Mechanisms of Action. Three strategies to connect with your donors and inspire big gifts.

Transcription

1 Mechanisms of Action Three strategies to connect with your donors and inspire big gifts. Presenter Eric B. Javier, Principal & Managing Director, CCS Fundraising June 13,

2 Agenda 1. Current Trends 2. Why People Give 3. Strategies 4. Discussion 2

3 Section 1 Current Trends 3

4 Last Year, Americans Gave $ Billion!* *For the first time ever, charitable giving exceeded the $400 billion mark! 70% / $286.65B Individuals 16% / $66.90B Foundations 9% / $35.70B Bequests 5% / $20.77B Corporations 4 Source: Giving USA 2018

5 Overall Distribution Remains Steady $29.59B 7.0% $19.51B 5.0% $22.97B 6.0% $11.83B 3.0% $127.37B 31.0% Religion Education Human & Social Services Foundations $38.27B 9.0% Health Public Society Arts, Culture & Humanities $45.89B 11.0% $50.06B 12.0% $58.90B 14.0% International Affairs Environmental & Animal Welfare 5 Source: Giving USA 2018

6 Total Giving as a Percentage of GDP Remains at 2.1% for Sixth Consecutive Year 6 Source: Giving USA 2018

7 Individual Giving as a Percentage of DPI Remained Stable 2.0% 2.0% 2.0% 2.0% 2.0% 1.9% 1.9% 1.8% 1.8% *Disposable personal income (DPI) 7 Source: Giving USA 2018

8 Total Charitable Giving vs. S&P 500 S & P % Total Giving 3.0% 8 Source: Giving USA 2018

9 Americans are Generous 56% of the General U.S Population Give $2,514 Average Amount Given Annually 91% of Wealthy Households Give $25,509 Average Amount Given Annually 83% plan to give as much or more through Additional Sources: IUPUI Lilly Family School of Philanthropy: Overview of Overall Giving, 2017 Bank of America U.S. Trust Study of High Net Worth Philanthropy Source: Giving USA 2018

10 Section 2 Why People Give 10

11 Why people give People give because they are asked People give to people, most often their peers People respond to a meaningful mission People give to create lasting impact People respond to specific requests People respond to successful programs Most people want, and all deserve, recognition for their gifts 11

12 Why people give: CCS Insights Motivation % all respondents Impact of my gift 89% Because I can 79%? Religious practice or moral belief 69% I owe it to my community 66% The person who asks 61% Tax deduction 37% 12 CCS clients aggregated responses, May 2018

13 Why people give: US Trust Insights? 13 Source: The 2016 U.S. Trust Study of High Net Worth Philanthropy Bank Of America 2016

14 Section 3 Strategies 14

15 Strategy 1 The Feasibility Study Arc of a campaign Strategic Planning Feasibility Study Organizational Phase Leadership & Major Gifts Public Phase Affirm mission Future vision Strategies Financial plan Test case Goal Timeline Strategy Resource / Staffing Solidify Case Prospecting Naming / Recognition Campaign Cabinet 20-30% of goal Lead gifts Board gifts Steering Committee Cultivation 70-80% of goal Public launch Communications Participation Stewardship Over goal 15

16 Strategy 1 The Feasibility Study The Process Draft Case Strategic Interviews Plan 16

17 The Feasibility Study Results Neutral conversations Education Address concerns and questions Engage New Leadership Co-creation of solutions Instill ownership 17

18 The Feasibility Study Examples Orchestra Opera Independent School 18

19 Strategy 2 The Challenge Match Underlying Principles Context Joint ownership Financial and Activity Objectives Structure Develop in partnership with Board member or major donor Challenge can be to reach a dollar amount, number of donors, number of new donors, planned gifts, etc. Periodically share progress to goal 19

20 The Challenge Match Options Cornerstone gifts to be matched 2:1 by leadership gifts 1:1 match for each new gift Community support to match institutional giving Current-use gifts unlock planned gifts 20

21 Sample Challenge Gift Strategy Jump Start Funding Total Donor A $500,000 $2,500,000 Donor B $500,000 $2,500,000 Total $1,000,000 $5,000,000 RSCC Challenge Donors Year One Donor # 1 $1,000,000 $1,000,000 Donor # 2 $1,000,000 $1,000,000 Donor # 3 $500,000 $500,000 Donor # 4 $500,000 $500,000 Donor # 5 $250,000 $250,000 Donor # 6 $250,000 $250,000 Donor # 7 $250,000 $250,000 Donor # 8 $250,000 $250,000 Subtotal $4,000,000 $4,000,000 Year Two Donor # 9 $1,000,000 $1,000,000 Donor #10 $1,000,000 $1,000,000 Donor #11 $500,000 $500,000 Donor #12 $500,000 $500,000 Donor #13 $250,000 $250,000 Donor #14 $250,000 $250,000 Donor #15 $250,000 $250,000 Donor #16 $250,000 $250,000 Subtotal $4,000,000 $4,000,000 Year Three Donor #17 $1,000,000 $1,000,000 Donor #18 $1,000,000 $1,000,000 Donor #19 $500,000 $500,000 Donor #20 $500,000 $500,000 Donor #21 $250,000 $250,000 Donor #22 $250,000 $250,000 Donor #23 $250,000 $250,000 Donor #24 $250,000 $250,000 Subtotal $4,000,000 $4,000,000 Challenge Donors Total24 Donors $4,000,000 $4,000,000 $4,000,000 $12,000,000 Grand Total $17,000,000 21

22 Sample Challenge Visual Filled $1,500,000 Unfilled Matching slot $500,000 $250,000 $150,000 $100,000 22

23 Strategy 3 The Planned Giving Program Why Planned Giving? Donor loyalty is highly correlated to planned giving (if you ask) Planned gift amounts are generally higher than annual individual gifts Programs offer opportunity for cultivation and stewardship Provides consistent income and future income for your orchestra 23

24 The Planned Giving Program Quick Tips to Get Started Partner with a qualified financial advisor Review your database for prospects: consistent donors aged 60+ Develop educational materials and programming to share planned giving options with your constituency 24

25 Inspiring Big Gifts Planned Giving Examples New Jersey Symphony $2.5M Donor 3 Ingredients to their gift: $1.5M cash pledge over 5 years $1M bequest intention Rockefeller model payout of $50K/annually Orchestra of St. Luke s $18M Campaign $6M cash for debt reduction $12M for endowment via planned giving $5M cash and $7M in planned giving commitments to date Cleveland Orchestra Legacy challenge Donor provides cash gifts (up to certain amount) to match every planned giving commitment Almost 500 planned gifts committed in last campaign Estimated value known for about 350 of those commitments 25

26 Section 4 Discussion 26

27 Thank you Eric B. Javier, Principal & Managing Director ccsfundraising.com 27