In Part II of “The Major Gift Pipeline,” series, I will cover the essential elements of donor cultivation and solicitation.
Donor Cultivation
Cultivating major donors is equal parts art and science. It is the process by which we build stronger and deeper relationships with current donors and prospects while simultaneously testing our assumptions regarding the prospect’s linkage, ability, and interest. While the goal of this stage is to build an authentic and natural feeling connection with the prospect, the major gift officer, must also be disciplined to create and document a cultivation plan for each prospect. Without a clear plan it is almost impossible to evaluate the progress or success of a major donor program. Plans hold a team responsible for their time as well as provide invaluable information regarding what works and does not work within your organization’s unique eco-system of prospects.
An effective cultivation plan provides a flexible, yet durable, outline for what the organization believes is the optimal approach of securing the largest gift in the least amount of time. The cultivation plans takes into consideration the strengths and limitations of the organization and tries to draw out the straightest path possible from point A, identification, to point B, a solicitation. The best cultivation plans are informed and thoughtful and include strategies for relationship-building and information sharing that are personal, engaging, and mission-aligned.
Elements of a Cultivation Plan:
The details of a cultivation plan should differ based on the research outcomes of the qualification process, but the outline should be essentially the same. If the prospect is newly identified and qualified, the first step for the major gift officer is to conduct a qualifying phone call or visit. Within this first meeting, the major gift officer, or solicitor, should test the assumptions made in the research outcomes and decide whether to continue or halt the cultivation process. Following this first visit or phone call, the major gift officer should be able to fill out the following outline:
Sample Cultivation Plan:
Identify the lead connector - who is the right person to ask for a gift?
Identify and prepare the primary and secondary solicitors - this may be the executive director or other fundraising staff
An outline of the next five to seven moves - what steps are necessary to build the relationship and engage the prospect in the mission and work of the organization?
Expected funding purpose to pursue - what aspect of the organization is this individual most interested in?
Expected dollar amount of ask - based on the research and conversations, what is our target ask?
Anticipated ask date - this is an important step to keep the process from stalling out
Stewardship plan - how will we thank and further engage the donor to lead them to repeat and/or increase their repeat gift? (this will be discussed further in Part 3)
Solicitation:
Major gift solicitation is the culmination of the cultivation process. At this point, the major gift officer should be able to predict the purpose, amount, and timeframe for the expected gift. They should have developed a personalized case for support and have tested the ask and designation with the donor in preparation for the formal solicitation. The donor or prospect should be aware of the ask and have a clear idea of the details and purpose of the solicitation.
The key to a successful solicitation is to identify and prepare the solicitation team. The solicitation team will most likely include the major gift officer, or primary solicitor, as well as other key individuals involved with the organization, such as peer donors, respected volunteers, or members of the leadership team.
The most effective solicitors are volunteers who have a peer relationship with the prospect. Ideally, the peer donor and the prospect would have similar levels of interest and engagement and the peer donor will have already made a significant contribution to the organization.
After the solicitation team is identified, the various roles of the team members need to be established and rehearsed. If a peer level donor or volunteer is unable to accompany the major gift officer, or solicitor, a donor who has made a proportional gift, or a key member of the leadership team may be appropriate as the primary or secondary solicitor.
Asking for a major gift often includes a period of negotiation. An immediate answer is rare for a major gift, as the organization is asking for gifts that require some degree of personal and financial sacrifice.
Elements of the negotiation phase may include:
Discussion time with a spouse or partner
A request for additional data or information to better understand the impact of their investment
Discussion time for the donor to discuss the gift with investment, financial, and or legal advisors
Discussion of recognition opportunities, restrictions, and future expectations
Approval of the gift by organizational and board leadership
What is important during the first phase of the solicitation process is to provide a clear case for support. This document will provide the structure and details that will pave the way for the solicitor, as well as the prospect, to be able to clearly articulate the need, process, and capacity of the organization to manage and execute the will of the donor.
Elements for a Case for Support
Clearly states the need
Documents how you are meeting that need
Proposes new strategies and innovations that can be accomplished through this gift
Identifies the beneficiaries of the gift
Demonstrates organizational competency to manage and execute the gift
Specifies the resources and guidelines required to complete the gift
Outlines the acknowledgment plan for the donor and their family
Once the case for support has been shared and the prospect has had time to ask questions and review the materials with members of their family and/or advising team, it is time to be patient. Large gifts can take time to close. End the meeting with a confirmed time that the lead connector will be back in contact. Send a note of gratitude for their time and any follow-up documents that further support the case or address the prospect’s questions.
Lastly, take a deep breath, and relax. You have done all you can (for now). The more solicitations you do the easier it becomes, and the law of averages dictates that one of these solicitations will translate into a meaningful gift for your organization. When that happens, all of the work is worth it!
Next post, how to turn a successful solicitation into a lasting donor partnership.
Until Part 3,
Carolyn