Turn Your Major Donors Into

Raving Fans

SPEAKER

Graham McKern, CFRE, FFIA The Salvation Army Australia Southern Territory

What is a Major Donor?

It depends. The dollar amount required to qualify as a major gift varies. For some

organizations, it might be $100; for others, $5,000, $50,000 or $100,000+. It’s about

people – regardless of whether the donor is an individual, a foundation or a company.

Raving Fans? "Your customers are only satisfied because their expectations are so low and because

no one else is doing better. Just having satisfied customers isn't good enough

anymore. If you really want a booming business, you have to create Raving Fans.“

Ken Blanchard – Author “Raving Fans”

This session is about preparing the ground for healthy growth!

Who might be your next major donor?

The now defunct Business Review Weekly identified their Top 200 wealthy list The Mayne Rich List identifies some 1,500 wealthy people However – most wealth in Australia is from unexpected sources...

1. Less than 10,000

2. 10,001 to 50,000

3. 50,001 to 75,000

4. 75,001 to 100,000

5. 100,001 to 125,000

6. 125,001 to 150,000

7. 150,001 to 175,000

8. 175,001 to 200,000

9. Over 200,000

How many Australian individuals earn more than $400,000 pa and have more than $1,500,000

outside of superannuation and their home?

Cast your vote!

There are about 217,000 high net wealth individuals in Australia for

whom private banking is an option;

Westpac defines them as having income of $400,000 for two

consecutive years and having at least $1,500,000 outside superannuation and the family home.

Source:

• Special Report on Private Banking “Riches on a Plate” Qantas Magazine – July 2013

Private Banking clients

August 2009

• 626,000 wealth management households

• $378 billion under wealth management

Source UBS

Estimate 2017

• 600,000 wealthy Australians

• $1.3 trillion in wealth

Source: CoreData Qantas Magazine

Snapshot Australia’s wealth is growing!

What do you really know about your donors?

Traditional Segmentation…

Demographics, Geographics, Psychographics etc.

My Demographic…

Assume

Ass – u – me

Cultural Dynamics “It’s all about people”

http://www.cultdyn.co.uk/valuesmodes.html

“Over the last 30 years, an ongoing body of social survey research has tracked and forecasted the changing values, beliefs and motivations of the British population. Using the responses to over 1,000 questions, we have developed a typology that explains the dynamics of personal, market and cultural changes. The typology is called Values ModesTM. The Values Modes categorize people into 12 discrete psychographic types. Each group represents between 7% and 12% of the population aged 15 years and over.”

What People Need To Achieve Psychological Health and Fulfillment

PHYSIOLOGICAL Breathing, food, water, sex, sleep, homeostasis, excretion

SAFETY Security of body, of employment, of resources, of morality, of the family, of health, of property

LOVE / BELONGING Friendship, family, sexual intimacy

Abraham Maslow ©1943

ESTEEM Self-esteem, confidence, achievement, respect of others, respect by others

SELF-ACTUALIZATION Morality, creativity, spontaneity, problem solving, lack of prejudice, acceptance of facts

Cultural Dynamics Values Modes™ Used with permission

http://www.cultdyn.com/valuesmodes.html

SETTLERS: Core physiological

needs Safety & Security

Belonging

Sustenance Driven

PROSPECTORS Esteem of Others

Self Esteem

Outer Directed

PIONEERS Aesthetic cognitive Self Actualization

Inner Directed

SETTLERS

ROOTS The world is threatening so be strong and survive. Rationality is the weapon of control.

SMOOTH SAILING

BRAVE NEW

WORLD

CERTAINTY FIRST

Life just got better for these people. They have loosened-up. They want routines of convenience, routines that they don’t have to think about. Rules help them do this. They dislike new ideas and ways of thinking

These people dream, and work hard, to create a “better world” for themselves and others. This is the mindset that has created the modern world and the very concept of progress: dream and work hard

The past is more real than the future. These people believe they are normal. They want answers not more questions. They are more “rational” than “emotional”. They take on roles - i.e. everyone has a part to play and a duty to perform.

HM Queen Elizabeth II

PROSPECTORS

GOLDEN DREAMERS

HAPPY FOLLOWERS

NOW PEOPLE

TOMORROW PEOPLE

Their drive and ambition can act against them because they find themselves so busy, following the latest trends and “right things to do”, that they find little time just to sit down and sort out their issues.

“We want the world and we want it NOW”! They have a hunger for life and want to devour it - to consume it all. Life is a party to be enjoyed and they want to be at the centre of it. This can create financial bedlam

Life is an adventure driven by a new, emerging questioning of all that they formerly held as true. Most individualistic and flexible, yet focused of the Prospectors they are searching for self-esteem, having for the most part achieved the esteem of others. Life is good today and they expect it to as good, or even better, tomorrow.

These people see that dreams can come true - they just aren’t too sure how it can happen for them. Their “try anything” mentality means that life isn’t that hard anymore - it is more of a game, which they “practice” all the time.

HRH Prince Henry of Wales (Prince Harry)

General Peter Cosgrove AC MC

PIONEERS

TRANSITIONALS

CONCERNED ETHICALS

FLEXIBILE INDIVIDUALISTS

TRANSCENDERS

The leading edge. They are self aware and contented - most likely to push their perceptual boundaries, in an attempt to gain greater harmony with their own value set and gain connection with others and the environment around them. They are the “scouts” for the rest of the Pioneers, pushing farther, faster, yet with a “lightness” that is not often felt by the other Pioneers.

They are most likely to trust tried and tested methods when faced with unfamiliar situations. They are looking to explore mental, emotional and physical boundaries, but safely. In a nutshell life has become exciting, but they are not seen by others as exciting people.

They need to live a life with a sense of purpose. They believe that to create a better world, they must themselves become better people. Life is more than just honourable behaviour; it is also about honourable intentions. They attempt to see the world in a holistic way, rather than as a set of disparate issues. They have a strongly pronounced ethical view on all aspects of their lives.

The one word to describe them would be “aware”. Ethics figure strongly in their lives, but it is more of a “situational ethics”, rather than the “deep ethics” found in the Concerned Ethicals. They have a much higher energy level and degree of self-sufficiency than other Pioneers

1. Settlers – drawn to seek out safety, security, identity and belonging

2. Prospectors – yearning for success, searching for the esteem of others and self esteem

3. Pioneers – driven by new ideas, making new connections, living a life based on ethics

Which ‘world’ do YOU most relate to…

Cast your vote!

What about your organisation’s mission… does it have MORE affinity to one ‘world’

of potential donors than another?

1. Settlers – drawn to seek out safety, security, identity and belonging

2. Prospectors – yearning for success, searching for the esteem of others and self esteem

3. Pioneers – driven by new ideas, making new connections, living a life based on ethics

Cast your vote!

Any cultural mismatch between

you and your organisation?

How might Values Modes™assist us to understand and treat major donors?

“...some limited research we have done in Australia leads us to believe that there is a significant proportion of Pioneers in the urban population that probably accounts for much of the charitable giving in your country - and that they give in spite of relatively

poorly developed communications strategies by the not-for-profit organizations, i.e. many donors want to help others and will find a way to give even if the comms

strategies of the NFP's are not well conceived, targeted or delivered.”

Pat Dade, Director, Cultural Dynamics Strategy and Marketing Ltd.

What would happen if you

segmented your organisation’s activities with this three-world view?

Which opinion leader will best fit with your donors?

• Settlers (example: safety)

Alan Jones – radio announcer

SMOOTH SAILING

Life just got better for these people. They have loosened-up. They want routines of convenience, routines that they don’t have to think about. Rules help them do this. They dislike new ideas and ways of thinking

Which opinion leader will best fit with your donors?

• Prospectors

• The Hon Kevin Rudd GOLDEN DREAMERS

These people see that dreams can come true - they just aren’t too sure how it can happen for them. Their “try anything” mentality means that life isn’t that hard anymore - it is more of a game, which they “practice” all the time.

Which opinion leader will best fit with your donors?

• Pioneers

• Simon McKeon – Australian of the Year 2011

TRANSCENDERS

The leading edge. They are self aware and contented - most likely to push their perceptual boundaries, in an attempt to gain greater harmony with their own value set and gain connection with others and the environment around them. They are the “scouts” for the rest of the Pioneers, pushing farther, faster, yet with a “lightness” that is not often felt by the other Pioneers.

Recommended Reading…

A Major Donor’s View

from THEIR world perspective…

Introducing Major Donor

Cube © 2011 Graham McKern

What is Behind Donor’s Giving Values?

See http://www.cultdyn.co.uk/valuesmodes.html for Cultural Dynamics

‘vims’ based around Maslow’s Hierarchy of Needs.

Abraham Maslow ©1943 A Theory of Human Motivation

The Anonymous Systems-Change Donor

This donor might take on a problem that will only be solved after many years of public

education, advocacy, and policy change. This is a donor who values his/her privacy over the ability to mobilise personal and professional

networks for a good cause

The High Visibility, Systems-Change Donor

This is the activist donor, who wants to be a catalyst for change. This donor uses his/her philanthropy to build and sustain a powerful movement that will bring change during and

beyond the philanthropist’s lifetime.

The Anonymous Direct-Service Donor

This donor will be motivated by wanting to provide immediate assistance to people in need

without the acknowledgement that usually comes with such gifts.

The High Visibility, Immediate Impact Donor

This donor may be interested in calling attention to his/her giving in order to inspire others to give to specific causes and support

interventions that will have an immediate impact.

Philanthropist – now and future

Change the system

Provide Direct Support For The Cause

Low

Vis

ibili

ty O

f D

on

or H

igh V

isibility O

f Do

no

r

This cube is an adaptation of a base model from Rockefeller Philanthropy Advisors 2010

© 2011 Graham McKern The Salvation Army Australia Southern Territory

Donor’s Core Giving Values

Community Investor - Now

Depth of Donor’s Needs

The use of any gift made needs to fit with the donor’s values and passion. Differing donors will have differing expectations on their level of involvement in the use of their gift —respect this! Some donors need to see and feel projects or causes at first hand, others do not want this. Ongoing reporting on impacts, is our standard procedure

Our Commitment to Meet Donor’s Needs

Donor Loyalty is what we deliver to our donors, not the other way around (Source Ken Burnett)

To be a good steward of the resources given to us, we need to provide meaningful case studies on the impact of giving. This will require us, at all times, to maintain a bank of information about how giving is used. Each donor is entitled to be treated as a donor segment of one - not one of many. A Moves Management plan will be maintained for each donor to ensure that our planning meets individual donor needs and meets the highest levels of ongoing stewardship with them.

Donors Should Expect That...

Accountability and reporting back will always

reinforce the importance of the donor to us. Loyalty and trust will be built through quality communications and personalised stewardship. Opportunities to engage with our leadership team and with our front line teams will be offered on a regular basis. All communications will occur in accordance with donor’s requests - not the organisation’s preferences.

Our Donor Relationship Commitment

As the giving of resources enables us to fulfil our mission, to change lives and to make an impact; donors should expect that we will be a good and proper steward with those resources, and regularly report on their use. Our donor relationship should be bigger than any transaction that takes place between us. Because of our special relationship, all communications between us should be meaningful, have a mutually beneficial purpose, and be personal. Our relationship should be transparent at all times, with no hidden agendas.

How do we engage with major donors?

When you speak with a donor about your organisation, how do you start the conversation?

1. The mission or values

2. The numbers of people you help

3. The services you provide or the programs you run

4. The total budget of your organisation

5. The money you need

6. The impact your work has on people

7. Telling a human story

8. Something else

Cast your vote!

Source: Adapted from the Logic Model Development Guide, W.K. Kellogg Foundation, (http://www.wkkf.org)

Yawn!

Huh?

The Boyhood of Raleigh by Sir John Everett Millais, oil on canvas, 1870.

A seafarer tells the young Sir Walter Raleigh and his brother the story of what happened out at sea.

The impact of story...

• The storyteller naturally engages our attention

• He or she matches the emphasis and cadence to the rhythm of the story

The Power Of Story…

JOHNNY ‘APPLES’ STORY

• The storyteller naturally engages our attention

• He or she matches the emphasis and cadence to the rhythm of the story

• Here’s how to know if you’re on the right track: if you stop a story in the middle, see if the audience wants you finish it!

The Power Of Story…

• The storyteller naturally engages our attention

• He or she matches the emphasis and cadence to the rhythm of the story

• Here’s how to know if you’re on the right track: if you stop a story in the middle, the audience will insist you finish it.

• Tell the story well and you have delivered IMPACT!

The Power Of Story…

© 2012 Graham McKern

© 2012 Graham McKern

The Moves Management Cycle

Discovery

• Getting to know you

Cultivation

• Dating

• Wooing

• Building emotional connection

Solicitation

• If you don’t ASK it doesn’t count

Stewardship

• Thank, often – what next?

Building A Relationship…

Their story... Our story... My story...

(Based around presentation by Peter de Keratry at bbcon2011)

Growing Timeline

PHASE1 Identify, research, strategy, plan cultivation

PHASE 2 Cultivate and build solid relationship roots

PHASE 3 First gift received – how we respond determines if there is only one harvest

PHASE 4 Activate stewardship plan to deepen relationships

PHASE 5 Ongoing harvest year after year PROVIDED stewardship is active and respectful.

What is the MOST IMPORTANT reason to have an active stewardship program with donors?

1. To get future donations

2. To enable the donor to experience the joy of giving

3. To uncover donor’s future desires

4. To develop the relationship to promote upgraded levels of giving

5. To demonstrate loyalty to the donor

6. To share future visions

7. All of the above

8. None of the above

9. Other reasons

Cast your vote!

Impact reporting about last gift – including face to face and on site

Access to organisation’s

leadership who share their

vision

Consultation

Sharing and seeking ideas.

Provide feedback on outcome of consultation

Reassessing areas of interest and recognition which could be

offered

Proposals... when

appropriate

Negotiate and agree on gift amount and recognition

opportunities

Gift presentation,

naming event if appropriate

Continue to Woo

Example of a Repeating Stewardship Flow Based around appropriate projects

(©2013 Graham McKern & Michelle Campbell)

Uncover Desire

Recognition

Invitations

At

all s

tage

s lo

ok

for

“sti

cky

fact

or”

Resilience

Empathy

Servant leadership

Authenticity

Integrity & ethics

Seek out & emulate success

Invest in the long term

Embrace & empower volunteers

Develop & coach staff

Strategic positioning

Faith, passion

Build capacity

Turn Your Major Donors Into Raving Fans

• Thank you!

• Questions

Afternoon tea!