Mechanisms of Action Three strategies to connect with your donors - - PowerPoint PPT Presentation

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Mechanisms of Action Three strategies to connect with your donors - - PowerPoint PPT Presentation

Feb 26, 2024 160 likes •441 views

Mechanisms of Action Three strategies to connect with your donors and inspire big gifts. Presenter Eric B. Javier, Principal & Managing Director, CCS Fundraising June 13, 2018 1 Agenda 1. Current Trends 2. Why People Give 3.

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Mechanisms of Action

Three strategies to connect with your donors and inspire big gifts. Presenter Eric B. Javier, Principal & Managing Director, CCS Fundraising June 13, 2018

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Agenda

1.

Current Trends

2.

Why People Give

3.

Strategies

4.

Discussion

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Current Trends

S e c t i o n 1

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Last Y t Yea ear, Americans Ga Gave

$410. 0.02 B 02 Billion

  • n!*

*For the first time ever, charitable giving exceeded the $400 b $400 billion mark!

70% 70% / / $286. $286.65B 65B Individuals 16% 16% / / $66. $66.90B 90B Foundations 9% 9% / / $35. $35.70B 70B Bequests 5% 5% / / $20. $20.77B 77B Corporations

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Source: Giving USA 2018

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Overall D Distribution R Remains S Steady

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Source: Giving USA 2018

$127.37B 31.0% $58.90B 14.0% $50.06B 12.0% $45.89B 11.0% $38.27B 9.0% $29.59B 7.0% $19.51B 5.0% $22.97B 6.0% $11.83B 3.0%

Religion Education Human & Social Services Foundations Health Public Society Arts, Culture & Humanities International Affairs Environmental & Animal Welfare

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Tot

  • tal G

l Givin ving a as a Per ercentage of

  • f GDP

Remain ins a at t 2.1% 1% f for

  • r S

Sixth C Con

  • nsecu

cutiv ive Y Yea ear

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Source: Giving USA 2018

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1. 1.8% 1. 1.9% 1. 1.8% 1. 1.9% 2. 2.0% 0% 2. 2.0% 0% 2. 2.0% 0% 2.0% 2.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017

Individual Gi Giving a as a Percen centage o e of DPI Rem emained ed S Stable

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*Disposable personal income (DPI)

Source: Giving USA 2018

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Total Charitable Giving vs. S&P 500

Total Giving 3.0% S & P 500 16.9%

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Source: Giving USA 2018

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Amer ericans a are Ge e Gener erou

  • us

56% of the General U.S Population Give $2,514 Average Amount Given Annually 91% of Wealthy Households Give $25,509 Average Amount Given Annually

83% 83% plan to give as much or more through 2018.

Additional Sources: IUPUI Lilly Family School of Philanthropy: Overview of Overall Giving, 2017 Bank of America U.S. Trust Study of High Net Worth Philanthropy 2016

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Source: Giving USA 2018

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Why People Give

S e c t i o n 2

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Why people give

  • People give because they are asked
  • People give to people, most often their peers
  • People respond to a meaningful mission
  • People give to create lasting impact
  • People respond to specific requests
  • People respond to successful programs
  • Most people want, and all deserve, recognition

for their gifts

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Why people give: CCS Insights

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?

Mot

  • tiv

ivation ion % a % all responde ndents Impact of my gift 89% Because I can 79% Religious practice or moral belief 69% I owe it to my community 66% The person who asks 61% Tax deduction 37%

CCS clients’ aggregated responses, May 2018

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Why people give: US Trust Insights

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?

Source: The 2016 U.S. Trust Study of High Net Worth Philanthropy Bank Of America 2016

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Strategies

S e c t i o n 3

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Strategy 1

Public Phase

  • Public launch
  • Communications
  • Participation
  • Stewardship
  • Over g

goal

  • al

Leadership & Major Gifts

  • Lead gifts
  • Board gifts
  • Steering Committee
  • Cultivation
  • 70

70-80% 80% of g goal

Organizati-

  • nal Phase
  • Solidify Case
  • Prospecting
  • Naming /

Recognition

  • Campaign Cabinet
  • 20

20-30% 30% of g goal

Feasibility Study

  • Test case
  • Goal
  • Timeline
  • Strategy
  • Resource / Staffing

Strategic Planning

  • Affirm mission
  • Future vision
  • Strategies
  • Financial plan

The Feasibility Study Arc of a campaign

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The Feasibility Study The Process

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Strategy 1 “Draft” Case Strategic Interviews Plan

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The Feasibility Study

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Neut utral c conver ersa sations Education Address c concerns a and quest stions Engage N e New ew Leader ershi ship Co Co-crea eation o

  • f

solu

  • lutions

Instill o

  • wner

nersh ship

Results

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The Feasibility Study Examples

  • Orchestra
  • Opera
  • Independent School

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The Challenge Match Structure

  • Develop in partnership with Board member
  • r major donor
  • Challenge can be to reach a dollar amount,

number of donors, number of new donors, planned gifts, etc.

  • Periodically share progress to goal

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Strategy 2

Underlying Principles

  • Context
  • Joint ownership
  • Financial and Activity Objectives
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The Challenge Match Options

  • Cornerstone gifts to be matched 2:1 by

leadership gifts

  • 1:1 match for each new gift
  • Community support to match

institutional giving

  • Current-use gifts “unlock” planned gifts

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Sample Challenge Gift Strategy

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Jump S Start F Funding 200 2009 201 2010 201 2011 Tot

  • tal

Donor A A $500,000 $2,500,000 Donor B B $500,000 $2,500,000 Tot

  • tal

$1,00 000, 0,00 000 $5,00 000, 0,00 000 RSCC C Challe llenge Donors 200 2009 201 2010 201 2011 Year O One Donor # # 1 $1,000,000 $1,000,000 Donor # # 2 $1,000,000 $1,000,000 Donor # # 3 $500,000 $500,000 Donor # # 4 $500,000 $500,000 Donor # # 5 $250,000 $250,000 Donor # # 6 $250,000 $250,000 Donor # # 7 $250,000 $250,000 Donor # # 8 $250,000 $250,000 Subtotal $4,00 000, 0,00 000 $4,00 000, 0,00 000 Year ar Tw Two Donor # # 9 $1,000,000 $1,000,000 Donor #1 #10 $1,000,000 $1,000,000 Donor #1 #11 $500,000 $500,000 Donor #1 #12 $500,000 $500,000 Donor #1 #13 $250,000 $250,000 Donor #1 #14 $250,000 $250,000 Donor #1 #15 $250,000 $250,000 Donor #1 #16 $250,000 $250,000 Subtotal $4,00 000, 0,00 000 $4,00 000, 0,00 000 Year ar Th Three Donor #1 #17 $1,000,000 $1,000,000 Donor #1 #18 $1,000,000 $1,000,000 Donor #1 #19 $500,000 $500,000 Donor #2 #20 $500,000 $500,000 Donor #2 #21 $250,000 $250,000 Donor #2 #22 $250,000 $250,000 Donor #2 #23 $250,000 $250,000 Donor #2 #24 $250,000 $250,000 Subtotal $4,00 000, 0,00 000 $4,00 000, 0,00 000 Challenge D Don

  • nor
  • rs T

Tot

  • tal24 D

Don

  • nor
  • rs

$4,00 000, 0,00 000 $4,00 000, 0,00 000 $4,00 000, 0,00 000 $12, 2,000, 00,000 00 Gr Gran and T Total al $17, 7,000, 00,000 00

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Sample Challenge Visual

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$1, 1,500, 00,000 000 $500, 0,000 000 $250, 0,000 000 $1 $150, 50,000 $100, 0,000 000

Filled Unfilled Matching slot

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The Planned Giving Program Why Planned Giving?

  • Donor loyalty is highly correlated to

planned giving (if you ask)

  • Planned gift amounts are generally

higher than annual individual gifts

  • Programs offer opportunity for

cultivation and stewardship

  • Provides consistent income and

future income for your orchestra

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Strategy 3

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The Planned Giving Program Quick Tips to Get Started

  • Partner with a qualified financial

advisor

  • Review your database for

prospects: consistent donors aged 60+

  • Develop educational materials and

programming to share planned giving options with your constituency

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Inspiring Big Gifts – Planned Giving Examples

New Jersey Symphony

$2.5M Donor 3 Ingredients to their gift:

  • $1.5M cash pledge over 5

years

  • $1M bequest intention
  • “Rockefeller model” payout
  • f $50K/annually

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Orchestra of St. Luke’s

$18M Campaign

  • $6M cash for debt reduction
  • $12M for endowment via

planned giving $5M cash and $7M in planned giving commitments to date

Cleveland Orchestra

Legacy challenge

  • Donor provides cash gifts

(up to certain amount) to match every planned giving commitment

  • Almost 500 planned gifts

committed in last campaign

  • Estimated value known for

about 350 of those commitments

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Discussion

S e c t i o n 4

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Thank you

Eric B. Javier, Principal & Managing Director ccsfundraising.com ejavier@ccsfundraising.com

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