Levels of Fundraising
- Ask for small gifts annually by mail or other impersonal means; perhaps add a phone call from a phone bank. Donation perceived by donor as a bill or an honored obligation.
- Ask for large gift, called a major gift. Make a case, i.e, pitch. Ask for a specific amount based on a guess about the donor's financial capacity. Answer objections. Negotiate a smaller gift if need be. Donor sees it coming. Sits braced for the ask. Throws a bone that is big in the eyes of the fundraiser, minor in the eyes of the donor. Gift generally comes from cash.
- Ultimate gift, swan song gift, legacy gift, may be 1,000 to 10,0000 times larger than #1. Gift comes from assets. May represent 20-90% of the donor's net worth. May use planned giving vehicles. Such gifts are made only after significant reflection, consultation with advisors, and much planning.
Beyond the norm: Philanthropic Consulting
- A fourth level, reached by only a few, such as Charles Collier at Harvard, is philanthropy. Instead of raising money, the Philanthropic Advisor who may in fact be employed by a nonprofit, sees his or her role as helping the donor make wise decisions about family wealth in the context of all the organizations and causes that the family loves, leads, and supports. Thought is given not only to the family's finances but to the effect of wealth and philanthropy on the cohesiveness and success of the family itself over generations. The consultant asks, yes. He or she asks questions, mostly open-ended, and listens to the life themes. The point is to serve not extract cash. The experience of the donor is one of creative engagement, and fulfillment of a life dream, one that holds the family together over generations. The connection to the fundraiser's institution is the connection of that family's identity, values, mission to that of the institution. It is easy to see why this works for Harvard and The Sons and Daughters of Harvard, for whom the H-Bomb is part of their personal identity. But a similar deep match between the donor's identity and values and the mission of an organization can be found in many nonprofits, including religious, health, the arts and cultural, and on and on.