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No More Cold Calls!

The word PREDISPOSE means exactly what it says. (Weird, huh?) We are literally (not figuratively) predisposing the person or persons, in advance, to our contact.

PREDISPOSITION is anything and everything we can do to make it not a cold call (because we are professionals who don’t make cold calls!)

Always PREDISPOSE the prospect/potential investor to (1) your phone call to set up the visit, (2) the visit/presentation itself and (3) the follow-up.


Note: Predisposition is not ‘cultivation’!

 

 

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The Perfect Predisposition

What is the absolute PERFECT PREDISPOSITION???

It’s bringing the Qualified Prospect or potential/current investor TO YOU!!!

Short. Sweet. Powerful. An idea that you can use immediately to significantly increase the level of investment from your top prospects. This idea is particularly relevant if you are in a ‘CAMPAIGN’ or trying to involve/engage your top prospects at the leadership gift level.

I’ll say it again: The absolute best PREDISPOSITION is to bring your BEST PROSPECTS to WHERE YOU DELIVER YOUR SERVICE!!!

This seems so natural and ‘commonsensical’. (That could be a new word.) Yet, to so many people we train and work with, this is a big revelation.

Don’t tell me you can’t get people to come and visit you. I didn’t say it was easy. I said it will significantly increase the magnitude of the commitment!

If they’re really and truly a great PROSPECT, then they need to SEE and FEEL and TOUCH what you do – the ‘HOME COURT ADVANTAGE’ is very powerful! (At Colleges and Universities we call this GTC: GET TO CAMPUS!)

Bringing your prospects/potential investors TO YOU – where you can control the environment, the flow, the tour/agenda – is one hundred times better than their office or home, and 1,000 times better than a restaurant.

IF “A PICTURE is worth a THOUSAND WORDS.”

THEN “A LIVE MEMORABLE EXPERIENCE is worth a MILLION words.”

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Use Predisposition and Perseverance to Get the Visit

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: COMMIT TO BETTER PREDISPOSITION.

Getting a visit is both an ATTITUDE and a SKILL. There’s a ‘SYSTEM’ to it.

Getting a visit is all about: PREDISPOSING … QUALIFIED PROSPECTS … to take your phone CALL … and ultimately VISIT with you. I’ve included action steps, strategies, and tips to help you make it happen.

We are professionals. We do not make COLD CALLS! We always PREDISPOSE the prospect/potential investor. We first predispose a potential investor to our phone call to set up the visit, and then we predispose to the visit/ presentation itself (and yes, we even predispose to the follow-up).

The word PREDISPOSE means to make someone inclined, in advance, to a specific action or attitude. You need to be literally (not figuratively) be predisposing potential investors to expect your contact and look forward to visiting with you about your amazing organization.

 

The Goal

 

The goal of predisposition is simple: GET THE VISIT! It is NOT to ‘sell on the phone’!

A really strong predisposition e-mail or letter makes the follow-up phone call very assumptive/ presumptive!

“I’m following up on the note that you received from (Natural Partner) and I’d like to see if you might be available next Tuesday morning? Or would Wednesday afternoon be better?”

Consider having someone else set up the visit! I know this is somewhat sacrilegious to many people, but I’ve found it to be the single most effective way to get visits. This is especially important if you are full-time Development Officer/Major Gift Officer/Chief Development Officer with a portfolio. You should be making presentations, not setting up visits.

In the predisposition note, the sender/Natural Partner closes with these very important words: “I have asked Mary Smith from our development team to follow-up with you to set up a visit.”

A phone call from your CEO/President’s Assistant is one of the absolute best ways to get a visit.

The easiest way for the Campaign/Foundation Team of a well-respected hospital to
get a visit with their top prospects is to do a simple predisposition email from the CEO, and then ask her wickedly competent and talented assistant does a follow-up phone call to set the visit. The assistant already knows knows all of the CEO’s relationships, and has great existing interaction with both the prospects and their assistants (gatekeepers).

 
(more…)

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Know Your Goal!

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Set your goals of ENGAGEMENT.

“PRODUCTIVITY is the act of bringing a company (organization or person) closer to its GOAL. Every ACTION that brings a company (organization or person) closer to its GOAL is PRODUCTIVE. Every ACTION that does NOT bring a company (organization or person) closer to its GOAL is not PRODUCTIVE.

What I’m telling you is…

PRODUCTIVITY IS MEANINGLESS UNLESS YOU KNOW YOUR GOAL.”

Eliyahu Goldratt is an Israeli physicist who has been described by Fortune magazine as a “guru to industry” and by Business Week as a “genius.

He wrote a self-published, underground best seller entitled The Goal (North River Press, 1984, Revised 1986 and 1992).

This may be one of the best ‘business books’ I’ve ever read. It’s not dense, text-heavy business gobbley gook with charts, tables and Venn diagrams.

It’s actually written as a fiction story. Jonah (the consultant) uses the Socratic method of asking questions of Alex (the manager) to completely turn around a faltering business/ manufacturing plant.

THE GOAL, on one hand, is complex, with terms like: throughput, bottleneck, the theory of constraints and the cloud theory.

At the same time, it is incredibly SIMPLE: KNOW YOUR GOAL!

IF PRODUCTIVITY is a function of understanding your GOAL… being able to define SUCCESS… being able to MEASURE your progress…

Then, THE CHALLENGE is to:

  • DEFINE SUCCESS.
  • SET SPECIFIC GOALS.
  • CREATE MEASUREMENTS.
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Nix the Cultivation Event and GO AT THE GOAL

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Set your goals of ENGAGEMENT.

We often see ‘Fundraising Plans’ that call for X number of Cultivation Events a year.

The coaching on this one is always the same: Nix the Cultivation Event and GO AT THE GOAL.

  • The best way to build and maximize relationships is 1:1. (See 1x 10x 50x.)
  • When you do an event, your ‘network’ is going to expend a ton of energy getting people to the event – I would rather expend that collective energy on getting 1:1 intros.
  • You do the event and you’re still going to have to work to get the follow-up – which is the goal! SO, just go to the goal.

(See ‘No More Events’ and ‘No More Cultivation’.)

Nixing the event and focusing on getting more visits is a simpler, more productive approach. It may feel challenging to work through the ‘but-what-about-objections.’ So, here’s a few ideas:

  • You need a good message and story for the visit. Absent of this people hear (and what creates our reluctance) is “Can I come and ask you for money?” If instead people heard (and we believed), “We’re having an amazing impact and need more people like you to know about it!” (Read more The Story for the Visit here.)
  • The first visit doesn’t need to be an ambush for money. Quite the opposite – the goal should be to ENGAGE. To LISTEN. And then to overwhelm the other person with the IMPACT so that he or she says, “This is incredible, how can I help?”

This shift in thinking save hundreds of hours, thousands and thousands in fundraising costs and countless lives (because we will generate much more INCOME for our IMPACT).

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The GOAL of Every Development or Advancement Team

What really is the GOAL of any Development Office, Advancement Office, Development Officer, Hospital Foundation or College Foundation???

In my world, it’s to: WRITE A TRIPLE NET CHECK TO THE (BLUE) ORGANIZATION!

Our role in ‘development’ is to provide as much GREEN INCOME as possible to help SCALE and GROW the BLUE IMPACT!

It’s that simple.

What does ‘Triple Net’ mean? I borrowed it from the real estate industry, where it’s usually referencing a triple net lease. (Read more here: Triple Net)

For us, it means that ALL COST OF FUNDRAISING is deducted from the REVENUE generated by the Development Team (Green People)… therefore, resulting in a triple net (actual check) being ‘written’ to the organization. (Again, the Blue People.)

I don’t want to go too Jack Nicholson on you, but I do want to make this crystal clear.

  • This has nothing to do with the IRS, accounting, 990 AR’s or whatever.
  • This has nothing to do with CASE (Council for the Advancement and Support of Education), AFP (Association of Fundraising Professionals), CRFE, etc.
  • This has nothing to do with what you decide to ‘count’ or not ‘count’ relative to the cost of fundraising.

The only measure of success is determined by how much money (INCOME) you provide to your organization/institution to help them Save Lives, Change Lives, Transform Lives (IMPACT).

Put one more way, our job in ‘Development’ is to FUND THE VISION.

This is getting long, but it’s a really important topic to me at this moment. Here are 3 more BIG thoughts around this subject:

  • Everyone in our industry knows that the absolute best way to raise the most amount of money… at the least cost… is through ‘MAJOR GIFTS’. This is where we actually sit down, shoulder-to-shoulder, on a visit with a qualified prospect and make a great presentation and ultimately present the opportunity for them to help.

    The cost is a ‘nickle on a dollar’ while the ‘special events’, golf outings, mailings, etc. cost is ‘three quarters.’.

    I have to tell you that I have seen far too many Development Operations spending one dollar to raise one dollar in the last few years.

  • I can quickly show anyone reading this the way to raise $1M in the next year, and I will personally guarantee it!
    • Hire 10 Major Gift Officers, paying them each $100,000 a year to ensure good quality people.
    • Have them trained at our Boot Camp (on how to make a visit, how to present the opportunity, etc.)
    • They will each raise $100,000 in real money over the course of the year.

    There it is. They just raised $1M for your organization. When you look at that silly scenario, you realize that raising money is not the goal/measurement of a Development Office.

    In our world, a Development Officer should be doing a minimum of 10X and ideally 20X their respective ‘cost‘.

  • ‘Cost of Fundraising’ is not some fuzzy math issue. Again, it’s not how you decide to ‘count’. It’s actually a very easy and simple equation:
    R – AE = N³C

    Revenue – All Expenses = Net, Net, Net Cash. (To be shipped over in a Brink’s truck to the BLUE PEOPLE.)

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1,000 Day Action Plans

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Set your goals of ENGAGEMENT.

STOP STRATEGIC PLANNING.
When people talk to themselves, it’s called insanity. When organizations talk to themselves, it’s called Strategic Planning.

Most ‘Strategic Plans’ are an internal work of fiction usually prepared by left-brain, accountant-types who love outlines, charts, 5-year projections, etc. If you’re looking for an undecipherable, unimaginative, unread, super-thick binder to use as a bookend or a doorstop, then by all means, do a strategic plan!

Note: The old-line, old-school Case Statements worked in their time, but that time has passed. There’s no engagement, no sharing, no dialogue, no involvement, no support.
P.S. I feel the same way about no more ‘Business Plans,’ but I’ll save that rant for another day.

There is too much to do, too many lives to SAVE and IMPACT, to get caught up in ‘strategy.’ Instead…

 

START 1,000-DAY ACTION PLANS!

If you really, really, want to achieve your Vision, fulfill your Mission, live your Message: then prepare an Action Plan that will provide focus and direction for the next 1,000 Days (11 Quarters, 33 Months, almost 3 Years).

Your 1,000 Day Action Plan should include:

  • 90-Day Goals and Priorities
  • Monthly Checklists and Measurement
  • Timely Celebrations

This will engage your team and leaders in a focused manner.

P.S. Match this with a 1,000-Day Funding Plan and you will be well on your way to success.

Read more in Nick’s Note about the difference between Strategic Planning and Strategic Clarity.
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Set Your Goals for Engagement!

A few weeks ago we published “10 Action Steps to Help you Engage in 2016.” Over the next 10 weeks, we are going to use each action step as a week long theme to help you get it done!

This week’s theme is: Set your goals of ENGAGEMENT.

Set your 2016 Goals for Engagement now! These goals need to be SPECIFIC, WRITTEN and MEASURABLE.

Here are 3 Examples:

  • The ‘33 GIFTS’ Plan

    We will ENGAGE with our TOP 50 PROSPECTS in order to generate 33 COMMITMENTS, which will provide 90% of our funding needs!

    This will be a SELF-FULFILLING PROPHECY.

    E.g. We will generate $1 Million from:

    1 Gift of $200,000
    2 Gifts of $100,000
    4 Gifts of $50,000
    10 Gifts of $20,000
    16 Gifts of $10,000+
    33 Totaling $1 Million

    Note: Need $5M? Multiply the right column by 5. (Or 4 for $4M and so on.)

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  • The ‘Spartan 300’ Plan

    We will ENGAGE with our BEST 300 prospects (including our Top 33), which will generate buckets of money to Fund Our Vision.

    E.g. We have 3 members of our SALES TEAM, and we will collectively make 30 VISITS ENGAGEMENTS a month for 10 months (using August and December for R&R).

    We will use a 3x3x3 goal which challenges us to collectively make 3 visits a day, 3 days a week, 3 weeks out of the month.

    Note: If you have one member of your sales team, divide this goal accordingly: The ‘Spartan 100’ plan!

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  • The ‘1,000 ENGAGEMENT’ Plan

    As a larger For Impact organization with 6 committed Relationship Managers, we will make 1,000 VISITS/PRESENTATIONS this year.

    Each of our 6 Relationship Managers will have a Portfolio of 300 Qualified Prospects. Each of us will make 167 VISITS/PRESENTATIONS (ENGAGEMENTS) this year.

    We will average 15 QUALITY VISITS a month and do all of the appropriate preparation, predisposition and follow-up.

    We will do ‘DISCOVERY’ on every visit and with every prospect. We also commit to make the FULL PRESENTATION around the TRIPLE ASK for TODAY, TOMORROW and FOREVER (Annual Operations, Campaign Priorities and a Legacy/Planned Gift.)

    *20% of these 167 visits will become our TOP 33 gifts for each Relationship Manager.

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Master Prospect List – QPI Rating System

We have used the MPL tool to run hundreds of campaigns and major gifts initiatives. It’s simple and powerful. Rate your top prospects to create a Master Prospect List in descending order of importance. Then focus all your time (literally) on your top ten prospects — you will be amazed by the results.

Download the excel file.

Each prospect receives a rating in each category 1-5 (5 being the highest). The sum weighted total of ratings in each of the five categories will give you the Qualified Prospect Index – You need to visit with anyone 90 and higher today!

Definition of Key Terms

Relationship Manager (RM)

This is the person within your organization that manages the relationship — does not have to be the point of contact but must responsible for thinking about this prospect every day.

Natural Partner

This is a person, internal or external to your organization that has the closest relationship to the prospect.

Capacity
Weight: 7

This number is the prospect’s capacity to make a major gift – a gift level that is worthy of one-on-one time with a prospect. This is not an indication of what you think the prospect WILL invest in your organization – it is an indication of what you think the prospect COULD give.

For example:
5 – $1MM
4 – $100K
3 – $10K
2 – $1K
1 – Unknown

Relationship
Weight: 6

This is an indication of the prospect’s relationship to your organization or to your cause. If this prospect is on your board it should be a five (5). If, for example, you are the American Cancer Society, and this prospect is a cancer survivor, the rating should be a five (5) even with no gift history.

For example:
5 – Specific interest in our organization or cause
4 – Heavily invested in our cause or within a sector or geography in which we operate

Timing
Weight: 3

Generally timing is always a five (5) unless you have specific knowledge otherwise.

Gift History
Weight: 2

What is this prospect’s giving history to your organization? You might determine that a five (5) on the rating scale indicates lifetime giving of $100,000+ or ten consecutive years in your Leadership Society. Below is an example using higher numbers.

5 – Has given multiple lifetime gifts and/or has given $1M lifetime
4 – Has given one or multiple gifts and/or has given $100k lifetime
3 – Has given one or multiple gifts and/or has given $10k lifetime
2 – Has given 1 lifetime gift and/or has given $1k liftetime
1 – Has never given and/or has given less than $1k lifetime

Philanthropy (or Gut Feeling)
Weight: 2

This is a measure of the prospect’s general willingness to give. Has he or she supported other organizations? Is it a foundation (5)? Do we have a good feeling about them? Give it a 5! This is also where I take into account the person who reaches out to us first or has said, “I want to help.” or “I want to do something big, can we talk?” Give that a 5 as well.
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Where Do We Find NEW Prospects?

In our work with thousands of organizations, staff and volunteers, this is the most FREQUENTLY ASKED (BIG, BIG, BIG) QUESTION:

“WHERE DO WE FIND NEW PROSPECTS?”

MY ANSWER: THIS IS THE WRONG QUESTION!!!

It’s not about ‘NEW’ PROSPECTS, it’s about the BEST PROSPECTS!

Why look for ‘New’ Prospects when you haven’t MAXIMIZED RELATIONSHIPS with your BEST and most QUALIFIED PROSPECTS!

FUNDING YOUR VISION is usually about your TOP 33 INVESTORS and perhaps your BEST 300 QUALIFIED PROSPECTS. Many of these top prospects are most likely sitting right in front of you… right now! (Not literally, but pretty darn close.)

The reason many of you are looking for ‘NEW’ prospects is because you believe:

“Our Old Prospects are tired of giving.”

“We have gone to the well too many times.”

“We can’t go back to our best prospects for more money.”

“We are taking advantage of our current relationship with our top prospects.”

To this, I would add 3 other thoughts coming from your current top givers that I also believe are very fair:

“I want you to get other people involved besides me.”

“I want you to broaden the base of support.”

“I don’t want to be the only one funding this organization or this project.”

While ‘expanding your base’ and ‘bringing in new relationships’ is important to your organization, it’s not the ‘ANSWER’ to your funding challenges!!!

I’d like to challenge your thinking with this idea: LOOK IN YOUR OWN BACKYARD!

Stop ‘searching the world’ for new prospects/ fresh money. Before you figure out how to get to Bill Gates or Warren Buffet or the Walton’s…look to your own CHAMPIONS who have the strongest interest in your Cause and your Case.

Here are 3 stories to reinforce this idea of ‘YOUR OWN BACKYARD’.

Russell H. Conwell wrote one of the most powerful and motivational classics of all time, Acres of Diamonds, published in 1921. Conwell actually gave his speech entitled “ACRES OF DIAMONDS” more than 5,000 times and earned enough in this effort to help found Temple University!
Here are summarized versions of 3 STORIES in the book that I hope will have a huge IMPACT on your thinking about ‘NEW’ PROSPECTS.

GOLD. In 1847, a man who owned a ranch in Northern California heard that gold had been discovered somewhere in Southern California. He sold his ranch to a Colonel Sutter, and then went south to search for gold and riches, never to return.

Colonel Sutter put a mill on that stream. One day, he discovered flakes of gold in the spill off. Sutter’s discovery, in 1849, started the CALIFORNIA GOLD RUSH!

DIAMONDS. An old Persian farmer was desperate for riches. He sold his farm, collected his money, left his family and went off in into the garden to drink. As the camel put his nose in the shallow water of the garden brook, the new owner saw a flash of brilliance and reached in and pulled out a diamond (in the rough). This discovery became the famous diamond mine of GOLCONDA!

OIL. In Pennsylvania, another farmer sold his farm to take a job with his cousin, who was looking for coal oil in Canada. He, too, was searching for wealth… in other places.
According to the county records, the farmer sold his farm for $833.

The new owner found oil… on that same farm. That oil was eventually worth hundreds of millions of dollars, and this discovery became the PENNSYLVANIA OIL FIELDS!

I hope the moral in all of these stories are clear and evident.

Read more On Prospects in our For Impact Guidebook, Gold Diamonds and Oil.

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BIG IDEA: The Master Prospect List (MPL)

The Master Prospect List is one of the biggest ideas in our sales process. It’s a system of:

  • Rating and ranking,
  • Your best and most Qualified Prospects,
  • In descending order of importance.

PRIORITIZATION is the centerpiece of our prospect system: the MPL is not a random group of names nor an alphabetical list!

The MPL ranks ALL of your prospects, not just ‘individuals’.

Rarely, do we see an organization with a TRUE Master Prospect List. This can be a tough concept for some to implement so we’ve made it simple:

  • MASTER = ONE LIST. Not ‘one list for the gala’ and ‘one list for annual fund’ and ‘one list for corporate partnerships.’ And, certainly not fifteen reports from Razor’s Edge.
  • Most Important Prospects. If you receive half your funding from the government then the government is ALWAYS your most important prospect.
  • RANKED. Not Alphabetical. Not by giving history. Not by Relationship Manager. RANKED BY IMPORTANCE.
  • Re: Individuals, Corporations, Foundations – a gift received yesterday does not remove the ranking of the relationship.
  • Smaller organizations should focus on their top 33 prospects. Larger organizations (e.g. Colleges) should maintain the same focus but take the ranking out to 100+ prospects.

In addition, The Master Prospect List:

  • Streamlines prospecting meetings and reporting and allows you to focus your time and energy.
  • Determines what to ask for by matching your prospect list to your funding plan.
  • Saves a lot of time in meetings, thinking, planning, strategy, etc. because the list IS the framework for all these things.
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