JOURNAL OF THE ASSOCIATION FOR HEALTHCARE PHILANTHROPY | WWW.AHP.ORG | SPRING 2013

healthcareCONNECTING PEOPLE n ENRICHING LIVES philanthropy Accelerating major gifts Investing in high-performance fundraising paves the way for success

Also in this issue

20 Mastering social media to help achieve your goals 26 Strategies for successful donor visits 31 Best practices for institutional sustainability Here are 18 reasons to give donors a seat at the legacy planning table.

Sample Disclosed or Naming Gifts:

$5,000,000 $1,150,000 $325,000 $3,000,000 $1,000,000 $275,000 $2,400,000 $750,000 $150,000 $2,000,000 $625,000 $125,000 $3,000,000 $500,000 $100,000 $1,200,000 $450,000 $195,000

Heaton Smith Group is a boutique values-based legacy and charitable estate planning consultancy that consistently secures six- and seven-figure gifts for clients. Large foundations use Heaton Smith as a carve-out strategy for strategic donors while small to medium-sized foundations use the firm as a total planned giving outsource. New healthcare clients include Medical College of Virginia Hospitals, Richmond, Virginia - IU Methodist Hospital, Indianapolis, Indiana, and Greenville Hospital System University Medical Center, Greenville, South Carolina.

Visit www.heatonsmithgroup.com to watch our video of donor and client testimonials.

Atlanta, Georgia | 404.812.1722 Know more. Do more. Achieve more. Because it’s not just who you know. It’s what you know about who you know.

Ajaya Das Exec. Assistant, Software Company. Mother in hospice in 2001. Email: Mail.app for iOS; Open Rate: 65%; Clickthrough: 5%. Avg. annual contrib: $240. Est. Capacity: $600.

Maryjane Gamblin Husband, Fritz. Born here in 1980. Had twins here in 2012. Most responsive to: postal contact. Kevin Worthington Member of Supporter’s Circle. Attorney/Principal, Avg. annual contrib: $1,000. Worthington Cale LLC, Est. capacity: $5,000. retired in 1998. Patient in 2005. Most responsive to VIP solicit. Avg. annual contrib: $10K. Est. capacity: $250K.Major Gift prospect.

Blackbaud CRM At the end of the day, it’s not about what you know, but how you use that knowledge. Use it to give everyone in your organization easy access to the information they need to build and maintain constituent relationships that stand the test of time. Use it to make data-driven decisions. Use it to keep your supporters invested and engaged in your mission. Use it to be the welcome call rather than the last straw. Knowledge reveals opportunities. Learn more at blackbaud.com/knowledge Spring 2013 Vol. 42 No. 1 CONTENTS

20 FEATURES Accelerating major gifts 12 By Ann Thompson-Haas, FAHP An established hospital foundation incorporates proven private- sector marketing techniques with its traditional fundraising approaches to achieve a robust major gifts program.

Maximizing social media in multichannel 20 campaigns By Amy Sample Ward Three case studies demonstrate how nonprofits can extend their reach and achieve strategic goals faster using Twitter, Instagram, YouTube and others.

Gift planning without GPS 26 By Frank Minton Detailed plans and strategies help set the stage for successful donor visits, but being able to readily adapt to unforeseen changes is a key part of the process.

Institutional sustainability 31 By R. Edward “Eddie” Thompson, Ed.D. In order to survive in the changing world of nonprofits, organizations must shed the “hunter-gatherer” mentality and adopt a cultivation-based fundraising approach that leads to long-term sustainability.

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2 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 healthcareCONNECTING PEOPLE n ENRICHING LIVES philanthropy

President, Chief Executive Officer: DEPARTMENTS William C. McGinly, Ph.D., CAE Editors: Vicki Meade, Paula Novash, Susan Simolunas AHP Journal Advisory Council: Betsy Chapin Taylor, FAHP, CFRE, chair; From the Chair Georgina A. Altman, CFRE; Marite M. Butners, J.D., LLM-TAX; Kevin Carrillo, CFRE; Jessica Clemons; Marcy J. DiBlasio, CFRE; Maureen E. Gerard, CFRE; 4 Transformation— Michael Hammerschmidt; Aline F. Lasseter, CFRE; Maeve O’Byrne; Salvatore F. Polizzotto; Thomas J. Sloan, CFRE, FACHE; Milt J. Smith, FAHP It’s up to us AHP Board of Directors: Chair: William S. Littlejohn By William S. Littlejohn, Chair, Chair elect: David L. Flood AHP Board of Directors Secretary/Treasurer: William H. Kiel, CFRE The Association for Healthcare Immediate Past Chair: Susan J. Doliner, FAHP, CFRE Philanthropy’s strategic plan centers President: William C. McGinly, Ph.D., CAE on transforming the association and Vice Chairs: profession to elevate and enhance Sharon A. Jones, FAHP, CFRE health care philanthropy in every Randy A. Varju, FAHP, MBA, CFRE Julie E. Cox, FAHP, CFRE community. Regional Directors: David K. Burghart, CFRE; AHP Midwest Theresa M. Law, J.D., CFRE; AHP Mid-Atlantic Jeffrey A. Lea, FAHP, CFRE; AHP Southeast As I See It Jory Pritchard-Kerr, FAHP; AHP Canada James McL. Dale; AHP Pacific 8 The knowledge and Sandy L. Ogletree; AHP Rockies & Southwest resources you need Jack Dresser, CFRE; AHP New England By William C. McGinly, Ph.D., CAE, Published by: Stratton Publishing & Marketing Inc. AHP President, 5285 Shawnee Road, Suite 510, Alexandria, VA 22312 Chief Executive Officer 703.914.9200

AHP strives to be your “go-to” Publisher: Debra Stratton source of knowledge and resources Publication Manager: Josephine Rossi in the changing and challenging Editor: Lia Dangelico world of health care philanthropy. Art Director: Janelle Welch Here’s how our new strategic plan Sales Representatives: Laure Curva, 800/335-7500 ext. 23 supports that goal. Alison Bashian, 800/335-7500 ext. 21

The Association for Healthcare Philanthropy (AHP) is the leading authority for standards, knowledge and leadership in health care philanthropy. As the world’s largest association for health care fundraising professionals, AHP represents 5,000 members who raise more than $9 billion each year for community health services. AHP supports its members and serves the public through high performance standards, expert knowledge development and executive leadership that advance the practice and performance of health 31 care philanthropy at both the local and national level.

Healthcare Philanthropy mission: Healthcare Philanthropy will be an authoritative resource for health care development professionals by providing a timely, informative and insightful collection of literature that will raise the standard of individual and organizational performance. Serving as the premier forum for health care philanthropy literature, Healthcare Philanthropy will educate, empower and inspire development professionals and, thereby, help strengthen the case for philanthropic support and the mission of AHP.

3 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 PUBLISHED APRIL 2013/AHP-B0111/5193 By William S. Littlejohn Chair, AHP Board of Directors ISSN 2162-2493 (print), 2162-2507 (online)

Association for Healthcare Philanthropy 313 Park Avenue, Suite 400 Falls Church, VA 22046 703-532-6243 • Fax: 703-532-7170 • www.ahp.org ©2013 by the Association for Healthcare Philanthropy. All rights reserved. Article submissions should be sent to: Editor, From the chair Healthcare Philanthropy, Association for Healthcare Philanthropy, 313 Park Avenue, Suite 400, Falls Church, VA 22046. Article submission guidelines and deadlines are located in the Publications section of the AHP website at www.ahp.org. Transformation – The Association for Healthcare Philanthropy endorses no opinion or statement of facts by the authors of Healthcare Philanthropy articles except by action of its board of directors, nor does it lend It’s up to us or imply endorsement of the goods and services offered by advertisers.

For information on advertising in Healthcare Philanthropy hen I joined Sharp HealthCare Foundation in 2002, we were Journal, contact Laure Curva, 800/335-7500 ext. 23, or challenged to capture the theme of our comprehensive campaign. Alison Bashian, 800/335-7500 ext. 21. We turned to the Sharp strategic plan and it became evidently ADVERTISERS INDEX clear: we were transforming health care in San Diego. And philanthropy Aria ...... 24 W became an investment strategy and fundamental component of Sharp’s success. Peter Wallace, 608/423-1338, www.ariacallsandcards.com The Association for Healthcare Philanthropy’s current strategic plan Blackbaud, Inc...... 1 800/443-9441, www.blackbaud.com centers on the same theme: the transformation of the association and our Bliss Direct Media...... 10 profession. The most comprehensive and wide-ranging plan in AHP’s nearly Cindy Fish, 877/355-7435, www.blissdirect.com five decades of service, it will elevate and enhance health care philanthropy Brakeley Briscoe Inc...... 35 in every community—across the entire range of institutions we serve and the Alden F. Briscoe, 650/344-8883, www.brakeleybriscoe.com 5,000 members who look to AHP for professional resources and development. Brooks Recognition...... 5 Shawn Plater, 877/608-6987, www.brookrecognition.com Our plan also is evolving at a time Campbell & Company...... 9 I hope you of the greatest transformation of health Sarah Barnes, 877/957-0000, www.campbellcompany.com care delivery in history, leading us Carl Bloom Associates, Inc...... 17 to define the critical success factors Luke Vander Linden, 914/468-8949, www.carlbloom.com/ will join me healthcare for high-performance, sustainable CCS ...... C4 in leading the philanthropy within this complex Joseph F. X. Lee, 800/223-6733, www.ccsfundraising.com environment. Our planning and Corporate DevelopMint...... 30 transformation Lee Mikell, 842/853-9999, www.corporatedevelopment.com execution will require the development Crescendo Interactive, Inc...... 7 of skills throughout the philanthropy Ardis Schultz, 800/858-9154, www.CrescendoInteractive.com of AHP and enterprise, incorporating benchmarking- Gobel Philanthropy Group, LLC...... 11 based standards and outcomes. Lauren Kline, 585/598-1171, www.thegobelgroup.com our profession. The future of the sustainable Graham-Pelton Consulting Inc...... C3 Elizabeth Zeigler, 908.608.1388, www.grahampelton.com fundraising enterprise includes further Heaton Smith Group...... C2 focus on areas such as strategic alignment, structured and deferred gifts, Dave Smith, 404/812-1722, www.heatonsmithgroup.com developing a pipeline of donors, creating both expectations and incentives Kidzpace Interactive...... 24 David Meyer, 800/594-9184, www.kidzpace.com for more productive and higher performing staff, and continuing to invest in MD Designs by Metal Decor...... 29 program development for higher returns. Dan Marshall, 800/637-8591, www.mddesigns.com The overwhelming majority of AHP members represent community Ontario Hospital Association ...... 34 hospitals and systems anchored by community hospitals. Yet AHP is a Kumarie Perera, 416/ 205-1381, www.oha.com complex association with equally complex relationships and orientations. The RuffaloCODY...... 25 Timothy Logan, ACFRE, 319/362-7483 or 800/756-7483, AHP strategic plan is centered on the “AHP Matrix,” which incorporates www.ruffalocody.com member type; institutional health care delivery composition; philanthropy Thompson & Associates ...... 18,19 program size; institutional orientation such as stand-alone or systems; member Bethany Witt Rozell, 615/369-1416, www.ceplan.com experience or function; and geography. Every aspect of the AHP strategic

4 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 AHP Advert Full Page.indd 1 13-03-22 9:05 AM plan—knowledge, standards, and community, not just revenue to health of funding and create a dramatic leadership and engagement— care institutions. return on investment for donors. addresses meeting our member needs However, without sufficient • We facilitate the power of health across the AHP Matrix. resources—both human and care philanthropy by connecting The transformation of AHP and financial—the AHP strategic plan grateful patients and families our profession through our strategic will be limited in its implementation with caregivers—embracing the plan will clearly establish AHP and effectiveness. Our plan needs to common bonds of giving and as the recognized leader in health be shouldered, through association caring. care philanthropy across multiple volunteers, staff resources and • We often are in the best position platforms—including fundraising institutional investment. to be institutional champions and professionals, health care institutions As we work together to transform communicate the vision, plan and and executives, organizations engaged AHP and our profession, I am case for philanthropic support in the financing of health care, grounded by the understanding of for the institution. Alignment of donors, the media and government. the unique and powerful roles of the philanthropic enterprise and And we will lead the effort to health care philanthropy: the institution allows for effective communicate the true impact of • Excellence in health care requires presentation of philanthropic health care philanthropy across the significant investment—most investment in excellence in matrix of AHP members and to the effectively through a combination health care. public—impact that’s measured by of earnings, borrowing and I hope you will join me in leading the funding provided and the value philanthropy. Philanthropy has the transformation of AHP and our of philanthropic investments to the the power to leverage other sources profession. It’s up to us.

Congratulations! AHP would like to congratulate its top performing health care development organizations.

These development organizations participate in the AHP Performance Benchmarking Service and in FY 2011 were in the top 75th percentile of all program participants, reaching as high as $14 million in net fundraising revenue.

Advocate Charitable Foundation LeBonheur Children’s Hospital Princeton HealthCare System Park Ridge, IL Foundation Foundation Anne Arundel Medical Center Memphis, TN Princeton, NJ Foundation Lehigh Valley Health Network Sharp HealthCare Foundation Annapolis, MD Allentown, PA San Diego, CA CentraCare Health Foundation Martin Health Foundation St. Helena Hospital Foundation St. Cloud, MN Stuart, FL St. Helena, CA Community Hospital Foundation Mount Sinai Medical Center The Ottawa Hospital Foundation Monterey, CA New York, NY Ottawa, ON Moffitt Cancer Center Nanaimo & District Hospital University Hospital Foundation Foundation Foundation Edmonton, AB For more information on Tampa, FL Nanaimo, BC White Memorial Medical Center AHP’s Performance Hamilton Health Sciences Orlando Health Foundation Charitable Foundation Benchmarking Service visit Foundation Orlando, FL Los Angeles, CA www.ahp.org/highperformers Hamilton, ON

Membership in this group is worthy of special recognition. Well done!

6 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 Get Results.

Use the GiftLegacy Total Marketing System and multiply planned gifts! Join the organizations that use a proven planned gifts marketing program with advanced analytics, websites, email, print and social media—Crescendo’s GiftLegacy Total Marketing System, the user- friendly, turnkey marketing system that builds relationships, generates leads and closes planned gifts. Call or click to receive a FREE demonstration of how GiftLegacy can help you and your organization multiply gifts and get results!

www.CrescendoInteractive.com 800.858.9154 By William C. McGinly, Ph.D., CAE AHP President, Chief Executive Officer

AS I SEE IT The knowledge and resources you need

he next best thing to knowing something • Programming designed specifically for chief is knowing where to find it,” said British development officers, launched at the 2012 AHP author Samuel Johnson. At AHP, we strive International Conference. “Tto be your “go-to” source of knowledge and resources • A specialized workshop on the keys to small shop in the changing and challenging world of health care fundraising success, making its debut at the AHP philanthropy. Midwest Regional Conference in May along with As you are learning, AHP is in the midst of special interest education. implementing a five-year strategic plan that launched • Self-directed, self-paced education through the in 2011. The goal is to provide expanded and more AHP Online Conference Learning Center. sophisticated support to AHP members in order to An important, emerging project through the improve fundraising performance and make your knowledge initiative is our system of defined career philanthropy program an integral part of your health pathways for professional competencies in health care organization. care philanthropy, from basic principles all the A large part of that goal is recognizing the diverse way through executive-level skill building. Also needs of the AHP membership and providing relevant on the horizon are expanded selections of learning resources for all segments of our profession—from opportunities, including online certificate courses, smaller community hospital foundations to larger and the launch of targeted spring conferences to system foundations and everything in between. bring together members with similar needs and One way we are meeting this challenge is through interests. In fact, AHP is developing educational our knowledge initiative. In addition to industry conferences for the spring of 2014 that have publications like this journal, we are expanding an emphasis on executive leadership, systems member learning opportunities to enhance the depth development and generating great ideas. and range of knowledge in health care philanthropy Another focus of our strategic initiatives is at all levels of professional expertise. Here are some of standards. Our goal here is to establish performance the changes you may have already experienced: measures as standards that are accepted and practiced • Faster and easier access to information about across the entire field of health care fundraising. best practices and the ability to search our data There are much greater expectations for health care electronically, thanks to the redesign of the online philanthropy programs today and AHP is committed AHP Resource Center. to elevating the profession with reporting standards • Clear guidance on U.S. patient privacy regulation, supported by data, research and analytics. published in the AHP Research to Practice Guide: To support this initiative, we published the AHP Fundraising Under HIPAA, with special emphasis on Standards Manual for Reporting and Communicating the regulation updates released in January 2013. Effectiveness in Health Care Philanthropy in August

8 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013

2012. It defines terms and sets responsibilities is to establish cohorts that will greatly benefit standards for the field of health procedures for reviewing the planning and performance care fundraising, from the current standards and suggesting reporting. I encourage all of classification of revenue sources necessary modifications as the you to take advantage of this and expenses to the measurement program expands and grows. outstanding resource and provide of the impact of philanthropic I am especially excited about survey data. programs and various management the redesigned and simplified If you would like to learn more and operational approaches. With giving survey and benchmarking about the strategic initiatives and this data we are able to determine service that was released this the new ways AHP is working to which programs contribute to spring in the U.S. and Canada. meet your needs, visit our website increased philanthropy. We intend to use the survey at www.ahp.org/strategicplan. A key aspect of the standards results to build a comprehensive You also can speak with me or initiative has been the creation data warehouse at AHP that any of AHP’s leaders at the AHP of the AHP Health Care will allow for detailed research Regional Conferences this spring, Philanthropy Standards Council, and analytics. All of this is the AHP Madison Institute or the whose seven dedicated members only possible if all our member AHP International Conference. work under the chairmanship institutions participate in the I will keep you updated on of David L. Flood, AHP survey as an obligation to the our progress and welcome your board member and president profession. Participation across thoughts and comments as of Meridian Health Affiliated the entire AHP membership will AHP continues to grow in new Foundations. Among their allow the creation of significant directions to support you.

At Bliss, our focus is healthcare philanthropy.

Over 80% of Bliss clients are non-profit healthcare foundations from across the United States.

Call Bliss today to find out how we can help your team apply upcoming HIPPA modifications to improve your Donor acquisition focus and results.

Our focus is healthcare. Our focus is you!

Bliss Direct Media Your Direct Response Marketing Partner for the Non-Profit Healthcare Community

Cindy Fish | 1.877.355.7435 | [email protected]

10 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 THE

RUHLAVEE S CHANGED Beginning March 26, HIPAA now allows hospitals to create more effective grateful patient philanthropy programs by using: · Names of treating physicians · Areas or departments of service · Clinical outcome information

More than ever before, you can create meaningful partnerships with your physicians to drive more and larger major gifts.

The Gobel Group is THE EXPERT in physician engagement. In six months, we can help you identify, recruit, train and operationalize a system to activate 50 or more physician champions that produce 200 or more grateful patient referrals per month. Let us help you create physician champions that transform your grateful patient program.

These new HIPAA final rules can be a game changer for your philanthropic program. ARE YOU READY? Gobel Group, 2 State Street, Suite 1150 Rochester, NY 14614 (585) 598-1170 www.thegobelgroup.com [email protected] FEATURE | By Ann Thompson-Haas, FAHP Accelerating major gifts Proven private-sector strategic marketing practices give fundraising programs a boost

hen Beaufort Memorial Hospital’s foundation wanted to shift from traditional multi-year capital campaigns to a Wsustained major gifts program, Executive Director Alice B. Moss and I used tried-and-true major gifts techniques while also adapting useful tools from marketing in order to drive breakthrough decision-making and actions. We also were able to tap the experience and enthusiasm of foundation board member Sherry Hirsch, a retired top executive of a major technology company where she was responsible for a large team that marketed to the financial services industry.

“In the end, success is really about disciplined, behind-the-scenes use of managing your time. Overall, it is about written and visual tools. At Beaufort building trusted, long-term, mutually Memorial, these tools were adapted to valued relationships. At the same time, it enhance the processes the foundation uses is about focusing on prospects that provide in major gifts development. The team the best return for your time and effort,” followed carefully designed action plans to says Hirsch. prioritize, engage and communicate with Lessons from for-profit strategic prospects and create mutual value and marketing emphasize the data-driven, satisfaction.

12 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 The team’s goals were to organize a [our top prospects] into three levels, with dynamic and time-efficient major gifts level one being the group most likely to plan, give staff useful ways to identify provide the largest financial return in the and prioritize prospective donors, and shortest time frame,” she explains. Hirsch provide foundation board members with suggests that development staff assign Lessons from meaningful ways to help. This article their time and resources based on these for-profit outlines some strategies that help staff and priority levels, or tiers. volunteers focus on their priority prospects At Beaufort Memorial, staff developed strategic and make tough decisions to provide the a master pipeline management list of a marketing greatest return for their investment of few hundred prospective major donors. resources. From this list, 100 top prospects were emphasize the identified based on their giving history, Triage your prospects researched capacity, wealth screenings, data-driven, Hospital emergency departments use patient experience, overall engagement, consistently applied protocols to prioritize known interests and estimated time required disciplined, which patients to treat first. As development to secure a major gift. To augment this behind-the- officers, we can apply similar consistency and information, staff used tools such as value rigor as we “triage” our prospective givers. mapping, relationship mapping, qualification scenes use of Hirsch shares approaches she used and identifying compelling events (all written and when leading a sizable marketing team. described later in this article). “The most successful members of my Next, staff triaged the top 100 prospects visual tools. group were diligent about focusing on into three tiers of priority based in part on their very best prospects. We separated the projected value of their potential gift

13 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 and their likelihood of giving. Level one included 30 carefully selected names assigned to Moss, who then Incorporating tools from for-profit marketing identified from among them her brought new energy and efficiency to top 15 priority prospects. Moss, the senior leader of this modestly Beaufort Memorial’s evolving major gifts sized foundation staff, also sits on the hospital’s senior team and program. Innovative techniques such as strategic planning committee and visual mapping provided breakthrough is the lead responsible for major gifts development. Working with perspectives and helped staff move quickly 30 prospects is realistic for her and to make the right decisions. also strategic; focusing her time on fewer, highly targeted relationships is the most productive start to the foundation’s shift to managing executive officer (CEO), board steps primarily for her top 15 to major gifts outside of a multi-year members, physicians, the chief 30 prospects and occasionally for capital campaign. nursing officer or another staff those in tiers two and three. Her The remaining potential major member. Her personal visits and to-do items might include phone donors are grouped into tiers two conversations are carefully planned calls to secure visits, follow-up and three. In many cases, what in advance, with defined desired actions to a previous visit, meetings distinguishes a tier one, two or outcomes that lead the relationships with the hospital CEO or a board three prospect is the estimated time closer to targeted gift proposals, member to determine next steps required to develop their major gift. and each contact with a prospect is in a gift strategy or reminders to Moss takes the lead in advancing fully documented. write a personal note or make a her top priority relationships The staff member designated as relationship-building phone call. and sometimes seeks help from the “pipeline manager” provides Staff contacts with tier two and others, including the hospital chief Moss with a weekly list of action three prospects are less frequent but no less strategic, and are designed to increase donors’ engagement and interest in giving. These contacts might include time-efficient yet purposeful actions, such as an invitation to an insider gathering or a pre-planned personal greeting from a board member at the annual benefactors’ recognition event. In some cases, another member of the staff, such as the associate director of development, may take the lead with a prospect. For example, the special gifts director, who also is lead staff for planned giving, may accompany Moss on a visit when a donor expresses interest in a planned gift, and then may make follow-up visits on her own. She also might take the lead with select prospects, such as consistent givers who staff believe might be interested in planned giving, and then bring Moss into the dialogue if needed. “The three-tier approach Relationship Map provides the discipline we need,” says Moss. “It’s easy to let [my] executive director responsibilities Him Her divert time from major gift activities.” This approach also could work well for full-time major gift officers, helping them manage a substantial portfolio while still CEO Dr. Friend focusing on their best opportunities. Value mapping Board Member The marketing practice of “value Fdn mapping” uses visual tools to ED provide important perspectives about potential donors and help set priorities and plan solicitations. donor and the organization or donor relationship dissolved, with a “Like many people, I’m visual,” major gifts initiative. On this grid, spillover of ill will among other area says Moss. “Mapping is an easy “value to the donor” of making a donors. In this case, a philanthropic way to see and set priorities. It gift is noted on the horizontal axis alignment map might have guided helps me stay focused on the best and “value to the organization” on hospital decision-makers to consider prospects, even if they aren’t the the vertical axis. The greater the a more mutually satisfying plan. easiest or most fun.” alignment between the two, the At Beaufort Memorial, staff The capacity-inclination more likely there will be a gift and placed grids on the wall and used matrix—used for many years to a mutually valued relationship. sticky notes to represent different identify priority prospects—is For example, one hypothetical donors. Information about each one example of value mapping. donor may value having his naming donor’s giving goals was written The donor’s inclination to give is opportunity visible from a major on the notes, and they were plotted on the horizontal axis of highway. This hospital has existing placed where the donors’ interests a grid, and his or her ability, or naming opportunities and will not intersected with hospital needs. The capacity, to give on the vertical have to modify its plans to offer one. resulting visual clearly showed where axis. The grid is divided into four The value to the donor and the value donor value and organizational value quadrants, and prospective donors to the organization are both high, so were best matched. who fall into the quadrant on the there is philanthropic alignment. upper right (highest inclination, A map of philanthropic Relationship mapping highest capacity) receive the alignment also can help guide A relationship map is a different highest priority. tough decisions. For example, a visual tool that illustrates existing “Time to gift” maps also can aid high-profile prospect at a different relationships between the in priority setting. Foundation staff hospital had significant resources organization and prospective donors review each gift opportunity and and a high inclination to give. She and helps determine the strength estimate the time they will invest asked to designate her donation or nature of those relationships. to finalize the gift. The resulting to the treatment of a specific This tool can lead to clearer priority value is placed on the horizontal childhood disease. The gift setting, better choices about who axis, mapped with the targeted gift represented high value to the donor, should steward a relationship and amount for each donor plotted on but it was of low value to that more precise cultivation steps. The the vertical axis. In this case, names hospital because it had no existing map, which can be represented by in the quadrant that reflect less time program. Because the institution circles with lines connecting them, and higher dollar value are most wanted to maintain the relationship, provides a backdrop to discuss likely to be given higher priority. it decided to accept the gift and important questions such as, “Who Value mapping also can show establish a new program. But within has the most influence with the a measure of “philanthropic a few years, the hospital was unable prospect?” or “Who is the key alignment” between the prospective to sustain the program and the decision maker?”

15 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 In one couple’s case, the husband closing an initial exploratory visit plan based on their knowledge was a corporate CEO whose life was with a prospective donor, staff and experience in the community, saved due to treatment at their local ask to return to discuss programs providing perspectives the staff hospital. Initially, the suggested that need support, and the donor may not have. strategy included having the hospital agrees. This potential donor would Beaufort Memorial foundation CEO invite the husband for a visit be qualified as a priority prospect. staff monitors progress on based on the assumed strength of This definition was adopted at individual plans using a visual, the CEO-to-CEO connection. But Beaufort Memorial and played a at-a-glance tracking sheet that then staff prepared a relationship key role as staff refined the list of reveals problems to solve, priorities map that revealed multiple, existing its top 30 prospects. to modify and time wasters. The strong connections between the wife report is color-coded based on and a foundation board member, Testing strategies and traffic signals and shows where shown to be a “trusted influencer” monitoring progress progress is active (light green), for her. The wife, the primary A written gift strategy for a specific if a milestone has been reached decision maker, also had expressed donor, like a documented marketing (dark green), if progress has slowed her gratitude for her husband’s opportunity plan for a targeted (yellow), if it has stopped (red) or physician. The visual representation customer, lays out cultivation if new gift planning is underway of these relationships led to a milestones and other factors to (blue). This report also is viewed winning strategy in which the board guide and measure progress. The by the major gifts committee, member, physician and staff worked strategy may include the overall comprising board members who together to secure an initial six- gift objective, the value of the gift generally have made larger gifts figure gift and the promise of more to the donor and to the hospital, themselves and are committed to come. The relationship map used information the foundation needs, to working closely with staff and in this case is provided on page 15. insights about the hospital and the sharing responsibility for results. At Beaufort Memorial, gift opportunity to share with the “relationship mapping helps us be prospect, lead staff responsible, The power of a compelling more confident in our decisions other relationship “influencers” staff event and plans,” Moss says. “In one might call on for assistance and A compelling event is an internal or case, it helped us decide to limit projected milestones. external factor that drives someone time spent with a prospective “It sounds simple, yet I can’t say to make a final decision, perhaps donor as it became clear our enough about what a difference to invest in a product or provide a linkages were weak.” it makes to write down your major contribution. “When there objectives and plans,” says Hirsch. is no compelling event, it is more Qualifying prospective “And once you have a written difficult to finalize a product or gift donors strategy, test it,” she continues. “Ask agreement,” says Hirsch. In marketing, qualification includes someone else to validate or correct A donor’s lifesaving experience conducting background research your assumptions and strategy.” at a hospital is one example of an on targeted prospects and engaging At Beaufort Memorial, board internal compelling event. An them to establish mutual value. members and other advisors external compelling event, one Prospective customers are qualified chosen for their knowledge or created by a foundation, could when they indicate interest. relationships with prospective be a push to help a fundraising Often foundations qualify donors are invaluable resources campaign go “over the top” and prospects based on facts like their for testing gift strategies. Staff meet a specified goal. giving history, estimated capacity presents a plan and these advisors Here is a real-life example: and patient experiences, and then are invited to provide candid A foundation staff member at use this information to determine feedback. In some cases, gift Beaufort Memorial spoke with a the prospect’s priority in their strategies are presented at a major high-value annual donor during his gift cultivation plans. And as gifts committee meeting, or small hospital stay and learned he was in marketing, true qualification groups (usually one to three people) extremely satisfied with his care. On also requires a cue from donors meet to discuss plans relating to a second visit, she learned that he about their interest in providing individuals they know. Participants had thought about making a gift in support. Here’s an example: After comment on the validity of the memory of his wife. In addition, the

16 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 donor had recently had great success donor such as changes in his or her carefully designed donor contacts with his business. In this case, priorities or ability to give, or noting has tripled since the program there were three compelling events: that there has been no forward began; the number of yearly major the positive patient experience, movement in a relationship in a gifts (above $10,000) has increased the desire to remember a loved predetermined timeframe. and stabilized and the number one and the change in financial “A common mistake is holding of planned gift expectancies has position. Foundation staff gave this on too long, or spending too much increased five-fold. relationship top, tier-one priority, time with a relationship that is not “We’re still evolving,” says Moss. and a series of visits and carefully likely to lead to a sale or a gift,” says “We’ve significantly increased planned communications followed. Hirsch. “Letting go and refocusing the number of prospects with Within months, the foundation was on other prospects is one of the most documented gift strategies, which the happy recipient of a six-figure important decisions you can make.” is a huge step. We’re excited about gift and a bequest intention. what happens next.” “We would have followed up New energy and a fresh perspective Ann Thompson-Haas, FAHP, is with this donor in any case,” Moss principal of The Larkwood says. “My understanding of the Incorporating tools from for-profit Group, LLC, a full-service firm providing resource compelling events added clarity marketing brought new energy and development and and, most of all, urgency.” efficiency to Beaufort Memorial’s management consulting evolving major gifts program. services to the nonprofit Define and use exit criteria sector. Her specialties include annual and Innovative techniques such as visual major gift program design and capacity Using exit criteria also can help mapping provided breakthrough building, strategic planning, campaign organization, staff and board development, major gift officers make the best perspectives and helped staff performance improvement, organizational use of their time. Examples of exit move quickly to make the right development and constituent relations. She previously led major fundraising programs for criteria might include receiving decisions. It is still early in the hospitals and health systems. new information from a potential effort, yet the amount of targeted,

Grateful patients. Compassionate caregivers. Your appreciative community.

These are the people who should be supporting your hospital or healthcare organization. But if you’re not reaching them as effectively as you’d like, we can help. Carl Bloom Associates are experts in individual giving, integrating every available tool – direct mail, telemarketing, email, the internet – to build a sustainable, long-term, high-value source of revenue. Contact us to find out how to dramatically increase your financial support – as we have for organizations like yours for almost 40 years.

EMAIL: [email protected] WEB: carlbloom.com/healthcare PHONE: 914 468 8949

17 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013

FEATURE | By Amy Sample Ward

Maximizing social media in multichannel campaigns

USEFUL PLATFORMS AND TOOLS HELP NONPROFITS EXTEND REACH AND ACHIEVE GOALS FASTER

hether you’re looking to raise money, change behavior or build community around your mission, social Wmedia is an essential tool for interacting with your audiences. Social media connects all your channels—including print, broadcast, online and live events—and helps your organization’s story reach more people than it would through traditional media alone.

20 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 When I talk with fundraisers at national Samsung Hope for Children is the conferences, I’m always asked why fundraising and corporate responsibility they aren’t getting more donations arm of one of the largest technology from Facebook fans. It’s because social companies in the world. The Dan Marino media tools are created for people who Foundation is a Miami-based nonprofit know each other to share thoughts and that creates opportunities for children activities. But your organization can use and young adults with autism and special these same tools to share information needs. The goal of the 2011 Team Up for that adds value to supporters’ lives. Autism initiative was to raise awareness Once you’ve established a presence and funding for medical research, services in the community, you can integrate and treatment programs for children with fundraising, advocacy campaigns and autism. Samsung agreed to donate $5 to outreach into social media efforts. the foundation—up to a maximum of Social media is both a channel $100,000—each time a person pledged for distributing stories and appeals support by sharing a special infographic and a tool that ties all your other with his or her Facebook friends or sent a channels together—allowing you tweet with the hashtag #teamautism. to link messages, interact with your audience and prompt supporters to spread your message to others. Social media makes it easy for people to find City of Hope, a cancer treatment and your information, take action, share their activities and encourage others research center near Los Angeles, to get involved. In the fundraising and uses social media in creative ways philanthropy arena, social media is highly effective for calling attention to share information and stories that to your cause and fleshing out your story in ways you can’t achieve through boost fundraising efforts and draw a direct mail letter or public service attention to research. announcement. In some cases, social media even can be used to bring in donations. The case studies that follow Steps the organizers took that were provide good examples of how social crucial to the campaign’s success included media can enhance the results you get training staff on how to use social media from multichannel campaigns. tools for maximum effect and establishing a team of advocates before the campaign Autism campaign uses was launched. Building momentum infographic to share ahead of time paid off: In just 72 hours, information Team Up for Autism reached the goal In 2011, social media played a central of a $100,000 donation from Samsung role when the Dan Marino Foundation, Hope for Children—far quicker than with funding from Samsung Hope the original goal of one month. Social for Children, launched a social action media served as a connective channel in campaign, “Team Up for Autism” the effort, pulling together the shareable (TeamUpForAutism.com) in conjunction infographic, the TeamUpForAutism.com with the first annual WalkAbout Autism, website and other content. a fundraising and awareness-raising event Using social media to spread the foundation sponsored. In WalkAbout information and raise money couldn’t Autism, teams collect donations to pay be successful simply by launching the for their participation in a mile-long campaign and hoping the response would walk and community fair in the Sun Life take off on its own. The Team Up for Stadium, home of the Miami Dolphins. Autism campaign team did the following:

21 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 Multichannel strategies for you

Follow these five guidelines to help plan an give yourself time to understand the potential effective strategy, regardless of your organization and the options available before launching an type and the goals for the communications. organizational presence. • Be valuable. Supporters only will engage • Create connections. Just as City of Hope if your content or your call to action offers a used customized pages, hashtags and direct benefit. This does not mean you have to give links to connect content across channels, you prizes or engage celebrities in your campaign, will need to create connections from channel to but you must clearly communicate the value that channel and story to story. Your supporters will participation has for the community. not invest their time to search for your content, so make it easy for them. Be sure that the path • Be personal. Whether in the kinds of content from one piece of content to the next, or from you share, such as a person’s story, or the one channel to another, is clear and easy to approach you use to address supporters, find navigate. ways to make content and communications personal. No one walks up to the City of Hope’s • Nudge people forward. If you build it, entrance and tries to talk to the wall—they go they will not automatically come. Stay actively inside to speak with another person. The same engaged across all channels to guide people principle is true online—people want to connect to the next step or call to action. Simple with another human being. reminders about where to go to learn more, take action or get involved—especially when those • Use the platform well. The Dan Marino reminders are valuable and personal—will help Foundation invested ahead of time in educating you maintain engagement with the community staff on the tools they needed to use for their and move people up the ladder to become campaign. You, too, should devote time to volunteers, supporters and even donors. For become familiar with the workings of popular example, when supporters of the Team Up platforms so you can learn exactly how the For Autism campaign tweeted the link to the community uses them, what the common infographic, staff could reply to the tweet with a practices are for engagement, how each direct message of “Thanks for participating!” Or, platform’s tools work for creating and sharing when participants in the Big Blue Test shared content and the best ways your organization can photos on Instagram with the campaign hashtag, benefit from each platform’s functionality. Social staff could “like” the photos on users’ accounts, media tools will continue to change and develop; showing appreciation directly on their profile.

• Established relationships with way, when they launched the engage supporters and create community influencers before campaign, a number of influential conversations online. launching the campaign. The individuals were ready to share the • Followed up with participants organizers specifically targeted infographic with the public and to thank them and keep people with family members who spread the campaign messages. them informed. The planners have autism and others in the • Invested in staff training understood that social media community who work to raise beforehand to ensure that serves as a connection point not awareness about the disorder. those running the campaign just during campaigns and major They sent emails, tweets and knew more than the general calls to action, but in between Facebook messages to explain use of social media tools. as well. They sent individual, how these leaders could be part The staff learned about best personalized Facebook messages of the campaign and encourage practices and achieved a hands- and tweets with updates about others to participate. This on understanding of how to the campaign and also used the

22 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 “Like” option on Facebook as well The campaign helped thousands URL and branding as the as the Twitter hashtag to send of people experience how easy campaign. The microsite’s simple posts of gratitude. it is to exercise enough to lower design made it easy to read and their blood sugar, and it solidified to use from other devices, such as “Big Blue Test” helps their understanding by reporting tablets and smartphones. improve diabetes health their activity publicly to friends • Make the social sharing and raise funds and family online. Participants component a step in the The Diabetes Hands Foundation, were given the option of process. The online Big Blue with a mission of changing providing their email address Test form directed people to behavior and supporting those when they signed up so they share their test results on Twitter with diabetes, launched its fourth could receive updates, allowing or Instagram and to recommend annual Big Blue Test campaign the program to continue sending the program on Facebook— in October 2012 on the website information to prime participants providing icons to click on BigBlueTest.org to encourage for future campaigns. so little effort was involved. people with diabetes to test their When creating a campaign Remember that people are more blood sugar, exercise for 14 to 20 like this, in which people share inclined to share information minutes and test again—all in messages, encourage others to by social media when they can an effort to provide life-saving participate and are asked to change see others sharing first. The supplies to humanitarian diabetes their own behavior (in this case, Big Blue Test microsite pulls charities around the world. For by exercising and testing blood in all the images participants each participant who went to glucose), it’s critical to: post online publicly with the the website and took the Big Blue Test, Roche Diabetes Care, maker of Accu-Chek diabetes products and services, pledged Social media connects all your $5. Each time a person returned channels—including print, and posted information about his or her exercise, Roche donated broadcast, online and live events— an additional $5, up to a total of $100,000. and helps your organization’s story The goal was reached before the November 14 deadline. It’s a true reach more people than it would multichannel campaign because through traditional media alone. participants could move from the website to social media to email and back again. To take part in the Big • Carefully consider the pathways campaign hashtag. Visitors on Blue Test, a participant did not have you will use to promote the site see a scrolling photo to use all the available channels, but participants’ engagement. album of participants exercising regardless of where someone came How can you make participating and taking the test. The photos across the campaign online, it was as easy, fun and beneficial for and sharing help to reinforce clear how to get involved. people as possible? The program participation and positive Filling out the Big Blue Test form used a dedicated web location behaviors among people with online took less than a minute, and that allowed people to log their diabetes. at the completion, participants were tests and let organizers count • Aggregate content from social encouraged to share their experiences progress toward the number of platforms on your site. Results by clicking on Twitter to post a tweet participants needed to earn the from the campaign were posted (using the hashtag #bigbluetest) or full pledge. Instead of adding on BigBlueTest.org so followers clicking on Facebook to recommend another page to the Diabetes could track progress and read the Big Blue Test to others. They Hands Foundation website and others’ stories. It’s an easy way also could put the hashtag on photos trying to direct traffic there, to keep people informed and they posted on the photo-sharing organizers set up a simple provide fresh content without application Instagram. microsite with the same name, having to create it yourself.

23 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 City of Hope spreads compelling stories across channels In the fundraising and philanthropy City of Hope, a cancer treatment and arena, social media is highly effective research center near Los Angeles, uses social media in creative ways for calling attention to your cause and to share information and stories fleshing out your story in ways you that boost fundraising efforts and draw attention to research. can’t achieve through a direct mail One of only 41 National Cancer Institute-designated Comprehensive letter or public service announcement. Cancer Centers nationwide and a founding member of the National survivors and supporters. The series follow it and share it with others. Comprehensive Cancer Network, a features compelling short videos As you get involved in the saga of nonprofit alliance of the world’s 21 and print narratives, and you can his leukemia diagnosis at age seven leading cancer centers, City of Hope watch the videos on YouTube, and months and the people who helped is full of information from patients, “Like,” share or see related content him recover, it’s simple to “Like” the family members, donors and staff on Twitter, Facebook, Flickr and story on Facebook, Tweet about it or about surviving and thriving, which other platforms. For example, you pass it on to friends and family. You it spreads using a highly effective can learn about Gavin, a little boy even can click on links to become multichannel approach. who received a life-saving bone a volunteer or a bone marrow In its “Faces of Hope” series, marrow transplant from a woman donor. Although it’s not unusual for stories are prominently featured on the other side of the world—and hospitals to share touching stories on the City of Hope website to regardless of where you first come about their efforts, City of Hope profile researchers, physicians, across the story, you can easily manages to associate concepts of

Entertainment options for patients and visiting families • Kidzpace has a variety of entertainment Your connection to former donors systems for people of all and grateful patients ages visiting hospitals and clinics • Courteous Telemarketing • Great products for donations • Truly Hand-addressed mailings and fundraising • Integrated sustainer campaigns efforts • The Touch2Play now has custom Contact: Peter Wallace on-screen features for donor recognition [email protected] 608-423-1338 Call 1-800-594-9184 for more information or e-mail [email protected] • www.kidzpace.com

507247_aria.indd 1 24 | HEALTHCARE1/21/11 PHILANTHROPY 11:15:28 AM JOURNAL / SPRING 2013 survival and personal warmth with interest, showing that providing tie its communication channels an institution treating diseases that information valuable to supporters’ together and make it easy for threaten lives. lives is one of the best ways to people to share and follow stories City of Hope used another increase your fans and followers and wherever they first see them. effective hook in its “Mushrooms keep them engaged. If you watch Gavin’s video on for Hope” partnership with the Here are more City of Hope YouTube, for example, you can Mushroom Council, a group that social media strategies: also click on links that provide promotes fresh mushrooms to • In the “Mushrooms for Hope” more information and post consumers. But this time, instead of campaign, people were invited comments about the story. poignant stories, the main attraction to pin recipes with photos of As these three examples was recipes, eye-catching photos of mushrooms on a Pinterest board; demonstrate, multichannel food and content about the healthful then users could repin them on campaign strategies can return attributes of mushrooms. In support their own boards and share them high engagement from your of Shiuan Chen, Ph.D., director with their networks. community and help you achieve of the City of Hope’s Division of • The “Mushrooms for Hope” your organization’s goals. Tumor Cell Biology, who is leading organizers put quick posts on Amy Sample Ward, an author studies about mushrooms’ cancer- Twitter using common hashtags and speaker, helps fighting properties for breast and like #superfoods and #cancer to nonprofits around the world use technology for prostate cancer, the Mushroom move content into topic areas community impact efforts. Council worked with City of Hope where people may not already She is the coauthor of Social Change Anytime Everywhere, to help people learn about the know their organization—thus published by Wiley in February 2013, and benefits of mushrooms and other spreading the word and making it coauthor of the book Social by Social. She superfoods for cancer prevention easy for others to share the content. also is membership director at NTEN (Nonprofit Technology Network), a member from medical and nutrition experts. • In the “Faces of Hope” series, organization devoted to helping nonprofits use The lively content generated broad City of Hope uses social media to technology strategically.

25 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 FEATURE | By Frank Minton

Gift planning without GPS Successfully navigating donor visits requires flexibility and adaptability to unforeseen circumstances

he rain was pouring down as I drove to an evening appointment with Tprospective donors from Honolulu. It was dark and I could barely see the street signs through the film of water on my windshield. Fortunately I had my GPS, which guided me to my destination turn by turn.

26 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 On a later visit to rural Mongolia, familiar pattern, and standard computer- where there are almost no paved roads, my generated illustrations for contributions of navigation experience was very different. cash or marketable securities are sufficient Vehicle tracks in the hardened mud run for many meetings. These tools and parallel to each other, and sometimes methods become well-worn “tracks,” and abruptly veer off to the right or left. No if they work you will tend to follow them. signs direct you or warn you about washouts Some visits involve more scripting and boulders—the trip is a moment-by- than others do. For example, a call on a moment judgment call with constant course qualified prospect to secure a current capital corrections. Thankfully, our experienced campaign gift usually entails a discreet driver Gana had an excellent sense of “ask” for a specific amount. The solicitation direction and usually chose the smoothest of team will have rehearsed and decided in the tracks. But occasionally his old Russian- advance the roles each will play—who will made van plunged into a pothole, causing us make the case, how they will transition to bang our heads against its padded ceiling. to the solicitation, who will ask for the In our gift planning interactions, is it helpful to rely on a GPS-like system, a plan that directs us turn by turn, as I did in Honolulu? Or might we benefit People give to an institution not more by knowing the general direction we should be heading and continually because it has needs, but because adjusting our “route,” as our driver Gana did? To effectively steer our way through those needs concern them. The best the journey with a prospective donor, we way to tap into those concerns is to put need a combination of both methods. Most calls will involve advance planning away your script and discover what is and proven strategies, but we also must be able to readjust our approaches as new important to your donors. information is disclosed. Gift planning would be simpler if a GPS device could be implanted in your gift and how they will respond to possible ear, telling you the best thing to do or say objections—and they will very likely take a in every situation. But it also would take written proposal with them. much of the enjoyment out of creating Frequently used proposals, methods genuine connections with our contacts by and advance scripting are part of a gift being willing to listen and adapt. planner’s GPS. If they help us connect with potential donors, it would be Following the known path foolhardy to ignore them. But even if I’ve found that in interactions with these tools have worked in the past, we potential donors about planned giving, it must be nimble and ready to adapt. The can be easy to rely on methods that have road can always take an unexpected turn. become proven strategies for us. These may include the policies of our institution, the Watch out for potholes fund-raising principles we have learned No matter how thoroughly you have and the information we have gathered planned ahead, you can always encounter about the prospect. Similarly, explanations an obstacle on your journey with a donor. of the various gift instruments and One such visit involved a woman whose how they can accomplish family and gift seemed assured. As the director of philanthropic objectives often follow a planned giving at a university, I had met

27 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 with her many times and written understand this woman’s concerns a small book about her father’s and what she valued built trust and role in founding United Parcel resulted in her eventually being Service (a condition for the $25 willing to work with us. million bequest she had included in her will). She even had been Discover donors’ interests to campus for the dedication of a It’s rare to take a detailed proposal room in his honor. with you on your first call with On this visit, the dean of the a prospective donor. Unless the school of business and I planned person is interested in a specific to ask her to accelerate $5 million of her testamentary gift to name a wing of our new business building. But when we arrived, she met us We may close more and larger gifts if we in her doorway, yelling in anger. consider creative combinations. When she calmed down enough to tell us what was wrong, we learned that she had just read in a right- gift instrument and has given you notions about a donor’s interests. wing newsletter that a professor, information in advance, the objective During one visit, our solicitation whom she considered to be quite of the initial visit is to listen. team, which had done some pre- leftist, had spoken on our campus. According to a professor at visit investigating, assumed that a She informed us in no uncertain the University of Washington prominent physician would want terms that she was canceling her School of Medicine, the average his capital campaign gift to be entire bequest. time a patient speaks before being directed to his university’s school of Our planned strategy was interrupted by a physician is less medicine. We gave him a proposal based on solid information and than a minute. “Wouldn’t it be for an endowed professorship, assumptions. This donor could easily wonderful if a physician listened to which he received politely but afford a $5 million gift, which would you as a patient, just sat and made without enthusiasm. But he became further honor her father, and our eye contact, and then with care and animated when a team member interactions with her had been very thoughtfulness examined you?” happened to mention seeing him at positive. Although our GPS had the professor asked. “That isn’t just a musical event. Our representative programmed us for exactly how to diagnostic; it’s therapeutic.” shifted gears, asking if he had ever make our case, now it appeared that Her observation applies to considered a professorship in the we would lose everything. We were gift planning as well. Before we school of music, and he was eager shocked. After lots of hand holding prescribe a remedy—in this case, to discuss the idea. We might have of the donor over the next few a bequest, gift annuity, charitable avoided this misunderstanding months, we did manage to salvage remainder trust or whatever—it’s if the team had first listened and $5 million of the testamentary gift, vital that we understand what is asked for more information. One but we had to abandon any thought going on in our prospect’s life, simple yet effective question is, “If of a current gift. personally as well as financially, it became possible for you to help This situation illustrates the and learn about his or her passions. fund any program or project that importance of being flexible Asking open-ended questions, interested you, what would you and adapting to unforeseen paying attention to body language most like to support?” circumstances. If we had continued as well as to words, not feeling a Another time, the CEO of a to push for an immediate gift, we compulsion to fill all of the silences social services organization that likely would not have received any and avoiding driving home your was conducting a capital campaign bequest at all. And another major scripted points regardless of what remarked to me, “We need just three factor in our success with this donor the person is saying all contribute particular people in this community was the personal relationship we to an atmosphere in which your to make our campaign a success.” had cultivated with her over time. prospect feels truly heard. When I asked if any of these three People give to people as well as to Sometimes we may be had made a gift to the organization, causes, and making the effort to sidetracked by preconceived she said that they had not, so I

28 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 followed up with, “Have any of them The perils of technology I once worked with a couple who made contributions to organizations Some gift planners like to take owned a home and sailboat on one with a similar mission?” To her an iPad or other technological of the islands in Puget Sound, as knowledge, they had not. “Then device with them on calls to well as a large block of appreciated why do you think they would make show the prospect an impressive stock with a very low cost basis a campaign gift to you?” I asked. graphic presentation. This can that paid minimal dividends. They “Because they have money and we be useful; for instance, a person wanted to move from the island, need it,” she replied. considering a charitable lead trust simplify life and increase cash flow, Too often fundraisers approach may inquire about the charitable and do all of this as soon as possible. their task like this CEO: Ms. Donor deduction based on different No typical charitable instrument has money, how do we extract it? payout rates and trust terms, and would accomplish all of their The approach is ineffective because it’s advantageous to be able to objectives, so we tossed aside the people give to an institution not provide the information instantly. PowerPoint and developed a plan because it has needs, but because But sometimes you can become using a combination of a charitable those needs concern them. The best so focused on your excellent remainder trust, a gift annuity and a way to tap into those concerns is to presentation that you fail to pay bargain sale. put away your script and discover attention to the words and body what is important to your donors. language of the person sitting in Positioning for the future Planned gifts often are generated front of you. An article on the The ultimate gift planning while you are reviewing and front page of the New York Times without benefit of GPS involves preparing illustrations and gift bore this headline: “We have met positioning our institutions as the agreements with donors and their the enemy, and he is PowerPoint.” world and our profession change professional advisors. During these Nowhere is that more true than in over time. If we could correctly meetings, you might say, “You have the personal visit. predict economic challenges and been a faithful contributor to our Using tools like PowerPoint tax reforms, we would be better hospital, and I am wondering if you when developing gift plans also able to allocate resources and create would consider endowing your gift.” can stifle creativity. It is easy to fall effective marketing plans. But Or you could ask the donor what he into a rut, relying on the typical since we don’t have a map for the or she considers to be the institution’s pairings of donor situations and gift future, we must notice trends in greatest challenges, and then follow instruments that may result from gift planning and figure out how to up with, “Would you be willing to using standard presentations. But adapt to them. help us address those challenges with we may close more and larger gifts Recently, life income gifts— a gift through your estate?” if we consider creative combinations. particularly charitable remainder

29 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 trusts and pooled income funds— then contact prospects to ask if they In Mongolia, our destination have declined because of reduced would consider an estate gift. These is a ger camp, a cluster of round, tax incentives, among other calls uncover existing bequests that portable structures created by reasons. Gift annuities remain can be stewarded and also identify wrapping pressed wool and more popular, but they too are not new prospects to be cultivated— waterproof covering over a modular increasing as they once did. With thus outsourcing an aspect of wood frame. We sleep in the fewer of these more complex gifts, marketing that used to be part of smaller gers, and in the larger many planned giving programs the planned giving department’s dining ger we gather to reminisce have morphed into what are responsibilities. about the wonderful friendly essentially bequest programs. For Finally, there is the question herders we met during the day, many institutions, this means a of how the digital age will shape eat mutton and yak and sample decline in their range of services planned giving. Although we are fermented mare’s milk. After a day and perhaps in overall donations. still marketing planned gifts to a of having your insides rearranged Another shift has been the generation accustomed to receiving by jolting roads, constantly merging of planned and major gifts. information through print media, wondering if you are going in Until recent years, stand-alone their children and grandchildren the right direction, it’s great to planned giving departments at are increasingly reliant on electronic celebrate. Sure, it would be easier health care and other institutions communications. Just as many to be on paved streets with clear were staffed by skilled technicians university classes are now offered signs and GPS guiding us, but it who focused on life income gifts online instead of in a classroom, in wouldn’t be nearly as much fun. and bequests. However, today the future more prospects will likely You may feel similarly satisfied there are fewer specialists and a be identified through electronic at the end of a successful encounter blurring of the distinction between means, including social networking. with a donor. May your journey of planned and major gift officers. Inevitably, planned giving will gift planning, with all its twists and Increasingly, the technical aspects become more high-tech. But it will turns, continue to be full of fun and of gift planning are outsourced to always be high-touch. surprises. consultants, and internal staff focus Although we can observe these Frank Minton is a former chair on donor relations. trends in our profession, we aren’t of both the American In many institutions, the annual always sure how best to respond to Council on Gift Annuities and the Partnership for giving model is being adapted to them. For that, like our Mongolian Philanthropic Planning. He market planned gifts. Often an driver Gana, we must rely on now advises American and Canadian charities on gift organization will hire a vendor experience and judgment, dare to planning through his company, Frank Minton to develop a call list and use the switch tracks and sometimes even Consulting, LLC. vendor’s trained telemarketers, who create new ones.

Donors. Dreams. Capital Campaigns Campaign Planning Studies We’ll take you there. Development Assessments Foundation Implementation Annual Giving Programs Planned Giving Programs Best Practices Research

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30 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 FEATURE | By R. Edward “Eddie” Thompson, Ed.D.

Institutional sustainability Transitioning from “hunter-gatherer” mode to a cultivation-based strategy for long-term fundraising success

he rise and fall of ancient civilizations is a subject that has fascinated me since childhood, and after 30 years Tof working in fundraising, nonprofit management and charitable giving, I can’t help but notice parallels to the rise and fall of nonprofit organizations. To survive and thrive in the nonprofit world, organizations must transition from a “hunter-gatherer” funding strategy to one that systematically cultivates donors—becoming “farmers” who create long-term sustainability.

31 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 Cultivation is key grounds were taken over by land food source. This is true even with When I was growing up in St. cultivators. Some tribes died out, some faith-based organizations, Louis, Mo., I loved going to while others were absorbed into whose values you would think Cahokia Mounds State Historic larger groups or became victims of would be immutable. Site across the Mississippi River hostile takeovers. In contrast, successful nonprofits in Collinsville, Ill., to explore develop a predictable subsistence traces of the once-thriving Focus on farming strategy. They learn how to cultivate community that lived there from In keeping with my metaphor, donors and create large, sustainable 700 to 1400 A.D. At its peak, nonprofit organizations start out organizations that become major around 1050 to 1200 A.D., the small and simple—in modern forces for good in the world. city of Cahokia covered nearly parlance, lean and mean—without six square miles, had upwards of in-house accountants, human Gradual transition 20,000 inhabitants and featured resources directors or information Nonprofits that start out as sophisticated developments— technology specialists. They hunter-gatherers do not become including palisaded villages, operate as hunter-gatherers, cultivators overnight. Skills, communal plazas, monumental knowledge and complex systems public structures, symbols and associated with cultivators decorations—and a complex take time to evolve, and the hierarchical society. What Some organizations organization must continue to happened to the prehistoric try to keep focus on pressing needs—such as Cahokians is unknown; by finding donations. It’s a gradual 1400 A.D., the site had been fundraising expense transition and not automatic. abandoned. In its heyday, One of the greatest hindrances to however, the site was home to percentages as low developing the art and science of one of the greatest civilizations in cultivation is short-term success North America. as possible…and in hunting and gathering. Because According to anthropologists, in doing so, lock learning how to cultivate as a prehistoric tribal groups that grew sustainable resource strategy is into advanced civilizations, such themselves into so labor intensive, hunters don’t as the Cahokia, were generally become farmers until they are those able to transition from a hunter-gatherer forced into it. a hunter-gatherer subsistence approach. Nonprofit organizations, strategy to an agricultural-based even large ones, do not focus on system. The people of Cahokia cultivating a broad and renewing were the first Native Americans donor base if they have been able to learn how to cultivate maize. to get by with large public sector Hunter-gatherer groups generally searching for donations to sustain grants, funds from a small group remained small and moved them for the next days or months. of major donors or business- frequently, following the food These types of organizations are related income. This is particularly source. Because foraging was never short on stress. If someone true at hospitals, although they everyone’s primary occupation, doesn’t go out, “hunt down a are finding that health insurance the people in those groups were donation” and bring it home, the and public-sector funding are less likely to develop a complex group does not survive—instead becoming less predictable— social structure with full-time either dying out or being absorbed similar to the food supply for specialized skills, such as those into a larger nonprofit. Those hunter-gatherers. Both hospitals found in the Cahokians. Instead, that survive remain relatively and universities have historically hunter-gatherer groups stayed localized and obscure. Small, relied on income from patients small, primitive and isolated. hunter-gatherer nonprofits modify and students, but universities If groups did not eventually or truncate their mission and have worked longer and harder become farmers and ranchers, they values over time, based on the to cultivate donor relationships. usually failed to survive. Game mission and values of potential Today, hospitals are trying to became harder to find and hunting funders; that is, they follow the quickly transition from relying

32 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 on customers who are compelled Tips for becoming a sustained. But some leaders to visit and pay to achieving a “farmer-rancher” cannot resist the temptation sustainable donor base. Based on my experience in to expand their organization, One of our clients, a charitable estate planning and and as a result, they perpetuate Midwestern hospital, discovered my success raising hundreds of such pressing needs that they that generating $2 million more in millions of dollars for health never have the flexibility to annual net income would require care institutions, I offer a few develop a cultivation-based investing $100 million to expand suggestions and action items to system. Other leaders have the the hospital facilities and services. help with the transition. idea that they can raise more It didn’t take long for the math money when the organization to hit them: invest $100 million 1. Develop a long-term strategic is in crisis, so creating crisis to increase net income by a mere vision. Answering the question is their development strategy. $2 million. In contrast, the same of how to become a sustainable However, in creating crisis, they hospital realized it could invest organization is just as important also create the conditions that all 35 cents in expanded fundraising to major donors as it is to grant- but guarantee the organization’s efforts for each dollar increase makers and investors. Major eventual demise. in net income—an approach donors think like investors; A lot of nice people will make that would be approximately 150 they will not waste money small, one-time donations to your times more cost-effective than on a project that is destined cause. But they will not become expanding the hospital. to fail because it cannot be committed investors unless

Stuck in the hunter-gatherer approach As a consultant to more than 100 organizations in financial crisis. by Cygnus Applied Research. hospital foundations, I’ve learned Instead of looking for cultivators Most development directors who many lessons about how to do of long-term strategies, they seek have been at an organization for things right—and how to fail. I’ve big-game hunters who can show a long time have been able to also picked up insights from the immediate results. succeed because both they and recruiting arm of my firm, Thompson • Most development directors the organization take a cultivation & Associates. Here’s evidence are fired because of lack of or farming approach to fund I’ve gleaned to suggest that many short-term results. And when development. nonprofits are stuck in the hunter- development directors resign, • Grant-makers find that the gatherer mode. it’s often because they see the greatest and most consistent shortfall coming before the chief weakness in the thousands of • The majority of job openings for executive and board do. grant applications they receive is development directors are at • The primary reason donors stop the lack of a credible sustainability giving is because they feel like strategy. Executives at grant- the organization loves their making foundations are keenly money more than it appreciates aware of the importance of long- them. When my organization term, predictable sustainability. surveyed 25 major donors about They know that organizations their giving experiences, their must learn to cultivate donors and biggest complaint about giving cannot rely solely on hunting for and nonprofits was that they donations. Whenever an applicant “felt hunted.” comes in seeking a big donation • The average amount of time a to fund a big proposal, grant fundraiser stays in his or her job is administrators always request their 16 months, according to a study of sustainability plan—essentially more than 1,700 fundraisers and asking, “When are you going to 8,000 nonprofit chief executives learn how to farm?”

33 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 they believe in the cause, in the expand the donor base. You need invested in the organization that potential for growth and in the a plan and a funded strategy to do they are predisposed to approve of long-term sustainability of the that. a long-term strategy or a specific organization. Major donors need Action Item: Create an appeal even if it lacks strength. to see that you have a long-term advisory group made up of And because they are so familiar strategic vision in order to feel business professionals and with the organization, they may confident that the organization individual donors to evaluate fail to notice that information will thrive. Typically, this vision your funding campaigns and important to new donors is not is outlined in the sustainability sustainability strategy—people provided in the plan. Independent plan you provide on formal who represent segments of your eyes looking at a strategy from grant requests. Unfortunately, donor base and will be brutally a donor perspective is like a many of these plans lack a clear, straightforward with you. This can spoonful of reality. workable approach for achieving be an ad-hoc group or an ongoing the results you want. The answer committee, but it should include 2. Promote a cultivation to the sustainability question is more than board members and mentality. Leaders of successful not simply to raise more money or staff, who may be so emotionally nonprofits think like farmers; it’s all

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34 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 about sowing and reaping. If they effectively from hunter-gatherers organizations using money wisely, want to expand the organizational to cultivators understand the value but they are not as impressed by program, they first look at of planting and cultivating—as low fundraising percentages as expanding their development well as how the cost of these many nonprofit executives think. program—planting more seed and activities pays off. They know If your fundraising expense is too cultivating more relationships. that investing proactively to low, it means you are not investing And thinking like farmers expand donor relations will in broadening your donor base. means they do not have an produce a financial return. In Action Item: Every nonprofit entitlement mentality, a pitfall contrast, some organizations organization’s budget should at some nonprofits. I’ve come try to keep fundraising expense specify an amount to spend across organizations in which the percentages as low as possible, on donor relations as well as a leaders seem to think that donors, hoping to demonstrate to donors percentage toward acquiring new foundations and government the efficiency of their gifts. They donors. Fundraising expense agencies “owe them” support. seek to contain the amount of often is the first thing that gets An entitlement mentality at fundraising expense reported on cut when funds are tight. As nonprofits tends to be associated their Internal Revenue Service difficult as it may be at times to with a relatively small number of Form 990, and in doing so, lock reduce programs or administration funding sources. Some donors themselves into a hunter-gatherer expenses, if you cut back on have told me that, in the back of approach. fundraising efforts, it’s like their minds, they wonder, how The irony is that professional eating the seeds you should be would the organization they’ve grant makers and donor-investors sowing to cultivate future returns. been so generous to feel about look for more development and Transitioning to a cultivation- them if they decided not to give? donor-relations investments, not based approach requires discipline And those concerns are not less. Obviously, they want to see and, sometimes, hard choices. unfounded. In my experience, the reason organizational leaders with entitlement mentalities react angrily to reduced funding is because they believe something is being withheld that “belongs to them.” Action Item: Establish a brakeley briscoe discipline of planting, harvesting POWERFUL THINKING | CREATIVE CONSULTING and adding new fields. Each time giving ight to great ideas Brakeley Briscoe is the you expand your program you proud sponsor of the should simultaneously expand George A. Brakeley Jr. AHP Awards your fields; that is, expand your funding sources. Do not put a burden on the same donors to give more money. Capital and Endowment Campaign Counsel Fundraising Capacity Building Then, measure and monitor Campaign Management the expansion of your donor Campaign Planning/Feasibility Studies Development Audits base as precisely as you do the Major and Annual Gifts expansion of your program, so you Planned Giving Volunteer Leadership Development can create realistic projections. International Fundraising Donors want to see growth and broadened impact in the programs www.BrakeleyBriscoe.com they support, but they are wary of [email protected] expansion plans that rely on the 800-416-3086 same group of people for funding. 3. Invest in donors. CALIFORNIA • CONNECTICUT • METRO DC • TENNESSEE • BRAKELEY FAMILY WORLDWIDE Organizations that transition

35 | HEALTHCARE PHILANTHROPY JOURNAL / SPRING 2013 commitment to cultivating donors begins at the highest level. Action Item: The action here is less defined because it depends on your role. If you are the board chairman or the chief executive officer, you have much more power to shape the organizational culture and fundraising philosophy. Whatever your role, the best way to initiate internal change is by serving and supporting, teaching and learning and—when given the opportunity—leading the way to champion the long-term approach. Stop and evaluate In some cases, a vineyard may be a better metaphor for cultivating donors than a cornfield. It takes To survive and thrive in the nonprofit about five years of careful pruning, irrigating and fertilizing before world, organizations must transition from the vines begin to yield fruit. a “hunter-gatherer” funding strategy Nonprofit leaders have to build in enough margin to enable gradual, to one that systematically cultivates steady donor cultivation. In the real world, few donors—becoming “farmers” who create organizations are completely long-term sustainability. oriented to hunting or to cultivating. It is almost always a mixture. However, with the One of our clients had 11,000 fundraising investments, and the day-to-day pressures of running donors who had each given more fundraising expense percentage a nonprofit, it is not unusual for than $5,000. The organization actually went down. our lives to get busy and our employed only one major gift vision blurry. Consequently, we officer, who had the capacity to 4. Ensure leaders are committed lose track of our priorities and our manage and personally contact to farming. If your entire emphasis. We should periodically about 175 donors. Our client was leadership isn’t on board and stop and evaluate our plans for thinking, “Wow, look what we working together with the same creating a sustainable future for have been able to do with only one agenda, thoughts of creating the organization. major gift officer!” Our analysis: a long-term, cultivation-based Eddie Thompson, Ed.D., is “Wow, there are 10,825 donors funding strategy can easily be founder and chief executive officer of who have given over $5,000, and displaced by immediate and Thompson & Associates, a you are not cultivating them. pressing organizational needs. firm specializing in Think of how much money you are Creating a system in which you charitable estate planning. He also consults with leaving on the table!” continually recruit, retain and nonprofit organizations, foundations and The board took our advice, expand the involvement of donors charities to help them develop their planned giving policies. He launched his made a significant investment in takes time and consistency. career at David Lipscomb University as the fundraising budget and hired Whether your organization is a vice president of institutional advancement, assistant to the president additional staff. Total revenue one-person operation or a hospital and director of planned giving. quickly surpassed the additional with thousands of employees, that

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