Energizing Your Institutional Messages for Fundraising
Kristin V. Rehder, Principal
Kristin V. Rehder & Associates

Presentation
CASE District I and II Conference
February 1-4, 2003
New York City

• Presentation
• Survey of Fundraisers Best Appeals in the 2003 Economy

Note: This interactive session involved approximately 100 CASE conference participants. Question-and-answer opportunities were built in throughout the session. For more on the responses to a survey on fundraising in the current economic climate, see Survey of Fundraisers Best Appeals in the Current Economy, also under Hot Topics at www.kvrehder.com (to be posted 3/7/03).

With a tough economy and an unsettled market, world unrest, loss of jobs and income, we must pay particular attention to how we solicit support. Today, we are going to work in two segments.

• First, making the written case for giving.
• Second, making the case for giving that we deliver in person as we meet face-to-face with our prospects.

On a recent Writer's Almanac on National Public Radio, I heard Garrison Keillor read these lines from poet Richard Brautigan:

"The sun was like a 50 cent piece that someone poured kerosene on and lit a match to and put in my hand to hold, while he went to get a newspaper ... but he never came back"

Good writing is not hard to come by. I asked a friend of mine to name a few writers who never fail, and she said Annie Dillard, Walker Percy, James Joyce. And we might say, who? Some of my own might be E. B. White, William Butler Yeats, Mary Oliver, Maya Angelou, Anna Quindlen. The point is that we know good writing in all forms.

Why then is our own writing and messaging for fundraising often so limited, so predictable, so safe and unfetching? Five reasons to consider:

• Because we are selling campaigns and predictable priorities, gift levels, and gift plans more than we are selling education; real learning experiences; conversion of people into thinkers, imaginers, doers; research that transforms lives and society.
• Because we talk about our institutions, our agendas, and not about the donor's interests and concerns.
• Because we talk and write too much.
• Because we are afraid to tell the truth, which requires us to reveal some weakness.
• Because we lack detail

Each one of these "because" statements is important. Let me illustrate a few.

• Our donors are not interested, generally, in campaigns, which occur all too frequently and are ubiquitous. They are interested in education; in freedom of thought and expression; in research and creativity; in children; in aging; in medical breakthroughs. Our constituencies have become used to campaigns and their rhetoric, and they are often very skeptical about giving to what they see as the black hole of unrestricted endowment and current funds. But they want to give and want to have an impact, and they are looking to their institutions as places with whom they can partner.
  
  
• In terms of being willing to show some weaknesses and some difficult challenges, we should understand that our donors are perfectly willing to help us solve problems and meet specific goals. They do not expect us to have it all exactly right, but they do expect to hear that we have planned carefully.
  
  
• In the information age, communications need to be light on text, highly visual, linked to relevant resource material, and easy to respond to. (See Writing for the Information Age, Bruce Ross-Larson.)
  
  
• We lack detail because, as staff members, we are often too separated from our academic programs and the day-to-day life of our institutions. We can ask two questions of our students, faculty, and researchers that will help us refill the measuring cup and make a more cogent case for support: 1) what are you working on that you are most excited about? 2) What are you teaching that is relevant to the world today that will help your students be better citizens of that world?

Now, I'd like to demonstrate some of what I am talking about by showing you two versions of a thank-you letter that I received for an annual fund gift I recently made to an institution (names have been changed). Stewardship letters are a prominent source of institutional messaging and should be carefully crafted and frequently reviewed.

Note that in the original letter, the person thanks me for my gift and immediately associates my gift with campaign success, suggesting that my gift of $250 helps reach the $250 million goal, and assuming, thereby, that I am interested in the campaign and its priorities (which I wasn't).

The revision, which is about 120 words to the original's 60, manages to cover at least six key messaging points:

• thanks come on behalf of the faculty and students, associating me with the people I want to help most;
• my gift is put to work immediately;
• you recognize my conviction and commitment to education;
• my gift is multiplied into millions when added in with others' gifts;
• the institution truly needs my money; and
• you ask that I continue my giving-a message that is critically missing from most thank-you letters.

Now, what tools will help us do better in building our written fundraising case?

Here is the construction for a traditional case, which is too focused on the institution and virtually ignores the donor.

Traditional Case

• This is our institution's proud history.
• This is our present list of distinctions.
• These are our plans for the future.
• Here are our dollar needs.
• We don't have the funds, but we have a solution-a campaign.
• You'll give.

Consider two alternatives to the traditional case, both of which are more contemporary. These four-point cases, once you have elaborated on each of the points, will magnify pride, show accountability for current finances, indicate the promise of your institution in today's society (what would be missing if your institution did not exist?), and match your needs with donor values and the desire to partner with donors.

Alternative Case #1

• We have found our stride as an institution.
• We have challenges and specific plans to address them.
• We make a difference in society through our faculty, students, and alumni.
• We need you in order to advance to the next level-here are examples of gifts and the impact they can have.

Alternative Case #2

• Our institution transforms students, helping them contribute to a better society.
• We operate efficiently.
• We create innovative solutions to current challenges in education and research.
• Your gifts can have specific impact-here are examples of gifts and the impact they can have.

Assignment:
Note: I asked participants to go back to their workplaces and revitalize the case for support for their institutions by creating a four-point case around the following headings:

• promise (who you are as an institution and what your relevance is in today's society);
• progress (the initiatives under way at your institution and progress toward reaching them;
• prudence (evidence of strong financial management and good stewardship of current resources; and
• partnership (where gifts can have the most impact for you and for the donor).

To help us make our stand-and-deliver case in the current economic climate, I surveyed over 30 vice presidents, gift officers, and fundraising consultants at private schools, teaching hospitals, major universities, liberal arts colleges, and consultancies across the country. My thanks to all who participated.

Following are excerpts from the advice of seven respondents. These examples cover key areas in how to make a current case. After the seven examples, I will summarize other responses and what this information tells us.

Respondent 1:
A lot depends on how close you are to the prospect. For example last week on some visits one of the questions I used was, "What do you think this market is going to do?" By gauging the reaction you can determine how they have faired in the current market. You can't assume they have done poorly. We have one donor who shared that he has been shorting the market for the past 24 months and as a result has done quite well; another has been heavily into bonds and shared how much his bonds have appreciated. Granted, others have suffered in this market, so to those we focus on what their interests might be and some sense of when the time might be right to have a serious discussion of gift amount. All assets have not gone down: we completed two gifts of real estate prior to December 31 due in part to the strong real estate market. Those with significant bond holdings are doing well.

Respondent 2:
We're saying that we'd like to talk about a significant gift to the campaign. If they indicate, as many have, that their net worth declined dramatically, we say let's talk about a gift now that is manageable. Where income is required, we are especially quick to talk about annuities, as the rates are extremely favorable when compared to other types of investments, especially debt-based investments.

Respondent 3:
Here are some scenarios:

1. Wealthy donor who does not want to give stock now because the market is depressed and the value of her gift will be much less than in the future.
We are suggesting balloon payments. The donor pledges more than she would pledge now if she had to start paying this year. She signs a pledge form promising to fulfill the entire pledge in five years and does not commit to yearly gifts. Donors believe that the market will begin recovery within a year or so.

2. Donor who needs a specific income now and sees the market going down the tubes.
This is a great time to help older donors make a landmark gift during their lifetime by investing in a CGA (charitable gift annuity). Planned giving can be a win-win for some donors now and for an institution. It's not the whole answer, but it can work for some. We recently wrote a CGA for a 91-year-old donor whose CDs matured; the rate he was offered was significantly lower than before. The CGA we wrote yields 12%. He is ecstatic.

Respondent 4:
With endowments going down, operating dollars are even more important. Large Alumni Fund donors make the difference. $5,000 for the Alumni Fund helps to offset a $100,000 downtick in the endowment and allows us to keep offering the same level of education in an uncertain market.

Respondent 5:
The one thing I would emphasize is that with almost any life income arrangement, a person can secure a more attractive income stream than is available from virtually any investment portfolio. A CRT has a minimum payout by law of 5%; gift annuities pay even higher, guaranteed, fixed rates. If a person is inclined to make a gift and part with capital assets (and right now most charities need support more than ever, so he/she could really have more impact than during boom times) but wants to lock in a good income, he should look at a life income deal. Economically speaking, it's almost a no-brainer-between the income, the tax deduction, and the absence of fees.

Respondent 6:
Another discussion opportunity involves the pledging of stock (this could work for both closely held and publicly traded stock). This option would be appropriate for individuals who have said they can't make a gift due to current market conditions, or those who are waiting for a certain stock to "come back."

• Donor makes pledge of specified amount of stock
• Pledge agreement stipulates that the pledge will be completed (i.e., stock is transferred to the charity) when the stock hits an agreed upon price within a specific period of time.
• If the stock hits the price within the designated time frame, the donor transfers the stock to the charity.
• If the stock doesn't hit the price within the stipulated timeframe, both parties agree to re-visit the pledge and, perhaps re-structure it.

Respondent 7:
We are placing increasing emphasis on asking prospective donors, regardless of their age, whether they have provided for our institution in their estate plans. The theory is that this will give us the opportunity to thank and steward them-and thereby increase their inclination to make major outright gifts when the market turns around and they're feeling less concerned about their finances.

Let's summarize what we heard in these and other comments sent to me:

1. Remember that people still want to give. As they narrow or "focus" their giving, we are asking them to keep us in their top priorities. Education continues to be one of the top philanthropic targets in this country.
   
   
2. Do not necessarily lower the dollar amount you originally put on the table. However...
   
   
3. Try the tack of asking someone if we take and money off the table, what is it you really want to accomplish with your giving to us over the long-term.
   
   
4. Now to message...Let's prepare to offer a strong case.
   1. Education is a long-term enterprise that must have the resources to weather ups and downs and the key to solving many of the world's problems. We make an invaluable difference.
   2. Our needs continue and many are urgent—building projects, financial aid, and current dollars to help offset endowment losses.
   3. We are excellent stewards of the money given to us.
   4. We need you!
   
   
5. To make a gift proposal, be prepared to talk about:
   1. Pledging stock at striking prices.
   2. Balloon payments.
   3. All forms of planned giving including and especially annuities.
   4. Gifts of real estate.
   5. Flexible payment schedules.
   6. Revisiting pledges in a year.
   
   
6. Renew your focus on stewardship and excellent communications about the impact of previous gifts.
   
   
7. Ask all donors to consider putting your institution in their estate plans.

The information contained in this article may not be reproduced without credit to Kristin V. Rehder and/or permission to copy.
Kristin V. Rehder March 3, 2003.