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Association members: making major gifts?

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Here’s a timely tip: maximize this revenue stream for your association or medical society

Are you leaving money on the table?

Oh, wait – that question needs some context. I’m not talking about restaurant tipping (you know, that time-honored practice wherein people choose to give something extra above what’s expected).

No, I’m talking about securing philanthropic major gifts for your organization (you know, that other time-honored practice wherein people choose to give something extra above what’s expected).

Sure, members of our associations and professional societies pay dues to receive benefits from our organizations. But increasing numbers of them are going farther, by making major gifts that support and elevate their organization’s mission.  If your organization isn’t maximizing such revenues, you’re not only leaving money on the table, but missing a valuable opportunity to increase member engagement.

Are major gifts worth the effort?

The answer is a flat-out “yes.” There’s a commonly held misperception that most charitable giving comes from corporations and foundations.  In fact, the opposite is true. According to Giving USA, 86 percent of the $485 billion given in 2021 to US nonprofits came from individuals, bequests, family foundations and donor advised funds. Foundation grants added 10 percent and corporations rounded out the final 4 percent.

That balance pretty much reveals where your real opportunities lie.

Major gifts programs pay off in some very attractive ways:

Increased financial stability. A mature major gifts program can produce 70-80% of all philanthropic revenue, helping to ensure long-term financial stability. By focusing effort on major gifts, your organization can reduce its reliance on less predictable sources of funding (like event participation and giving from foundations and corporations).

Stronger relationships with members. A major gifts program builds long-term relationships with its most committed supporters.

Increased program impact. More resources will allow your organization to expand its programs and services to create greater impact. Major gifts can support new initiatives, research, advocacy efforts, and other strategic priorities that might never happen without limited funding.

Enhanced reputation. A major gifts program can enhance your organization’s reputation; a strong base of dedicated supporters is a great “third party endorsement” that can influence other external stakeholders.

Stronger culture of philanthropy. Donors who give large gifts can change the equation for all donors. Properly communicated, a major donor’s high-profile example can cause other rank and file members to stop and consider their own commitment and aspirations. When it comes to copycat giving, a rising tide lifts all boats.

Consider the facts of life

If this all sounds great, there are some major gift facts-of-life to consider. Major gift request letters seldom work – after all, most of these donors are dipping into their assets to give, not just dashing off a check. Strong engagement is key, so you’ll have to invest in building personal relationships – a process that can take 3-18 months. Also, major donors tend to fund compelling programs and projects rather than general operations, so you’ll have to identify those opportunities and build your case.

The good news is that, with proper stewardship, major donors become more than transactional, annual fund givers. Properly stewarded, they will tend to give again and again, with a lifetime of impact on your organization.

Consultants in Association Philanthropy can help your association, association foundation or medical society establish or enhance a members major gifts program.  See the steps below and visit our website  https://associationphilanthropy.com/ or contact Joe Skvara (Joe@associationphilanthropy.com; 708-990-1325) for a no-obligation 30-minute consultation.

How to start a major gift program

  • Commit your entire organization to a members major gifts program
  • Determine your priority giving opportunities and their budgets
  • Determine minimum/other levels for major gifts contributions
  • Set a preliminary philanthropic goal and initial timetable
  • Develop a compelling case for support for each of your program/project giving opportunities
  • Identify your major gifts prospects — discover if you have enough prospects in your donor base, even for a modest start:
    • Top $1,000+ annual donors for the past 3-5 years (not gov’t)
    • Top 25 donors (cumulative amount) for all time (not gov’t) 
    • Loyal donors who have given any amount every year for the past 5-10 years
    • Loyal conference and program event participants for the past 5-10 years
  • Consider conducting an electronic wealth screening of your members             
  • Recruit a major gifts committee, with a formal charge and job description
  • Create a major gifts plan; staff and committee should share their plan with your development committee, board, and select major gifts donor prospects.

The Pie You Want a Piece Of

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A not-so-secret recipe for sweet grant success

According to Giving USA, foundations gave away $90.88 billion in 2021, or 19% of total charitable giving.

As a nonprofit association, that’s a pie you want a piece of.

The good news for grant seekers: this slice of the pie is growing – up 3.4% over 2020. The bad news: breaking into the grant pantry can take a significant degree of effort, and many organizations are unnecessarily daunted at the prospect.

Grant seeking does require effort: articulating organizational strategy, documenting programmatic outcomes, projecting a grant’s impact, identifying interested grantors. To assemble, sift and stir all those ingredients – for a cake that might never rise – is more effort than some association bakers are willing to put in.

But there’s a great reason to persist: do the diligence one time, and you’re already half-way done for your next grant, because so much of your work can be repurposed. When it comes to grants, muscle memory means money.

The grant writing recipe

Grant writing requires an understanding of the grant-maker’s mission, goals and application process. Writing persuasively and accurately, you’ll need to communicate a compelling idea, demonstrate the project is well-planned, and identify a clear financial need and feasible path to impact.

Key ingredients for a sweet grant proposal:

1. Make your project description easy to understand, clearly stating what the project aims to achieve.  Confront the hard questions head-on: What need does your program address? Why is it important? Why should this funder care? Share relevant data and statistics from multiple sources.

2. Show how this issue relates to your mission and why your organization is the best one to address it. Document knowledge, resources, and services you provide that others can’t match.

3. Show how your needs align with the funder’s priority. Tailor your proposal to match the funding organization’s mission, goals, and funding priorities. For additional insights, find out who they have funded previously.

4. Detail the feasibility of success. The proposal should show that the project is feasible and the organization has the capacity to carry it out. Project timeline, milestones, and budget should show the project is well-planned and achievable.

5. Articulate clear and measurable outcomes. The proposal should outline success measures linked to the need for funding. Be prepared to project how many individuals will achieve successful results from your program. What does success look like when scaled locally, regionally, or nationally? If you can’t supply impact data, provide expert testimonials, photos, or other representations of impact.

6. Demonstrate innovation. Show how your approach to this issue is creative and innovative, while also being sound and evidence-based.

7. Assemble a strong team. Introduce an institutional team with the necessary skills, experience and commitment to complete the project. Include the team’s roles, responsibilities and expertise.

8. Provide a comprehensive budget. Detail overall program cost, the amount of your ask, and how you’ll use it (operating, staff, capital). Include all current and ongoing expenses. It is critically important to demonstrate your organization can successfully manage the grant you are requesting.

9. Address sustainability issues. If your grant request is for a start-up project, include your timeline and show how the program will be administered during the start-up phase. Show how diverse funding streams will be applied over time to sustain the program and provide an exit strategy for the funder.

10. Secure institutional leadership. Ensure the grant request has the support of your administration and board of directors. Communicate the effort required for this program and expectations for their involvement moving forward.

11. Offer sponsorship recognition. The importance of this will vary among grantors. Be prepared to provide examples of how your organization can visibly recognize their support.

12. Steward the foundation grantor. Communicate prior to and following your grant submission and whenever possible.

As a slice of your organizational revenue, grants can be more than just frosting on the cake – just follow our proven recipe. We can’t guarantee you’ll be rolling in dough, but you’ll definitely receive your just desserts.


Consultants in Association Philanthropy’s 35-point questionnaire can ensure your grant request targets appropriately, communicates effectively and asks persuasively.  To find out more, contact Brad Hutchins at brad@associationphilanthorpy.com or 630/965-7708.

Dear Sponsor: Is the honeymoon over?

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Like any strong marriage, sponsor relationships require continual renewal

Your courtship of your organizational sponsor paid off! You proposed to formalize your relationship, and they accepted! Since the day you two took your vows and exchanged benefits, your relationship has been solid. But – as with any marriage – take that relationship for granted and you might not like the results.

There’s good reason to keep the honeymoon magic alive. A growing consensus suggests the nonprofit sector will continue to struggle with economic viability for the foreseeable future. As federal funds wane and the economy fluctuates, associations are relying on their sponsors more than ever — just as those same sponsors face increasing calls to demonstrate a return on their investment in your organization.

A wandering eye is the last thing you want in this relationship. When was the last time your association and fundraising teams reviewed your organization’s sponsorship offerings?  Are you measuring the impact of sponsorships in terms that have meaning to the sponsor? Do you ask for corporate sponsor feedback on the value proposition? 

We encourage direct contact with your spouses – er, sponsors — to discuss what matters to them. Here are some pointers for keeping the relationship vital and current:

  • Solicit input from your most constant, dedicated corporate supporters to determine if the benefits you offer them are still valued the way they once were.
  • Always remember your anniversary.
  • Explore opportunities to expand sponsorship packages and create year-long benefits. 
  • If you forget that anniversary, double down on their birthday.
  • Consider bundling sponsorships that might include additional benefits such as:
    • bonus points for exhibiting
    • access to leaders
    • access to leaders during your association meetings throughout the year
    • enhanced visibility within your organization
    • access to association thought leaders
    • an environment in which sponsors feel free to share their pain points and explore solutions
  • Combine the value of sponsors’ monetary and in-kind donations when providing benefits, and strive to offer sponsors additional benefits when increasing giving levels.
  • Send ‘love’ notes to congratulate your sponsor on milestones or press releases. 
  • When all else fails, chocolate and flowers.

It’s a wise best practice to review your sponsorship benefits every two to three years to ensure you remain current with your supporters’ needs and interests. Include this review activity in your year-end goals and work to keep your corporate sponsors engaged often. If the relationship has begun to drift, consider renewing your vows – with a pledge to love, honor, and mutually benefit from this day forward.

If you have any questions or if CAP can be of help in creating sponsorship packages, please contact Lori Vega at lori@associationphilanthropy.com. 

10 Commandments of Board Development

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I’m not bringing these bits of advice down from some mountaintop somewhere.

But they do deserve consideration as tried-and-true principles of building a strong, effective board.

  1. If someone doesn’t care about your mission/cause, they should not be asked to serve on your board.  Better to leave a seat unfilled than to carry that dead weight for a term…or two!
  2. Asking insightful, strategic questions in a respectful manner is the most valuable behavior a board member can bring to the table. 
  3. Before being invited to join your governing board, a candidate should have some donor and volunteer history with your society.  You should know something about him/her, and they should be acquainted with you and your mission.
  4. Anyone who serves as a board member should have your society in his/her top 3 organizations for charitable giving.  (#1 always preferred!)
  5. Your board is responsible for advancing your mission.  As such, board members must help raise money to fulfill the mission.  Wait, forget “help.”  Board members must LEAD the fundraising charge.
  6. There’s board orientation AND there should be ongoing board education/re-orientation. 
  7. There are myriad ways for board members to lead the fundraising charge without asking for money.  Make introductions, identify potential donors, open doors, thank donors, host a small group lunch or cocktail party, speak enthusiastically as ambassadors and advocates, help develop strategies for approaching donors, help define the case for support.
  8. Rigorously enforce term limits.  Doing so ensures new blood, new thinking, and new perspectives.
  9. Develop a scorecard or report card that your governance committee can share with each board member on an annual basis.  The scorecard should reflect competencies and tasks.  It’s a great tool for ongoing education as well to bring any performance issues to the table before things get out of hand.
  10. Make sure you build time for socializing into your board calendar.  Encouraging this kind of offline, informal team-building. Board members need to interact with one another outside of official meetings.

As with anything worth doing, success in board development takes time, teamwork, and heroic leadership. It will require attention, determination, and patience from both your executive director and board leaders. But it’s an investment that will pay off in tangible ways: increased giving, entrepreneurial energy, and just plain old support for your everyday work as a staff leader.  As with anything worthwhile, you will get out of your board exactly what you put into it.

Do you have a commandment or two you would add?  Let us know!

Mike Bates, CFRE

Principal

Consultants in Association Philanthropy

Savvy Donor Engagement – Through Member Data

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Analytics have become the core of business planning for all organizations.  You depend on them to track and report on fundraising, marketing and program outcomes, and to assess trends.  Decisions informed by the right data will guide you toward more dependable conclusions and predictions.

Have you taken a deep dive to learn from your association’s member, sponsor and customer analytics?  Do you depend on these metrics, trends and patterns to guide your planning and decision-making toward goals and objectives? 

The payoffs awaiting you: optimized business performance, better forecasts, nuanced audience segments, reduced costs, deeper donor and volunteer relationships, and greater fundraising.

For the purposes of this discussion, let’s assume that you can trust your data.  This means that your association, publications, meetings, grant-making, and foundation operations are collecting clean, pure data that is stored securely – the kind of data that can truly help grow your organization.  Such data, when analyzed, can reveal how to target appeals, secure interest in specific funding areas, or group “like” prospects for gatherings.

THE BIG PICTURE AND STRATEGIC PLANNING

It’s not just about who your members are or where they’re from.  What do you know about their behavior?  Among the questions to ask:

  • Which members are in an academic vs. private practice setting?  Do they write or review regularly for your journal? 
  • Which members are more focused on management?  Marketing?  Are they more concerned with business practice?
  • Do some products or meeting topics interest one group of members more than another?
  • Which behavioral indicators align with and may indicate interest in components of your funding priorities? 
  • Do your member attendance or chapter engagement patterns suggest your foundation should have a higher profile at some meetings?
  • Do certain job titles or industry segments respond differently?
  • Are members involved individually or do they participate as a group via their company?

USING DATA TO UNDERSTAND POTENTIAL DONORS

Many of these questions are helpful for both your association and its foundation. Donor acquisition and renewal are as vital to you as member enrollment and retention are to the association. Who are the 20-30% most engaged and active among your membership?  Where are your prospects most likely to have experiences that build engagement with both organizations? How can you partner with your association to create experiences that bring members closer to the mission and goals of both organizations? Mutually beneficial activities might include:

  • Highlight key spokespersons when topics are in sync with your mission
  • Follow grantees and shine a spotlight when they become association leaders
  • Celebrate donors and volunteers based on their all-around involvement
  • Focus stories on leading donor chapters or other groups and the volunteers who lead them
  • Build industry or scientific impact stories together

(Note: Such benefits are easiest to access when member and donor data live in a blended database; if yours isn’t, there are ways to bridge the two in order to compare and analyze data.)

SHARING IS A TWO-WAY STREET

Trusted data is powerful when used in the right way.  You and your association colleagues are similarly concerned about keeping data confidential, but if you work together, you can assure major donors and volunteers get proper recognition, key scientific contributors receive due acclaim, and relationships are improved all around. 

Together, you and your association colleagues can build a strong and trusted database with shared metrics, analytics and reports, so everyone can make solid, data-driven decisions.  Start now. Strengthen your shared mission by integrating data capture and analytics into your decision-making processes.  Remember, a rising tide lifts all boats.  Need some help getting started?  Short on staff and need some temporary assistance?  For guidance toward better data analytics that will impact your outcomes, contact Joanne Ray at joanne@associationphilanthropy.com or 708-308-6960.  Consultants in Association Philanthropy can show you the path that moves analytics from concept to completion