Category: Finance

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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“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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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
=-=-=-=-=-=-=-=-=-=-=-=-=-=
Have you seen The Fundraising Series of ebooks ??
=-=-=-=-=-=-=-=-=-=-=-=-=-=
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.
=-=-=-=-=-=-=-=-=-=-=-=-=-=
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.

Considering the two major objectives in conducting the interviews, determination how/if a program/project/activity should be implemented and beginning the cultivation of those folks who could help make it happen, it is essential, as with all serious development activities, that those interviews be face-to-face.

You can’t be taken very seriously and you can’t read body language over the phone; and, a mailed “survey” doesn’t give the option to ask follow-up questions nor allow the interviewer to digress and/or “pick the subject’s brain.”

Being face-to-face highlights the importance of the process and, thereby, suggests that the interviewee’s thoughts/comments/reactions are very important to that process.

To prepare for the interviews, each potential interviewee is sent a brief personal note to prepare them for the phone call arranging an interview appointment.

At the risk of sounding biased or self-serving, and with having been doing this for over thirty years, I suggest that the best structure for a “Planning Study” is to have an outsider (an experienced study consultant) work with the NPO to design and plan the study and to conduct the interviews.

An outsider is perceived as being objective. S/he is seen (by the interviewees) as not having an “agenda” … not focused on a specific outcome. The objective outsider is “merely” gathering data that will help the NPO “plan for the future.”

After each interview, the interviewer should generate a report summarizing the respondent’s thoughts/attitudes, and suggesting what the next step(s) might be to further cultivate that person and get him/her to the point where s/he will want to be part of the NPO’s projects, programs and/or activities.
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Have a 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.

The first step in the planning study process is determining what it is that you want the study to accomplish.

Second is the creation of a list of those folks you’d like to interview – a list that can be as long as you’d like … as long as you’re realistic. No one goes on that list unless you have or can get access to that person.

The people you want to interview are those folks who can and will likely have an impact on your ability to successfully implement the programs, campaigns and/or activities that you’re considering.

Next is the creation of an extensive list of questions that relate to the NPO’s mission, programs, fundraising and what you want the study to accomplish. Questions must be designed/worded to avoid planting doubt as to the need for or likely success of any particular program or activity.

As it will not always be appropriate to run down the prepared list of questions with every interviewee, the interviewer must be able to “read people,” must be able to know when to forget the prepared questionnaire and just chat with Mr./Ms. Jones about the NPO’s issues and possible futures.

Sample interview questions might be:
* On a scale of 0-10, how would you rate the importance to you
(and to your family) of “this” aspect of the NPO’s mission?
* On a scale of 0-10, how would you rate the importance to you
(and to your family) of “this” program?
* What would it take to get you to want to be part of the leadership
for a major fundraising effort?
* What would it take to get you to want to be a major donor for
such an effort?
* What should we do to get other potential leaders/donors enthusiastic
about the project/activity we’re considering?
• When might be the best time to kick-off the program/campaign? Why?

For Part 3 – Planning Study – Part Three
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Have a 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.

Want to create a Major Gifts Program, a Bequest Program, a Special Event, a Recognition Program, a Capital Campaign ??

The most important information you’d want to have is whether your (prospective) constituents/donors will agree with what you want to do, and what would motivate those folks to want to support and/or participate in your activity.

The best way to get the best answers to those questions would be to ask. And, the best way to ask would be by means of a “Planning Study.”

That the “Study” is for “Planning” purposes suggests that you’ve not committed to taking a particular action and/or to creating a specific kind of program – even though you may have!!

When you ask someone to participate in this kind of “Study,” you are asking for their advice and saying that what you do (or don’t do) will be impacted by what they say (or don’t say).

Unlike the obsolete “feasibility study,” with all its “baggage,” a “Planning Study” asks in-depth questions about a broad range of subjects. Then, based on the study’s findings, an NPO will be able to proceed with programs/activities it knows will be supported by its constituents.

And, by the way, the reason the “Planning Study” is “almost always the first step” is because it is a strong means of cultivating the folks you hope will be your leaders and donors … when you do whatever it is that you’d like to do.

When you ask someone’s advice, they’re more likely to look upon you favorably … because you were smart enough to know to ask them ☺

To quote an old fundraising saying: “If you want advice, ask for money; if you want money, ask for advice.” And a “Planning Study” is a great way to ask for advice.

For Part 2 – Planning Study – Part Two

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Have a 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.