A main benefit of being a consultant in philanthropy is that you get to meet a wide range of major donors across the nonprofit spectrum – literally from A to Z, arts to zoos.  Oftentimes it’s in the context of an interview for a campaign feasibility study.  For more than 25 years our firm has conducted dozens of studies and interviewed hundreds of major gift donors.  Here are some insights/quotes from these donors on how fundraising staff and leadership volunteers can do a better job of asking them for a major gift.

“Spend time with me.”

In other words — make an effort to get out of the office and be with the donor and/or prospect.  Facebook is not engagement.  Face time is.

“Encourage me to give at a level my peers will approve of.”

Donors seek the approval of their peers and do not want to give less than they are capable of.  Aim high.  Their friends read the Honor Roll listings at your website and in your newsletters.  Donors often ask me where they should be on a gift chart used in the study so they are not embarrassed by giving less than what is expected of them.

“Ask me before the Holidays.”

Most major donors give at year end for tax purposes before getting busy with family and company holiday parties.  Fall is the best time of year to ask for a renewed and/or increased major gift.

“State your case to me in a concise manner and allow me time to ponder it and ask questions.  Fundraisers too often talk too much.”

Ouch!  People are busy today, more so than ever with so many ways to communicate – e-mail, Facebook, Twitter and so much information via so many 24 hour news channels.  Donors are bombarded with information.  They don’t have time to cut through the clutter.  Those who keep the case concise and to the point help donors understand the need for their gift and appreciate their time not being wasted.

“Send me my gift receipt for tax purposes right away and then stay in touch. Don’t be a stranger until same time next year.”

Staying in touch, we have been told by donors, means by phone and in person.  E-mails won’t cut it.  When I was working at Clemson University, I had a list of donors that needed a lot of attention.  So I would give it to them.  Actually, I would tell them the President of the University wanted me to be sure to check in with them and thank them for their support.

For other tips check out our publication, Take the Fear Out of Asking for Major Gifts by clicking here.

Jim Donovan, President /CEO

We are almost half-way through 2009. Are you, your fund raising staff and volunteer committees prepared to maximize your major gift fund raising efforts for the remaining six months of the year?

Most financial experts are predicting an improved economy and stock market toward year-end. Regardless, it is still a tough environment for philanthropy. In my last Blog (scroll down) I noted several reports and studies that indicate that donors keep giving even in tough times.

However, this does not mean it will be easy to obtain major gifts. On the contrary, it will be more competitive than ever because those wealthy donors who still have the capacity to give will consider the times we are in, the increased number of requests for their gifts and how their giving can have the greatest impact on those most affected by these tough times. The challenge facing nonprofit boards and staff is to prepare staff and volunteers to do their best when making the ask.

My long time friend and colleague, Bill Carlton, ACFRE is Chair of the AFP Board for Advanced Certification and Chair of Carlton & Company in Boston. Bill makes volunteer solicitor preparation a priority for the campaigns he and his associates direct. He insists, as part of his client contract, that all campaign workers attend special training before they ask for a major gift. As noted below, he will tell you that convincing his client to do this hasn’t always been easy.

Over the years it has been my good fortune to provide this training for Carlton & Company clients in Alabama, Massachusetts, Ohio and elsewhere in the U.S. What is interesting about this exercise is that prior to the training, I ask Bill’s on-site campaign director to poll each participant as to what they fear the most about asking for money. The answer is always the same — dealing with the objections.

Occasionally, even Bill’s client raises an objection about bringing me in to conduct the training. “How is this guy from Central Florida going to come to Huntsville, Alabama and tell us how to ask for money for our church/school capital campaign?”

His response to this objection is always the same, “Jim has written a book on this, I’ve road tested and refined it with him over the years. He has a method – it works, trust me.”

Indeed, the content of my solicitor training is based on my book, Take the Fear Out of Asking for Major Gifts. In this Blog, I will share with you the chapter on Dealing with Objections in the hope you, your staff and volunteer leaders can be better prepared in the remaining six months of 2009 when seeking major gifts.

Tip One: Acknowledge the objections as they arise.

Don’t overlook them. If you do, it says you are more concerned about what you have to say than what the prospect/donor is saying to you. Listen, then repeat back the objection. For example, “I believe you said, now is not a good time, as your stocks are down. Is that right?”

Then give a response such as, “There are still a few months left in 2009 and hopefully your stocks will appreciate. If they do, you know the tax advantages of gifting stock. And, we know you want to make a gift, as you have always been a great supporter. Why don’t we come back to see you in two months?”

Tip Two: Don’t debate, educate.

Nothing overcomes an objection better than facts. The prospect/donor may be worried that the goal for your campaign is too ambitious given the current economy. Use this objection to provide the facts facing your organization.

“Yes, $5 million is a lot of money. The facts are the Food Bank is getting four times the number of requests for assistance, has access to tons of government food and no more space to properly store it. Furthermore, we now operate in two new counties in addition to the four we already serve. The growing demand isn’t going to go away even when the recession is over as these counties are six of the fastest growing counties in our state with the elderly poor accounting for the largest percentage of that growth.”

Tip Three: Maintain a common ground.

Always stress principles that you have in common with the prospect/donor, like keeping costs down. “I have a problem with the organization’s 12% fund raising costs. They are too high.”

You can say, “I agree these costs are too high. In this economy we had two choices. Spend less, raise less, do less. Or, spend more, raise more do more. Thankfully, the extra costs we have incurred resulted in dozens of new donors. Sure the acquisition cost is high right now; however, if we treat these new donors right they will be repeat donors year after year and that is what we need. The fact is, had we budgeted more for fund raising in the good years, we would not be in the position we are in now. It takes money to raise money and we are well within acceptable guidelines.”

Tip Four: Do an inventory of objections and responses to them.

By the end of each solicitor training seminar we do for Carlton & Company clients and our own clients, we conduct the inventory exercise with participants. This forces them to collectively think and devise the best responses. The objections and responses are later printed on the back of a special Talking Points Card that is given to each campaign worker.

The front of the card contains bullet points for making the case to the donor/prospect. It has four questions with bullet point answers for each question. You can answer these same questions about your organization. The questions are:

1. Where has your organization been, its past.
2. Where is it today, the present situation/challenge facing it.
3. Where does it need to go in the future? The solution to the situation/challenge.
4. What philanthropic investment is needed to get there? The prospect/donor’s gift.

I think Bill Carlton said it best for many of us consultants who have seen a trend of late:

Volunteers, especially in recent years, are less comfortable in asking for major gifts. Moreover, many who would like to get involved often do not because of their fear and dislike of fund raising. This is alarming for two reasons.

First, experience shows that campaign goals are better met or exceeded when the asking is done on a peer-to-peer basis, that is volunteer to volunteer.

Second, the shifting of asking to the professional staff sends the signal to major gift prospects/donors that their peers don’t care enough to invite them to give and instead they are sending out the hired help.

One last tip from my book. If you really want your team to be successful in major gift fund raising, consider making a shift in your thinking. Asking for major gifts is not about solicitation, but invitation. I tell the story about how I came to this conclusion in the first few pages of the revised edition of my book. It took place in the Caribbean while working with the Puerto Rico Chapter of the American Red Cross in the late nineties.

All the best for continued $ucce$$.

Jim Donovan

P.S. For information on my book: Take the Fear Out of Asking for Major Gifts, click here.

When ordering, reference this Blog and receive a 10% discount on single or quantity orders.

To learn about Carlton & Company, go to: www.fundraising.org

The project was a $4.3 million capital campaign for a new homeless shelter for lodging, feeding programs and other family activities. The demand for a larger shelter was there even before the present slow down in the economy which has made things worse for many families.

Phil Warner, Carlton & Company’s Campaign Manager for this account, is a terrific guy. And, when it comes to running capital campaigns, he’s done dozens of them. Phil is as old fashioned as grandma’s apple pie. A tall and unassuming gentleman, Phil does everything by the old text book.

Phil managed to assemble two dozen high-powered campaign workers in a conference/training room of the local hospital, complete with all the A/V bells and whistles. He had things organized to the nth degree, starting with the invocation then a complete breakfast with eggs not just danish. Then a warm welcome from the major gifts chair followed by an excellent Powerpoint by the Army’s local Co-Commander about the need for the new shelter. It was the perfect set-up for what I had to do next.

After being introduced, I said to the campaign workers, “We are here today to talk about raising $2.5 million more toward your $4.3 million goal and I want you to know major gift fund raising is not about the money.” At that point the major gifts chairman looked at Phil as if to say, “What planet did this guy come from?” Then, I went on to say, “Carlton & Company retained me to train you on the solicitation of major gifts, based on my newly revised book, ‘Take The Fear Out of Asking for Major Gifts,’ but I am not here to train you on how to solicit major gifts.” Now the group was sure I was nuts.

So I told them, since the original publication of my book in 1993, how I came to understand from my own capital campaign client work, hundreds of training sessions like this and being on major gift calls with clients, that I had a paradigm shift from solicitation to invitation. Why? Because that’s what major gift fund raisers and volunteers do — invite others to become a part of a noble enterprise, in this case helping the homeless. Call me old fashioned but I believe people would rather be invited to give to a capital campaign like this rather than be viewed as a target and being solicited to give.

Then, I proceeded to cover the APOC Method noted in my book: Amenities; Presentation of the Case; Objections and Closings. Briefly, here is a capsule summary of what I said. (1.) When you walk in to meet with the prospect thank him/her for taking the time to see you and promise to be brief. Then, engage in amenities — social/small talk to warm things up like, “That is a great photo. I have a golden retriever too, aren’t they the best dogs?” (2.) Get to the point. Begin making your case for the prospect’s major gift. (3.) Anticipate his/her objections and be able to answer them. (4.) Finally, bring it all to a close by inviting the prospect to give to your noble cause. Close the invitation to give with one of three closing suggestions from the book, such as: “Can you think of any reason why you can’t join us in this campaign at this time and make a gift in the range of $25,000?

Now, for the best part. Phil takes over when I am done and says, “Ladies and gentlemen, on that long window shelf over there (some thirty feet long) are two dozen stacks of prospect cards laid out alphabetically, all of them have been researched, each has the capacity to give $10,000 or more. Also, in your packet is an Assignment Form. Please fill in the form with the names of the prospects you take today and give it to me before you leave.”

The campaign committee spent a lot of time reviewing the names, discussing them with others, trading names before completing their selections. What a refreshing exercise to watch. As they filed out the door, Phil collected the forms. On average each worker took five names, over 100 invitations to give.

Keep in mind as trainer I had to address the anxiety of these workers as many felt that due to the economy and such, perhaps they should “hold off inviting” people to make a major gift. My response to that question was — Does the Salvation Army need the money or not? If so, the best time to raise money is when you need it. Besides, won’t postponing your invitation to these prospects to give also postpone the services the homeless need?

Phil also gave each campaign worker a Talking Points Card that contained the main points for making the case based on my book, but customized to the client’s campaign. It is a laminated card and it can be put in a coat pocket, writing pad or a purse. He also gave everyone a brochure he developed: A Word About Successful Campaigning. Finally, each worker was offered, courtesy of Carlton & Company, a free copy of my book and my contact info so they could contact me for telephone or online coaching if they felt the need.

In 1972 right out of college, my first fund raising job was with the United Way of Utica, New York. In reflecting on how I was trained back then to run community based campaigns, I am reminded that the old fashioned methods that Phil Warner used in Ohio, are time tested and proven. You can’t beat being prepared, organized, attending to details, getting those workers (with packets in-hand) out the door, meeting with prospects and inviting them to give to a noble cause.

To paraphrase the Lowes Home Improvement ad:

“Let’s do something together, the old fashioned way.”

Jim Donovan, President/CEO Donovan Management, Inc.

To order: “Take The Fear Out of Asking for Major Gifts,” call us at 407.321.0024

You can reach Carlton & Company at: http://www.fundraising.org/