MARK E. KIMBELL APRIL 17, 2009 ASSOCIATION OF FUNDRAISING PROFESSIONALS GREATER HOUSTON CHAPTER. Closing Major Gifts

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1 MARK E. KIMBELL APRIL 17, 2009 ASSOCIATION OF FUNDRAISING PROFESSIONALS GREATER HOUSTON CHAPTER Closing Major Gifts 1

2 Dow Jones Industrials

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4 Failing Industries Banks Carmakers Airlines Hospitals Newspapers They have failed to remember their customer. 4

5 From an interview with Eric Schmidt about the future of newspapers: [Schmidt] says, The best way to get out of this is to invent a new product. That s the way Google thinks. Incumbents very seldom invent the future. [Schmit] says that it s hard for newspapers to target ads as precisely as Google. If you are reading about a murder with a knife, you can t show a cutlery ad. He s talking to newspapers about a new ad model that understands your history and your interests. They d know enough about your demographic to know, male, female, age group, what have you, he said. The whole secret here is the ads are worth more if they are more targeted, more personal, more precise. Dinosaur at the Gate, NYT, Maureen Dowd 5

6 Ptolemaic Universe Sales Growth Profits and losses 6

7 Copernican Universe Service Respect Problemsolving 7

8 Major Campaigns in Houston: the Competition Really? Baylor College Med $ 1 billion Rice University $ 1 billion University of Houston $ 600+ million Texas Children s Hosp $ 400 million St. Thomas University $ 100+ million Museum Natural Science $ 80+ million University of Texas $ 3 billion Texas A&M University? Museum of Fine Arts? M.D. Anderson? St. Luke s Hospital? Texas Heart Institute? $5+ Billion 8

Ask the Experts February 20, 2009 Recommendations for 2009 Spend time with your donors. Ask the Listen Experts to major donors. Ask your donors to share their experiences.

9 Ask the Experts February 20, 2009 Recommendations for 2009 Spend time with your donors. Ask the Listen Experts to major donors. Ask your donors to share their experiences. Respond to the unique and timely reactions, expectations, Ask the Transparent Experts stories communication of your donors. Don t cry wolf February 20, 2009 Recommendations for 2009 Don t hide the reality Ask the Continue Experts to campaign Over communicate rather than February 20, 2009 Recommendations for 2009 Continue 26 to plan Recommendations for 2009 Deacon Larry Vaclavik of Dini Partners, Ask the Experts Recommendations for 2009 under communicate Ask the Experts Continue to organize February 20, 2009 Steward resources well Continue to Think ask lean About programs, projects, goals that February 20, 2009 advance mission! Realign programming Avoid desperation as your and demands Ask the Experts 27 donors are Don t realigning push donors Beware of the new Realign your Listen fundraising and don t goals ignore reactions February 20, 2009 Build new relationships Ask of your institution 28 what you would ask of Focus a public on individuals, company or families bank in today s Foundations environment will be more cautious 29 If you serve the poor, this is your time to make yourself known Recommendations for

10 Giving Expectations 5% 34% Giving will decrease Will give as much or more 62% Committed to increased giving Patience and Creativity/Fundraising in Challenging Times Deacon Larry Vaclavik, AFP Ask the Experts,

11 Motivations 70% 64% 60% 50% 50% Percentage 40% 30% 33% 20% 10% 0% Existing relationships For those in need Will give to fewer organizations Motivation for Giving Patience and Creativity/Fundraising in Challenging Times Deacon Larry Vaclavik, AFP Ask the Experts,

12 Fundraising During an Economic Downturn Relationships Relationships Relationships 12

13 Relationship Building The Smith Family Mr. Smith is a grateful patient of Dr. Grossman s from 1980s The Smiths began supporting the work of Dr. Grossman in 2003 with a $75,000 gift Mr. Smith joined the NI Community Council in the 2 nd quarter formal contacts and communications prior to the gift of $1,000, nd Quarter 3rd Quarter 4th Quarter 1st Quarter 2nd Quarter 13

14 Your attitude matters most I tell people I suffer from an unusual learning disability, I can not understand the meaning of no in any language. Ray Umashankar Founder ASSET India Foundation Chronicle of Philanthropy, April 9,

15 Meeting A Donor s Philanthropic Objectives: A Transfer of Assets Organization Prospective Donor Case Reputation Leadership Access Expertise Programs Financial Reputation Leadership Access Expertise Time 15

16 Six Basic Closing Steps with a Prospective Donor 1. Opening 2. Questioning 3. Listening 4. Presenting 5. Overcoming Objections (see appendix) 6. Asking for the Gift Scott R. Lange, Handling Objections & Closing the Gift Marts and Lundy, Feb and May

17 Objections Regarding Not Now 1. Negotiate the time frame... Longer pledge period Pledge now, pay later 2. Negotiate the amount 3. Discuss a planned gift or combined gift Charitable Lead Trust Bequest 4. How about a challenge gift? 5. How about a annual gift? 6. Ask When? Scott R. Lange, Handling Objections & Closing the Gift Marts and Lundy, Feb and May

18 Closing Gifts During an Economic Downturn What is a major gift? Increase focus on individuals Continue communicating the case Project specific approach Ask now... and... Keep asking Donor stewardship Did I really make a difference? Communicate how your organization is fairing 18

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20 Handling Objections Appendix 20

21 Objections Regarding Interest Organization is not high on his/her list of priorities This isn t my top priority Possible responses by you: What is their primary philanthropic objectives? What do we offer that comes close? What do we provide that is more important? Scott R. Lange, Handling Objections & Closing the Gift Marts and Lundy, Feb and May

22 Objections Regarding the Amount 1. Negotiate the time frame 2. Negotiate a blending of cash payments and other assets Sale or gift of appreciated property Estate plan Royalty on an asset 3. Discuss opportunities at a lower gift level Scott R. Lange, Handling Objections & Closing the Gift Marts and Lundy, Feb and May

23 Objections Regarding the Amount 1. Can I remind you that the campaign pledge period is x years and you could: Do this over time? Use funds from an investment that will mature at the end of the campaign? 2. Could we show you how you could give $1 million through a combination of cash and estate planning? 3. What amount are you considering? (and then deal with the potential gap) Scott R. Lange, Handling Objections & Closing the Gift Marts and Lundy, Feb and May

24 Objections Regarding the Case The prospective donor does not concur with the overall objectives or methodology What would they do instead? What are the potential cost implications? If leadership agreed to the change, would the donor make the lead gift to fund the revised the initiative If Yes, take their willingness back to leadership. If No, thank and consider an alternative project or find an alternative donor. Scott R. Lange, Handling Objections & Closing the Gift Marts and Lundy, Feb and May

25 Objections Regarding the Case The prospective donor does not concur with the overall objectives or methodology What would they do instead? What are the potential cost implications? If leadership agreed to the change, would the donor make the lead gift to fund the revised the initiative If Yes, take their willingness back to leadership. If No, thank and consider an alternative project or find an alternative donor. Scott R. Lange, Handling Objections & Closing the Gift Marts and Lundy, Feb and May

26 Objections Regarding the Case The prospective donor is not particularly fond of the organization s president. You are giving to the institution, not the individual (the leader) The gift will last longer than the current leadership The donor defines the terms of the gift Scott R. Lange, Handling Objections & Closing the Gift Marts and Lundy, Feb and May

27 Objections Regarding the Ask The prospective donor does not respond to the way he/she was asked... Apologize for the enthusiasm of the development officer/president/volunteer Acknowledge that the ends are far more important than the means Ask if we can meet again with people the donor prefers, at a time and location of their choosing Scott R. Lange, Handling Objections & Closing the Gift Marts and Lundy, Feb and May

Gift Planning Essentials. Audrey Klein-Leach Senior Director of Development, Gift Planning Oregon State University Foundation September 18, 2015

Gift Planning Essentials. Audrey Klein-Leach Senior Director of Development, Gift Planning Oregon State University Foundation September 18, 2015 Gift Planning Essentials Audrey Klein-Leach Senior Director of Development, Gift Planning September 18, 2015 Gift Planning Vehicles 2 Planned Giving: Myths & Hurdles MYTH: Planned giving is only for older