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How to Get BIGGER Donations from Very Generous People

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How to Get BIGGER Donations from Very Generous People Face to Face How to Get BIGGER Donations from Very Generous People Ken Wyman, CFRE* Director Ken Wyman and Associates Inc Consultants in Fundraising, Volunteerism, and Communication 64B Shuter Street Toronto, Ontario M5B 1B1 (416) 362-2926 * Certified Fundraising Executive Voluntary Action Directorate Multiculturalism and Citizenship Department of Canadian Heritage Ottawa October 1993 Do you want to reprint part of this book? Quotes are used throughout the book with the kind permission of authors, publishers, public speakers and personal correspondents. If you wish to reproduce any of their material, you must secure permission directly from them. Charities and nonprofit groups are welcome to copy and adapt portions of this manual for internal use only, on the condition that you give full credit to the author and publisher. Written permission isn't required, but both the author and publishers would find it helpful to know how you use the material, so please write, call or send samples. Written permission of the copyright owners is required for any other persons, consultants or organizations wishing to copy all or part of this material, or anyone wishing to distribute it in any form, or to include excerpts in anthologies or manuals. Please contact the Voluntary Action Directorate or Ken Wyman. References to fictional organizations and people appear interspersed throughout this manual. Any resemblance to particular real organizations or people in these instances is purely coincidental. This publication is designed to provide accurate and authoritative information on the subject matter covered. Please use it with the understanding that the author and the contributors are not engaged in rendering legal or accounting advice. If expert assistance is needed, please consult an appropriate professional. The analysis contained herein represents the opinion of the author. In no way should it be construed as either official or unofficial policy of any government body. Published by the Voluntary Action Directorate Multiculturalism and Citizenship Canada Department of Canadian Heritage Ottawa, Ontario K1A 1K5 © Her Majesty the Queen as represented by the Minister of Supply and Services 1993 Portions as marked are © Ken Wyman 1993 Disponible aussi en français. ISBN 0-662-00000-x Design: Douglas McKercher This book was set in 11 pt CG Palacio type using WordPerfect software, with output on an HP LaserJet IV. Contents Acknowledgements v The Six Secrets of Big Gifts 1 Is Face-to-Face Fundraising for You? 2 The least expensive, most productive fundraising method 2 How much more income could you raise this way? 13 The Income Potential Tests 13 1 The Right Volunteers 16 Is there a role for consultants? 18 How many volunteers do you need? 20 What would be a good job description for a volun- teer solicitor? 21 Why is it better to have volunteers work in teams of two? 22 How much time will this require? 23 Where can you find volunteers? 23 Help volunteers overcome the fear of fundraising 26 2 The Right Donors 29 Who gives more: individuals or corporations and foundations? 29 How do you find the generous people who donate big gifts? 30 Start with people who already support your group 32 Why ask the board to give first? How do you ask? 33 How can you find hidden giving potential among current donors? 37 How can you uncover new prospects? 42 3 The Right Amount 60 How much do you need? 62 Has the prospect supported your group before? 64 Has the prospect contributed to other charities before? 66 How much might the prospect be able to give? 68 How can you make it easy for people to be generous? 74 With all this information, how do you decide? 82 4 The Right Time 85 When is the right time to ask? 85 Do you really need all the money now? 88 Which prospects should be asked first? 88 5 The Right Project 93 What's the money for? 93 How do you find out what interests the prospect? 102 Should you offer incentives to give? 106 6 The Right Approach 117 Do the final research necessary to get to know your prospects as people 117 Cultivate your relationship with prospects 119 Prepare kits for the volunteer askers 123 Train the askers how to ask 126 Identify possible roadblocks and strategies to overcome them 139 Make the appointment to see the prospect 145 Visit the prospect 150 Follow up afterwards 159 Appendix A: The Webbing Exercise 157 Appendix B: The Big Gift Game 169 Glossary of Terms 178 Additional Resources 180 Evaluation and Suggestions 185 About the Author 188 Acknowledgements Ken Wyman wants to express special thanks to the people whose insight and assistance helped make this book possible, including many who gave permission for their copyright material to be used here. Allan Arlett Leueen MacFarlane Karen Anderson Don McRae Linda Bronfman Charles F Mai Marga Callender Ian McCuaig The Canadian Centre for Philanthropy Lyn McDonell Gordon Cressy Linda Miland Tom Daly Walter Murray Kent Dove and Lorri Wimer of Aryeh Nesher Jossey-Bass Inc NonProfit Times Jim Dugan Henri Nouwen David R Dunlop William Olcott Gail A Evans David Olive Joan Flanagan Carol Oliver Fundraising Management Magazine Helen Gardiner Phelan Marion Fulton Paul Pivato Greg Gatuso Revenue Canada Norman Guilfoyle Nancy Redner Tim Hamilton Henry Rosso David W Heetland Julie Shakespeare Lyman Henderson GT “Buck” Smith Donna Hunter J Warren Steen Nancy Jackman Hanoch Teller Kenneth Kerr United Church of Canada Kim Klein and Nancy Adess of the Frank V Whitely Grassroots Fundraising Journal Mildred and Max Wyman Michael F Luck Joyce Young How to Get Bigger Donations • v vi • Face to Face The Right Stuff Six Secrets of Big Gifts The right volunteer asks the right donor for the right amount at the right time to support the right project with the right approach. — The Six Secrets There are six secrets to getting bigger gifts. This book will focus on how to find out what is `right' in each case. Depending on your circumstances, you may not need to go through each one — or you may need to linger longer over areas that need extra work. In a religious congregation, for example, it may not be appropriate to look beyond your own members for donors; however, research into their interests may be very important. In a large organization with a history of major fundraising campaigns, it may not be hard to find good volunteers; in others, this may be the key to success. For most groups, I recommend that you follow the sequence laid out here in logical and chronological order. Identifying and acquiring major gifts is not a mystery — it is a simple process made onerous only by those who choose to make the process of acquiring leadership gifts difficult. The magic words are hard work and high visibility, that is, getting big gifts is tedious and requires your absence from the office and your presence in the streets. If you are in your office every day, you are not cultivating and soliciting major gifts. How to Get Bigger Donations • 1 1 Is Face-to-Face Fundraising for You? The Least Expensive, Most Productive Fundraising Method Talking to specially selected people face-to-face is an excellent way for a non- profit group to raise money. It is the among the easiest sources of large sums of money. It works well in the short term — and even better with planning and careful cultivation of prospects. It is also done less often than it could be, particularly among grassroots groups. This method is for you if you: • need quick cash for your organization; • want a lot of money for a special project, such as a building or equipment; or • dream of an endowment fund earning interest to give your group long- term financial freedom. The techniques described in this book will explain how to achieve those goals. But this method is not for everyone. You must decide first if it's the right one for you. Here's how: Decision #1: Do you need big gifts? This manual is devoted to helping you get big donations. But is `big' too big for you? Or not big enough? For many grassroots groups, having an individual donate $100 to $500 would 1 Michael F Luck, “A New Twist on Old Fundraising Maxims”, NSFRE Journal, Summer 1990, p 30. Reprinted with permission. (National Society of Fundraising Executives, Suite 3000, 1101 King Street, Alexandria VA 22314, USA). 2 • Face to Face be cause for celebration — particularly if it happened often! For hospitals, universities and other large charities, the definition of big gift may start at $10,000, $50,000, $100,000 or more. Anything smaller might be considered ordinary. With subtle variations, the techniques outlined here apply at all these levels, no matter how many zeros appear in the figures. This book focuses on how to ask people for money in person. If you are ready to get personal, then the definition of `big' is strictly relative to your organization's past gifts. Use this handbook to learn how to approach the special few. Finding a special few who give much more than others will be a welcome achievement in most groups — but not all. A strongly egalitarian organization may consider it a matter of principle for everyone to give about the same amount. They choose to ignore the potential for different donations resulting from differences in people's incomes, expenses, assets, lifestyles or level of commitment. They are concerned that all donors be treated equally. They suspect that if a few people make a disproportionate contribution to the budget, they might gain a corresponding degree of control.
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