Major Gifts -- An Inside View

A Successful Failure

2012-02-28T07:00:00.007-06:00

Disney Institute defines a "successful failure" as a great idea that just didn't work. A "successful failure" can still be a learning opportunity!

I just had a "successful failure" myself . . . in the planning of a fund raising feasibility study, a prospective interviewee was identified as an excellent resource. By happenstance, I was meeting with that individual the next day for another purpose and it was suggested that I ask if he'd participate in the study. We met and conducted our business. I then shared that he had been identified as a valued resource and asked for his participation in the study. He seemed honored to be asked, but politely declined. He proceeded to tell me of a personal conflict prohibiting his involvement in the study, yet wanting to know more about the organization. He encouraged me to share information about the organization and left the door open for further involvement . . . and a potential gift.

I didn't get his participation in the feasibility study, but I did cultivate a new friend for the organization. Yes . . . successful failure!

Congratulations!

2012-02-21T07:00:00.002-06:00

Mike Parks, President of The Dayton Foundation, is a friend and contributing blog post writer. Through his leadership and the participation of others, more than $1 million has been committed to ease the transition of the Dayton Ballet, Dayton Opera and Dayton Philharmonic Orchestra into a newly formed Dayton Performing Arts Alliance. This new Alliance will seek additional funding from local, state and national arts sources due, in part, to the unprecedented merger of an independent ballet company, opera and orchestra.

This is an important collaboration and a superb example of bringing valued resources together to ensure and strengthen the arts. It's also an excellent example of an effort and outcomes that major donors are seeking.

Congratulations!

Where Major Donors Live -- A Funding Issue or Excuse?

2012-02-14T07:00:00.005-06:00

The Chronicle of Philanthopy recently published a list of our nation's "Top 50 Donors" -- showing where they live and estimating what they gave. California, with 14 wealthy and generous donors, has the heaviest concentration. No other state was even close. By region, the West Coast is home to 16; Midwest has 10; East Coast has 13.

Rather than commiserating over the fact that more of these "Top 50" are not in your state, let me offer another perspective . . . For most organizations, you have enough potential wealth within a small geographic radius of your location to meet and exceed your funding needs effectively. What's holding you back is having a plan -- with goals around completed calls, values of pending requests, actual gifts and pledges, number of volunteers making calls and more -- and implementing it in a structured manner. Do you have a "Horizon Club" or similar organization that pays tribute to individuals who have made arrangements for a planned gift to your organization? Is it growing in members each year?

Many of our clients are finding the early weeks of 2012 an encouraging time for new gifts, grants and leadership recruitment. Don't worry about the nation's "Top 50". Be more concerned about those closest to you . . . remembering your distinctive purpose, outstanding outcomes and commitment to serve. Think about your "Top 50" and your relationship with each of them, and have a great 2012!

It's About Impacting People

2012-02-07T07:00:00.001-06:00

Eileen came by my office last week.

"Bob is not doing well," she said. "Not at all." Her hands were trembling as she stood in my doorway. I could see the care and anxiety etched on her face.

"I am so sorry," I said. "What can I do to help?"

"Just pray," she responded.

As she left, I whispered a prayer for her husband. They had lived in our retirement community a number of years. "High net worth" is what I read from their donor notes. I checked their giving history, and observed that they had a passion for benevolent care gifts. They had supported our capital campaign, but only in response to a last dollar challenge at the close of the campaign. "We care about programs that impact people," he shared once.

As I read through their actions tab, I realized that, honestly, this can all get too mechanical. Was it all about money to me? Was I so into my job that I was thinking about memorial gifts? I shuddered.

"No, it is not about that," I thought. Even if I make a gazillion dollars for my not-for-profit, the bottom line is not about that. I prayed again for Bob, and asked God to be with Eileen in a special way.

Several weeks later, I was on a conference call about gift recording software. I saw Eileen walk by my office. She was looking for me. "He's at rest . . . he's finally at rest," she said. "Excuse me, please. I see you're on the phone."

I dropped the phone, walked over and gave her a big hug. Her daughter and son were standing there. I greeted them and shared what a wonderful man their father was. They thanked me, and we talked about disconnected things the next few minutes . . . kids, weather, etc. They asked if I would watch over their mom the next few weeks, smiled and walked down the hall.

I prayed a prayer thanking God for this wonderful family. Their gifts will come, my not-for-profit will grow and expand its ministry and I will learn an important lesson . . . fund raising is secondary to relationships. In the end, it's about impacting people.

Hodge Drake
Charitable Gift Planner
Otterbein Senior Lifestyle Choices

The Campaign Focus Group

2012-02-02T07:00:00.003-06:00

I recently had the privilege of presenting a case study of a capital campaign to a class of doctoral students. They saw the campaign brochure and introductory video. During a 90 minute discussion they probed, offered suggestions and criticisms, and provided valuable counsel. It was a helpful, positive experience.

What did I learn from this well educated sample audience? Prospects are motivated by specific outcomes. They want to know the real stories behind the faces. They want a greater personal touch knowing that their gifts will be counted and make a difference. The more specific, the better! They also saw the importance of passionate and expressive leadership.

The class confirmed much of what we know as key campaign characteristics. The classroom focus group environment was a refresher course for me as I found myself revitalized over the heartfelt commitment I saw in people as they exuded compassion and commitment.

A Story Unknown

2012-01-31T07:00:00.001-06:00

A feasibility interviewee, and major gift prospect, told me how much she believed in affordable education. As a young woman, she liked the local community college and decided to take classes there. She grew from those experiences, and endorsed the college so much that she organized a car pool to drive people to classes. No one at the college knew of her efforts.

It's now many years later . . . she and her husband are area leaders and involved in a feasibility study process for a project related to this same community college. While they haven't had recent contact with the college, they've maintained their respect and admiration for the high quality affordable education the college continues to provide . . . and they expressed interest in this new project.

The feasibility study process opened a major gift opportunity! The process has many benefits . . . and sometimes helps an organization hear a story about themselves that they never knew!

I Met the Man!

2012-01-25T07:00:00.002-06:00

In conducting a feasibility study interview, I met The Man! He is the man behind the scenes that orchestrates the launch and success of major gift campaigns in his community. He's not the largest donor, but he gives thoughtfully. He's not the campaign chairman, but he influences the person who is. He is the man respected by others . . . his peers.

Who is The Man in your community? What are you doing to cultivate his interest in your organization? It's great to have him endorse your mission, purpose and current funding efforts! If you don't know who The Man is . . . you may need to search!

P.S. Beware . . . The Man in your community could also be The Woman.

The Importance of Following Good Practices

2012-01-19T07:00:00.002-06:00

Successful charitable organizations exhibit passion for their missions and possess staff and volunteer leaders who ooze commitment from their pores!

Sadly, an organization I know just announced it's closing. It couldn't raise the funds necessary to serve its constituents and maintain operations. Ironically, this is the organization that broke many fund raising text book rules:

The board didn't ask others to support the organization;
Constituents showed little investment; and
When board leaders asked for assistance a year ago, they didn't take advice from those who understood the problem(s) and offered excellent, but challenging, solution strategies.

Major gift support could have saved this organization as it had a good programmatic concept and initial funding! The lack of cultivation and support from Day #1 . . . due to the fact that they didn't like asking for the investment of gifts and leaders . . . forced its demise.

Make sure your organization follows good practices!

Be a Hero with Major Gift Donors and Prospects

2012-01-12T07:00:00.001-06:00

According to a recent article the The Chronicle of Philanthropy, people can leave up to $5 million to heirs tax-free in 2011 and 2012. However, unless Congress takes action, more of their estates may be taxable in 2013. The potential change has prompted many wealthy people to think about best arranging their finances and providing for their families. A growing number of donors are creating charitable lead trusts, reviewing wills and taking a closer look at their estate plans.

Reminding your older major gift donors and prospects to take another look with their advisors at their plans can be a positive and helpful action step in these early months of the new year.

It's 2012 . . . New Opportunities Exist!

2012-01-09T07:00:00.001-06:00

The new year is here! Take a look and see if you've addressed the checklist of duties that lead to success in 2012:

Is your organization's clarity of purpose communicated frequently to major gift prospects with personal stories, paragraphs, tours and other "high touch" experiences?
Have you identified specific projects to be funded in 2012?
Have you defined your Top Ten List of prospects that may have interest in general funding as well as your specific projects?
Do you have identifiable linkages through lay leadership to assist in the cultivation and solicitation of these top prospects and donors?
Have you prepared your cultivation and solicitation timeline for each prospect?
Have you considered appropriate recognition strategies as your donors support new endeavors?

Affirmative responses to each of these points puts you in a strong position for success. Make 2012 the best year possible in your philanthropic efforts!

Evaluate Your End-of-the-Year Strategy

2012-01-05T07:00:00.001-06:00

Calendar 2011 is history! You've just experienced the joy of generosity expressed through year-end gifts. Did your organization achieve its goals? Now is a good time to evaluate year-end results and describe how you can improve. This is an excellent time to put your plan and timetable together for year-end 2012.

Best wishes for a fabulous 2012!

Happy New Year!

2012-01-01T00:00:00.003-06:00

Wishing you a happy and prosperous 2012!

Happy Holidays!

2011-12-19T07:00:00.003-06:00

Have a wonderful holiday season with happiness and prosperity throughout the coming year!

Signs Your Donors Are Ready

2011-12-12T07:00:00.019-06:00

I've said in other blog posts to be sure to listen to your donors and create a customized plan for each which will ultimately lead to a natural "ask." Recently, I came across an article reinforcing my thoughts. The article listed top ten signs of donor readiness:

They ask a lot of questions.
They return your phone calls.
They bring their friends to your introductory events and offer to host their own introductory events.
They give you advice.
They come to other events and occasions in the life of the organization.
They start talking about themselves and your organization as "we."
They ask more questions about your fundraising.
They ask how else they can help.
They "hang around."
They offer to give you money.

Terry Axelrod, Benevon

If you'd like to read the complete article, go to http://www.benevon.com/resources/current-feature. It will be time well spent.

John Pruehs

A Moment of Pride and Accomplishment

2011-12-06T07:00:00.001-06:00

Our volunteer leadership team met. Each individual brought to the table his/her own personal ideas describing how to reach out to prospects. The personal approaches could fill up a "how to" book on major gifts fund raising! In this discussion, one learned from the other and each fine tuned his/her approach.

Our training has paid off and our leaders are anxious to lead! It's clear to me that this campaign is distinctive in purpose and in leadership and, best of all, its success will benefit thousands each month.

Are your volunteer leaders ready to take the lead?

John Pruehs

Work from Your Strengths

2011-11-29T07:00:00.005-06:00

Your best prospects for major gifts support are those who already know and value your organization. It's often efficient, rifle-shot type relationship building with these friends that maintains their interest and generosity. As you plan for 2012, build in the importance of cementing these relationships.

At the same time, don't forget about the need to attract new prospects. Make new donor acquisition a part of your ongoing efforts . . . and not a crisis strategy!

John Pruehs

Happy Thanksgiving!

2011-11-24T07:00:00.003-06:00

May you, your family and friends have a happy Thanksgiving holiday!

John Pruehs

Why Have a Major Gifts Campaign?

2011-11-22T07:00:00.004-06:00

The majority of us have learned that the most efficient time in our work is the week before we leave on vacation! When time pressures mount, we tend to become more effective and efficient. Thus, that's why we have campaigns! Campaigns are centered around deadlines. These deadlines create the time pressures that get individuals and teams well coordinated. A campaign environment tends to force more outreach to friends and prospects, and that outreach creates conversations, idea sharing, problem solving, questions, community enhancements, opportunities, etc. Campaigns peak the interests of your major gifts prospects.

John Pruehs

You're an Altruistic Business Person

2011-11-17T07:00:00.009-06:00

I've described a major gifts fund raising professional as an individual who combines altruism and a business spirit . . . and about the business spirit . . .

You need to have goals. The primary goal may be the number of "major gifts" you secure in a year or it may simply be the dollar volume of new gift commitments.
You need to have a plan. Who is your prospect? What would you like him/her to do? How will you attract his/her interest? How will you become an important resource to him/her?
You need to make contact. Yes, sometimes a major gifts donor is self-motivated and initiates. Most often, the gift is made because the donor's been identified, involved and feels a part of a big solution. You should have monthly contact expectations.
You need to get your CEO involved in the process. Perhaps your CEO makes a call; sends an email, letter or other type of information; or hosts the gift prospect to breakfast, lunch or dinner.
You need to say "thank you." Thank the prospect for his/her interest, time, ideas, gifts and, even, rejections. The thank you sets the stage for the next solicitation.

These are all basic business functions that are enhanced by your altruism and commitment to the mission of your organization.

John Pruehs

Take Your Five Best Prospects Out to Lunch!

2011-11-10T07:00:00.001-06:00

As simple as that sounds, it doesn't happen nearly as much as it should! This is not giving out consulting secrets, this is doing what we all know should be done. If you saw our blog post of October 31st, our guest contributor, Amanda Miller of The Ohio State University at Lima, wrote about her relationship with Martha who became, first, a friend and then a major gifts donor. Her blog post prompted many of you to email me with your comments.

Yes, take your five best prospects out to lunch. Surprise . . . don't ask for money! Tell them about your organization, tell them about your new initiatives, listen to what's important to them. Have a great time and develop friendships.

John Pruehs

No Hermits Allowed!

2011-11-03T07:00:00.001-05:00

"You cannot succeed by yourself. It's hard to find a rich hermit."

~ Jim Rohn

This quote reminded me that it takes coordinated efforts by several to succeed in a major gifts campaign!

I'm currently working with a small group, committee of four, in the planning and execution of a campaign. The other three committee members have empowered me and my staff team to carry out many of the tasks that serve as key building blocks. The committee's trust in us has resulted in excellent creative work, enthusiasm and end products we are all proud of. Everyone has contributed -- an idea, the strategies, the case, the video, the website, the brochure . . . and more. We've raised more than 50% of our multi-million dollar goal from four gifts! We're succeeding because we have that team, the committee, my staff . . . and the goals will be achieved! No hermits allowed!

John Pruehs

Fridays With Martha

2011-10-31T07:00:00.005-05:00

Sharing major gifts experiences provides us with meaningful examples. The following example from Amanda Miller, Director of Development, The Ohio State University at Lima takes the mystery out of the major gifts process and places the focus on the importance of truly caring for your friends. I sincerely thank Amanda for sharing this story with us.

John Pruehs

Fridays With Martha

Over the past 15 years as a development professional, I have been fortunate to meet wonderful people who have enhanced my life in ways I never imagined. My work is governed by my belief that I am here to help great people make a difference. I've learned that everyone, regardless of their means, hopes that they leave the world a little better than they found it.

One of my greatest mentors was a woman named Martha, whom I met my first week on the job. Her piercing blues eyes could bore a hole through you when she talked about the theatre or a painting or a symphony piece. She had a passion for the arts that was palpable and the resources to support projects that she felt were important. Over the years I grew to understand her motivation and appreciate her direct approach to fund raising. She expected me to be prepared to discuss in detail the project, the cost, the vision and how it would support our mission. I learned quickly to always have something to discuss, even if we were meeting "just to catch up."

At first, our meetings were sporadic and always about business. As my children grew, and grandchildren came into her life, we began to talk about other things. Eventually, we settled into a routine where we met once a month for lunch on a Friday. We would agree to stay focused on the University and what we planned to accomplish with our latest project. But ultimately our conversations would meander to issues of family or her recent travels, and later, about her life and what was important to her. In time she began to invite me to dinner parties and to her home for "a glass of wine after a long week."

For ten years, we never discussed a planned gift or her interest in leaving a legacy. We talked about her belief that a vibrant arts community is essential for a full life. We would go to the theatre, art gallery openings or the symphony, and each time I learned more about her dedication to the arts. One day, Martha told me that she wanted to do something else, and asked me to think about our needs and a potential project that would make a difference. She said that she would let me know when she was ready to discuss it further. So, a year went by and then another. In January of 2010, she decided to make a gift to endow a faculty position through a planned estate gift. It happened very quickly, because it reflected her passion. At a celebration with her closest family, friends and University leadership, she shared her excitement about the impact her gift would have.

Martha and I continued to meet once a month on a Frday and we had fun discussing the new opportunities her support would create. During our December lunch, she asked what else she could do for the arts. I suggested that she had been very generous and that our lunch was to celebrate the holidays, not discuss a gift. With her insistence, I delivered a proposal two days after Christmas to renovate space for an art gallery. Today, the new gallery is in the design and development phase and will be completed in August 2012.

Martha passed away in early January of 2011, just two days after sharing the news of her last gift. She taught me many things, both personally and professionally. However, in terms of my work, I learned that the relationships we create are the most important aspect of development. Martha was very philanthropic and she supported the projects of many organizations in our community because she believed in them and she wanted them to succeed. Like many others, my relationship with Martha began as business associates working toward a common goal to enhance our community. But as we became friends, she gave me a persoanl gift that has no dollar value; she generously shared her time and spirit. I am grateful that I had the opportunity to truly understand the depth of her passion for the arts, and with that understanding, I helped her make a difference. Martha's passions drove her philanthropy, but it was her relationships that drove her generosity.

Amanda Miller
Director of Development
The Ohio State University at Lima

Real Planning Works!

2011-10-27T07:00:00.001-05:00

Our client has a three year targeted window of opportunity for a major campaign. The ideal timeline includes the campaign launch in 2012. The campaign goals are well defined.

It turns out that for the past eight months, the organization's CEO has been quietly meeting with groups of community and business leaders to discuss capital plans. Upon scheduling feasibility study interviews, we find that prospective interviewees -- these same leaders -- are interested in participating since they know about the project, the features and the benefits.

Major gifts programs have high stakes. They offer high rewards. It's worth careful planning and communications to position your prospects and donors as "insiders" who know what's planned, why, the benefits, etc. This type of planning ultimately creates cheerful and proud donors . . . and brings the organization closer to its goals!

John Pruehs

You Deserve a Break Today!

2011-10-24T07:00:00.001-05:00

As fund raisers, we must always be ready to respond to opportunities no matter what time it is or where we are.

On the way home after a busy day, I stopped at the local McDonald's to grab a snack for the drive home. As I pulled through the drive through, my phone rang. I pulled into a parking spot, and without anything to write on, emptied my McDonald's bag on the seat, grabbed a pen and prepared to take notes. "This is Bonnie from McDonald's," said the voice on the phone. I instinctively looked in my rearview mirror to make sure someone in a McDonald's uniform wasn't standing by my window! "We would like to make a gift to your campaign," came Bonnie's voice on the phone.

As I drove home, I wondered, "Maybe I should pull into Burger King and see what happens!"

Hodge Drake
Charitable Gift Planner of Otterbein Senior Lifestyle Choices

The True Measure of Leadership

2011-10-20T07:00:00.001-05:00

The true measure of leadership is influence --

nothing more, nothing less.

~ John C. Maxwell

Who is it that influences major gifts in your organization? Is it the CEO, the development officer, or the current largest donor? Every not-for-profit organization has a leader who influences gift support. If you're a new board member or staff person, it's good to know quickly who that influencer really is.

When conducting fund raising feasibility studies, our interviewee sample always includes "influencers" . . . those who influence the giving and support of others. The influencers may not personally have the resources to give generously, but they have the impact to see that others support your organization.

John Pruehs

Surprised by the Gift!

2011-10-17T07:00:00.001-05:00

Okay . . . we've all heard the adage, "No ask, no gift!" This is the best practice that we, as good fund raisers, identify prospects, do the research, create a strategy, cultivate the donor, prepare a proposal, set up the meeting, engage the prospect and tell the story. Then, we must ultimately ask for a gift and, God forbid we miss this crucial step, ask for a specific amount! To do otherwise is to break the code, mess up the gift, and forever suffer the consequences! The only redeeming work that might come out of this is to present at the next AFP Conference on how we learned from our mistakes!

But . . . what happens when we get the gift anyway?

This happened recently as my organization kicked off the public phase of a capital campaign. Celebrating a million dollars in pledges and gifts, I announced that the $1.6 million campaign needed another $200,000 to break ground on the project. Following the festivities, a gentleman that I had not solicited called to ask for a meeting the next day. "I was a skeptic," he said as we met over coffee. "I figured, in this economy, there was no way this organization could raise a million dollars . . . but we did! How much do you need?" he asked. Before I could respond, he said, "$200,000" as if to himself. He waved his finger in the air, calculating. "I can do that," he exclaimed! "Who should I make the check out to?"

As I evaluated the experience later, I realized that this gentleman had attended a Financial Planning Seminar and several campaign informational meetings that I had conducted during the past year. I was cultivating him . . . I just didn't know it!

Hodge Drake
Charitable Gift Planner of Otterbein Senior Lifestyle Choices

A Client Relationship We Didn't Get!

2011-10-13T07:00:00.001-05:00

Whew!!!

A responsibility of providing excellent fund raising counsel is HONESTY. We have to "tell it like it is" and sometimes a prospective client doesn't like the message . . . or the messenger.

For example, one year ago a meeting with "Organization A" found them unhappy with our suggestions for cultivation and outreach. Today, this same prospective client finds itself unable to meet a challenge grant . . . mainly because they have done nothing to cultivate prospects, donors or friends. They are scurrying with a "shot gun" type approach to secure several significant gifts. And . . . their most recent appeal was mailed to "Dear Friend" and sent "To Whom It May Concern". They are going to fail as few know about them and even fewer care!

We're in business to help our clients achieve excellent results and to apply solid business practices that build positive relationships. One may not like the message we deliver, but our honesty can never be questioned!

John Pruehs

Priorities, Resources and Plans

2011-10-06T07:00:00.000-05:00

Our client services and sales efforts position us to see the work of some very talented and exceptional development staff. How these staff leaders use available resources has a significant impact on fund raising results. Operating budgets are tight . . . and there is little room for experimentation or error. Yet, when you think about the use of resources, you have to ask, "Would we invest $10k worth of staff time to generate a $1,000,000 gift?" The answer should be simple!

There is a great deal of wisdom exhibited throughout this blog that addresses ways to maximize your resources. I encourage you to think about what you should do differently in 2012 to achieve greater gift and donor results. How can you make 2012 the finest "Major Gifts Year" in your organization's history?

John Pruehs

What's Your Value?

2011-10-03T07:00:00.003-05:00

You don't get paid for the hour.

You get paid for the value you bring to the hour.

~ Jim Rohn

Development staff get paid for relationship building, identifying and integrating leaders in the work of the organization, growing gifts and grants, and ongoing marketing and public relations that keep the organization viable in the minds and hearts of the community served.

What do we get paid for our work with clients to enhance their major gifts efforts? We get paid where we bring value that ultimately is measured by solving problems, increasing donors, raising more money, and building processes that enable our clients to grow their philanthropic programs.

John Pruehs

A Major Gifts Solicitation Tool

2011-09-29T07:00:00.003-05:00

Check out this video! Look for the components of an effective fund raising tool. You'll find:

need,
passion for the cause,
opportunities for addressing the problem and
a request to give.

I guarantee you will have tears in your eyes. This is a video you don't want to miss!

John Pruehs

Why Do You Give? Part 5

2011-09-15T07:00:00.001-05:00

My fifth major donor interviewee is an individual whose vantage point is "big picture". While he's always thinking ahead, he's also a down-to-earth and practical leader, husband and father. His successes include and extend beyond business. He views his own major gifts support as a process versus an event. The implication is that major gifts giving has outcomes that require thoughtful preparation, research and awareness. We have worked together on several projects over the past decade, and I have learned that he has specific areas of interest . . . and other areas he respects, but declines involvement.

One of the reasons he is a generous donor is that he sees the opportunity to build community and to create opportunities for people in need. His joy in giving is enhanced as his support serves as a stimulant or catalyst . . . a positive example that prompts others to examine their support. He likes to create "collaborative philanthropy". He sees major gifts support as a positive obligation.

When asked to describe the major gift that made him the happiest, he refers to a hometown project . . . a new YMCA. The birth of the Y was a wonderful success and set a new community tone of confidence and pride. It created a model of a successful venture. Nearly ten years post-YMCA project, it is recognized as a wonderful addition to the community, has bolstered community confidence and participation, and seeded new projects.

He looks at projects from a "GAP" mentality . . .

G -- Is there a goal? Is there clarity on desired outcomes?
A -- Is there an attitude of openness as well as success?
P -- Is there a process that defines how the goals and outcomes will be met that is understood by key constituents?

The major donor interviews in this blog are designed to give the reader information that fosters examination of your own major gifts fund raising. Each presents thoughts to consider as you seek major gifts prospects, donors and support. You may wish to consider the Pruehs & Associates Major Gifts Program as a tool to identify, cultivate and successfully seek gifts from your top prospects. For more information, call 630.245.1300 or email me at jpruehs@pruehs.net.

John Pruehs

The Speed Factor in Major Gifts Fund Raising

2011-09-12T07:00:00.001-05:00

The rapid change we face in our lives isn't immune to major gifts fund raising either. The traditional beliefs about the major gifts processes are changing too. My evidence is the laboratory of our clients and their major gifts efforts and results. Here's what I'm seeing . . . some is new . . . some is traditional!

The Major Gifts Investment: The donors are not giving to reinforce status quo. In fact, they're asking what their gifts will produce; if it's worth their effort and generosity; how will it make the organization work better? And . . . they want greater quantification to earn their ongoing support.

Distinction: Major gifts donors are MUCH more concerned about the future than the past. Your "past" built the relationship, but your "future" is what is being explored and what is generating excitement and enthusiastic support. Spend more time talking about ideas than talking about the past.

Transformation: Are you thinking big enough to attract your major gifts prospects to fund "transformational" type programs and activities?

Ease: Confidence in giving is enhanced when donors see their support generating results . . . and working within your wheelhouse of strengths and focus.

As a friend of mine recently said, "Nobody goes to snail races because slow is boring!"

Few of us do business today as we did a few years back. That is as true for you as it is for your major gifts prospects and donors. Competition for major gifts support is great. Show your prospects how their gifts to your organization will be transformational and watch as they give with great joy!

John Pruehs

Peter Drucker Understood Major Gifts Fund Raising

2011-09-08T07:00:00.001-05:00

Peter Drucker was a popular writer, thinker, teacher and an economics and business management guru. Did you know he knew major gifts fund raising too?

He said, "Time is the scarcest resource and, unless it is managed, nothing else can be managed." Time management in major gifts funding is critical. Having a plan with a timeline for each prospect not only makes good sense, but it's the best way to manage your leadership resources. Often, this plan emerges as the relationship develops. You get to know your prospect and you understand his interests, likes, dislikes, passions, etc.

Leading a college development staff, we had a young team. We were successful generating gifts as staff spent time getting to know key prospects. Relationship building over multiple years has a tremendous advantage. Managing time with top prospects AND having a plan that is implemented yields success.

In small development offices, it's a challenge to devote the time required per prospect. In my experience, I've found that a great way to foster relationships and gifts is to ask for "cultivation" help by those who are already great donors and friends. If they already have a stake in your organization, they'll often help in ways that are vital.

Perhaps it's time for your organization to look hard at your major gifts efforts. Contact Pruehs & Associates to assist you explore your opportunities, grow relationships and generate new gifts and grants in 2012!

John Pruehs

Learning from Our Blog

2011-09-01T07:00:00.002-05:00

As you think about what I've written over the past three months, there are some conclusions that I believe enhance your major gifts opportunities.

It's not about the money! Major gifts donors are passionate and strive to create something they care about. Think about building relationships, sharing information and asking questions.
Within your organization, real qualified major gifts prospects are small in number . . . and huge in potential!
It's not easy for staff to manage major gifts relationships. They require planning, strategizing, implementing, re-evaluating and acknowledging for each prospect under management.
Your cause must be exciting and you need to have clarity of outcomes or major gifts donors will find it difficult to join your team.
Whether your major gifts donors seek anonymity or recognition, it is vital to personalize the acknowledgement process in a manner that is meaningful to the donors. What is it that they value? A thank you is the first step to the next major gift.

Please share your thoughts with me and I can add your observations to an upcoming blog post. Contact me at jpruehs@pruehs.net or through our website at http://www.pruehs.net/.

John Pruehs

Why Do You Give? Part 4

2011-08-29T07:00:00.001-05:00

One of the stated purposes of this blog is to share the views of major gifts donors. Why do they give? What interests them? What are their personal motivations? Our goal is to convey information that will enable you and your organization to more effectively communicate with your major gifts prospects and donors.

Our fourth major gifts donor is an enormously generous gentleman. He said, "Most of us give for obvious reasons which you've heard from others. We want to give back to the community that has been so good to us and we have a passion for a specific cause. But, I was thinking about another good reason, this is a way to flaunt great success without generating resentment!"

John Pruehs

Did You Know . . .

2011-08-25T07:00:00.001-05:00

. . . that regulation golf balls have an average of 360 dimples?* Do you care? If you're making a major gifts cultivation (or solicitation) call and you look around your prospect's office to see golf photographs and awards, you'll care . . . and remember this line! And, to a golf enthusiast, that's a pretty interesting fact!

As I tell my kids, I know a little bit about a lot of things! That's a charactertistic I value in development staff engaged in cultivating and soliciting prospects. Being aware, articulate and naturally curious are positive traits in philanthropic work.

It's an advantage to know what interests your prospect BEFORE you see him (or her) . . . and that requires homework and good file information within your office. Prepare for your calls, gather interesting conversational facts, listen to your prospect/donor, note your office files and, lastly, write a thank you note when you're done. But MOST important . . . ENJOY the call!

John Pruehs

* Southwest Airlines Spirit Magazine

Major Gifts Acquisition -- Who's Responsible?

2011-08-22T07:00:00.001-05:00

Major gifts development is the business of each and every person in your organization. You never know what has impact or leaves an impression. Is it the person who answers the phone? Is it the executive director or CEO? Is it your alumnus who speaks with pride of the quality of education she received? In recent weeks, we've heard:

Eight years ago he wouldn't talk to us . . . now, he's our campaign chairperson!

They responded to a donor acquisition letter with a $5,000 gift . . . we reached out and, rather than a thank you letter, did a personal visit. Now, they've given $250,000 over the past 18 months!

He came to us with interest in our social work program. His gift of $1,500 provided no clue to his depth of interest. His leaving our organization in his estate plan a gift that exceeded $1.2 million was a shock . . . a very pleasant shock!

Major gifts are usually the result of not one . . . but many efforts by several people within your organization. Who's responsible? EVERYONE!

John Pruehs

Do We Have Major Gifts Prospects?

2011-08-18T07:00:00.002-05:00

How Do We Know?

Major Gifts -- An Inside View readers are aware of the high degree of personalization we recommend in major gifts cultivation and solicitation efforts. Two young organizations reached out to say, "We don't think we have major gifts prospects . . . how do we know for sure?"

The most obvious sign is a past history of giving either to your organization or others. Beyond that, we have done electronic database screening of prospects which has proven to be a worthwhile effort. The end result of this process is an awareness of prospect net worth, annual income and other interests. You can also approach this from a larger prospecting approach and identify individuals of wealth within your service area and explore linkages to these individuals through your board and/or development committee members. Screening of this nature often re-positions prospects regarding their capability to give. It also creates some surprises of prospects who have greater or lesser capabilities than estimated.

If you're interested in more information, call 630-245-1300 or email jpruehs@pruehs.net. Pruehs & Associates can also be reached through our website at http://www.pruehs.net/.

John Pruehs

Why Do You Give? Part 3

2011-08-15T07:00:00.001-05:00

As a young man just out of college, I was invited to join the local Jaycees. This provided an enjoyable way to become active and to meet new people. I got hooked! In the following years, my involvement and gift support have gone hand-in-hand. You work, work, work and sometimes wonder why. When you find the success you’ve been working for, a light goes off. Enjoy that success and share that success. I take an active approach today, because I want to see goals and dreams achieved. Giving back to the community is important to me.

While I sometimes “step on toes” by being direct, I have great pride in helping our YMCA become one of the best in the nation . . . after experiencing great organizational pain. It’s been like a “Phoenix rising” type of story. I still enjoy taking both an active and passive interest in many other local organizations in our area. You have to choose carefully those organizations you have a real desire to be involved with. Today, I can identify four or five organizations where I enjoy being involved. I’m not alone in my involvement. My wife has always been extremely supportive towards my efforts in the community, and today she has her own organizations she is passionate about. Together, we give and take a great interest in the efforts and outcomes of our donations.

Do we donate to get our names on buildings and to be recognized by a community? Not necessarily . . . we give because we believe. We all have some ego and when our name gets put on a building unasked, it is an honor. It is an honor to see a facility being used as planned that brings opportunities and successes to others. That makes me very proud!

Our young people today have great ideas . . . we need to listen and involve them. We could make a greater impact if organizations were better at collaborating and ending so much duplication. We need to work with the next generation to be more efficient with our charitable dollars.

Tax Deductibility -- A Strong Major Gifts Motivation?

2011-08-11T07:00:00.001-05:00

Pruehs & Associates recently came in contact with a newly formed organization whose young leaders were excited over the fact that "tax deductibility" was a great motivator for gift support. Is it?

Tax deductibility is certainly not a distinguishing characteristic from one not-for-profit to another. Therefore, that alone is not nearly enough to warrant gift support.

Our feasibility study research tells us that "tax deductibility" as a rationale for giving falls far down the list of giving motivators. Passion for the cause, organizational leadership and programmatic quality, fiscal responsibility, personal knowledge and respect of staff and board leaders . . . each of these is a much stronger motivator.

This is not meant to discount that major donors are usually savy individuals who do seek tax deductibility. Tax implications are seen as part of the overall package . . . but belief in the organization's mission, purpose and outcomes are far more motivating.

Bottom line . . . don't worry about becoming tax experts . . . become effective story tellers and tell the successes of your organization. Help your prospects become passionately aware of the value of your work and the impact of your outcomes.

John Pruehs

See the Pruehs & Associates Facebook Page for additional information on our firm and the successes of some of our clients!

Vision + Action = Exciting Opportunities

2011-08-09T07:00:00.001-05:00

Organization X, a youth and family serving organization, was struggling despite being located in a fiscally solid community. Membership was down; staff members were cut. Building maintenance needs were acute. Yet, they had a rich history of successful programs and participants. Here's how organizational leaders responded:

First, a small core group of board leaders decided that the current situation was no longer acceptable and improvement was needed.

Second, they defined their problems and broke them down into several phases. Each phase was defined to show the community that the organization was committed to successful programs and operations.

Third, they secured outside counsel to streamline their action strategies to build content to each phase of improvement and to help "share the word" with the community.

Fourth, they launched a successful three month major gifts campaign to fund the first three phases. This contained two matching challenge gifts from donors who cared.

Fifth, the successful campaign then created the opportunity to identify additional prospective prospects and enabled current donors to see their gifts being used effectively. Donors from the past had their interest rekindled.

It's easy to get discouraged. Creating a vision, defining a plan of achievement and executing the plan in small steps builds confidence in your leaders. Gaining community participation builds membership. Successful programming creates collaborative opportunities. Organization X is now on a growth path.

You and your organization have opportunities as well . . . GO FOR IT!!

John Pruehs

It Was the Best of Times ~ It Was the Worst of Times . . .

2011-08-04T07:00:00.001-05:00

In the fall of 2007, I presented an overview of the benefits of charitable gift annuities for the development committee of our board. I knew that one of our committee members owned property in a strategic location for expanding our mission. From previous conversations, I knew the parents, who were in their late 70s, were counting on the sale of the property to fund the rest of their retirement years.

After the meeting, the committee member asked me to run a specific illustration that she might share with her family members. The family agreed that "someday" they would be interested, but they were not ready to "give away" land until they sold the majority of the acreage. They were afraid a gift would give others the idea they would sell at a lesser price.

I continued to check in as I noticed the property was still for sale, and the family members were still holding tight. Then, in September 2008, everything changed. Mom and dad's investments took a hit and they needed additional income -- soon! Property values plummeted and the prospects for buying the property dried up. What could they do?

They resurrected the gift annuity illustrations and contacted me. Were we still interested? Yes, indeed! We appraised the property, negotiated price and payment rate and, within six months, closed the bargain sale gift with fixed installment payments to the parents for 20 years. Total value of the property was $2.4M!

Lesson learned: Keep promoting gift planning ideas ~ in the best of times and, especially, in the worst of times. A bad economy can create some unique circumstances for charitable giving!

Donna W. Coleman, CFRE
Associate Vice President of Development
Otterbein Senior Lifestyle Choices

Note from John Pruehs: Major gifts are made when the donor and the needs are best met. Donna kept communicating with the family and achieved a wonderful outcome -- everyone was happy!

The Relationship of Board Development to Major Gifts

2011-08-02T07:00:00.001-05:00

The Spirit of Volunteerism Award administered by the DuPage Community Foundation was spearheaded by a volunteer leader who wanted to acknowledge the tireless work of volunteers during our nation's economic struggles. Three cash gifts were awarded to organizations that did excellent jobs in multiplying the efforts of volunteerism.

GuideStar just published a report on The Fundraising Methods That Worked Best in 2010 and Could Work Best in 2011. Board giving was one of the areas addressed in this report. Have you examined board giving in your organization? Were board members told upon recruitment that financial support was an expectation of all leaders? The finest board leaders express their passion for organizations by their work and their gift support. Are there major gifts prospects on your board? Is your board development program focused on leadership in "wealth, wisdom and work"?

One of my tasks is to challenge our clients in board development. A strong board is an entre to a major gifts program.

If board development is a challenge to your organization, call us for ideas at 630.245.1300 or email me at jpruehs@pruehs.net.

John Pruehs

The Heart of the Matter

2011-07-28T07:00:00.001-05:00

Every non-profit organization needs major gifts to meet goals and thrive. Defining that "gift of significance" for each organization can vary, and even identifying a model or approach to major gifts solicitation could be different for each development program.

However, what I found in every successful major gifts program through the years is that major gifts are inspired gifts. Donors make major gifts to organizations that they value, are passionate about, and are meaningful to the people they serve. Major gifts also are given to organizations that earn the trust and confidence of donors.

For that reason, I have accepted the position of Director of Development for DuPage PADS. I am passionate about the mission to end homelessness in my county, and I know there is a significant growing need for resources right here at home. I am fortunate that DuPage PADS was a client a couple years ago, and I know that the staff and board are people of high integrity who have a passion to help those who are homeless.

Janelle Barcelona

What Do You Want to Know?

2011-07-26T07:00:00.001-05:00

We're now two months into Major Gifts -- An Inside View. What is it that you'd like to know about major gifts? What topics would you like to see addressed?

Either send a comment or email me at jpruehs@pruehs.net to let me know.

And . . . don't forget . . . if you're new to our blog, take a look at the archives for olders posts that may be of interest to you and your organization.

I look forward to hearing from you.

John Pruehs

Major Gifts FUNd Raising is Fun!

2011-07-21T07:00:00.001-05:00

It may be corny to get volunteers to chant, "Fund raising is fun!" But for many volunteers, they're scared of asking and the only time it's "fun" for them is when it's over . . . or when someone else is taking on the assignment.

So, how do you increase the confidence in your leaders?

Have your major gifts prospects identified and researched -- know why they are excellent prospects and be able to share that with your leaders.
Convey the attitude of organizational value and worthiness.
Have a plan on cultivation and solicitation steps -- the greater the detail the better!
Be clear of need and outcomes. Be able to communicate why the donor should feel honored and excited about the gift and its uses.

John Pruehs

A Momentary Setback . . . or a Defeat?

2011-07-19T07:00:00.001-05:00

It's your choice!

We had been turned down by a well respected foundation three times during the past 30 months. This foundation created distinctive approaches to make communities better. Our CEO was disappointed . . . and gave up! My response was completely different! It was clear that we hadn't done an effective job YET in explaining our distinctive purpose and outcomes. Within recent months, this same foundation changed some of its giving priorities. We now fit their new guidelines quite well! Did we influence the change? I don't know . . . what I do know is that you don't give up with prospects you value. Instead, think of how you can interpret and communicate to them more effectively and address your outcomes.

Major Gifts Fund Raising and Sales

2011-07-14T07:00:00.001-05:00

W. Clement Stone said, "Sales are contingent upon the attitude of the salesman, not the attitude of the prospect." I met Mr. Stone many years ago and he was quite the motivator and philanthropist. His quote mirrors work being accomplished in major gifts today. The positive mental attitudes of the CEO, development officer and volunteer often make the difference between a gift versus a conversation. If you take the long term view with enough prospects, over the long term your major gifts fund raising will grow.

John Pruehs

CAUTION as You Move from Funding to Implementing

2011-07-12T07:00:00.001-05:00

It's easy to get caught up in the euphoria of a new major gift as you've probably been working on it for a lengthy period of time! It's easy to get excited about the plan, the construction and the outcomes! It's also easy to forget about your key donor after the commitment's been made as your focus moved from funding to implementing. I've seen this happen; I've seen many unhappy people. I've seen gifts lost and pledges discontinued.

What are you doing to avoid this problem within your organization?

John Pruehs

What Is a Major Gift?

2011-07-07T07:00:00.005-05:00

It really depends upon your organization!

Here's one way to define it at the highest end. As you examine the history of giving to your organization, a "major gift" is one that falls within the top 30% of your gifts within a given year. Examine what the average of those top 30% would be. That creates your base line. A major gift is one that you deem major . . . one that required a plan and strategy to secure, and one that came from a donor committed to your organizational vision.

At Pruehs & Associates, our major gift acquisition program is geared to take action and literally help you build that top 30% both in size and volume. Our services are delivered 1:1 either in person or via videoconferencing. The videoconferencing is simple . . . we can help you get set up and keep costs down.

Contact us at jpruehs@pruehs.net OR through our website at http://www.pruehs.net/.

We look forward to hearing from you.

John Pruehs

How Do You Choose?

2011-07-05T07:00:00.002-05:00

Some philanthropists pick specific causes to support . . . whether it be health, youth, education, religion, culture, environment, etc. Often, this type of giving comes from personal experiences and beliefs. In a recent interview with a philanthropic leader, he shared that his family funding was linked to quality leadership. He and his family supported organizations where leadership is strong, present and functional! He said, "We look at organizations where people we respect are involved . . . that's a good sign."

Obviously, there is no right or wrong answer. However, each view prompts board and staff leaders to examine how to craft their organizational story and share it with the larger public.

John Pruehs

Why Do You Give? Part 2

2011-06-30T07:00:00.003-05:00

My giving was initiated when I read a quote by John Templeton. He said, "The greatest investment is in tithing." Templeton shared his view that enormous joy comes from this type of giving. I've become a habitual tither.

My method of giving was to set up a private foundation. My motivation was to create a giving vehicle that would involve my family members. I saw this as a way to keep people in touch and to enhance family communications. For example, each year our daughters select organizations of their choice to support . . . then they watch the impact their gifts make, enabling them to better understand the needs of others. In addition, we've participated in father/daughter missions trips where we've been able to witness firsthand the impact of our financial gifts. We've created a "family business" and, together, we make a difference. Such an entity creates opportunities for discussion about values, fulfillment, impact, etc.

John Pruehs

Use Me or Lose Me!

2011-06-28T07:00:00.001-05:00

Dean was on the founding board of a new community hospital. He helped get the land for their campus; he supported them publicly and financially. He was an active volunteer working hand-in-hand with staff. After several years of productive leadership, Dean was asked to consider the hospital in his estate plan. Dean believed that was a good thing to do . . . afterall, they had a strong and productive relationship. He made the commitment and happily informed staff of his decision.

Three years later, Dean was disappointed. He hadn't been asked to take on any new hospital projects, no new committee assignments, no more strategy meetings with the CEO. He had been forgotten. That was a mistake! Dean had other interests too and had remained active with other organizations. Sure enough, three years after making a commitment to the hospital, he changed his designation to those other organizations where he was active. "Use me or lose me" was his motto.

Major gift donors are often visionary leaders. They have much to offer. Do you have any generous donors who have made commitments that you've forgotten about?

John Pruehs

Why Do You Give? Part 1

2011-06-23T07:00:00.036-05:00

During a recent visit with a respected donor and active volunteer leader, I asked the simple question "Why do you do this?" Here is what she said:

It's very simple. I've been blessed. If I don't give back, shame on me. For me, it's sharing the blessings I've received.

I was a single mom raising kids and working, and had no child care to speak of. What I would have given to get help! Today, I know that I can support a great organization that provides such care . . . and I do! In fact, I give where I feel I have a strong calling -- the church, children, immigrants and homeless. My volunteer efforts follow my gifts. I work on teaching English; I'm on the Board of an organization that is attacking issues of the homeless; and I'm committed to serving my church . . . just to name a few.

Are there stories like her's within the prospects and friends of your organization?

John Pruehs

PR Role in Major Gifts -- Two Victories for the Price of One

2011-06-21T07:00:00.001-05:00

Outstanding public relations efforts not only enable your organization to gain visibility and a stronger presence in the marketplace, but can also have strategic by-products that further cultivate major gifts prospects!

Through excellent public relations work by the Pruehs & Associates team, local newspaper writers have opened doors to several of our clients to address topics of interest. A series of stories have emerged over several months. Our clients have been able to take these stories and use them as targeted cultivation tools with their major gifts prospects.

A firm public relations plan, strategic implementation, and friend winning efforts result in multiple successes.

Check out our website at http://www.pruehs.net/ to see our menu of creative services and call us at 630.245.1300 to explore ideas that might help you multiply your victories!

John Pruehs

Today's Climate -- Take Time to Listen

2011-06-17T07:00:00.002-05:00

In our last post, Mike Parks, President of The Dayton Foundation, addressed the role of a mentor who possessed the ability to reach out, share his vision and listen to those people who ultimately became major gifts donors.

In our recent work, we find that the economic challenges of our nation have prompted some donors to reconsider their giving interests and priorities. What can you do to show how important your organization and your vision is to major gifts prospects? VISIT with them. TALK with them. LISTEN to their priorities. SHARE with them your plans and desired outcomes.

John Pruehs

Major Gifts Development -- A Wonderful Role Model

2011-06-15T07:00:00.002-05:00

Some 30+ years ago, I was so fortunate to have my first job out of college at the Rockford YMCA. The leadership of the Y was outstanding and it was a wonderful opportunity for a young professional. The Executive Director of the Y at the time was a gentleman named George Brening who was an excellent fund raiser. Like many Ys of that era, the Y had a cafeteria which was a gathering place for many in the community. Nearly every day, George would invite someone to breakfast, some days lunch, just to talk and get caught up. It was like clockwork . . . nearly every day you would see George in there talking and laughing, but it sure didn't look like much work was going on . . . and I, to be honest, didn't fully comprehend or understand what George was up to. At some time over the years, it dawned on me just what George had been doing at all of those early morning breakfasts and what a great role model he was to me and our other staff at how to effectively develop relationships that lead to major gifts. George was superb at developing relationships long before the ask.

A few months ago, I was at a workshop and someone asked me what I thought was the best process for them to follow for developing major gifts. I thought about it for a moment, thought about George, and replied with the story above.

Perhaps it would be good for all of us to go out to breakfast more . . . just to talk and get caught up!

Mike Parks
President, The Dayton Foundation
Dayton, Ohio

#1 Issue for Major Gift Failure

2011-06-01T08:23:00.000-05:00

A successful major gifts program is a business challenge that requires strategic thinking. The #1 issue for major gifts failure is simple -- failure to design and implement a workable plan.

In future posts, we'll discuss that plan and how much time it should take to make it operational and highly productive.

By the way, there is nothing more fun in philanthropic work than securing larger gifts, knowing the difference they make and the relationships that emerge from the process.

Patience Is Essential

2011-05-30T16:58:00.001-05:00

Mr. Smith's gifts come from his business and family wealth. He actually asked for a proposal fourteen months ago to support a campaign. Upon receipt of the document and a thoughtful conversation with senior development staff and the CEO, he set the proposal aside for one month . . . for two . . . for ten! In fact, he really didn't want to discuss it further! Where was this "sense of urgency"? In the eleventh month, he called the development officer and invited him back to the office. Mr. Smith then made the largest gift he's ever made . . . and thanked staff for not rushing him, thus allowing his employees and family to participate in discussions about the capital project.

The story is not over. As a result, there are now employees and family members interested in supporting the project -- new, highly committed prospects!

Congratulations to the staff for showing patience.

Today's Climate for Major Gifts in 2011

2011-05-26T11:59:00.000-05:00

The philanthropic community has been through tough times. We've seen foundation assets take a plunge and, now, begin to re-build. We've seen corporate giving programs shrink in size and areas of interest. Individuals have retained key interest, but in many cases have reduced their recipients from ten to five to three organizations. In the past ninety days, I've had the benefit to speak with nearly one-hundred major gift donors or influencers. Based on their feedback, our task is clear:

1. It's time to go back to basics.
2. Focus on rekindling the relationship.
3. Don't rush into significant over-sized requests.
4. Let your prospect know how your organization handled the challenges of the past few years.
5. Listen . . . be open . . . your prospect will tell you what's important to them.

John Pruehs