How to Identify and Ask for That Next Gift
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The document outlines best practices for major and planned giving, detailing terms such as prospect research, the development cycle, and moves management. It emphasizes the importance of strategic interactions ('moves') with potential major gift donors and provides a framework for assessing and cultivating these relationships through structured pipelines. Additionally, it touches on the annual fund analysis using RFM (recency, frequency, monetary value) to enhance donor engagement and giving trends.
How to Identify and Ask for That Next Gift
- 1. tHow to Ask for that Next Gift?Page Bullington, M.P.AandKristin Ludwig, PhD
- 2. AgendaCommon TermsAnnual Fund Best PracticesMajor and Planned Giving Tips and TricksProspect Research 101Toolbox Review
- 5. Terms and Definitions:Contact – a face to face visit (also known as a “Primary Move”); significant phone call conversation with forward movement in the relationship (also a Primary Move); one-to-one email exchange that leads to forward movement .
- 6. Actions – are recorded in the “Action Tab” in RE and are considered “Secondary Moves” which may include a phone call to set up or confirm an appointment, or a chance meeting where you had a conversation.
- 7. Visit – a face to face visit
- 8. Suspects – constituents who have been identified by Research as possible major gift prospects for assignment to gift officer prospect pools. Once assigned to a portfolio these are called “Prospects”.Terms and Definitions:Prospects – individuals who have been assigned to a gift officer to be qualified and moved into cultivation and then forward.
- 9. Qualification – occurs during the “Assessment” stage. Includes review of data and visiting with individual to determine if he/she is a valid candidate for solicitation at the major gift level. In this stage an individual is either “qualified” and moved into “cultivation” or removed from the portfolio. An “action” should be filed in either case. A “Solicitation Plan” should be filed within 60 days of having qualified the prospect. (see below)Terms and Definitions:Move – a strategic and substantial personalized interaction with a prospect which directly and tangibly advances that prospect towards an ask or a close. It can be a personal meeting or visit (preferred), telephone conversation, email or letter. It is not casual interaction at an event or a casual update meeting, phone call or email.
- 10. Solicitation Plan – filed in proposal notes in RE, this should include a description of the purpose of the gift, the dollar amount (“Expected Ask”) and an approximate deadline for making the ask (“Ask Date”). The solicitation plan may be modified or edited as needed going forward with explanatory information entered in “Notes” on the Solicitation Plan.
- 11. Pipeline – the concept of moving a constituent through various stages to an ultimate closing of a gift and post-gift stewardship.Terms and Definitions:“Pipeline Movement” includes:ID Suspect
- 12. ID Prospect
- 13. Assessment
- 14. Cultivation
- 15. Solicitation
- 16. Gift closure
- 17. Post-gift stewardshipProcess flowIdentificationProspect is identified for further researchASSESSEMENTThe prospect is being qualified as a major gift prospect. This results in the prospect being QUALIFIED (an action is filed toreflect this)and moved into CULTIVATION or REMOVED from the portfolio. CULTIVATIONDuring this stage, a solicitation plan is created and entered into RE7. REMOVEDProspect indicates no interest or financial capacityto make a major gift. Removed from portfolio.SOLICITATIONThe ask is made. STEWARDSHIPThe prospect is moved into stewardship. After a time, it may be determined that the prospect is ready to moveback into CULTIVATION to start the process over with a new proposal. The ask is rejected, the proposal will be re-evaluated and the prospect is put back into CULITVATIONSUCCESSThe prospect agrees to the proposal and makes a gift or pledge.
- 18. Annual fund
- 19. Annual FundRFM is a method used for analyzing behavior and defining market. It is commonly used in database marketing and direct marketing. RFM analysis can work in tandem with reporting you already do.
- 20. RFM stands for
- 21. Recency - When was the donation?
- 22. Frequency - How many donations have been made?
- 23. Monetary Value - What is the value of donations?Annual FundTo create an RFM analysis, create categories for each attribute.
- 24. Example:
- 25. Recency attribute might be broken into three categories:
- 26. Donors with donations within the last fiscal year
- 27. Donors with donations last two fiscal years
- 28. Donors with donations last three fiscal years
- 29. Frequency might be broken into two categories:
- 30. Donors with monthly gifts
- 31. Donors with yearly gifts
- 32. Value can be segmented at many levels:
- 33. $1-$50
- 34. $51-$100
- 35. $101-$250, etc.Annual FundOnce each of the attributes has appropriate categories defined, segments are created from the intersection of the values.
- 36. If there were three categories for each attribute, then the resulting matrix would have twenty-seven possible combinations
- 37. We may also decide to collapse certain sub-segments. If the gradations appear too small to be useful.
- 38. The resulting segments can be ordered from most valuable (highest recency, frequency, and value) to least valuable (lowest recency, frequency, and marketing).
- 39. It is highly recommended that secondary data be applied when looking at RFM analysis. Annual Fund to MajorOne of the best tools will be trend analysis
- 40. Review trends that occur in several ways
- 41. Pull data on $25 donors –
- 42. Look for common constituency codes
- 43. Look for events occurring before gifts
- 45. Pull data on specific constituency codes
- 46. Do all alumni typically give a $25 gift first or is it $50
- 47. Reviewing data in this manner can help with both major and annual gifts
- 48. Establish “trigger” amounts or events that can help move individuals into major gift cultivation and / or researchMajor giving
- 49. Metrics for Evaluation The level of activity and success are the best indicators of the value of major gift officers.
- 50. Activity may be assessed in terms of visits, solicitations, qualifications, active movement of all portfolio prospects.
- 51. Success is assessed in terms of movement within a portfolio. As suspects are qualified and moved down the pipeline to closing of a major gift. All prospects should be moved forward within 90-120 days (3-6 months) of receipt into the portfolioMetrics for Evaluation Initial qualification of suspect pool may take about 90-120 days and a clear move forward should occur every 3 months for each prospect. Once the qualified prospect pool is determined, active cultivation and solicitation are the next steps.
- 52. Number of qualified prospects in a portfolio may range from 30-50; the entire portfolio (including those being qualified) may range from 100-125Metrics for EvaluationReasonable Goals include:
- 53. A minimum of 12 visits per month for assessment and/or cultivation (130 annually) (This factors in vacation, holidays, etc.)
- 54. Add five new prospects to the portfolio through officer discovery and identification
- 55. Remove unqualified prospects each month through assessment.
- 56. Contact reports should be filed within 5 business days of the contact. The 15th of the month is the deadline for the previous month’s contact reportsResources to Support the MGOProspect Research Team – brief, profiles, wealth analysis, gift capacity ratings, prospect screenings, prospect identification, prospect management reports and moves management training CRM
- 57. Database Team – query support and training; biographical data updating; targeted mailing lists
- 58. Director of Development – strategic portfolio planning; trouble shooting and coordination of multiple contact situations; monthly review of portfolio activity
- 59. Executive Director – strategic planning and solutions with operational perspective to ensure adequate infrastructure support and compliance with policies and procedures. Prospect Management MeetingsMeeting length
- 60. Optimum is 60 minutes
- 61. No good work happens after 90 minutes
- 62. Frequency
- 63. Depends on need for new prospects
- 64. When demand is high, meet weekly
- 65. As prospect portfolios fill out, reduce frequency
- 66. No less than monthly
- 67. Roles
- 68. Moderator keeps the meeting moving
- 69. Note taker records minutes and distributes them by the beginning of the next business day
- 70. Roles can rotate Principles of Prospect ManagementClearance system managed by director of prospect management
- 71. Clear and specific procedures and criteria for establishing an assignment
- 72. Assignment to a development area is driven by donor interest
- 73. One prospect manager per prospect
- 74. Prospect research establishes potential and inclination
- 75. Prospect manager qualifies the prospectPrinciples of Prospect ManagementProspect managers can nominate prospects on their own, but assignment must be validated by director of prospect management
- 76. Prospect manager controls and monitors contact with the prospect
- 77. Solicitors may be other than prospect manager
- 80. System for succession of assignments
- 81. Contact reports are mandatory
- 82. Clear definitions of “moves”Relationship Management benchmarksTo assist in prospect management, below are some national relationship management benchmarks:
- 83. 20-30 moves per month
- 84. 10 – 18 face-to-face visits per month
- 85. Portfolio size: 150 – 200 prospects
- 89. Portfolio size influenced by
- 90. Ask amount
- 91. Geography
- 93. Annual or semi-annual review with supervisorToolbox review
- 94. Passing it Along – Sample profile
- 95. Passing it AlongOther information to include…
- 97. Frequency of giving – to your organization and other non-profits
- 101. Peer relationships
- 102. Think about what is important for your teamTickler Report to track actions by solicitor
- 103. Outstanding Proposal Report – by Solicitor
- 105. Proposal Pipeline
Editor's Notes
- #2: Section header