Transcript
Speaker: Welcome to the Abundant Vision Fundraising Podcast. Whether you are a seasoned professional or a first-time fundraiser, we have the advice you need to take your next step toward major gift mastery.
Speaker: I'm your host, Tom Dauber, President of Abundant Vision Philanthropic Consulting. Last week's conversation was a blast. I'm so excited to have you with me for this next segment.
Speaker: Let's get back to the show.
Speaker: In this lesson, we are going to cover the actual solicitation of the donor and what to do if they say yes or if they say no. Once you've had the pre-solicitation conversation, the donor has given you permission to solicit them.
Speaker: They've clarified the range of the solicitation they're hoping to see. They have agreed to meet with you again, and you've hopefully even set a time to meet. Having all these details in place will make your next conversation so much more likely to succeed.
Speaker: Another advantage to the pre-solicitation is that if there is another decision maker who needs to be part of the conversation, this will give them time to get up to speed on what's been discussed thus far.
Speaker: In some cases, this may be also an opportunity for you to bring an additional staff person from your organization to speak to the specific need that you're going to be presenting on.
Speaker: I can think of many occasions where I've done the pre-solicitation meeting. In the follow-up meeting, I've brought the Dean with me to speak from a higher level of authority about what the investment could do for the college.
Speaker: So your solicitation meeting will be very similar to your pre-solicitation meeting. You're gonna start over from the beginning, establishing rapport, and then transition to the presentation.
Speaker: After you've made your presentation, You're gonna wanna say something to them like, we appreciate you taking the time to hear about this opportunity. Would you be willing to make a gift of $99,000 to support the effort we discussed today?
Speaker: And then you wait quietly until they respond. Now this is gonna feel awkward. It's gonna feel like it takes forever. You're gonna be tempted to fill the silence, but don't do it.
Speaker: They are going to feel an even greater pressure than you are to respond. You've asked them a question and you're waiting patiently. Let them bear the weight of that pressure until they give you a response.
Speaker: Now, if they say no, don't be defensive. Be gracious and understanding. This isn't about you. It's about the donor. You never know how a gracious response now might be of help for you down the road.
Speaker: It's critical that you understand what they're saying no to. Are they saying no to a level of any gift at any period of time? That seems unlikely since they've already agreed to the pre-solicitation ask.
Speaker: Is it no to this particular level of giving? Is it a no for now? But might they be willing to give in the future? Clarifying this point may allow you some room to negotiate.
Speaker: Is there a different level that they could give at? What if the commitment was spread out over a term of years? What if the gift was made with appreciated stock instead of cash? Might a commitment of this level be possible through an estate commitment?
Speaker: or a combination of present and deferred gifts. There's any number of reasons why a donor might say no. It's up to you as the fundraiser to get to the bottom of that and see if you can still help them find a way to make a gift that would really be meaningful to them.
Speaker: Now, if your donor says yes, we need to clarify the terms of the gift. You need to know how much will be given, And when will it be given? Is it going to be a gift or will it be a pledge?
Speaker: What type of asset will be given? Will it be cash? Will it be stock? Will be something else? Now, depending on the size and complexity of the gift, a formal proposal may or may not be necessary.
Speaker: This would also be the time where you might explore multi-year or deferred gifts. Whatever number they agreed to, we may want to ask them to consider making a multi-year commitment at that level.
Speaker: So if they say yes to $25,000, we will ask them to commit to that amount for a period of three years or five years. I wouldn't go much longer than five years because organizational priorities tend to change beyond five years, sometimes even leaders.
Speaker: If a larger gift is too hard for them, we can also talk about making such a gift more accessible by stretching the gift over a period of years instead. So if $25,000 was too much, we might say, well,
Speaker: If we spread that $25,000 gift over five years, could you do it then? All of a sudden, it's a different ask, but you still get to count a $25,000 pledge.
Speaker: Now, there's pros and cons here. Locking in gets your organization more predictable money. However, it also may keep you from asking for higher levels of giving as quickly.
Speaker: There have definitely been situations when I knew a donor was capable of significantly greater giving. In those specific cases, I didn't ask for a pledge. Rather, I kept the gift as a single year commitment and made sure to give them fantastic stewardship, providing them with a tremendous giving experience positioned as well to go back and make a much larger ask the following year.
Speaker: Some donors may express interest in supporting the organization, but may just not be liquid enough to do it. Keep in mind, every donor has two pockets. one with liquid assets and another with illiquid assets.
Speaker: We want to tap both pockets. A donor who's giving you $1,000 a year may not have the cash on hand to do more than that. However, they might be able to give you $25,000 through their estate after their possessions are liquidated.
Speaker: An important question to ask older donors who have a long giving history with your organization is if they would be interested in learning about ways they can ensure their annual gift continues even after they are gone.
Speaker: Once you've come to the specific terms of the gift you're going to agree to. It's critical that you establish next steps. You want to let your constituent know that for gifts of this size, your organization uses gift agreements to ensure that the donor's intentions and wishes are clearly communicated and that the organization's responsibilities to that donor are also clearly communicated in writing.
Speaker: I'll have a template available for you that you can download as a student of this class. Inform them that you will be sending this to them for review and signature.
Speaker: Remind them that this is not a legally binding agreement, but it simply helps you to ensure that all parties have a clear understanding of what's being agreed to. Ask them for the best way to deliver this agreement.
Speaker: Email can often be the best way. Let them know that you'll be following up with them in a week to make sure that the agreement meets their expectations. Talk with them about how they would like to be acknowledged and recognized for their giving.
Speaker: Knowing this information upfront will allow you to customize their stewardship experience and give them exactly what they want. They may tell you not to send a thank you note. That's probably the one time I'd recommend going against the donor's wishes.
Speaker: Now with all these appointments you're going to be setting, you're sure to be traveling a lot more than you have in the past. Here's a couple pieces of travel advice for fundraisers. It's critical as fundraisers that we plan our travel carefully.
Speaker: If you are going to the trouble of going somewhere, you want to make the most of the trip. Here's a couple pointers to help you out. Start with an anchor appointment.
Speaker: This will be the most important one. Usually this will be with a high value prospect and may very well involve an ask. Once you've set the appointment, now you want to start filling in the rest of your trip.
Speaker: If you can, upload your constituents' addresses into mapping software so that you can see visually where they work and live. Taking this approach is very helpful.
Speaker: I was once in a small rural town visiting a major donor. There was a suspect I had been wanting to evaluate who lived an hour south of there. But when I looked at the data on the map, I realized he actually worked in the same small town I was visiting.
Speaker: That allowed me to get a meeting with him that I didn't expect. I highly recommend keeping apps on your phone for airlines and rental car companies you prefer. This will allow you to make changes on the fly much easier, even as you were walking through the airport.
Speaker: Keep an eye open for optional connecting flights that may allow you to stop in to see additional donors on the way for not much more cost to your organization. If you are flying,
Speaker: Do everything you can to avoid bringing more than a carry-on. Lost luggage can be a huge inconvenience. I've gotten to the point that I never bring more than what I can fit in my backpack. Don't stay at the cheapest hotel if it's not convenient to your appointments.
Speaker: The $100 you save by booking a hotel 45 minutes away from your donor's home will all be for nothing if a traffic accident causes you to miss the meeting. Be conservative, plan for problems, always allow for extra time, and stay as close to your destination as possible.
Speaker: Congratulations, you've completed a donor appointment. Now it's time to review all the important work you need to do to ensure a good result, and even what to do if you actually receive a gift.
Speaker: First off, In our follow-up, we want to say thank you a lot. So right off the bat, send a handwritten thank you note. Even if they declined, they took time with you.
Speaker: Time is valuable and they gave some to you. Express your gratitude for that. This would also be a good opportunity if you're not the executive director to have your executive director send a thank you to the donor.
Speaker: for their willingness to consider such a large gift if a gift was indeed solicited. You're also going to want to enter copious notes in your customer relationship management software.
Speaker: Detail everything. Your successors will thank you for it. If there are any questions your donors ask, this is when you've got to make sure you find out that answer and get them the information that they requested.
Speaker: If there's a gift agreement that needs to be made, and needs to be approved, you want to work quickly on that. Get that together, make sure you get those approvals and send that a gift agreement out right away.
Speaker: Per your earlier discussion, you're going to want to follow up a week after you send the gift agreement to ensure that everything is acceptable and clear. If everything goes according to plan, you should have it back fairly quickly.
Speaker: So what should you do once the gift arrives? Well, again, you can't say thank you too much. Write your own note, send them a text letting them know that your gift has been received and and how grateful you are.
Speaker: A phone call or a note from your executive director, depending on the size of the gift, is also appropriate. It's critical that the check is deposited in a timely fashion.
Speaker: Hopefully, that's not an issue at your organization. But if it is, take personal responsibility to ensure that it gets done.
Speaker: We want to really focus on saying thank you in creative ways. Thank you notes, phone calls are fine and appropriate, but we want to surprise and delight our donors with the expression of our gratitude.
Speaker: We want them to feel as if our nonprofit appreciates them more than all the other organizations they support. Go beyond a thank you from your staff to a thank you from the individuals who actually benefit from the work of the organization.
Speaker: For my mythical organization, I might send a note with a photo of a unicorn we've helped and make sure there was a hoof print included on the note. Even better, you might think about a message by video from your beneficiaries.
Speaker: It can be very challenging to get students to write thank you notes. Even when you can, the handwriting can be so poor that it's barely legible. I recommend skipping that altogether and asking those beneficiaries to do a video.
Speaker: Kids today know all about how to shoot a video. They are generally easy to edit and they are way more powerful and way more meaningful than a simple note.
Speaker: Hearing the kid's voice, seeing their face, it goes way further than a note does. Once you have it, edit it on your phone and text it to your donor. They will love it.
Speaker: Furthermore, if your organization gets a big win of some sort, take a video of that or write your donor a note about that and send it to them via text. Let them know that you know your organization couldn't have done it without their support.
Speaker: Informal communication like this is very powerful and it's cheap. Impact reporting is also very important. Whether it's done formally through an annual report or informally through a discussion over coffee, you've got to come up with a way to help a donor see the impact of their gift on the organization.
Speaker: The more specific you can be, the better. Now keep in mind, we don't wanna go spending $60,000 producing an annual report if we don't need to. It's generally not necessary.
Speaker: Donors don't want to see you spending donated money on expensive publications. Keep it simple. Keep it short and to the point. Don't include a list of donors.
Speaker: The only people that it helps are other organizations looking to find new donors. Your supporters generally don't give to see their name on a list. It isn't going to generate more giving.
Speaker: you are likely to spell someone's name wrong or leave someone off that you shouldn't. And at the end of the day, you've got upset donors that had you not gone to the trouble of of trying to make a list, wouldn't have been upset with you.
Speaker: One of the worst mistakes you can make as a fundraiser is to be the person that only comes around when they want something. These relationships we are building are meant to be mutually beneficial.
Speaker: We are not in this business to use people or to manipulate people. We are here to help them participate in something that brings them joy. Part of that joy comes from having meaningful relationships within the organization.
Speaker: Beyond the stewardship of the gift and solicitation, stay in touch. If something important happens, call them to let them know. If you are gonna be on their side of the town, or if a trip brings you to their city, call them and schedule a coffee to thank them and see how they are.
Speaker: Here's a few other things you can do to maintain engagement. If there's a mailing to a donor, be sure to pull it and write a quick note on it, or have your executive director write a note on it. Since you've learned about their hobbies and interests, keep your eyes for news stories or articles related to their passions.
Speaker: When you see one, put it aside and send it to them, along with a short handwritten note letting them know you saw the article and thought they would find it interesting. If there's an event going on that they've been invited to,
Speaker: or maybe a survey that your organization has sent to its constituents, give them a call and let them know about it personally. Keep in mind that you don't want to do this too frequently.
Speaker: Try to space these things out to once a quarter. I knew a development officer who was overzealous and began calling an older planned giving donor who had been neglected by the university.
Speaker: No one had seen her in decades. He was able to get an initial meeting with her, which went very well. But then he began showing up and calling on her once a month.
Speaker: He even offered to take her grocery shopping if needed. It was very weird. Next thing you know, we got a note from the president of the Alumni Association letting us know that the woman's adult daughter was concerned about the constant contact and asked us to end all contact with her mom.
Speaker: You don't want to overdo it. The next thing we want to do is prepare for future asks. As we've reviewed before, the cultivation cycle, if done correctly, should be a virtuous cycle that builds upon itself.
Speaker: That is, if I make a gift to you and I find satisfaction in the results, I'm likely to give again and maybe even give more. If you want donors to continue supporting your organization,
Speaker: It is so important that you leave them feeling appreciated and even shrewd for making such a wise investment with their money. People feel appreciated when they feel known.
Speaker: So you want to lean into personalized interactions, even when it's easier to use automated approaches. The best preparation for a future ask is maintaining relational engagement, communicating gratitude, and keeping the donor informed about the impact of their gift.
Speaker: Assuming you're doing this, you should feel confident to approach the donor for future gifts. I usually wait six to 12 months after the initial gift, but every donor will be different.
Speaker: I like to keep it conversational and hypothetical. If someone is in a multi-year pledge, as we approach their last pledge payment, I might have a meeting with them to get their thoughts on their giving experience.
Speaker: I might say something like this. We've really appreciated you committing to a multi-year pledge. Knowing we have reliable support like yours really helps our leaders plan for the future.
Speaker: I know we are coming to the end of your pledge. I would love to hear your thoughts on what it's been like for you to be a donor to our organization. What's been good? What's been bad?
Speaker: What has surprised you or been different than you expected? Once I've asked that question and explored in detail their experience, I might say something like this. I'm so glad that you enjoyed giving to this project.
Speaker: As you think about the future, could you see yourself giving to this organization again? If so, what areas of our work would you like most to help us with? After they tell you, say something like this.
Speaker: I know you still have some time left on your pledge, but I'll be sure to keep my eyes open for opportunities that align with your interest. If the donor is not in a multi-year pledge, if it's been a year, if you've provided adequate gratitude,
Speaker: If you've given them a good accounting of how their money's been spent, then you were ready to ask them if you could have an additional gift conversation. In that case, you might say something like this.
Speaker: Dr. Smith, we so appreciated your gift last year. As you know, it really made a difference for our dragons and unicorns. As we move forward in this new year, I know we are going to need additional help to keep the program going.
Speaker: could I meet with you again to talk about how you might be able to help us in this new year?
Speaker: Thank you for joining me for Abundant Vision Academy. Now that you've completed this, you know everything you need to know to get out there and start closing major gifts for your organization.
Speaker: I think for all of us, The reason we all got involved in the nonprofit sector is that we really wanna make a difference. We wanna leave this world a better place than we found it.
Speaker: Ultimately, it takes money to do that. The world won't change on its own. It's up to us to make that change by inspiring our communities to support the causes that matter.
Speaker: Think about the numbers for a second. There's 332 million people and the united states About 22 million of those people are millionaires.
Speaker: I'd be willing to wager that 10.6 million of those millionaires are philanthropic and interested in supporting causes they care about. The number one reason major gift donors give is that they were asked for a gift.
Speaker: On the flip side, the number one reason wealthy people don't give is that they aren't asked. Now that you know how to solicit major gifts, you're positioned to approach those folks.
Speaker: So get out there and make some asks. Now, if you've enjoyed this podcast, please be sure to subscribe and give us a five-star rating on your podcast provider. I'm your host, Tom Dombert.
Speaker: Thank you for joining me as we journey together towards major gift mastery on the Abundant Vision Fundraising Podcast.
