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

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. Strategies 4. Discussion 2

S e c t i o n 1 Current Trends 3

Last Y t Yea ear, Americans Ga Gave $410. 0.02 B 02 Billion on!* *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 Source: Giving USA 2018 4

Overall D Distribution R Remains S Steady $11.83B $22.97B 3.0% 6.0% Religion $19.51B 5.0% Education $127.37B 31.0% $29.59B Human & Social Services 7.0% Foundations Health $38.27B 9.0% Public Society Arts, Culture & Humanities International Affairs $45.89B 11.0% $58.90B Environmental & Animal $50.06B 14.0% Welfare 12.0% Source: Giving USA 2018 5

Tot otal G l Givin ving a as a Per ercentage of of GDP Remain ins a at t 2.1% 1% f for or S Sixth C Con onsecu cutiv ive Y Yea ear Source: Giving USA 2018 6

Individual Gi Giving a as a Percen centage o e of DPI Rem emained ed S Stable 2. 2.0% 0% 2. 2.0% 0% 2. 2.0% 0% 2.0% 2.0% 1.9% 1. 1.9% 1. 1.8% 1. 1.8% 1. 2009 2010 2011 2012 2013 2014 2015 2016 2017 *Disposable personal income (DPI) Source: Giving USA 2018 7

Total Charitable Giving vs. S&P 500 S & P 500 16.9% Total Giving 3.0% Source: Giving USA 2018 8

Amer ericans a are Ge e Gener erou ous 56% of the 91% of General U.S Wealthy Population Households Give Give $2,514 $25,509 Average Average Amount Given Amount Given Annually 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 Source: Giving USA 2018 9

S e c t i o n 2 Why People Give 10

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 11

Why people give: CCS Insights Mot otiv ivation ion % a % all responde ndents Impact of my gift 89% Because I can 79% ? Religious practice or moral 69% belief I owe it to my community 66% The person who asks 61% Tax deduction 37% CCS clients’ aggregated responses, May 2018 12

Why people give: US Trust Insights ? Source: The 2016 U.S. Trust Study of High Net Worth Philanthropy Bank Of America 2016 13

S e c t i o n 3 Strategies 14

Strategy 1 The Feasibility Study Arc of a campaign Leadership Strategic Feasibility Organizati- Public & Major Planning Study onal Phase Phase Gifts • Affirm mission • Test case • Solidify Case • Lead gifts • Public launch • Future vision • Goal • Prospecting • Board gifts • Communications • Strategies • Timeline • Naming / • Steering Committee • Participation Recognition • Financial plan • Strategy • Cultivation • Stewardship • Campaign Cabinet • Resource / Staffing • 70 70-80% 80% of g goal • Over g goal oal • 20 20-30% 30% of g goal 15

Strategy 1 The Feasibility Study The Process “Draft” Case Strategic Interviews Plan 16

The Feasibility Study Results Neut utral c conver ersa sations Education Address c concerns a and Engage N e New ew quest stions Leader ershi ship Co Co-crea eation o of Instill o owner nersh ship solu olutions 17

The Feasibility Study Examples Orchestra  Opera  Independent School  18

Strategy 2 The Challenge Match Underlying Principles Context  Joint ownership  Financial and Activity Objectives  Structure Develop in partnership with Board member  or 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  19

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  20

Jump S Start F Funding 200 2009 201 2010 2011 201 Tot otal Sample Donor A A $500,000 $2,500,000 Donor B B $500,000 $2,500,000 Challenge Tot otal $1,00 000, 0,00 000 $5,00 000, 0,00 000 0 RSCC C Challe llenge Donors 200 2009 201 2010 201 2011 Gift Year O One Donor # # 1 $1,000,000 $1,000,000 Donor # # 2 $1,000,000 $1,000,000 Strategy 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 onor ors T Tot otal24 D Don onor ors $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 21

Sample Challenge Visual Filled Unfilled $1, 1,500, 00,000 000 Matching slot $500, 0,000 000 $250, 0,000 000 $1 $150, 50,000 $100, 0,000 000 22

Strategy 3 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 23

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 24

Inspiring Big Gifts – Planned Giving Examples New Jersey Symphony Orchestra of St. Luke’s Cleveland Orchestra $2.5M Donor $18M Campaign Legacy challenge 3 Ingredients to their gift: $6M cash for debt reduction Donor provides cash gifts   (up to certain amount) to $1.5M cash pledge over 5 $12M for endowment via   match every planned years planned giving giving commitment $1M bequest intention  $5M cash and $7M in planned Almost 500 planned gifts  “Rockefeller model” payout  giving commitments to date committed in last of $50K/annually campaign Estimated value known for  about 350 of those commitments 25

S e c t i o n 4 Discussion 26

Thank you Eric B. Javier, Principal & Managing Director ccsfundraising.com ejavier@ccsfundraising.com 27