Philanthropy

Sustainable Major Gift relationship development during a world of transition

Presenter

Carl Young, CFRE

Philanthropy and Fundraising Director

Peter MacCallum Cancer Foundation

PFRA Chair

Track supported by

Fundraisers

HEROES for humanity

Philanthropy

Sustainable Major Gift relationship development during a world of transition

Presenter

Carl Young, CFRE

Philanthropy and Fundraising Director

Peter MacCallum Cancer Foundation

Track supported by

Thought provoking - Myth busting?

Experience – Karen Osborne – Guy Mallabone

Your MG program status

Something for everyone

I/we can’t do that?

Does it take a long time to ask for a major gift?

Recruitment

Major Gifts – some basics

Setting the scene

Philanthropic Culture and the Power of Language

Building blocks to handle a changing world and major gifts

The science and the art of ask

Prospecting and Stewardship

• Transactional or relationship development?

• Proactive or reactive?

• Stewardship or Value?

Program Integration

• Donor Relationship Management and Coordination

• Moves Management and LIA

• Development Officer KPIs (actions versus volume)

• Donor recognition

• Making the Ask – Examples and discussion

Today’s session

First things first: what amount makes a major gift?

Research by Market Smart

Donors and Donations | Definition of a “Major Donor”

Figure 2.1 Major donor dollar thresholds

Counting Definition No. Thresho

ld $

i. Minimum dollar value of a single gift at any time 4 5-

10,000

ii. Minimum dollar value of a single gift in the past or current

year

2 1,000

iii. Minimum dollar value of cumulative gifts in any one year* 5 5-

20,000

iv. Minimum lifetime dollar value 0 N.a.

v. Either as a single gift or cumulative across multiple gifts in any

one financial year

1 10,000

vi. Combination of money and other factors; wealth screening,

qualitative research, linkage and interest, history with the

organisation, qualification call

1 1,000

Total 13

Clear and measurable donor service level standards for staff to follow

BQ(+cash gifts)

Major Gifts$1000 > $5000 > $10000 > $1m+

Annual GivingMid Level Cash + RG Donors $250 > $4999

Donor Entry

Direct Mail and RG Acquisition – other etc., etc.

Serv

ice

Lev

el S

tan

dar

ds

High Value Major Gift $50,000+

Major Gift $5000 - $49,999

High Value Donor $1000 - $4999

Mid-Level Program $250 - $999

http://americanhistory.si.edu/topics/philanthropy/pages/power-giving-2018

Member of the public - Donor - Supporter

Enquiry - Feedback - Complaint

Moves Management

Research – Qualification - Prospect – Not a Prospect

Linkage – interest - Ability

Cultivation – Donor functions – high value donors – mid-level donors

Solicitation – donor engagement

Stewardship –Acquittals - Donor Celebration

Donation – Gift – Pledge – Instalments –Write-off

Tied Gift – Untied Gift – Endowment Fund –What is a Major Gift?

Development Officer – Gift Solicitor – Primary Relationship Manager – Secondary Relationship

Major Gift Manager – Philanthropy Manager

Donor Rights – Organistional Rights – Naming Rights - Donor Recognition

Donor Privacy – Public Information

WHAT ROLE DO YOU PLAY?

Creating a Philanthropic Culture - the Power of Language

1. Communitarian

2. Devout

3. Investors

4. Socialite

5. Re-payer

6. Altruist

7. Dynast

Seven Faces Study – Prince & File

Seven faces of philanthropy

Can you talk to donors in their language?

26%

21%

15%

11%

10%

9%8%

Communitarians

Devout

Investors

Socialites

Re-payers

AltruistsDynasts

• Founded in 1949 by Sir Peter MacCallum, with a vision to create a world class cancer centre where scientists and doctors worked side by side to quickly translate research into care

• The Peter MacCallum Cancer Centre is a public hospital

• It is Australia’s only specialist hospital and research centre with a single focus – cancer

• It houses Australia’s largest cancer research group and is world renowned for its work

Today’s Peter Mac Vision

The best in cancer care, accelerating discovery, translating to cures “Nothing but the best is good enough in the

treatment of cancer.” Sir Peter MacCallum

Peter MacCallum Cancer Foundation - Case Study

Building a pipeline

PMCC

Transition to a new hospital/research site

2 Board Chairs

Numerous Board Member Transition

4-5 CEOs

3 COOs

5 Executive Directors of Comms

6-7 CFOs (sorry I lost count)

2 Executive Directors of Research

2 Deputy Directors of Research

450 – 600 Researchers

Can you be consistent in an ever changing world?

PMCF

Transition to a new office and VCCC

Capital Campaign with charity stakeholders

2 Board Chairs

Approx 50% Board Transition

1 Executive Director

1 Philanthropy and Fundraising Director

4 Major Gift Managers

3 Database Managers

5 p/t Trust and Foundation Coordinators

8 > 25 staff

Victorian Comprehensive Cancer Centre Project

Out with the old and in with the new

Q: How can you make a $1b building invisible?

Donor Centric

Board of Directors

Chief Executive

Executives

Finance

Commsand

Marketing

Frontline staff

Program Staff

Development Team

The culture of philanthropy

Donor bill of rights

IVTo be assured

their gifts will be used for the purposes for

which they were given

BeneficiaryCentric

Board of Directors

Chief Executive

Executives

Finance

Commsand

Marketing

Frontline staff

Program Staff

Development Team

Beneficiary Centric

It’s not

rocket science!Just strategic

personal engagement

and disciplined follow up

Major Gifts

• Philanthropy is an emotional decision, not just financial

• A process, not an event

• Donations follow information, interests and involvement

• People give to people, to benefit humanity, equity and change, not projects

• 95% Planning, 5% Asking

• No such thing as an average gift

• Both the needs of the donor and the organization must meet

• Biggest mistake: NOT Asking

What is known about philanthropy and making the ask?

You cannot be a peacock with missing feathers

Components of a sustainable and ethical major gift program

MG SUCCESS

Case for Support

CEO and Org buy-in

Major Gift Team

Priority List

Donor Bill of Rights

PRM Business

Rules

LIA SLSMoves Mangt

Tied Gift Policy

Naming Policy

Donor Recognition

Policy

MG Committee

Champions

Prospects

Major Gift Synergy (1+1=3)

The Science and Art of Major Gift Fundraising

https://www.youtube.com/watch?v=cFdCzN7RYbw

The Rightperson

Asking the Right donor

For the Right gift

At the Righttime

The Four Rs

Relational

or

transactionalengagement?

Proactivesolicitation

or

reactivesolicitation?

Other considerations

Linkage

The direct connection of an individual with an organisation (Board Member, volunteer, donor). Determined by a number of factors including

analysing donors giving trends such as how recent the donation is, frequency, of the donation and value of the donation (RFV).

Interest

Interest is based on their knowledge of the cause and/or level of involvement with the cause and charity in the past, as well as their belief

in the mission and vision

Ability

The ability rating is based on their capacity to give in a single donation at any one time, not what it is thought they will actually donate.

LIA system for donor and prospect ranking

Interest

Ability

Linkage

Linkage, Interest and Ability

The concept known as the LIA Principle assists the relationship manager to direct cultivation and solicitation strategies and engagement tactics toward those individuals who are most likely to provide high value donations or volunteer their services in some way.

The stronger each of these qualities, the more likely a prospect is to make a gift. Whilst this ranking system is no guarantee that the donor prospect will donate or increase their giving, it does assist Major Gift volunteers and staff in the identification of prospects and who are best to engage with.

Currently, the Peter Mac ranks Linkage, Interest and Ability from 0 – 5 allowing for a maximum score of 15 per prospect.

For the Capital Appeal 0-15 and an additional category of philanthropic history (5) making a total score of 50

The LIA system for donor and prospect ranking

History

InterestAbility

Linkage

1. Suspect Identification

2. Prospect Research and Qualification

3. Cultivation and Engagement

4. Solicitation

5. Stewardship and Acquittal

6. Not a Prospect

Definition of a “move” - A meaningful engagement of, or interaction with a potential donor.

Six stages of Moves Management

A system of planned initiatives that move an individual through a cycle and further a potential donor’s relationship with the organisation to the point of investment. (Guy Mallabone)

Engagement

Cultivation

Submission

Solicitation

Acquittal

Stewardship

Qualification

Research

Moves Management Cycle combined with SWOT

Prospect

Not a prospect

Tailored donor engagement

Increased donor engagement

Improved knowledge transfer

Measureable, evidence based donor development

Apply Moves Management process to all stages of donor engagement and development

• Assists in the knowledge transfer process (short and long-term), operational structure and team culture

• Develops understanding and consistency of fundraising language

• Enable fundraising managers to coach, support, measure and empower staff

• Empower staff to maximise actions and outcomes

• Measure actions and solicitation outcomes

• Measure duration of cultivation and solicitation plan per major gift manager

An effective Moves Management process empowers staff

Clear criteria and business rules established

1. Primary Relationship Manager

2. Secondary Relationship Manager

3. Tertiary Relationship Manager

4. Pathway

5. Gift Solicitor

6. Nominator

Provides guidance to staff and volunteer gift solicitors

Donor/Prospect Management and Engagement

Numerous Donor Proposals

• Victorian CCC

• Endowment

• Tied Major Gifts

• Tied Trust Gifts

• Bequest

Tied to each Proposal• Actions

• Proposal Attributes

• Ratings

• Moves Management Score

• Leadership

Mr John Sample

Capital Campaign Prospect

Bequest Prospect

Major Gift Prospect -cancer research

Numerous propositions and relationship coordination

Moves management scores as a proposal attribute

• Fully customisable

• Fully reportable

Date recording – stage

ageing

Large campaign greater

need for accurate stage

ageing

Prospect management tied to each proposal

Depending on the size of a charity and their Major Gift objectives, Direct Mail can still play an important role in Major Gift Growth and Stewardship

Challenges?

• Integrating Direct large gifts with a Major gift program

• Program KPIs

• Major Gift Manager KPIs

• Solicitor/program recognitions

• Not creating silos

• Potential decline in direct mail channel

DM/Fundraising

Traditional Model

Geographical reach

Donor Acquisition

(cash)

Obtain second gifts and lead generation for Regular Giving

High Value & Major Giving

Bequest lead generation

Stewardship (all FR programs), reactivation

and upgrading

Direct mail and major gift integration?

Measurement and program integration

June 30 current level of giving June 30 level of giving 12 months later

Proactive

Reactive

Measure Last FY -3 Last FY -2 Last FY -1 Last FY Current FYPROSPECT 172 206 252 251 182

PROPOSAL 502 729 1,083 1,332 911

DONOR 74,126 76,486 86,412 93,492 66,385

SOFT CREDIT DONOR 48 58 51 42 16

EXPECTED AMT $2,971,000.00 $2,515,000.00 $4,320,590.00 $10,653,160.00 $10,113,700.00

GIFT RECEIVED AMT $4,554,034.27 $3,208,952.15 $6,594,396.24 $9,510,225.63 $6,546,002.39

GIFT RECEIVED AVG AMT $29,960.75 $19,566.78 $42,002.52 $50,318.65 $107,311.51

PROACTIVE DONOR 331 383 478 226

REACTIVE DONOR 25 23 1

Tracking Success – Live Dash Boards

Date

PRM Proposal Expected $ Funded $ Variance to target Actions

A 13 $1,179,000 $100,000 -$1,079,000 37

B 43 $1,307,000 $620,000 -$687,000 135

C 46 $7,422,700 $5,188,500 -$2,234,200 58

D 30 $195,000 $71,202 -$123,798 95

Total 132 $10,103,700 $5,979,702 -$4,123,998 325

Financial Year Current - Proposal History

PRM Overall Performance Summary Grid

Actualversus

Pledged

Primary Source

Top 30 - 300 Donors (capacity)

Working group - High Value networks and identified leads

Profiling and cross reference

database with BRW List

Secondary Source

Volunteers networks

Leads from other supporters

New donor leads via Surveys, Direct Mail, other income streams.

Identifying and developing major gift prospects

Starting with existing donors closest to the charity and working outward to

seek new Major Donor Prospects

Founders $1M+

Founding governors $500K - $1M

Founding benefactors $250K -$500K

Founding patrons $100K - $250K

Founding fellows $50K - $100K

Founding associates $25K -$50K

Renewable pledges over a 3-5 year time frame

Endowment Fund Target Initial Target: $10mRevised Target: $100m

A clear donor recognition policy

Stewardship versus valuing the donor

PresenterCarl Young, CFRE

Philanthropy and Fundraising Director

Peter MacCallum Cancer Foundation