Inherited Wealth

I hope the Major Gifts Guru doesnt mind me sharing these great tips on approaching heirs of  inherited wealth:

Here are 3 points from the article about listening to inherited wealth’s attitudes toward their money:

• What is the heir’s role when it comes to the inheritance? Does he/she want to guard it, share it, or grow it?
• Is the heir the first person in the family to potentially guide family philanthropy, or does a legacy of giving already exist? Is a family foundation in place? Who are the trustees?

What are the heir’s interests? Where do his/her passions lie? How are heir’s intentions for wealth similar to or different from whom he/she inherited it?

Concern Worldwide and Gates Foundation Grant: An Interview

You probably heard the news last week about Concern Worldwide getting a grant from the Gates Foundation of 41 million dollars. I was so delighted to hear the news that such a great organisation had secured this grant. Of course the 30 second news clips weren’t enough for me, so I asked Richard Dixon, Director of Fundraising at Concern Worldwide, would he mind answering some questions for me. He kindly said yes and here is how we got on:

 

Congratulations on Gates Foundation grant, how was the news broken?

The relationship with the Gates Foundation is managed through our US office, so they had to release the news (8am New York time) and as soon as it was publicly available in the US, we released it here to the various outlets. At the same time, we sent an email to a group of our key supporters and contacts to ensure that they heard it from us.

I am intrigued to know more about the process involved, I imagine it was a pretty in depth pitch?

We responded to a call for proposals issued by the Foundation just over one year ago. Concern were selected from short list of 15 to submit a proposal. We finally got confirmation last November that we were successful. We spent the intervening period establishing the structures within Concern, recruiting key staff and confirming the working arrangements within each country of operation.

What do you think tipped it in favour of Concern

Concern has over 40 years experience working and collaborating with communities throughout the world. Our approach is always to listen to the needs of communities and to work with them to find solutions. Concern has a history of researching and developing new projects and solutions in the sectors of healthcare, education, livelihoods and emergency response – for us, trying new and innovative solutions is nothing new! It is a huge honour to be selected by the Gates Foundation and it is recognition of the high quality of our work and the respect that Concern has, both at an international level and on the ground.

The projects your are going to fund are being described as Dragons’ Den-style initiative to identify new ways of improving essential healthcare in Africa and South Asia, can you tell us some more about that?

The aim is to understand the key challenges to delivering healthcare to mothers and children in the countries we are targeting. We will then invite people from all sectors of society to submit ideas on how they would propose solving these challenges.

We’re particularly interested in hearing from those who may not traditionally have a voice, allowing them to share their ideas, their solutions. We really want to seek out solutions as far and as wide as we possibly can, recognizing that the most innovative solutions may come from the most unexpected sources. In order to reach out to the broad community we will use channels such as national radio, community radio, television, websites, newspapers, public notice boards, professional organizations and associations, word-of-mouth, community outreach, and travelling fairs.

We will then carefully assess the ideas, short-list the ones with most potential to have greatest impact and then work to further develop those ideas. It’s a bit like the “Dragon’s Den” for Development!

It’s a different type of collaboration, involving the private sector, universities, entrepreneurs, community leaders and mothers. Every sector of society will be invited to help find the solutions. The public call for ideas will start in Malawi in September. Sierra Leone and India will follow suit in November. Three more countries will be added to the project in 2010. The total duration of the project will be 5 years.

How do you plan on communicating the results you will have or will that be done through the Gates Foundation?

The results of the research emerging from the Project will be made available to the public in a way that maximizes the benefits to the developing world.

You are being described as a conduit for the funds, how will this work

Legally, the funding agreement is with Concern US Inc and will be implemented by Concern Worldwide (“Concern” – headquarted in Dublin).

Are there strict guidelines in place the use of the funds in terms of how you administer it

Absolutely. The funding is very specific to this initiative and cannot be used for Concern’s other programmes.

What is the time scale of the grant?

It’s a five year programme which will be delivered across 6 countries.

Do you think this will have any impact on your fundraising, either positively or negatively (or maybe a bit of both) here or Worldwide.

We were very away of both the potential benefits and risk in announcing the grant. The risk is that supporters might conclude that a grant such as this meant they did not need to support Concern financially anymore. We have tried to make clear that funding for the Gates project is for the specific purposes of finding new solutions to maternal and child health in the six project countries. It is in essence a grant to fund research and development work to investigate new ways to tackle health care challenges. We cannot use this money for any of our current work in our 28 countries of operation. Thus we continue to need the support of the public for vital ongoing programs. On the up-side, the grant has been seen as the strongest possible endorsement of Concern’s way of working, and we’re hoping that this will open other doors for us.

What do you, personally , see as the being big Impact of this grant

The whole point of this initiative is to come up with breakthrough solutions and so the investment is in the idea of a ‘public good’ which can be applied across the world to save millions of lives.

Major Gifts and the Internet – An Untapped Opportunity?

On Tuesday I posted an interview with Vinay Bhagat of Convio USA (you can read it here). In it he mentions an article he wrote about Major Gifts and the Internet. With his kind permission I am re-posting this, very interesting, piece….

 

Although many organizations have successfully used the Internet for direct response and special events fundraising, few have tapped its potential for major giving. The question nonprofit professionals should ask is not whether donors will give a major gift online, but whether online marketing and constituent relationship management (eCRM) can support major donor identification and cultivation.

Historically, major gift efforts have primarily sourced donors through two avenues: 1) referrals from other key donors and board members; and 2) direct mail programs. In the referral model, development officers target high net worth individuals and find ways to speak to them via existing relationships. In the direct mail model, donors who give large gifts – by direct mail standards – or who fit certain predictive model factors – such as giving tenure and frequency – are commonly screened and targeted for a major gift.

For example, in a recent article in Fundraising Success ADVISOR, “A Wealth of Opportunity,” a representative from the Heritage Foundation was quoted as saying that direct mail was its “largest source of future major donors,” specifically that “sixty percent of $10,000+ donors started out as regular direct-mail donors.” When a mail donor gives a single gift of $1,000 or more to the Heritage Foundation, the organization contacts the individual to begin building a stronger relationship and evaluating his or her potential for making a larger gift.

 

Just as with postal mail, a well-executed online marketing program can be a “feeder channel” for major gift efforts. Online marketing allows an organization to cast a wide net to entice potential supporters to learn more and become engaged. Online marketing also represents a very low cost donor education and cultivation channel that can supplement traditional in-person major donor cultivation activities. Similar to postal mail, when an online constituent demonstrates support by making a meaningful gift online, it is an indicator that he or she is worth cultivating for a major gift.

Consider the experience of The American Red Cross Mile High Chapter in Denver, Colorado. In response to Hurricane Katrina appeals in September and October 2005, this Convio client raised $1.5 million online. Two hundred and twelve new contributors gave online gifts of $1,000 or more. The organization segmented this constituency and sent a series of cultivation emails to keep them apprised of how their contributions were being spent. They also sent emails and hand written invitations encouraging these donors to participate in events. Six of these major donor “prospects” decided to participate in events; four actually attended personal tours of the chapter. In this case, online fundraising and eCRM sourced more than 200 strong prospects for major gifts and strengthened the cultivation process by enabling the organization to identify six previously unknown near-term prospects for major gifts.

Beyond sourcing potential major donor targets, eCRM also is an effective method for supporting cultivation of relationships with existing constituents. Many major gift-centric fundraising organizations arrange regular fundraising events such as galas attended by hundreds of people. Often, attendees fit the profile of good major gift prospects, but it is rare for an organization to systematically follow-up with all of them. Major gift officers generally only have the capacity to develop about 50 relationships at a time, so naturally they focus on the most easily identifiable targets.

An organization with hundreds of potential major gift prospects can use an eCRM approach to cultivate people en masse and “bubble up” the best targets for attention by major gift officers. Through a combination of personalized email marketing and Web site communications, a nonprofit can engage prospects, learn about their interests and use that information to entice them to learn more about and get involved with the organization. A nonprofit also can use this approach to stewardrelationships with existing donors – to sustain contact with them on a regular basis after a large contribution has been made so that their interest remains strong and grows. Through eCRM, it is possible to track a constituent’s activities and interests – which emails he or she opens, articles read, fundraising appeals prompting responses and survey answers. This information is valuable because an organization can both use it to personalize online communications as well as provide talking points for major gift officers as they make personal contact.

 

In summary, while online marketing and CRM will never replace the need for person-to- person contact, it can augment and support an organization’s efforts to help source new major gift prospects and cultivate constituents in a scalable fashion. Nonprofits that rely on or want to develop strong major giving programs would be wise to make eCRM an important part of their overall marketing mix.

Vinay will speak at the IFC Online Conference next week

IFC Online – Using the Internet to Connect with Major Donors

This May (12-14) the IFC Online Conference is taking place. I am really excited about this event “the world’s first fully web-based international fundraising conference”. Over the 3 days the conference will explore digital and new media fundraising. 

There are some phenomenal speakers taking part including:

• Mal Warwick (Mal Warwick and Associates),
• Katya Andresen (Network for Good, Author of Robin Hood Marketing & Non Profit Marketing Blog),
• Scott Goodstein (Obama for America),
• Bryan Miller (Cancer Research UK & Blogger)
• Premal Shah (President of Kiva.org) .

 Another is Vinay Bhagat, Founder of Convio USA, who will  speak about “Using the Internet to connect with middle and major donors“

I thought this was a really interesting topic as I believe most non profits don’t think Online = Major Donors.

Vinay has carried out research in the area with donors who have contributed $1000+ to a single nonprofit  in the previous 18 months. He worked with  23 major nonprofits and collated a list of about 40,000 donors and through a web based survey had about 3,500 responses.

 

This week I had the chance to get in touch with Vinay and find out a bit more about his thoughts on the Web and Major Gifts and crucially what you should be doing to make the most of it. Here is how we got on…….

 

1.       Let’s start with you! Tell me a bit about Vinay and Convio?

 I spent the first three years of my career in management consulting in Europe and Asia and then attended business school at Harvard University.  After that I joined a software company where I was responsible for helping Fortune 500 companies implement their e-commerce strategies. 

While answering the phone at a pledge (fundraising) drive at our local public TV station, I was struck by how inefficient the whole process was, and how the Web and technology could really be leveraged to help this organization.   They were not managing relationships strategically, e.g. collecting information about people’s interests and aligning appeals to them.  They were certainly not leveraging the Web effectively. So, the idea for Convio was spawned.

I left my job and spent six months conducting several hundred interviews with nonprofits, and in November 1999, I raised venture capital and started to build the companyI served as the company’s CEO until July 2003.  I then recruited a seasoned operating executive to join us to help us scale and transitioned to serve as Chief Strategy Officer,

 Today, Convio is a leading provider of online solutions for nonprofits, we have about 1300 clients and helped our clients raise $780 million online last year.

 

 2.       Why did you decide to engage in this piece of research?

 About two years ago, I started to dig into the topic of major gifts.  Most people previously believed that the Internet didn’t play a meaningful role in securing major gifts outside of providing a venue to do donor research.  I believed that the Internet was actually already playing a role with major donors, and could be leveraged much more strategically by nonprofits.

In April 2006, I wrote an article on the topic to provoke debate (A great article which I will post later in the week).  Mark Rovner, of Sea Change Strategies wrote to me saying that he agreed and wanted to collaborate on a formal research effort.  He brought an audience research firm called Edge Research in to work with us and the three of our firms collaborated together on the research.

 

3.       What was the finding that surprised you the most ?

That there was a clear “psychographic” segmentation among donors ranging from “relationship seekers who want a highly communicative, engaged relationship with their nonprofits to “all-business” donors who prefer far less communications.  This was a particularly important insight as it told us that organizations cannot take a one size fits all approach.

Our key hypothesis that major donors are active online, and influenced by their online interactions with nonprofits was affirmed very strongly.

 

 4.       Would it be fair to say that a lot of fundraisers wouldn’t think Online = Major Gifts?

Absolutely.  Mainly because they think of online, as online donations and email solicitation, versus strategic engagement and communications.

 

5.       What can we or should we do to change that mindset?

I’ve actually found that major gift officers/leaders have been pretty receptive to the message.  I think the more people we can get to read the research, and start to embrace the recommendations, the better.  Online marketers need to include major gift/development people in their Internet strategy development, and major gift officers need to ask for a seat at the table.

 

6.       You speak about the Wired Wealthy’s online expectations not being met. What do organizations need to do to meet expectations?

Treat the Internet as a strategic channel and assess investments not just in terms of online revenue potential, but the potential of the Web to influence offline giving, and source new donors and prospects.  Make sure your Web presence represents your organization effectively.  Make it navigable, easy to find key financial and mission impact related information.  Make sure it’s adequately inspiring.  Let donors control their e-relationship with the organization – managing their email subscriptions in terms of frequency and content.  Make sure that email communications are well written, impactful and resonate.  Invite major donor feedback.

 

7.       After the online gift are donors being contacted in other ways, for example is the major gifts office contacting them over the phone?

Candidates are identified due to either making a large online gift (>$1000+), or a series of moderate gifts over a sustained period of time, followed by wealth screening to indicate capacity.

 

 8.       If this is happening is it ok with the donor?

 Yes, in a vast majority of cases.  Usually, the call is a thank you followed-up by an invitation to an event.

 

 9.       Did you come across any examples of donors who had been moved further up the donor pyramid?

 I don’t have many great examples to share yet as this is an emerging strategy.  A Red Cross chapter we work with received over one hundred $1000+ online gifts in response to Hurricane Katrina.  It followed-up with those donors in an integrated multi-channel fashion, encompassing tailored email outreach, phone contact and an invitation to tour their facility.  I don’t know what the strategy yielded in terms of subsequent larger gifts though.

 

 10.   Can this happen online?

 Online marketing can play a significant role in major donor cultivation and stewardship. Human contact will always be important, but a lot of donor engagement and intelligence gathering (learning what’s interesting to donors) can be done via the Web.  Doing so, leads to large efficiencies gains.

 

 11.   Who is doing the best job online in your opinion?

In terms of supporting their major gift operations via the Web, Conservation International is doing the best job I’ve seen.  I will be featuring a case study about them in my presentation.  Defenders of Wildlife is doing a great job of sourcing new major gift prospects online, and reports that 1/3 of all new major donor prospects are being sourced by their online marketing efforts.

 

12.   Do you think organizations can achieve their online objectives just as effectively with a blog instead of a website?

No.  A blog can be a good part of an online communications strategy that engages people in a cause and helps create a more personal connection, but donors expect a well structured, compelling website, coupled with well written email updates.

 

13.   If you had 3 top tips to give to a charity what would they be?

a)      Upgrade your Web presence.  Eighty-six percent of Wired Wealthy donors will visit a nonprofit to donate prior to making a gift to a new organization.  Make sure your Website adequately reflects your organization – clarity around your mission, your impact/ return on donor dollars invested.  Make sure it is easy to find key information in particular financials; to donate; to manage email subscriptions. 

b)      Focus on quality vs. quantity for email communications.  Don’t communicate for the sake of schedule.  Make sure what you send out is compelling, inspirational.

c)       Provide more control to donors.  For example, let them manage the frequency and type of content they receive via email.

 

14.   What can we expect to hear during your IFC Online session?

a)      A high level review of the key findings from our research. 

b)      Practical and actionable recommendations that nonprofits can immediately begin to implement.

c)       An early case study of one organization that’s embraced the key recommendations of the Wired Wealthy research.

 

Some Useful Links 

• Check out the IFC Online Conference information here and you can still register
• Here is a link to the Convio Site
• Here is a link to Press Release about the Research Convio carried out

Money is still out there

I came across this on Charity Navigator:, its all US based but still worth looking at (original post by Sandra Miniutti)

Last week, the Chronicle of Philanthropy released a report on the top 50 donors of 2008. Together, these donors pledge or gave $15.5 billion, which is more than twice what the most generous donors gave in 2007.

Although many of these donors gave substantial gifts to their own foundations, below is a sampling of gifts made to charities rated by Charity Navigator:

• Peter G. Peterson and Joan Ganz Cooney : The Paley Center for Media
• Donald B. and Dorothy L. Stabler : Lehigh University
• Frank C. Doble : Tufts University
• Robert L. and Catherine H. McDevitt : Georgetown University
• Richard W. Weiland : Stanford University, Nature Conservancy
• H.F. (Gerry) and Marguerite B. Lenfest : Philadelphia Museum of Art, Williamson Free School of Mechanical Trades, Washington and Lee University
• David Rockefeller : Harvard University, Mayor’s Fund to Advance New York City
• Stephen A. Schwarzman : New York Public Library, Inner-City Scholarship Fund
• Gerhard R. Andlinger : Princeton University
• Philip H. and Penelope Knight : Oregon Health & Science University Foundation
• Frank Sr. and Jane Batten : Culver Academies
• Ronald O. Perelman : Ford’s Theatre Society
• Felix E. Martin Jr.: Community Foundation of Louisville, McCallie School
• Stewart A. and Lynda R. Resnick : Los Angeles County Museum of Art
• Donald J. and Ruth Weber Goodman : The Cleveland Foundation
• Jerome and Anne Fisher: University of Pennsylvania
• Adrienne Arsht :United Way of Miami-Dade, University of Miami
• Andrew S. Grove :Michael J. Fox Foundation for Parkinson’s Research
• John A. and Cynthia Fry Gunn :San Francisco Opera
• Dennis J. and Constance Templeton Keller :Princeton University, African Wildlife Foundation, Nature Conservancy
• Andrew H. and Ann Rubenstein Tisch : Cornell University