Author: Hank Lewis, MA, CFRM

Raising money from wealthy people is not the same as asking buddies at work to kick in a few bucks or selling cookies. The size of the gifts expected in those cases is rather small and not a lot of cultivation goes into the process.

People who are major gifts prospects have (more than likely) been Asked before. They know what the process entails and they are expecting to be asked. If they didn’t want to be part of the process, they would likely have made that clear at some point.

So, we come back to the question of how to ask for the gift.

Let me first give an example of phrasing that SHOULD NEVER be part of the Ask: “Anything/any amount you can give would really help!!”

The Ask must be for a specific dollar figure. It must be for an amount that (both solicitor and donor will know) will make possible one-or-more specific activities or programs that are essential to the mission of the NPO and will provide specific types of help to a particular constituency. It must also be a gift amount that will have an end result desired by the donor – helping a specific group of people and/or having his/her name prominently displayed.

It’s usually a question of credibility. When it becomes time for the Ask, the cultivator/solicitor and the prospective donor (should) have had a number of conversations about the NPO’s plans/programs/financial needs and/or the donor’s needs as relates to the NPO.

The prospect has been evaluated, the total amount of money to be raised (the goal) for the current fiscal year (or for a specific project) has been determined by a development planning process that “relies on” receipt of a specific number of gifts at specific dollar amounts.

In addition, and just as important, the prospect already knows (as a result of those conversations, noted above) what it will take to make “it” happen. The Ask is not just for a dollar amount; it is for a specific dollar amount that is needed to ensure creation/enhancement of a program/activity/service and/or the naming of a program or a (part of a) building.

To ask for any amount less than what will do the job is to say that all the preceding conversations have been nothing but hot air, that there’s not really an important need to be satisfied and people to be helped, that the NPO and the cultivator/solicitor aren’t to be taken seriously !!
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Watch for Part 3 of this topic – This Friday

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

One of the things I find most frustrating about teaching classes in fundraising is the frequency in which people cry about not knowing the best/easiest way to ask for the gift and/or ask when/where will be the next class in “How to Ask.”

O.K. I understand. A significant percentage of volunteers/leaders who are involved in fundraising for their NPOs are afraid/ashamed/embarrassed to ask others for money, even when it’s to help people who really need the help!!

My approach to Asking for The Gift is simple: Don’t ask until the donor is ready to say, “Yes.” If the Ask is done at that point, the cultivator/solicitor knows the dollar figure for which s/he is going to ask … and the donor should have that same figure in mind.

Wow !! Sounds like magic, but it isn’t….

In my postings on Prospect Cultivation (see: https://staging.management.org/blogs/fundraising-for-nonprofits/2010/08/31/what-is-major-donorprospect-cultivation/) and Prospect Evaluation (see: https://staging.management.org/blogs/ fundraising-for-nonprofits/2010/09/07/ evaluating-your-major-gifts-prospects/) I indicated that the person who does the cultivation is the person who will eventually do the Ask. And, since this person was close to (or became close to) the prospect, s/he also needed to be involved in that prospect’s evaluation.

Since the cultivator has (ideally) transferred to the prospect the same feelings for and commitment to the NPO’s mission/programs and the interest in being recognized for his/her gift, when the time comes to Ask, both the cultivator and prospect should be at the same place intellectually and emotionally.

As part of the cultivation process, the cultivator has talked about his/her support of the NPO, how it’s made a difference and how good s/he feels about having given and having been recognized for his/her gift(s).

There has been discussion about the NPO’s programs (current and planned) and what funding will be needed to provide for all the people who are being and will be served.

This process is not intended to be sneaky. If the prospect isn’t aware that s/he is being cultivated and that an Ask is in the future, then s/he is probably in a coma.
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Watch for Parts 2 & 3 of this topic – Next Tuesday and Friday

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

Too many people (NPO board members, volunteers and staff) believe that “Evaluation” means determining what a potential donor should give!! That couldn’t be more wrong.

A formal evaluation process has two objectives: to identify a dollar amount that the prospective donor would be likely to be able to afford; and, to identify a (realistic) dollar figure that the donor will be asked to give – a figure that a donor might give if s/he were so motivated.

Though they may sound alike, they’re not the same thing !! And, they are not identified in the same timeframe.

The need to “evaluate” a potential donor ties into two circumstances:
(1) The Prioritization Figure: Since the members of a Major Gifts Committee (staff, board members and volunteers) don’t have an unlimited amount of time to chase every lead for potential major gifts, the list of those individuals must be prioritized, and those individuals with the highest dollar evaluations are placed at the top of the list … and get the most attention.

The focus, initially, is on determining if an individual should be on the Major Gifts Prospects List. Once you’ve determined that the other criteria have been met — see (https://staging.management.org/ blogs/fundraising-for-nonprofits/2010/06/15/who-is-a-major-gift-prospect/), you must come up with your first “evaluation:” Is this person capable of giving an amount equal to 1% or more of your fundraising goal … and where is s/he likely to fall on the “Gift Table” ?? — see (https://staging.management.org/blogs/fundraising-for-nonprofits/2010/09/07/constructing- the-gift-table/)

So, how do you come up with the number you use to prioritize your list of major gifts prospects? …by asking the person who suggested the name in the first place, by asking someone who knows the person fairly well, by getting a feel for the value of that person’s car/home/yacht/toys, by researching what that person has given/committed to other NPOs (just look at their annual reports, plaques in their lobby, stories in newspapers). In essence, the initial evaluation can be based on specific (publicly available) information or on “common knowledge.”

(2) The “Ask” Amount: When actually soliciting the gift/commitment, it is important that the prospect be asked for a specific dollar figure.* That figure must be consistent with the prospect’s ability to give, his/her business and family circumstances, the extent to which s/he may have become involved with the NPO and its mission/programs, the extent to which his/her “need” will be satisfied by making a gift of that amount, and the likelihood that s/he will say, “Yes,” to that amount.

The determination of that figure, therefore, must be part of a serious process. This figure must be based on solid information obtained from reliable sources … with the best source being the person who had been selected to “cultivate” and eventually solicit an individual. The actual determination of the “Ask” will be based on all the information available close-and-prior-to the actual solicitation.

*Oh, yes !! In case you were wondering why it is essential that a prospect be asked for a specific dollar figure, watch for my posting on “Asking For The Gift.”

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

Gift Tables (also known as Gift Pyramids) are great fundraising tools for capital campaigns, major gifts fundraising, “fiscal year fundraising,” and even for major events.

Starting with the basics: Prior to the beginning of every fiscal year, an NPO goes through its budgeting process and comes up with a (realistic, attainable) figure for how much money will be needed for operations, and how much of that will be needed to be raised via charitable giving.

The latter figure must be based on prior experience and analysis of the likely giving of those currently in the organization’s database. Assuming that the figure obtained by that analysis is realistic, one is able to construct a comprehensive Gift Table that (pretty much) reflects reality.

That Pyramid then becomes a tool by which an organization can stay focused on their fundraising goals, and appropriately allocate their resources (time, effort, personnel and finances).

Keeping in mind that your potential major donors are the top part of the fiscal year pyramid, you now should create a separate pyramid just for that constituency. Again, this new pyramid is a great tool to help keep an organization focused on priorities.

Also, since Special Events are part of the budgeting process (expenses and income), creation of a pyramid for each event should be part of the planning. The pyramid will help keep you focused on what needs to be done to ensure meeting an event’s financial goal.

In the context of a capital campaign, the Gift Pyramid is constructed based on the information obtained during the Campaign Planning Study, usually by the person/firm that conducted the Study; and, as above, the pyramid is a great way to stay focused….

In addition, the pyramid is a great tool for solicitors who are uncomfortable in asking for a specific dollar figure – for example (referring to the “idealized” Gift Table, rather than asking for a gift of $50,000 the solicitor might ask the prospect to consider a gift in the “C” category — (see Constructing The Gift Table).

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If you’re reading this on-line, and would like to comment/expand on the above piece, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply.” If you’re reading this as an email, and you want to comment on the above piece, email Comments to offer your thoughts. Your comments, with appropriate attribution, could be the basis of a new posting.

“Hank,” the email said, “can you send me a gift pyramid that my organization can use in preparing for a capital campaign.” My response leaned somewhat toward the academic….

Gift Tables and Pyramids are great fundraising tools, but their construction and usage are often very much misunderstood. They are most often associated with capital campaigns, but are also great tools for major gifts fundraising for “fiscal year fundraising,” and even for major events.

There is, however, no such thing as a standard gift table. You may find many examples of gift tables in texts and in articles on fundraising, but they are examples, and not to be assumed appropriate for every circumstance/situation.

An “idealized” Gift Table (as follows) has as it’s top gift an amount that is 10-15% of the overall goal, with the bottom gift being no less than 1% of the goal. For a million dollar goal, therefore, that’s a top gift of $100,000 to $150,000 and a bottom gift of $10,000.

BUT, what if there’s no one on your list of prospective donors who can give at the 10% (or more) level? Clearly, then, for your gift table to be a useful/useable tool, the top gift has to be less than 10%. In fact, the top gift can only be as high as the highest gift you’re likely to get when you’re working toward your fundraising goal; and, all of your fundraising efforts must be able to obtain the number of gifts specified at each level of the pyramid.

All of the levels on a Gift Table must represent reality.

So, how do you construct a realistic Gift Table?

You, or your (fundraising/development/major gifts/events) committee must sit down and take a serious look at all of your potential donors – to be sure they’re really potential donors, see (https://staging.management.org/blogs/fundraising-for-nonprofits/2010/06/15/who-is -a-major-gift-prospect/). Then, based on prior giving and on what other information you have about each prospect, you “attach” a dollar figure to each name on your list – said dollar figures to represent what you and the committee believes is a realistic likely gift from each listed person.

Your Gift Table is constructed from those figures. The top and bottom numbers and the steps you pick for the various levels of your pyramid must be based on the committee’s discussions. You may wind up with a lopsided gift table but it will reflect reality.

One caution, if you can’t construct a Gift Table that will add up to your goal, it is likely that your goal isn’t realistic.

Oh, yes, one other thought: Having constructed your initial Gift Pyramid, you’re not finished; you will need to update/revise it as additional information becomes available. Where the Gift Table should represent the most up-to-date information/circumstances, you don’t have to get compulsive about it !!

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My posting, next Tuesday, will address the use of gift tables in specific circumstances … event planning, major gifts fundraising, capital campaigns, and asking for the gift.
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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

There are two categories of donor cultivation: the education about and the involvement in the programs/activities of the NPO … leading up to the solicitation and obtaining of the first major gift from non-donors; and, the ongoing education, involvement and recognition of prior donors leading up to their next major gift.

But, before you can begin the cultivation of a potential donor, you have to know how s/he would prefer to be cultivated.

Cultivation is not a “standard” process. Cultivation is, more than anything else, communicating to the prospect how strongly the “cultivator” feels about his/her involvement with the NPO and how rewarding that involvement is-and-has-been for him/her.

The desired result of communicating those feelings to a prospect is to have him/her want to experience the same feelings – regarding the organization’s mission and programs and the satisfaction at being recognized for his/her involvement.

Cultivation is also a “bonding” process, whereby the prospective major donor comes to feel a degree of ownership in the NPO and its programs/activities.

The ideal series of circumstances will move a prospect to a point, when asked to write the (big) check, where s/he will respond, “Of course, what took you so long to ask.”

There’s an old saying in fundraising: “The ‘Thank-You’ is the first step in cultivating a donor toward his/her next gift.” But, that only works if a donor is thanked/recognized in the manner that satisfies his/her needs.

[A standard “fits-all” recognition program cannot satisfy the needs of every (potential) major donor. Major Gifts fundraising and donor recognition are, after all, about the needs of the donor, not the needs of the NPO.]

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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

Once your Major Gifts Committee has created it’s list of “Suspects,” they must pair (on paper) those people with individuals (volunteer leaders) who know them, who have access to them and can (and will) be involved in the process of turning those “suspects” into “prospects.” The volunteer leaders are your “Cultivators.”

The Cultivators are the people through whom you have access to each Suspect. They are most likely to be the ideal people to be the primary cultivator of that individual. They will introduce the Suspect to your organization, bring him/her to see/participate in program activities, and do most of the educating of this new “Friend” of yours.

These Cultivators will comprise the majority of your volunteer cadre, reporting to the Committee on their contacts with Friends, making suggestions for the substance of future contacts and, eventually, providing significant input for deciding each Prospect’s “Ask.”

Ideally, the Cultivator is someone who is-and-has-been involved with your organization and has already made one-or-more major gifts; but, the role of Cultivator may also be played by someone who is also in the process of being cultivated.

In support of the above is the creation of a file for each of your new Friends, so you may record all relevant information), maintain a log of all contacts with him/her and keep a “calendar” of planned cultivation opportunities for that person.

The Committee should meet on a fairly regular basis — the “textbook” says weekly, but the reality is likely to be less often. Those meetings would be to determine and/or modify strategies for cultivating each Friend, to hear reports on contacts that have been made since their last meeting, to “Evaluate” Prospects and set a timeframe for Solicitation, and to maintain a level of expectation for the activities of the Cultivators and Solicitors.

Watch for our discussion of “What is Major Donor/Prospect Cultivation” — next Tuesday.
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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

The most critical factor in creating a MG Program is the availability and willingness of a Leadership cadre — volunteers who will accept responsibility for the success of that program.

It is a “given,” in the creation of a major gifts program, that if you build a relationship with your “Friends”/“Prospects” that involves them — gets them working with you toward attainment of your mission, when you actually ask for the (major) gift, their response is more likely to be, “Of course, what took you so long to ask !?”

But, to get your Friends to the point where they can be considered serious Major Gift “Prospects,” you must commit to a process that may not result in a Major Gift for months, or years — it can be a different timeframe for each Friend.

Sure, you might be able to get your Friends to write you one-or-more checks during the cultivation period, but the amounts of those checks would likely not qualify as “major” — they would not fit into one of the top categories on the “Gift Range Pyramid,” and not, therefore, move you significantly closer to your dollar “goal.”

Getting those (non-major) gifts, however, can be an important part of the Friend’s buy-in — which I’ll address when I discuss “Prospect Cultivation.”

A Major Gifts Committee is an absolute essential, ideally composed of (one-or-two) savvy and committed Board Members, a couple of current (preferable) or soon-to-be major donors, the CDO (chief development officer) and/or Major Gifts Officer, and (an educated) CEO.

That committee would be responsible for the initial creation of the list of those who they identify as Potential Prospects (Suspects), and then the linking (on paper) of those Suspects with Cultivators.
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Watch for part two on this topic, next week; and, watch for our discussion of “What is Major Donor/Prospect Cultivation,” in two weeks.
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Have a comment or a question about starting, evaluating or expanding your fundraising program? With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, I’ll be pleased to answer your questions. Contact me at AskHank@Major-Capital-Giving.com
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Have you seen The Fundraising Series of ebooks ??
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If you would like to comment/expand on the above, or would just like to offer your thoughts on the subject of this posting, we encourage you to “Leave a Reply” at the bottom of this page, click on the feedback link at the top of the page, or send an email to the author of this posting.

Many nonprofit organizations boast lists of honorary trustees, board members and/or directors. And the vast majority of those named individuals are “there” in name only. The question that must be asked is how does that benefit the NPO.

There are two basic reasons why a person gets the “honorary” title. S/he may have been of great service to the organization and/or the people it serves; or, s/he may be very well known, respected and influential but has done little or nothing for the organization and its constituency.

The former is a traditional, valid way to recognize and give visibility to a person’s service … while, at the same time, signaling to others that they could get the same kind of recognition if they, too, provided major service to the organization and its constituency.

The latter is based on the belief that recruiting those big “names” to add to the letterhead will add credibility to the organization’s activities and/or that by adding a VIP’s name to your “honorary list” it will motivate that person to become an active leader/donor.

When you add a name to your letterhead, give that person recognition and don’t expect that person to be an active leader or donor, you send the message that “important people” don’t have to do anything for you in order to be “recognized.”

Any time someone is seen to be affiliated with your nonprofit organization and does not set the proper example, s/he creates an example you hope no one will follow.

If you have someone on your letterhead who, by virtue of that listing is perceived as a leader/supporter of your organization but does not lead, support or donate, you make your potential leaders/donors question why they should….

Also to consider, VIPs know each other. Wealthy people (your potential major donors) know each other … or know of each other. If their peers are part of your leadership in name only, they’ll know it … or will eventually hear of it.

The only people you may be kidding are the people who can’t be leaders or make the big gifts … and maybe yourself.
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From now through Labor Day, we’re only posting on Tuesdays of each week. We’ll be back to Tuesdays and Fridays beginning on September 7.
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Have a comment or question about starting or expanding your fundraising program? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll do our best to answer your question.

In the nonprofit sector there are two types of “Advisory” groups: those that advise, and those that don’t.

In my experience, Advisory Boards are created for just about any reason you can think of; but very often – in the non-profit sector, the term is a euphemism for a group of major donors who have agreed to help raise money from their peers and/or is a way to give recognition to those donors.

The key to the successful functioning of (that kind of) an Advisory Board is to (first) clearly define its mission, goals and objectives, and to have a clear job description (if that “board” really has a mission, goal or “job”) for the members of that group.

If you create an Advisory Board, and it’s not clearly understood by the members of that group that they are not there to advise (other than for fundraising purposes), you’d better be prepared to take the advice that comes from that Board/Committee.

If the group is not there to advise, that sort of suggests it might be better to call it something else.

I’ve often heard folks in the Non-Profit sector express the feeling that people who are recruited to an Advisory Board for their skills, insights, contacts and/or common sense shouldn’t be asked for money in addition to being asked to “work” for the organization. That’s a serious mistake!!

Anytime an NPO creates a Board or Committee of any kind, it should be understood that if the members of that group have any visibility in the “community” — as individuals and as part of that group — then whatever they do sets an example for the rest of that community.

If those visible individuals do not give to the organization, it suggests that they are not fully committed to the achievement of the mission — that they are merely indulging in a pastime or hobby — that the organization might be worth lending their name and/or giving some of their time, but not worth investing their money.

Anytime there is a (formal or informal) group created to help advance the mission of an organization, the members of that group must also support the organization financially. Anything else sends the wrong message to the community.
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From now through Labor Day, we’re only posting on Tuesdays of each week. We’ll be back to Tuesdays and Fridays beginning on September 7.
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Have a comment or question about starting or expanding your fundraising program? Email me at AskHank@Major-Capital-Giving.com. With over 30 years of counseling in major gifts, capital campaigns, bequest programs and the planning studies to precede these three, we’ll do our best to answer your question.