I’ve been thinking a lot about major gifts this week preparing for my July 29 webinar: 10 Mistake-Proof Steps to Prepare NOW for Your Next Capital Campaign. (join me at 1pm eastern for a lively discussion about raising BIG money.)

I see so very many nonprofits limping along in the major gifts category until they want to embark on a capital campaign. Then they stall because they don’t have any major donors or influential leaders ready to step up.

Here’s what you have to do right now if you ever want to raise big money.

And it’s not rocket science. It just takes commitment and focus:

• Identify 10 major potential donors. They may be foundations, corporations, individuals, organizations, government agencies, or current donors.

• Get in front of them.

• Make friends with them. Ask their advice.

• Bring them on tours. Ask them for help.

• Listen, listen, listen to them.  Ask them why they care about your cause.

• Build trust by following up and doing what you say you will do when you said you would do it.

• Keep in contact with them MONTHLY – at the very minimum.

What are your roadblocks?

But, you might say, “I am too busy! My other responsibilities are vacuuming up all my time!  I am running around going to meetings, creating reports, planning events, writing letters, filling out grant applications, selling tickets.”

Or you might say, “My boss expects me to be in the office all the time. She doesn’t understand that I need to be out of the office making calls.”

Yes, there are always plenty of roadblocks: time traps, deadly meetings, unenlightened bosses.  We all have plenty of excuses and distractions.

But I’m telling you plain and simple, unless you commit to getting in front of these donors, you’ll NEVER raise the big money your cause needs.

This type of relationship building takes time. And it takes face time. Person to person time.

Major gift and capital campaign fundraising is a BODY CONTACT SPORT.

Here’s how you make this happen:

1. Set a goal of at least three donor visits a week, no matter what is happening in the office, with your board, with your staff, in your life.

2. Get your boss and peers to buy in and support you in this. Help them understand why it’s so very important.

3. Commit to your boss in your work goals that you’ll be making 12 calls a month.  (This is a scary one because you are accountable.)

4. Hold a monthly meeting with your boss to review progress on your top 1o donors and discuss next step strategies.

(This is the most important because it sets up a support and reporting mechanism. If you know you’ll be meeting with your boss monthly to review the calls you’ve made, then you will MAKE the priority!)

Implement this plan and you’ll be rewarded with close donor relationships.

You’ll have people who really care about your cause: new volunteers, new leaders, new connections, new support, and new investments. You’ll raise more money. You’ll also have warm personal friendships with some wonderful people.

Fundraising can be so very, very rewarding – and fun – when it becomes all about people and not about their money.

Leave me a comment and let me know what you think! And forward this to a friend who needs more money for an important cause.

I’m hearing lots of rumblings about capital campaign planning these days. Some of my colleagues are laying the groundwork now so they can launch capital campaigns as soon as the economy turns.

So if you are planning a capital campaign, thinking about one, or even hoping to have one in the future, be sure to check out this Free Checklist Tool.

It’s short and quick, and will give you an indication on where you stand in the seven “must do” areas of capital campaign planning.

It’s what you do ahead of time that makes all the difference.

Smart campaign planning is like stacking the dominoes.  You take the time to carefully and strategically line them up. Then once the campaign begins, they all drop one after the other in perfect sequence.

This Checklist Tool will help you identify where you need to put energy NOW so that you’ll be ready when the time comes.

One more thing.

Please know that very few organizations can say 100% YES to all these questions. It’s the questions that you answer “maybe” that will point out your focus for the next few months.

Run this list by your board and CEO so that they understand just how much new, additional effort a capital campaign requires. It’s NOT business as usual.

AND join me for my next webinar on July 29: 10 Mistake-Proof Steps to Get Ready for Your Next Capital Campaign.  The early bird webinar-only price is only $49, and $64 with a Capital Campaign Planning Workbook.

YOUR BOARD

Can your board set the financial pace for a campaign?

Are your board members influential in the community?

Does your board understand capital campaign fundraising?

Is your board in full agreement on the plan?

Does your board have good fundraising connections?

Does your board operate with business minded board practices?

Does your board have a good relationship with staff?

VOLUNTEER LEADERSHIP

Do you have a history of influential people involved with your cause?

Can you enlist top leaders in your community to help lead your campaign?

Do you have influential people currently involved with your cause?

Can you identify potential campaign leaders and create a plan to enlist them?

Do you have campaign leaders already enlisted?

Can your leaders  make major gifts to the campaign?

PROSPECTS

Do you currently have a major gift program in place?

Has your major donor program been in place for 3 years?

Does your organization have a history of major gifts?

Can you identify a leadership gift?

Do you have a well cultivated and involved group of donors?

Can you identify 15-20 potential sources of major gifts right now?

DEVELOPMENT OFFICE and INFRASTRUCTURE

Do you have experienced, capable staff?

Is the development office fully staffed now?

Is your back office functioning smoothly?

Are you able to get thank you notes out within 48 hours?

Do you have a system for tracking pledges and policies for accepting gifts of stock and real estate?

Have you allocated funds to staff up for the campaign?

Do you have a plan for funding the campaign budget? (the campaign will cost 8-10% of your overall goal)

Do you understand what a Campaign Feasibility Study can do to lay the groundwork for a campaign?

Have you determined if you need outside expert guidance as Campaign Counsel?

YOUR PLAN/CASE

Is the need well established, urgent and understood?

Do you have an updated strategic plan?

Do you have an updated master facilities plan?

Are your capital projections and capital budgets complete?

Can you convey the impact of your project in vivid emotional terms?

Do you have statistics to back up your case?

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Are you well respected in the community?

Do you have a track record of success in the community?

Are you a leader in your service area?

Is there confidence in your organization and its leadership?

Are you communicating your results and your good work to the rest of your community?

Are you visible in the community?

TIMING

Is the fundraising environment good right now?

Are the economic conditions in your community good right now?

If you have these conditions all set, then you are ready to raise the money you need.

If not, it’s time to get to work enlisting volunteers, identifying prospects, cultivating your prospective donors and sharpening up your case for support.

Let me know if I can help you get ready for your next capital campaign.

What have I left out? Leave a comment and tell me what you think of this list!

Whenever I bring up the subject of boards, so many fundraisers roll their eyes. Why are our boards such a huge pain point and what can we do about it?

I say we have to face reality about some sensitive topics: people, motivation, volunteers and commitment rather than chasing after some myth of the ideal board.

Let’s be realistic and see what we really can expect from our board – particularly in the area of fundraising.

Let’s remember that most board members are afraid of fundraising because they are embarrassed and fear rejection.  And they generally are not sure what your expectations are of them.

Get your expectations in the right order and you’ll have a happy relationship – and a productive one – with your board.

Here’s what you can count on – and what you can’t  – with your board members.

WHAT YOU CAN COUNT ON

1.  Most board members really do want to help. They just don’t know how. It’s really up to you to make it easy for them. You’ll need to motivate, guide and support them.

If you do make this investment of your time and energy, then you’ll have a gold mine of great board members on your hands.

2.  Most board members are open to and even enjoy education. They don’t like “training” but they do like “education.” June Bradham, author of “What Nonprofit Boards Want” says that the word “training” makes them feel like seals.

Most board members are eager to do a good job and want to know what their job is. The clearer your job expectations are for board members, the more you’ll get out of your board.

3. Most board members are capable of being terrific friendmakers if they know the right thing to say and they are pumped up.  But you need to teach them what friendmaking is all about or they may go in the wrong direction.

4. Most board members are happy to help thank donors. In fact, they love it!  And you can increase donors’ future gifts if your board members make thank you calls quickly to donors.

5. Most board members can be terrific “sneezers” spreading the viral message around your community. Just make sure they can practice what do say in a comfortable, natural fashion.

HERE’S WHAT YOU CAN’T COUNT ON

1.  You can’t expect them to be good at soliciting. That’s a special skill and personality type. Frankly I don’t even want all my board members out there soliciting because some of them would not be very good at it.

Treasure the board members who are good at soliciting and find other productive jobs for those who are better at other things.

2.  You can’t expect them to show up at every event. You need to tell them what your priorities are – what’s essential and what’s optional.  Then, when they have a clear idea of what you need from them, they can give it to you.

3.  You can’t expect them to know exactly what to say. You might think they know the mission, vision and case for support, but they need practice, practice, practice putting it into their own words.

4.  You can’t expect them to maintain their passion on their own. It’s your job to keep them pumped up and excited about the cause. If you do, you’ll have an enthusiastic, fired-up team helping you spread the word and make connections!

5.   You can’t expect them to keep coming to boring meetings. Busy people will flee if they feel their time is not well used. If you liven up your meetings, then you’ll also liven up your board!

So set your own expectations correctly,  provide the leadership and support your board needs, and you’ll be rewarded with a high-performing team!

Major gifts are the holy grail of fundraising. These are the gifts that can fund important programs, solidify your financial base and even catapult your organization to new heights.

The return on your investment of time and energy is much higher in major gifts than special events and mailings.

Then why don’t all organizations press forward with a major gifts program? It’s because the time and effort to develop a major gifts effort is more than many organizations can spare.

Our Triangle AFP meeting last week focused on major gifts. We were fortunate to have Martin Novom CFRE of Skystone Ryan share his ideas as our terrific speaker.

Here’s a great step-by-step guide to create and implement a successful major gifts program for your organization based on Martin’s presentation, with some ideas of my own added in.  He also credits Laura Fredricks’ excellent resource “Developing Major Gifts: Turning Small Donors into Big Contributors.” (You may know that Laura is also author of “The Ask” which is always on the top of my list!

Step One: Develop a Major Gifts Team

Major gifts is a team sport, not a solo sport. If you are trying to do this all by yourself, you’re making it much harder than it needs to be.

A team helps expand your contacts and bring in new information to the process.

•    Enlist your CEO and your board leaders
•    Show them the upside and potential
•    Create clear jobs: identifying, strategizing, opening doors, hosting cultivation events, soliciting
•    Set clear goals
•    Meet with them often to maintain momentum

Step Two: Create and Maintain a Pool of Major Gift Prospects

Your prospect list is your fundamental tool for your major gifts program.

Choose a smaller number of potential donors and work them thoroughly. Rate them on their affinity for your cause and their financial capability.

•    Start with the donors you have
•    Organize what you know
•    Highlight what you don’t know
•    Create group opportunities for you to learn more about them
•    Create a gift tracking system to aid you
•    Prioritize them

Step Three: Work With Major Donor Prospects One at a Time

Don’t rush the relationship, you are exploring and getting to know your prospects.

Make them close friends of the organization through frequent contact. Spend the face time needed to develop your relationship.

•    Create an individualized plan for each person
•    Create trust
•    Do what you say you’ll do
•    Listen deeply
•    Develop each relationship with the long term in mind
•    Track and measure each step

Step Four: Craft the Approach and the Presentation

Don’t rush to the ask – only ask when the donor is ready. If you spend the time here, then the ask will take care of itself. How does your opportunity match the donor’s vision?

•    Get ready carefully
•    Create a clear, concise, compelling case
•    Be able to SELL your case
•    Match donor interest with the opportunity
•    Know when your donor is ready
•    Organize your call and rehearse

Step Five: Make the Ask

Let it take care of itself by doing a super job with the approach and presentation. It is just a continuation of the process, and your donor will say to you “how can I help you?”

•    Be passionate and enthusiastic
•    Listen deeply!
•    Don’t low ball your donor – ask for the stretch gift if they are ready
•    Know exactly what you are asking for
•    Explain why the donor should give to your cause
•    Explain why the donor should give now
•    Follow up! An ask is not an ask without followup!

What are your biggest challenges organizing a successful major gifts program? Share them with a comment below.

I’m going back to the basics this summer.  I’m giving you something special that is the bread and butter of fundraising for many nonprofits -  their mailing program.

Here’s a special guide with all my up-to-the-minute best practice tips for raising money through mail fundraising appeals.

(Warning, this is a long post. You can get this entire guide right here in pdf format:  115 Tips to Raise More Money By Mail to store for future reference.   And please forward this post to anyone else who may need this resource.)

115 Tips to Raise More Money by Mail

• Use the same appeal message in your mail solicitations, on your website “call to action” and in your email communications – to reinforce your message over and over.

• Focus more on your donor and what he wants to accomplish than on your organization.

• The appeal letter can have only one objective: a clear ask for support. It is not a newsletter, an end-of-year report or mixed in with other communications.

• Your top priority is always to renew your past donors.

• Don’t solicit any donors until you have shown them what results you have accomplished with their first gift.

DRAW YOUR DONORS IN

• Use the word “you” immediately in the first sentence of your appeal.

• Repeat the word “you” frequently: it’s most important word in your letter.

• Always immediately thank your donor for their past support in the first or second lines.  I like to open letters with “thank you” because it draws the donor in.
• Use the word “I” in the letter to make it more personal and friendly.  It does wonders changing your tone from “institutional” to “personal.”

• In the letter copy, talk about your donor’s interests and their “kind” or “loyal” or “valued” support.

• Use photos in your letter or accompanying materials. Captions under photos will be read before your letter copy.

• Always use photos of people.

• Photos of cute kids and attractive people draw better than photos of sick kids. (Cute animals draw better than sick animals.)

• Always send out personalized letters.  (Dear Mr. Smith rather than Dear Friend)

• Make your letter as personal in tone as you can.

UPGRADE YOUR DONORS

• Focus on more frequent gift opportunities each year as a way to upgrade your donors to higher giving levels.

• Establish a monthly giving program.

• Use gift clubs to encourage higher-level donations and ask donors to move up to the next level.

• When you ask for an upgraded gift: talk about an increased or enhanced partnership.

CREATE A DYNAMITE CASE

• Talk about opportunities not needs.

• Make your message emotional. Donors give out of emotion, then justify it with logic.

• Tell a story. Narrative is far more powerful than a set of statistics and organizational accomplishments.

• One story is more powerful than three stories. Think simplicity. Stories inspire and encourage action.

• Emphasize how you change or save lives: your life-affirming, or life-saving work.

• Talk about your vital or important or key initiatives or efforts.

• DON’T use the words “programs” or “services” any more than you have to. They are boring and too generic.

• Repeat the case for support – the need and its urgency – several times in the letter.

• Use statistics to build credibility and make the cause more concrete.

• Describe your project as “innovative,” trailblazing” or “groundbreaking,” and your work as “wide-ranging, ” comprehensive,” or extensive.

• Offer the donor proof that your organization has made a significant impact and can do much more.

• If you are a membership organization, be sure to emphasize membership in your appeal. Membership helps create a closer bond between the donor and your organization.

WRITE A LETTER YOUR DONORS WILL READ

• Break up your letter copy with boldface headings.

• Make your letter easy to skim and still deliver its message.

• Have plenty of white space on the letter, which makes it easy to read.

• Use snappy action verbs that convey action.

• Use short, concise sentences and paragraphs.

• Write on the 5th grade level for easy reading. (like these tips)

• Use present tense.

• Never, ever use the passive voice. (“people are being helped”)

• Use wide margins to add white space.

• Use type large enough to read easily. 12 point type is the minimum size appropriate for fundraising material.

• ALL CAPS is ok for emphasis.

• Boldface is wonderful for emphasis, and helps break up the copy.

• Use the word “you” in headings.

• Use bullets to break up the copy.

• Eliminate every possible word – including adjectives and descriptive phases – in your copy.

• Include a date on the letter.

CREATE A KILLER ASK

• Use a matching or challenge gift opportunity and tell your donors it will make their gifts go further.

• Always ask for a specific amount or “the largest contribution you can make.”

• Place your ask in the first part of a paragraph. Don’t bury your ask at the end of a sentence or paragraph – it will get missed.

• Don’t ask for a “gift,” ask instead for an investment, a contribution, for help or to supply something special.

• Ask for a “generous” or “special” or “thoughtful” gift.

• Create a sense of urgency by asking for an immediate contribution or asking for help with an urgent or critical situation.

• Use please such as “please send your gift today” or “please consider a leadership contribution of xxx.”

• Ask based on your donor’s giving history.

• Give the donor a deadline for responding and a reason for the deadline.

END THE LETTER WITH A BANG

•     In closing, include your warmest or deepest or heartfelt thanks.

•    Say “I urge you to do your part to help.”

•    Use a handwritten PS at the end. This is always read first.

•    Use these words for the PS:  “Thank you for helping with this important need” or “Please send your check today to help with….”

•    Include a personal handwritten note to the reader from the sender.

•    Personally sign letters.  The more personal the letter, the better chance you have to receive a gift.

•    Whenever possible, have the signers of the letters actually sign in blue ink.

•    WHO SIGNS is vitally important: it should be a person whose name the donors will recognize – someone with clout and authority.  This is never the development director and rarely the executive director.

•    Endorsements of your work by celebrities or local personalities can add credibility.

RAISE MORE FROM YOUR TOP DONORS

•    Send your Top Donors special, custom-tailored personal letters and appeals.

•    Have board and staff members write or visit them personally with an individualized appeal.

•    Use words like “exceptional” or “outstanding” when you refer to their past gifts, support and involvement in your cause.

•    Thank them in the opening sentence for their continuing and steadfast support. Emphasize their partnership with your cause.

•    Ask the donor to send the largest gift they can.

•    Ask these donors to make a leadership gift.

CREATE A PLAN and SCHEDULE YOUR MAILINGS

•    Set up a calendar of mailings and plan ahead.

•    Mail several times a year to your entire donor base.

•    Segment your mailing list and mail personalized appeals to specially targeted groups.  (i.e., past donors, volunteers, people who have attended your auction, corporate sponsors, board members, past board members)

•    Mail to donors more often than nondonors.

•    Track your LYBUNTS (people who gave Last Year But Unfortunately Not This) carefully and send them repeated (cheerful and enthusiastic) appeals to be sure they renew.  Once a donor has given for two straight years, they are likely to remain a donor for the long run.

•    Develop a series of appeals to SYBUNTS. (People who gave Some Year But Unfortunately Not This year).  “We’ve missed you!”

•    The letters you send to your LYBUNTS and SYBUNTS should remind them of their past support and remind them how much they have helped create your success.

COMMUNICATE WHEN YOU ARE NOT ASKING

•    Find ways to communicate cheerfully with your donor base outside of the newsletter and mailing solicitations.

•    Don’t send a dull newsletter. Studies show that donors think nonprofit newsletters are boring.

•    Write to your donors often with newsletters, alerts or other news – both in the mail and via email.

FOLLOWUP MAKES A HUGE DIFFERENCE

•    Send a followup letter a few weeks after your appeal: “we didn’t hear from you and we need you to respond.”

•    Studies show that followup letters are the most important factor in securing the donor’s gift.

•    Followup letters need to be short and play on urgency and the emotions.

•    Write your followup letter at the same time you write the first letter.

•    Use a different kind of envelope for the followup letter.

•    Organize the board members to make phone calls to follow up appeals to donors.  You can’t lose by following up with a personal call.

WELCOME NEW DONORS

•    Send first time donors a “welcome” package and several special communications. Only 35-50% of new donors will typically renew.

•    Invite new donors to get involved. Move quickly to develop the relationship so they will renew.

DON”T FORGET THESE PROSPECTS

•    Identify local businesses that you have a relationship with and send them a special appeal for higher amounts.

•    Solicit all the businesses who supported your most recent auction or gala. Ask for additional support apart from the auction.

•    Add your vendors to your appeal list and request their support at least twice a year.

•    Don’t forget these prospective donors: foundations, churches, civic clubs.

LINK TO YOUR WEB SITE

•    Include your website address. Donors, even when they give with a check in the mail, are highly likely to check out your website.

•    Use different landing pages and urls to track donors’ responses to individual appeals.

•    Create a landing page on your web site for replies to appeals.

CREATE A MAILING PACKET THAT BRINGS RESULTS

•    Your mailing packet should include four pieces:

1. The solicitation letter
2. A reply/pledge card
3. A return envelope for the reply card
4. The outside envelope.

•    Always use a return envelope. It is critically important to make sure it is easy for people to give.

•    Your package can also contain a fundraising brochure but does not have to.  A good letter can be sufficient.

•    Any brochure enclosed with a solicitation should have a specific fundraising message or it should not be included.

•     The reply slip needs to stand out in the package.

USE A REPLY CARD THAT SELLS

•     Put a headline on the reply card such as “Yes! I want to help!”

•     Add a one-sentence summary of your case.

•     Show gift levels in terms of how it would help your cause:

•    $100 will buy xx shoes
•    $500 will help 5 families with food

•      Limit the amount of information you request.

•    Use checkboxes on your reply slip.

•    Make sure there is room for handwriting on the reply card.

•    Make the reply card paper easy to write on.

•    Circle the amount you are requesting from the donor on the reply  card.

•    Pre-print the donor’s name and address on the reply form.

•    Include a postage paid business reply envelope.

•    Stock your reply envelopes so they are always on hand.

IMPROVE YOUR INFRASTRUCTURE!

•    Use a mail house to process your mailings efficiently.

•    Upgrade your fundraising software – you must have a sophisticated state of the art data base system in order to manage an expanded mailing program.

•    Longer letters with more pages are more successful than one page letters.

•    The print quality of everything you send out needs to be first class. Never cut corners – this appeal represents your organization and needs to look professional.

•    Make updating your list a priority.  Assign a staff member whose responsibility is to keep the mailing list up-to-date and clean.

If this guide is helpful to you, go ahead and forward it to someone who might like the information.

And leave your comments here – tell me what you think!