Donor lifecycle map : a new framework for fundraising

242 Pages·2014·4.853 MB·English

by  Deborah Kaplan Polivy

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Donor Cultivation and
the Donor Lifecycle Map
A New Framework
for Fundraising
Deborah Kaplan Polivy
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Cover Design: Wiley
Cover Image: © iStockphoto.com/Artush
Copyright © 2014 by Deborah Kaplan Polivy. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
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LibraryofCongressCataloging-in-PublicationData:
Polivy,DeborahKaplan,1947-
Donorcultivationandthedonorlifecyclemap:anewframeworkforfundraising/
DeborahKaplanPolivy.
pagescm
Includesbibliographicalreferencesandindex.
ISBN978-1-118-60377-2(cloth:alk.paper);ISBN978-1-118-60376-5(ebk);
ISBN978-1-118-60378-9(ebk)
1. Fundraising. 2. Nonprofitorganizations--Management. I. Title.
HV41.2.P652014
0
658.15224--dc23
2013024696
PrintedintheUnitedStatesofAmerica
10 9 8 7 6 5 4 3 2 1
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Contents
Foreword v
Preface vii
Acknowledgments xi
Introduction 1
AndSoThisBook 3
1 DefiningDonorCultivation 5
TheDonorLifecycleMap 7
WhyFocusonAllThreeGoalsofCultivation? 10
TheLifecycleMapasaFrameworkforThinkingaboutDonorCultivation 13
Summary 16
2 IncreasingDonorDiversity 17
IncreasingDiversityDecreasesRisk 17
IllustratingtheNumbers 20
Summary 25
3 BuildingaFoundation 27
HighlighttheMissionandHowtoAchieveIt 28
TakeAdvantageofaStrategicPlan 33
BuildaTop-NotchBackRoom 35
Summary 40
4 UtilizingPersonalDonorCultivationTools 43
PersonalDonorCultivationTools 48
Summary 78
5 ApplyingNonpersonalDonorCultivationTools 81
NonpersonalDonorCultivationTools 81
Summary 113
6 TheIntersectionofDonorCultivationToolsandtheDonor
LifecycleMap 115
CultivationToolsforObtainingtheFirstGift 116
CultivationToolsforObtainingtheSecondGift 120
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CONTENTS
MovingSecondGifttoSecond-YearActive 127
MultiyearActive 129
MajororStretchGiving 133
UltimateGiving 135
Summary 140
7 DeterminingPrioritiesamongDonors 143
TheDonorPyramid 145
Age 148
Gender 155
Summary 160
8 ImpedimentstoChange 163
TheCultureofPhilanthropyandtheRoleoftheExecutiveDirector 163
TheBoardasanObstacletoChange 170
Summary 172
9 ACaseStudyinEffectingChange 175
ALittleBackgroundInformation 176
TheInterview 178
Summary 186
10 (Re)engagingLapsedDonors 189
DriversofDonorLoyalty 191
TheReasonsDonorsStopGiving 194
HowtoIdentifytheReasonforStoppingSupport 196
ClassifyingLapsedDonors 197
DevelopinganEffectiveReactivationProgram 200
ApplyingtheProperTools 201
WhoShouldReactivatetheDonorandHow? 204
IdentifyingandReactivatingUltimate-GivingProspects 205
Summary 206
11 TheDonorLifecycleMapandCultivationTools 207
FeasibilityofEffectingChange 210
Summary 215
AbouttheAuthor 217
AbouttheCompanionWebsite 219
Index 221
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Foreword
I was both pleased and surprised to be asked to write a foreword
for this very helpful and thoughtful book on donor cultivation. I
fi
personallybeganraisingmoneyfornonpro torganizationsin1984.
With almost 30 years of experience and having been involved in
fi ’
raisinghundredsofmillionsofdollars,I nditoddthatIdontthink
of myself as a fundraiser or a development professional. Virtually
everyseniorpositionIhavehadforoveraquarterofacenturyhada
’
fundraising component. So why dont I see myself as a fundraiser
and how can this book help you identify more intimately with the
work that you do?
The relationship we have with donors is complicated. It is both
fi
strangeandwonderful.ThatiswhyI ndthetermrelationship-based
fundraisingproblematic.Relationshipsarerelationship-based.IfItry
to develop a relationship with you only for the purpose of getting
’
moneyfromyou,wedonthavemuchofarelationship,particularlyif
Idosounderthefalsepretenseoffriendship.Fundraisingisnotagoal
in and of itself; it is a manifestation and expression of the support
peoplegiveyoubecauseofyourcredibilityandtrustandbecausethey
care about the mission of the organization you represent.
“ ” “fi
In this respect fundraising, or even nancial resource devel-
” fi
opment, is a necessary but insuf cient description of the work of
’
any fundraiser of worth. I dont see myself as a fundraiser because
that is only a piece of what I do, even if it is an important and
fi fi
signi cant aspect of my work. Money facilitates the ful llment of a
vision; it is not its own goal. That is why it is critical to understand
fi
theroleofmoneyintheworkthatwedoasnonpro tchangeagents.
Thatiswhyitiscriticaltoinvestinpeopleforthetotalityofwhothey
are. That is why it is critical to read this book.
Peoplemayderidetheroleofself-helpbooksinformingrelation-
ships. Why does anyone need a manual on how to have a good
marriage, for example, when the ingredients of good marriage
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FOREWORD
’
shouldcomenaturallybetweengoodpeople?Itsafairquestion,but
it also has an uncomfortable answer. We read guides because
’ ’
althoughthedosanddonts ofanyrelationship shouldbeobvious
’
tous,theyarent.Weareofteninneedofoutsidecounselandadvice,
particularlyfromthosewhohavebeensuccessfulinthetrenches.If
’
raising money required obvious skills, wed all be a lot better at it
than we are.
I found the following pages both comprehensive and an excel-
lent framework for beginning a deeper conversation about the art
fi
andscienceofraisingmoney.Thisvolumeisthe rstattemptthatI
fi
have seen to describe the use of speci c tools that should help in
building genuine and meaningful relationships with donors as
donors, regardless of the level or potential for giving you begin
with.IhavealwaysbeeninspiredbytheJewishtraditionthattellsus
that someone who solicits charity has a greater share of divine
rewardthantheonewhomerelygivescharity.Thesolicitordoubles
the contribution through his or her sacred work. Effective fund-
raisers understand that raising money to match our passions and
fi
even out the playing eld of social justice is holy work and is a
privilege.
’
Fewpeopleregardfundraisingasaprivilege.Itstimetochange
that.
DR.MISHAGALPERIN
PresidentandCEO
JewishAgencyforIsrael
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Preface
fi
There are many different types of fundraising of ces in many
different types of organizations all over the world. There are those,
“
as Dr. Polivy describes in her introduction, with names of donors
fi ”
onRolodexcardssomewhereinabackof ce. Andontheotherend
of the spectrum are organizations with large and sophisticated
philanthropy departments with full-time staff responsible for the
proper and continued engagement of each different type of donor.
This book is written for the leaders of both.
Inthesepages,thedevelopmentdirectorofasmallteamoreven
fi
a one-person of ce will read a number of anecdotes presented in
’
sidebars from Dr. Polivys professional experience that will help
answer some of the fundamental questions not only about how to
get started in fundraising, but also about the building blocks
essential to a long-term, sustainable donor base. And the answers
fi
you,thereaderwithasmalldevelopmentprogram,will ndinthis
fi ’
bookarenotdif culttoimplement.Youwontneedmassivestartup
fundsortoolsorevenastafftoputintopracticetheframeworkthat
ispresented.Youwill needapassionforthemissionthatyou serve
and a genuine desire to engage your fellow citizens in helping to
realize the future that your organization envisions.
Forfundraisingleadershipatlargerprograms,thisbookissuesa
challenge to remember what donor engagement really means. Like
manyotherfundraisingthinkers,Dr.Polivybeginswiththepremise
that a charitable relationship between donor, service provider, and
fi —
bene ciaryisacomplicatedandveryhumanone everchangingand
—
evolving between people. While our daily professional lives may
seemtobefocusedaroundgettingenoughmoneyinthedoor,thinking
more about how we can increase opportunitiesto involve donors in
ourmissionandworkwillultimatelyleadtoamoreeffectiveresult.
While this book poses a logical framework for managing a
fi
development of ce, it ultimately calls on each reader, whether
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PREFACE
fundraiser,executivedirector,boardmember,orvolunteer,tothink
differently about the role and value of every single donor.
Chapter 1
In , Dr. Polivy begins with the concept of donor
—
cultivation an often-used and perhaps poorly understood term in
—
philanthropy and proposes three elements that need to be
includedinacultivation plan:thegrowthinthenumberofdonors,
the growth in the size of contributions, and the growth in the
’
number of opportunities for giving over a donors lifetime. This
third element is an important one, as it forces the reader to think
more broadly than just the current campaign or mailing. A case is
’
made that the Donor Lifecycle Map helps to shift the fundraisers
thinkingfromactivityorientedtorelationshiporiented.Theimpor-
tance of not just bringing in new donors into an organization but
better planning the engagement of existing ones will become self-
evidentwhenmappingoutthestepsthateachdonortakesinhisor
her hopefully increasing commitment to the recipient organization.
Chapter2 fi
looksattheessentialneedforfundingdiversi cationin
anyorganization.Itexaminesthroughactualexamplestheveryreal
risktoaninstitution withtoo few donorsaswellastypes ofdonors.
Chapter 3
examines basic elements that are precursors to any
successful fundraising program. These include a strong case for
giving, a strategic plan that sets a clear roadmap for the organiza-
’ “ fi ”
tions development, and a well-run back of ce. As Dr. Polivy
again illustrates with poignant examples, no fundraising program
fi
willsucceedin thelongrunwithout theseelements rmlyin place.
An outline of the methodology proposed in this book begins in
Chapter 4 “ ”
, wherein personal cultivation tools are introduced.
These are tools or channels that involve one-to-one communication
withdonorsandareappliedtoeachsegmentoftheDonorLifecycle
Map based on what is most appropriate and effective for building
–
the donor organization relationship. The suggestions proposed in
“ ”
this chapter are truly donor centered, encouraging the reader to
learnabouteachdonorthroughpersonalcontactindiscussionsnot
’
about money, but about the donors beliefs, passions, and connec-
tion to the work that he or she makes possible; and ensuring that
—
each donor is given the opportunity to participate not merely
fi —
nanciallybutalsowithtime,input,orleadership inthesuccessful
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