From the Annual Fund to Major Gifts Jesuit Advancement Association Conference June, 2007

1. From the Annual Fund to Major GiftsJesuit Advancement Association ConferenceJune, 2007

2. Here We Go – Our Agenda • Overview of prospect/market research • Research and Annual Giving • Segmentation • Direct Mail and Telemarketing • Transition to Major Gifts

3. Here We Go – Our Agenda • Major Giving • Understanding propensity and capacity • Moves management • Cultivation and solicitation • Stewardship and recognition • Planned Giving • Characteristics • Marketing

4. Here We Go – Our Agenda • Integration of Development Functions • Bringing it all together into a cohesive effort • Summary and Questions

5. Underlying Assumptions (Overview) • We need to understand our constituencies • Effective prospect research depends on: • Understanding key segments • Thinking “out of the box” • Each organization has multiple donor profiles • Key to effective cultivation and solicitation • Understanding non-donor segments

6. Ultimate GivingMining your Database to Maximize Gift Potential

7. Traditional View of Donor Development Prospects (Database) Donors (First Time or Sporadic) Major Donors Planned Givers

8. True View of Donor Development Prospects (Database) Donors (First Time or Sporadic) Loyal Donors Major Donors Planned Givers Major & Planned Donors

9. Ultimate Giving • Everyone on your database has an ultimate gift • Ultimate gifts may be of any size or type • Data mining will help you to determine the ultimate giving potential of your prospects • Once you know the ultimate giving paths on your database, you may develop cultivation/solicitation strategies suited for gift maximization

10. Definitions • Market Research (The Market Research Society) • “A systematic way of finding out what people believe, think, want, need or do.” • “…and establish policies matched to the public’s needs.” • A.k.a. survey research, social research, and ‘prospect research’

11. Definitions • Data Mining: Investigating and discovering trends within a constituent database using computer or manual search methods • Predictive (Statistical) Modeling: Discovery of underlying meaningful relationships and patterns from historical and current information within a database; using these findings to predict individual behavior

12. Applications of Market Research (NonProfit) • Targeting donor prospects • Test new solicitation strategies • Evaluate program performance • Evaluate solicitation performance • Assess prospect interests • Benchmarking • Monitor constituent satisfaction

13. What Works for You? • What do you analyze? • Do you know what is effective? • Do you know what non-donors think? • Do surveys work for you? • What are you doing online?

14. Predictive Modeling – Who Uses It? • Finance • Insurance • Meteorologists • Political Pollsters and Campaigns • Retail • E-commerce • Thousands of Nonprofits

15. Nonprofit Uses • Higher Education • Recruitment, matriculation • Retention, graduation • Fundraising • Other Nonprofits • Fundraising • Membership • Interests/marketing/readership

16. Prospect Screening • When to use? • How to use? • Have an implementation plan! • Secure commitment from all players! • Use it! Evaluate it! • Do something different! • Use alone or in combination? • Comprehensive to focused, or vice-versa?

17. Custom Modeling Applications • Annual giving propensity • Target gift amount • Major giving propensity • Planned giving propensity • by planned giving “type” • Membership propensity & levels • Direct mail vs. telemarketing propensity • Acquisition vs. retention

18. Modeling Direct Marketing Data

19. Wealth Screening – Hard Data • Wealth ID • P!N • WealthEngine • Target America • Marts & Lundy • Grenzebach & Glier

20. Wealth Screening – Breakdown • Stock holdings • Real estate holdings • Business ownership • Large asset ownership • Income • Corporate and foundation executives

21. Annual GivingIt is the cornerstone of most successful major and planned giving programs

22. Annual Giving – A Working Definition • Solicitation efforts designed to: • Promote introductory giving • Promote loyal giving • Reach larger groups of individuals • Be efficient and cost effective • Minimize the intrusion on the donor’s life

23. The Relationships Between Donor Types • Is annual giving the basis of: • Major giving success? • Capital campaign success? • Planned giving success? • If yes, are there exceptions? • Do we underestimate the value of the $20 annual donor? • Do we over-solicit these individuals?

24. Annual Giving Applications • Annual giving propensity • Target gift amount • Membership propensity & levels • Direct mail vs. telemarketing propensity • Acquisition vs. retention

25. Rating PropensityWho is most likely to contribute?

26. Annual Giving Model

27. Annual Giving Scores

28. Targeting RightDirect Mail with a Purpose, or Looking for Love in all the Right Places

29. Creative Challenge #1 • A public university sends one undifferentiated letter to all of its 40,000 non-contributing alumni

30. The Letter STATE University Dear Graduate: Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime. Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000…

31. But… STATE University Dear Graduate: Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime. Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000… But, prior to 1957, it was “State College and Agricultural Institute.”

32. However… STATE University Dear Graduate: Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime. Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000… However, until 1987, they were known as the “Red Indians”

33. Unfortunately… STATE University Dear Graduate: Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime. Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000… Unfortunately, in a nightmarish record of futility, they lost all of their games between 1974 and 1987 (perhaps prompting the change to Red Rabbits)

34. Abandoning the Nest… STATE University Dear Graduate: Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime. Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000… The Raven’s Nest was abandoned in 1993, and the site now features a tattoo and piercing parlor

35. It is Not “Happy Days”… STATE University Dear Graduate: Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime. Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000… And even if it were still open, who calls it a “malt” anymore?

36. All Alumni Are Equal… STATE University Dear Graduate: Like me, you probably look back fondly on your years at State University. Cheering on the Red Rabbits to gridiron victory. Enjoying a malt at the Raven’s Nest. The friendships and romances with your classmates, which, in many cases, lasted a lifetime. Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of $1,000… Do you really think a 30 year old and a 50-year reunion class alum should be asked for the same gift amount?

37. Improvements… STATE University Dear <Name>: Like me, you probably look back fondly on your years at <State University. > Cheering on the <Team Name> to gridiron victory. <Enjoying a malt at the Raven’s Nest.> The friendships <and romances> with your classmates, which, in many cases, lasted a lifetime. Today we are launching a major endowment campaign with the goal of raising $50 million. And that is why it is so important that we receive your gift of <$1,000>… Using strategic customization, we can isolate variables that impact response rate and reflect “predictors” from statistical modeling

38. Improvements… STATE University Dude: Was college great or what? I’m still partying man! You knew this was coming, didn’t you? That’s right, we’re asking for money. Welcome to the real word! But the thing is, it’s not really that much. And by giving $50, you could be helping some slacker who has even less money that you did when you were 18. With much less complexity, we can mail two or three basic versions of the letter, testing dollar asks based on age or other financial/class year criteria.

39. Alternatives • Letter 1 to graduates of less than 10 years • Letter 2 to graduates of 11-25 years ago • Letter three to graduates of more than 25 years • How do we use differences in their experiences, ages, to create messages more appropriate to them?

40. And the point is… • Graduates spent 4 (or more years) becoming individuals • Lived in different times at school with varying world events • Totally different life stages, from finding a first job (or second) to pondering retirement • So why use the same letter with the same ask?

41. Major GivingEveryone wants major giving success, but are you willing to walk before you run?

42. Major Giving – A Working Definition • Solicitation efforts designed to: • Promote significant giving • Promote loyal giving • Reach one donor at a time • Develop a personal relationship • If desired by the donor, to publicly recognize their special commitment

43. Upgrade Top Prospects LIKELIHOODAGL, MGL & PGL Low Yield Projects CAPACITY- TGR & WealthPoint Propensity & Capacity

44. What Do You Know? • If you have propensity and capacity? • Segmentations • Messages • Frequency of solicitation • Exclusion/inclusion • More than giving history and wealth tells you

45. Model - Major Giving Propensity

46. Why Capacity Matters? • In the giving equation, is it less important? • Three reasons people do not give: • Not asked • Do not support your mission • Not asked for an appropriate gift

47. Target Gift Model

48. Target Gift Distribution

49. What Can You Avoid? • Over-solicitation • Ineffective solicitation • Short-term needs vs. long-term prospects • Minimizing lifetime value • Projection of your opinion

50. Moves ManagementBuilding Relationships That Last a Lifetime