (A) Gift Level Prospects Donors Dollars $1 000 000 $1,000,000 3 1 $1,000,000 $1 000 000 $500,000 3 1 $500,000 $250,000 6 2 $500,000 $100,000 9 3 $300,000 $50,000 18 6 $300,000 $25,000 24 8 $200,000 $10,000 60 20 $200,000 Totals 123 41 $3,000,000

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$3M Gift Table (B) Gift Level Prospects Donors Dollars $ $500,000 3 1 $500,000 $ $250,000 6 2 $500,000 $100,000 15 5 $500,000 $50,000 30 10 $500,000 $25,000 $ , 60 20 $500,000 $ , $10,000 150 50 $500,000 Totals 264 88 $3,000,000

Recognition Options for a $3M Campaign New Building (external name) Lobby Exhibition Hall Conference Room Director’s Suite Rooms (8 @ $50,000 each) Endowment

$1,000,000 $500,000 $250,000 $250,000 $100,000 $400,000 $500,000

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Preparation and Planning

• Mistake # 3: Not identifying and cultivating enough prospects to meet your needs

Identify New Prospects • • • •

Conduct electronic prospect screening Hire a research staff person Search Foundation Directory on line Conduct volunteer screening sessions

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More on Prospects • Ask your board and volunteers to review lists of local business leaders • Collect names of visitors, patients, parents, and other service users uy o or trade ade lists sso of peop people e with ssimilar a • Buy characteristics to your donors

Preparation and Planning

• Mistake # 4: Not developing a strong enough case to show why you need the money

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Tighten Your Case • • • •

Ask current donors why they give Focus on one or two themes Develop stories around themes Create supporting materials

A Good Case… • Shows urgency • Explains why a donor should give • Is NOT just a list of needs

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Preparation and Planning

• Mistake # 5: Focusing campaign volunteer leadership on too few people

Broaden Campaign Leadership • • • •

Appoint 3 co-chairs instead of 1 chair Look for business and social diversity Consider term limits for co-chairs Develop campaign committee separate from board development committee

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How to Use Volunteers 1. For national campaigns, identify city or regional chairs 2. Identify and group volunteers by industry, i.e. oil and gas or banking 3. Link volunteers to sources of funding, e.g. corporations, foundations, i di id l individuals 4. Bring in younger volunteers for Internet campaigns

Preparation and Planning

• Mistake # 6: Spending more on campaign costs and overhead than you need to. to

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Keep Costs Down • • • • • •

Ask volunteers to help with events and PR Use a folder with a logo for printed materials Run a contest for campaign name and logo Cut travel costs, use more e-mail and phones Create PowerPoint presentations for calls Plan events in volunteers’ homes for free

How to Pay for your Campaign Costs run from 2 to 20% of $$ raised • Pay costs out of funds raised • Raise special gifts for campaign costs • Devote a portion of endowment income for a period of years to cover campaign costs • Use unrestricted bequests to cover costs • Hold a special event or fundraiser to pay costs.

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6 common mistakes in the implementation of your major gift campaign and how to avoid them

PART II: IMPLEMENTATION

Campaign Implementation

• Mistake # 7: Not planning different approaches for different constituencies

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Identify New Audiences • Develop an Internet campaign to reach new donors and broaden base • Add a planned giving component, reach out to older donors ssess national a o a do donor o base, add • Assess regional or city-based committees • Establish programs for younger donors

Campaign Implementation

• Mistake #8: Asking too soon

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Timing is Everything • It can take from 12 to 24 months to close a major gift from a new prospect • Asking too soon lowers the gift level • Involve the prospect in the work of your organization to establish a connection

Cultivation Ideas • Offer a tour of your facilities • Invite prospects to meet w/ executive director and users of your services • Hold small group dinners at board e be s homes o es members’ • Host reception in a donor’s board room

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Campaign Implementation

• Mistake # 9: Not asking at all

It’s Time to Ask • People don’t give if they aren’t asked • Develop a system for prospect management and use it to track activity • Train volunteers on how and when to ask • Team up experienced askers with newer volunteers to build stronger teams

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Campaign Implementation

• Mistake # 10: Poor closing techniques once the solicitation has been made

Closing the Gift If a gift has been promised, promised have one solicitation team member: 1. Repeat the gift amount 2. Repeat the timing and the particulars of eg gift the 3. Set a specific date for a next action, such as sending a pledge letter.

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Closing the Gift If the gift is still under consideration: 1. Identify the key issue(s) outstanding 2. Agree on the steps to be taken towards a resolution of the key issue(s) 3 Agree on a specific next step: “Why 3. Why don’t you and your wife come to see the site next week. Would Tuesday work?”

Closing the Gift • Follow up with the prospect every 2 to 3 weeks or so until the gift is settled • Continue cultivation and keep communication lines open a e ge to o motivate o a e the e do donor o • Use a cchallenge • Consider using a deadline, such as a recognition event, to motivate donor

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Campaign Implementation

• Mistake # 11: Not communicating a clear message about campaign needs across the organization

Campaign Communications • Focus on one or two clear messages across the organization • Use website, newsletters, magazines, and other mailings to support message a e the e organization’s o ga a o s needs eeds sound sou d • Make compelling through stories and human interest

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More on Campaign Communications • • • •

Focus more on electronic media Use Powerpoint presentation for visits Post campaign video on website Conduct a “viral” viral campaign using social networking sites

Campaign Implementation

• Mistake # 12: Taking donors for granted once a gift is closed

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Stewardship is King • It costs more to find and cultivate new donors than it does to keep old ones. • In difficult economic times, those who believe in your cause are more likely to stick with you • Good stewardship means more than sending a thank you letter

Make a Stewardship Plan • Communicate on a regular basis about the progress of your campaign • Tell donors what happened to their gifts • Use stories and examples to humanize e impact pac o of g giving g the • Invite donors to a special event • Meet all recognition promises

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Asking Donors for a Second Gift • Ask current donors for a second gift towards the end of your campaign • Ask donors to add a year onto pledge commitments to meet your goal g levels • Ask donors to consider recognition above the one they are in • Consider using a challenge to motivate second gifts, especially from your board

In Summary • Take good care of past & current donors • Major gifts are still out there but may be harder to close • Keep asking and stay positive • Provide training for staff and volunteers • Tighten your case, focus on the message, and get your message out

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QUESTIONS AND ANSWERS

More Questions? Contact: Julia I. Walker, Fundraising Consultant 2619 Nashville Ave. New Orleans, LA 70115 504 861-8760 (office) 504 444 444-3467 3467 ((cell) ll) [email protected] www.walkercapitalcampaigns.com

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Coming Next – May 6, 2009 W Weaving i Ethics Ethi Into I t Your Y Organization’s O i ti ’ Fundraising PAULETTE V. MAEHARA, CFRE, CAE PRESIDENT & CEO AFP

For a complete listing of the 2009 AFP Webconference Series, please visit our website at www.afpnet.org in the education and career development section.

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CERTIFICATE OF PARTICIPATION

I was a participant in the AFP Webconference held April 23, 2009 1:00 – 2:30 PM Eastern

Twelve “Deadly” Mistakes of Major-Gift Campaigns and How to Avoid Them!

Presented by

Julia Walker

Full participation in this session is applicable for 1.5 points in Category 1.B – Education of the CFRE International application for initial certification and/or recertification.

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AFP Bookstore Order Form ***REDUCED PRICES***

Books by Julia Walker Look for Julia’s new book Jump-Starting the Stalled Fundraising Campaign available June 2009!

Nonprofit Essentials: Major Gifts ISBN: 0471738379, Paperback, 240 pages, April 2006 List price $43.00 USD, AFP price $34.00 USD Part of the AFP/Wiley Fund Development Series, Nonprofit Essentials: Major Gifts is a professional guide to major gift fundraising, concisely presented in a format that is accessible, lively, and easyto-read. With in-depth advice from experienced fundraiser Julia Walker, this book takes the reader from the early stages of establishing a program through the core elements of all major gift programs: identifying and rating prospects; preparing the case; training volunteers; cultivating donors; making the ask; and providing recognition and stewardship for the gift. Its nuts-and-bolts presentation focuses on how to create a prospect-centered program that develops the capacity to engage and solicit donors, effectively based on their unique interests and needs.

Nonprofit Essentials: The Capital Campaign ISBN: 0-471-68429-5, Paperback, 177 pages, December 2004 List price $50.00 USD, AFP price $40.48 USD Preparation. Planning. Execution. It's all here! Finally, a clear and compelling guide to the key components shared by all campaigns. Illuminating case studies, practical tools, proven strategies, and helpful hints displayed throughout the book highlight solutions to common stumbling blocks that can trip up even the experienced campaign professional. Emphasis is given to new tools available through the Internet, such as Web sites for prospect research and the use of electronic media to help make your organization’s case stand out among the competition.

Title of Book

Nonprofit Essentials: Major Gifts Nonprofit Essentials: The Capital Campaign

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Item Number

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Walker

0471738379

$34.00

Walker

0-471-68429-5

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Weaving Ethics Into Your Organization's Fundraising Paulette V. Maehara, CFRE, CAE Wednesday, May 6, 2009

Everyone understands that ethics is critical to fundraising. After all, without public trust and confidence, fundraising simply cannot occur. But too often we look at ethics in a very limited fashion: “It’s a list of things we can and cannot do,” or “That’s the job of the fundraiser.” In an increasingly connected world where accountability, ethics and transparency are not just buzz words but fundamental aspects of a donor’s (and society’s) expectations, we must reexamine what it means to be ethical. Paulette Maehara, CFRE, CAE, the president and CEO of the Association of Fundraising Professionals, will explore how organizations can take a holistic look at ethics, identify how organizations can use ethics to reach out to the public to generate support and discuss the current pressing ethical issues--such as donor control and percentage-based compensation--that often seem to arise. Learning objectives: Participants will learn: 1. How donors and others view ethics as it relates to nonprofits and what their ethical expectations are of charities 2. How fundraisers can employ ethics and their ethical values into their organization’s fundraising 3. How fundraisers can integrate ethics into their organization’s daily operations 4. How to discuss some of the critical ethical issues—such as percentage-based compensation and donor control—with donors and others Target Audience: All levels About the Presenter: Paulette Maehara, CFRE, CAE, is the president and CEO of the Association of Fundraising Professionals. Her background combines extensive fundraising knowledge with strong association management experience. Maehara has been selected by The NonProfit Times as one of the Top 50 Most Influential People in Philanthropy for the last ten years, 1999-2008, and she was one of just 100 women chosen to participate in the 2000 Leadership America Program. Web/Audioconferences will be held at 1:00-2:30 p.m. Eastern / 12:00-1:30 p.m. Central 11:00 a.m.–12:30 p.m. Mountain / 10:00-11:30 a.m. Pacific / 9:00-10:30 a.m. Alaska (*except on June 25, 2009) FEES: $145 (U.S.) per member session; $295 (U.S.) per nonmember session

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AFP 2009 WEBCONFERENCE SERIES

May 6, 2009 Paulette V. Maehara, Weaving Ethics Into Your Organization's Fundraising

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Association of Fundraising Professionals

2009 WEB/AUDIOCONFERENCES Educating Fundraisers in the 21st Century • JANUARY 15, 2009, THURSDAY Recession-Proof Your Annual Campaign Stanley Weinstein, ACFRE • JANUARY 27, 2009, TUESDAY Raising Big Money Through Golf Events in a Down Economy Phil Immordino • FEBRUARY 5, 2009, THURSDAY Developing Major-Gift Donors Who Deliver! Laura Fredricks, JD, LLC • FEBRUARY 26, THURSDAY Introducing “Donor Touchpoint Management”―A Marketing Approach to Donor Relations Janet Hedrick, CFRE

• JUNE 25, 2009, THURSDAY * 3:00 PM EASTERN* Making the Most of Email Marketing: Optimizing Your Message for Today’s Medium Allison Van Diest • JULY 8, 2009, WEDNESDAY Forty Ways to Maximize Fundraising Through Your Website Allan Pressel • JULY 23, 2009, THURSDAY A Blueprint for Fundraising Success in Any Economy: Creating a Sustainable, Comprehensive Development Model Kent Dove, CFRE • AUGUST 12, 2009, WEDNESDAY Creating a Successful Fundraising Culture: Twelve Tools for Motivating Your Board Carole V. Rylander, CFRE

• MARCH 12, 2009, THURSDAY The Seven Things Everyone Wants: What Freud and Buddha Understood (and We’re Forgetting) About Online Outreach Katya Andresen

• SEPTEMBER 2, 2009, WEDNESDAY Prospect Research: How to Use Philanthropy Data for the Most Effective Fundraising Kathleen Rogers

• MARCH 24, 2009, TUESDAY Mobilizing Generation 2.0 Ben Rigby

• SEPTEMBER 17, 2009, THURSDAY Keeping the Plates Spinning: Time Management and Goal Setting for Development Professionals Marc A. Pitman, CFCC

• APRIL 7, 2009, TUESDAY Avoiding Legal Pitfalls: What Fundraisers Need to Know Paula Goedert • APRIL 23, 2009, THURSDAY Twelve “Deadly” Mistakes of Major-Gift Campaigns and How to Avoid Them! Julia Walker • MAY 6, 2009, WEDNESDAY Weaving Ethics Into Your Organization's Fundraising Paulette V. Maehara, CFRE, CAE • MAY 20, 2009, WEDNESDAY Giving Circles and Fundraising in the New Philanthropy Environment Angela Eikenberry and Jessica Bearman

• OCTOBER 8, 2009, THURSDAY How Great Teams Turn Conflict into Strength Diana McLain Smith • OCTOBER, 28, 2009, WEDNESDAY Getting Your Message to the Media on a Dime! Kathy Compton • NOVEMBER 5, 2009, THURSDAY Title - TBA Speaker • DECEMBER 9, 2009, WEDNESDAY How to Have Conversations With Donors About Planned Gifts Kathryn W. Miree

• JUNE 10, 2009, WEDNESDAY Evaluating Your Development Program: How Do You Measure Up? Linda Lysakowski, ACFRE Web/Audioconferences will be held at 1:00-2:30 p.m. Eastern / 12:00-1:30 p.m. Central 11:00 a.m.–12:30 p.m. Mountain / 10:00-11:30 a.m. Pacific / 9:00-10:30 a.m. Alaska (*except on June 25, 2009) FEES: $145 (U.S.) per member session; $295 (U.S.) per nonmember session

Special AFP Member Bundle - $99 per session when registering for 10 or more programs at one time!

AFP 2009 WEB/AUDIOCONFERENCE SERIES ‰ January 15, 2009 ‰ January 27, 2009 ‰ February 5, 2009 ‰ February 26, 2009 ‰ March 12, 2009

Stanley Weinstein, Recession-Proof Your Annual Campaign Phil Immardino, Raising Big Money Through Golf Events in a Down Economy Laura Fredricks, Developing Major-Gift Donors Who Deliver! Janet Hedrick, Introducing “Donor Touchpoint Management”—A Marketing Approach to Donor Relations Katya Andresen, The Seven things Everyone Wants: What Freud and Buddha Understood (and We’re Forgetting) About Online Outreach ‰ March 24, 2009 Ben Rigby, Mobilizing Generation 2.0 ‰ April 7, 2009 Paula Goedert, Avoiding Legal Pitfalls: What Fundraisers Need to Know ‰ April 23, 2009 Julia Walker, Twelve “Deadly” Mistakes of Major-Gift Campaigns and How to Avoid Them! ‰ May 6, 2009 Paulette V. Maehara, Weaving Ethics Into Your Organization’s Fundraising ‰ May 20, 2009 Angela Eikenberry & Jessica Bearman, Giving Circles and Fundraising in the New Philanthropy Environment ‰ June 10, 2009 Linda Lysakowski, Evaluating Your Development Program: How Do You Measure Up? ‰ June 25, 2009 Allison Van Diest, Making the Most of Email Marketing: Optimizing Your message for Today’s Medium ‰ July 8, 2009 Allan Pressel, Forty Ways to Maximize Fundraising Through Your Website ‰ July 23, 2009 Kent Dove, A Blueprint for Fundraising Success in Any Economy: Creating a Sustainable, Comprehensive Development Model ‰ August 12, 2009 Carole Rylander, Creating a Successful Fundraising Culture: Twelve Tools for Motivating Your Board ‰ September 2, 2009 Kathleen Rogers, Prospect Research: How to Use Philanthropy Data for the Most Effective Fundraising ‰ September 17, 2009 Marc A. Pitman, Keeping the Plates Spinning: Time Management and Goal Setting for Development Professionals ‰ October 8, 2009 Diana McLain Smith, How Great Teams Turn Conflict into Strength ‰ October 28, 2009 Kathy Compton, Getting Your Message to the Media on a Dime! ‰ November 5, 2009 To be Announced ‰ December 9, 2009 Kathryn Miree, How to Have Conversations With Donors About Planned Gifts This order is for [ ] Live Event; [ ] CD, [ ] Download Webconferences will be held at 1:00-2:30 p.m. Eastern / 12:00-1:30 p.m. Central 11:00 a.m.–12:30 p.m. Mountain / 10:00-11:30 a.m. Pacific / 9:00-10:30 a.m. Alaska (*except on June 25, 2009) FEES: $145 (U.S.) per member site per session; $195 (U.S.) per nonmember site per session Special AFP Member Bundle - $99 per session when registering for 10 or more programs at one time!

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Can’t make a Webconference? Purchase the recorded session as a download or on CD. Call 877-728-3904 or visit our website at http://webconferencing.afpnet.org

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