Day: February 16, 2017

Want to transform your organization? Go get a transformational gift!

Clearly, there are organizations that secure multi-million dollar gifts, but they are few and far between. Why is that? Well, when it gets right down to it, few executives are willing to do the work involved in securing such a gift.

Principles of Transformation

For those brave individuals willing to do that work, I have included a few principles to aid you in your quest.

Transformational donors need to know what you’ll do with a transformational gift. If you don’t know that answer, you won’t influence transformational donors. They need to know you’ve done your homework. If most of your time is spent keeping the doors open, eventually they are likely to close. You have to think in a visionary way about the future and communicate that vision.
Transformational donors need to be found. Start first with your own database. As fundraising consultants, when we help clients in their planning for a capital campaign we encourage them to conduct a wealth screening of their database. It gives them extensive information on net worth, liquidity and giving capacity.

One client was a bit reluctant to allocate resources to do this. However, they relented and in their own files found 18 new multi-millionaires about whom they knew nothing. Of course, that doesn’t guarantee fundraising success, but it certainly tells you where to start fishing. Beyond that, online sources can also help you find high capacity prospects.

Transformational donors need to be informed and eventually affiliated with your organization. Try to connect with them through someone they know who is affiliated with your organization. It might be a staff person, board member or current donor, but you will have to make a personal connection.

A recent study of people who gave $100,000 or more found the most important motivators for giving are organizational affiliation and alignment with its mission (97.2% of donors). But for new donors, having a personal relationship with someone inside the organization is an important part of getting them affiliated.

You might also invite them to volunteer. The majority of high net worth volunteers (84.3 percent) give to at least some of the organizations with which they volunteer.

However, you have to learn their values and areas of interest, and one way to do that is simply ask them. Most high net worth households (76.4%) base giving decisions on personal values.

Transformational donors need to know their gift makes a difference in the lives of others and it’s lasting. The late Dr. Woody Bartlett made a transformational gift of some $40 million to the Auburn University to establish the Bartlett Scholars Program.

He said, “Auburn (helped) me get ready for the type of career I wanted. I know there are a lot of young people coming along in the future. I hope the scholarship fund will give them a chance to focus on their studies and prepare themselves to do their best as veterinarians.”

Finally, transformational donors usually need to be asked and you must consider timing. I remember the first transformational gift request I made, which prompted a funny response. Early in my career I requested a multimillion-dollar gift from a donor. His response was simply, “I don’t feel very rich today. Come and see me when I feel rich.”

Lessons Learned

I learned two things from this encounter. First, I asked too early in our relationship. I needed some time to make the case without asking. Second, I learned to hang in there and be creative in how I approached donors. He eventually gave at the level I asked, but it took a while to get there.

Applying these principles is never a guarantee, but it certainly is a good place to start!

by Len Moisan

“I really support The Covenant Group’s strategic planning process because their approach encourages staff-based support with board buy-in, and I felt that was important given what we were trying to achieve. The outcome is an effective plan that builds consensus and provides a clear sense of direction.”
- Jennifer Scott, Director of Development - The Cabbage Patch Settlement House

“The Covenant Group is highly competent, very experienced and knowledgeable. They provided a broad perspective by equipping us with useful data…and best practices in the field. All in all, they are excellent.”
- Dan Jones, CEO - 21st Century Parks

“The campaign has truly been a miracle. People were committed from the beginning, but…even raising $650,000 seemed like a stretch. To nearly double that amount is incredible! When the plan they developed allows you to hit a goal like that, it builds such a sense of community. The momentum built by the campaign is spilling outside the walls of our church and benefiting others in the process.”
-Father John Hollowell - Annunciation of the Blessed Virgin Mary Catholic Church

“For those of us who don’t do this everyday, The Covenant Group instilled confidence in us. They helped us get through the fear and apprehension by providing us with a process, training and motivation. They taught us and helped us plan in a way that was for the better. We have built lasting relationships with donors and we will continue to steward these relationships long into the future.”
- Sue Finke, Director of Institutional Advancement - Covington Catholic High School

“No one anticipated we could raise this amount. Even the Archdiocese is surprised. The funds raised represent about 15 times our annual giving. But it’s not just the financial results. People stand around talking more than they did before the campaign. There is also a renewed and energized spirit among the parishioners. It’s the most exciting thing to happen in our parish in the last 100 years.”
- Gary Libs, Campaign Co-Chair - St. Mary of the Knobs Catholic Church

“The Covenant Group’s process involved a lot of people in our congregation doing small tasks … that built ownership. They took our vision and put it into a concrete plan. They helped us understand the importance of making our vision clear and laid out the steps to make the vision a reality. Their process built consensus and showed people how they could help. Their methods are based on a solid theological foundation that includes key documents, prayer support, and requisite training … all of which were invaluable.”
- Daniel Montgomery, Pastor - Sojourn Community Church

“Everything The Covenant Group did to help us…in the initial stages was helpful…the development of the case statement; our materials; the training of our Board members; strategies; all these steps laid the foundation for eventual success. They brought such a high level of professionalism, a wealth of experience and a strong track record of integrity and success… just being associated with The Covenant Group helped us.”
- Nancy Doctor, Development Director - Wellspring

“The structure The Covenant Group provided was excellent. It allowed our members to use their God-given talents to benefit the church community They helped us develop a plan and identify key leadership candidates to chair the effort, as well as engaging between 80 to 100 people to carry out the work of the campaign. It was truly a whole congregation effort and The Covenant Group helped facilitate that. They helped us reach our full potential as a congregation.”
- Ron Poisel, Pastor - Christ Lutheran Church