Major Gifts

Category Archives — Major Gifts

Pick up the phone!

by Diane Remin
Posted in Major Gifts Making the Ask

Major gifts are all about building personal relationships with prospective major donors. So…

 If your inclination is to write a letter -> Pick up the phone.

 If your inclination is to print a brochure -> Pick up the phone.

 If your inclination is to send an email -> Pick up the phone.

 If your inclination is to produce a newsletter -> Pick up the phone.

 If your inclination is to slice your donor database every which way -> Pick up the phone.

 If your inclination is to have a staff meeting (you really hate picking up the phone).

 You need to meet with your prospects. 

Practice works!

If the thought of picking up the phone and setting up a meeting (and that’s all you want to do on the phone—set up a meeting) gives you angst, take away the pressure. Put your major gift prospects aside and practice on three mid-tier donors who have been supporting you for several years. Select any three. Pick up the phone and make an appointment.  No expectations. These are practice visits. Your only objectives are to:

  • Thank the donor for his or her support (that’s easy).
  • Learn more about the donor (ask questions and listen).
  • Conclude the meeting with an announced follow-up plan (which may be anything from, “Thank you for taking the time. It’s so valuable to meet with our supporters and find out first hand what they are thinking. We look forward to your continued support” to agreement on a follow-up step, e.g., “So I’ll call you next week with the answer to that question.  Is mid-week a good time?” 
  • Record your notes from the meeting.

If these “practice donors” ask you if you are meeting with them to ask for money, you can honestly say, “no.”  And once you say “no” to these “practice donors” or anyone else, do NOT make an “ask” during the visit.

 Get comfortable meeting with your donors. 

 You may even find that you enjoy it!

Giving is good for your health!

by Diane Remin
Posted in Major Donors Major Gifts Making the Ask

Science, lots of science, tells us that giving is good for your health.

The good feeling you get when you volunteer or write a check to a cause you care about is very real and physiologically based. Altruistic behavior has been scientifically shown to stimulate the brain’s reward/pleasure center and strengthen the immune system, to cite two examples. The result is better health, including less stress, anxiety and depression.

In a 2006 study, magnetic resonance imaging (MRI) was used to track brain activity of subjects who were presented a variety of scenarios that involved accepting monetary pay-offs vs. making contributions to real-life charities.

The study is titled, “Human fronto-mesolimbic networks guide decision about charitable donation” by Jorge Moll et al and appeared in Proceedings of the National Academy of Sciences of the United States of America (PNAS), October 17, 2006, vol 103, no 42.

The researchers surprise is reflected in the last line of the introductory blurb: “Remarkably, more anterior sectors of the prefrontal cortex are distinctively recruited when altruistic choices prevail over selfish material interests.”In more accessible language, given that humans are wired for self-preservation, it is unexpected that the altruistic choice (the choice to donate) not the selfish choice (the choice to keep the money) lights up the portion of the brain associated with primary rewards such as food and sex.

In a 1988 study, psychologist David McClelland found that even thinking about doing good had a positive impact on the immune system. Let’s repeat this one: The mere act of thinking about doing good had impact. Wow! In what has become known as the “Mother Teresa effect,” Harvard students watched a film of Mother Teresa caring for orphans in Calcutta. The students who watched the film had significant increases in the protective antibody salivary immunoglobulin A. Furthermore, the immunoglobulin A remained high for over an hour after the film when students were asked to focus on loving or being loved. The study, “The effect of motivational arousal through films on salivary immunoglobulin” by David McClelland et al, appeared in Psychology and Health, Vol. 2, pp. 31-52.

To those of us volunteering and donating, this evidence is not surprising. Scientists are beginning to document what we’ve known all along, but couldn’t really explain.

I wrote this blog entry, in part, for everyone out there who hates to ask for major gifts. Perhaps it’s time to reconsider that stance.

Science tells us that making a major gift to a cherished cause produces health benefits that emanate from primal places deep in the brain.

Create a positive primal experience for a donor. Just ask!

Every “no” is a “yes”

by Diane Remin
Posted in Major Gifts

Oh my goodness, a prospective donor said, “no.” Not a “no” that turns out to be an objection that you can resolve. A “no” that’s a “no.” A goose egg.

Do you take it personally? No you don’t.

Why?

It’s a numbers game.

In sales parlance, a “no” triggers a “next.” That’s right. “Next.” Move on to the next donor.

On to the next major gift solicitation

No one bats 1,000. In fact, it turns out that major gift fundraising “ask” averages are not very different from Major League Baseball batting averages: going 1 for 3… that’s batting a very respectable .333. Baseball players can’t wait to get back to the plate after a strike out. They live by, “next.”

No strike-outs? No home runs either.

Everyone has a Major Gift Ask RatioSM

A key number in major gift fundraising is the major gift ask ratio: the number of prospective major gift donors (prospects) you’ll ask compared to the number who say, “yes.”

The fundraising profession has researched lots of major gift campaigns and uncovered industry-wide prospect-to-donor ratios. In a $100,000 campaign, for example, you’ll want at least one $25,000 gift—25%-50% of the goal. Obtaining this gift will require anywhere from four to five “asks”—a ratio of 4:1 or 5:1. You will need to ask four or five prospects to secure this gift. As the gift sizes decrease, the ratio falls, working its way down to 2:1.

For starters as a smaller organization, expect to make two or three “asks” to get the major gift

So, depending on how aggressive your “asks” are in relation to prospective donor capacity, you should expect—yes, expect—to make anywhere from two “asks” to five “asks” to get the gift. That’s to hit a specific gift level. Many of these prospects who don’t give you what you ask for are not at zero—they will give you a smaller gift. But even at the more modest “ask” levels, anticipate a 2:1 ratio. There are still plenty of “no’s” in that ratio.

If you are a board member who wants to secure three gifts for your organization, plan on making at least six asks.

Every “no” is a “yes”

On the journey to three gifts, you will make at least six asks. A “no” is one of the six. As an added bonus, every “no” is part of a conversation, and every conversation deepens the relationship. So there’s always a benefit, no matter the dollar outcome of the meeting.

Goals are essential! The goal is not to achieve a 100% “yes” rate. We’d all fail. No one would go to bat.

As a smaller nonprofit just starting a major gift program, consider setting a goal to meet with a certain number of major gift prospects.

The money will follow.