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Development, Fundraising, Major Donors, Stewardship

Leadership Giving

by Kent Vanderwood
March 10, 2021

Your first question might be, what exactly is leadership giving?

Leadership giving is a principle introduced in the Old Testament that is still relevant today. Two main passages teach this concept. In Exodus 25, Moses asked for gifts to build the tabernacle:

“The Lord said to Moses, ‘Tell the Israelites to bring me an offering. You are to receive the offering for me from everyone whose heart prompts them to give. These are the offerings you are to receive from them: gold, silver, and bronze; blue, purple and scarlet yarn, and fine linen; goat hair; ram skins dyed red and another type of durable leather; acacia wood; olive oil for the light; spices for the anointing oil and for the fragrant incense; and onyx stones and other gems to be mounted on the ephod and breast piece.’” (Exodus 25:1-7).

In 1 Chronicles 29, David gathered resources to construct the temple:

“Then King David said to the whole assembly: ‘My son Solomon, the one whom God has chosen, is young and inexperienced. The task is great, because this palatial structure is not for man but for the Lord God. With all my resources I have provided for the temple of my God—gold for the gold work, silver for the silver, bronze for the bronze, iron for the iron and wood for the wood, as well as onyx for the settings, turquoise, stones of various colors, and all kinds of fine stone and marble—all of these in large quantities. Besides, in my devotion to the temple of my God I now give my personal treasures of gold and silver for the temple of my God, over and above everything I have provided for this holy temple: three thousand talents of gold (gold of Ophir) and seven thousand talents of refined silver, for the overlaying of the walls of the buildings, for the gold work and the silver work, and for all the work to be done by the craftsmen. Now, who is willing to consecrate themselves to the Lord today?’  Then the leaders of families, the officers of the tribes of Israel, the commanders of thousands and commanders of hundreds, and the officials in charge of the king’s work gave willingly. They gave toward the work on the temple of God five thousand talents and ten thousand darics of gold, ten thousand talents of silver, eighteen thousand talents of bronze and a hundred thousand talents of iron. Anyone who had precious stones gave them to the treasury of the temple of the Lord in the custody of Jehiel the Gershonite. The people rejoiced at the willing response of their leaders, for they had given freely and wholeheartedly to the Lord. David the king also rejoiced greatly” (1 Chronicles 29:1-9).

We see a model for giving in each of these passages. God told Moses to start with gifts of “gold, silver and bronze” (Ex. 25:2). Who had valuable gifts like this to give? The leaders of Israel, presumably. But He also added the phrase, “from everyone whose heart prompts them to give.” Moses invited everyone to give, but he asked the leaders to give first.

King David followed the same model. The first gifts were gold, silver, bronze, iron, followed by wood, fine stones, and marble. The key phrase appears in 1 Chronicles 29:3-5, where David gave his OWN treasures for the temple. He did not ask others to do what he was not willing to do himself. He set the pace, and everyone followed his lead.

This is how the 1 Chronicles 29 campaign ended, “Then the leaders of families, the officers of the tribes of Israel, the commanders of thousands and commanders of hundreds, and the officials in charge of the king’s work (all) gave willingly” (vs. 6). When the people saw their leaders give, they rejoiced for what God was accomplishing (vs. 9). When your leaders set the pace, others will be inspired to give.

Who are the “leaders” in your organization? Who should be the first to give? Depending on the type of non-profit you are, this would include the trustees, foundation board, steering committee (if you are engaged in a capital campaign), staff, parents, and possibly even service recipients. Each of these groups serves in leadership in some way and together they form your “leadership giving.”

Four Takeaways:

•  Start with your giving. David gave first in 1 Chronicles 29:1-5, then the other the leaders gave (vs. 6-7), and finally the rest of the people joined in (vs. 8-9).

•  Start at the top. Top-down giving begins with the leaders (gold, silver bronze).

•  Move inside-out. Giving should start with those who are the closest to the ministry, then move to those who are less involved.

•  Invite everyone to give. Exodus 25:2 and 35:4, “Everyone who is willing…” It’s important to ask everyone in your constituency to partner in fulfilling your mission.

So, how much should each person give?
This is a very personal matter, between the individual and God, leading through his Holy Spirit. Moses said, “From what you have, take an offering for the Lord” (Exodus 35:4). Can you give a gift of gold? If so, you should. Maybe your gift is fine linen, acacia wood, or onyx stone. Giving is about “equal sacrifice, not equal gifts.” If you pray and ask God with a sincere and open heart, he will speak to you.

Paul gives this instruction for leaders:
“Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds and to be generous and willing to share. In this way, they will lay up treasure for themselves as a firm foundation for the coming age, so that they may take hold of the life that is truly life” (1 Timothy 6:15-17).

Leaders demonstrate their leadership through their sacrificial giving. Lead by example and others will follow.

About the Author: Kent Vanderwood, Vice President – Kent offers clients over 35 years of non-profit experience including teaching, administrative, consulting, and directorships. Through his work as Development Director for The Potter’s House, Gospel Communications Inte
rnational, and Mel Trotter Ministries, Kent brings a wealth of experience in fundraising and development. He currently serves as a board member for the West Michigan chapter of the Association of Fundraising Professionals (AFP). His passion for seeing Christian stewardship principles applied in a systematic way helps the non-profit organization or ministry be successful in fulfilling its mission.

Development, Fundraising, Major Donors

Fundraising Superpower: Mind Reader

by Kent Vanderwood
February 10, 2021

Perhaps you’ve heard this famous fundraising axiom, “Successful fundraising is the right person asking the right prospect for the right amount for the right project at the right time in the right way¹”.

So, how do you know the right amount to ask for? What if you ask too high? Or, too low? Can you go back for seconds if you asked for the wrong amount the first time? Here’s where the fundraising superpower of reading your donors’ minds would come in handy. You could nail the right ask every time. This superpower doesn’t come by gamma radiation, exposure to chemicals from another planet, a science experiment gone wrong, or a radioactive spider bite. But it’s not as complicated as you might think.

Asking for the right amount starts with research. Who is this donor or prospect? Have they given before? How much? What do you know about them personally? What other ministries do they support? How much do they usually give? You can research this donor with internal and external data. Internally, you should review your donors’ giving records, talk to staff who know them, ask board members if they have any personal or business relationships. Check out external online wealth screening resources such as Blackbaud Analytics, Donor Search, Donor Scape, iWave, and Wealth Engine to name a few. Both internal and external research provide key datapoints to help you determine the right gift amount.

Rules of Thumb

•  Start with their largest annual gift. If you are   asking for another annual gift, suggest the donor increase their gift by 25% or more.

•  If you’re asking for a capital campaign multiple year pledge, you could request 10 to 25 times their largest single gift, depending on their capacity.

•  If in doubt, ask high. It is usually better to ask a donor to “stretch” their stewardship decision, rather than feel like you asked too low. If it is too high, they will tell you. Rarely will they say, “You didn’t ask enough, I was planning to give $_______.” Charles W. Phillips of the McLellan Foundation once remarked, “No large ask should be a surprise; every smaller ask is an insult.”

A client shared a recent capital campaign ask where the donor responded, “You’re leaving money on the table. You asked for $4,500 but we could give $10,000.” Their largest single gift was $1,500, so she tripled it for the three-year campaign ask, but she didn’t realize that this donor was silent partner in a very successful local car dealership whose profits were up this year. If she had done her research, perhaps she would have asked for more and received more.

“Sweet Spot” Solicitation

Personal solicitation is built on relationships which you cultivate before the actual ask. Get to know your donors – their interests, passions, and what motivates them most about what you do. The more you know, the more accurately you will discern the right project and the right amount. A donor’s “sweet spot” is not always easy to detect or uncover, but once you do, you have a better chance to hit a home run. Just like in baseball, hit the sweet spot, and watch it fly out of the park!

I saw this principle happen firsthand on a recent visit with a client engaged in a major capital campaign. The development director and I visited a couple and presented a gift proposal for $30,000, based on their last campaign gift eight years ago and their annual giving since that time. It was a bit of a “stretch” over their past giving.

The visit went well; they loved the campaign components. After our $30,000 ask, the donor said that he and his wife would talk and have an answer in a week. We then showed him a list of named gift opportunities ranging from $100,000 to $1 million. It’s helpful to share this information even if the donor can’t give more or is not interested in recognition, because they may know someone who might be.

Little did we know that one of the items on that named gift list hit a “sweet spot.” Four hours after our visit, the donor came to the office with a completed pledge card for $150,000! That is right – not the $30,000 we asked him, but five times that amount. Their family’s interest in music, drama, and the arts had gone largely undetected, but they wanted to leave a legacy. As they discussed the campaign, they decided to put their name on an outside amphitheater.

Just think of the success you could have with every major donor if you took the time to uncover their “sweet spots.” It doesn’t always happen the way I described above but you need to be intentional about discovering your donors’ true interests. It’s hard work, but the rewards are well worth the effort.

You really don’t need to be a superhero to know how much to ask your donor. Listen to their heart and passion, then you can pitch the right project and the right gift amount!

Resource: ¹Weinstein, Stanley. The Complete Guide to Fundraising Management, 4th Ed. Wiley. 2017.

About the Author: Kent Vanderwood, Vice President – Kent offers clients over 35 years of non-profit experience including teaching, administrative, consulting, and directorships. Through his work as Development Director for The Potter’s House, Gospel Communications International, and Mel Trotter Ministries, Kent brings a wealth of experience in fundraising and development. He currently serves as a board member for the West Michigan chapter of the Association of Fundraising Professionals (AFP). His passion for seeing Christian stewardship principles applied in a systematic way helps the non-profit organization or ministry be successful in fulfilling its mission.

Fundraising

State of Giving 2020

by Kent Vanderwood
January 8, 2021

I recently reviewed a report on 2020 giving trends produced by the Evangelical Council on Financial Accountability (ECFA), a respected leader in Christian philanthropy. Warren Bird, Ph.D., and his team at ECFA did the research and prepared the report. It was both interesting and encouraging, and I thought a summary might be useful as we turn the page on 2020 and launch into 2021. The entire report can be downloaded for FREE here.

The report was based on giving to Christ-centered nonprofits and churches. It analyzed patterns across the ECFA’s membership for cash giving (cash, checks, electronic monetary contributions, etc.) This was ECFA’s 11th annual State of Giving Report.

The Good News: Cash giving to ECFA members continues to grow.

From 2018 to 2019, giving increased 1.5%, helping shape a 5-year annualized growth of 2.5% when adjusted for inflation. It is encouraging to note that cash giving to ECFA members increased 9 out of the last 10 years. The reason 2019 numbers are still important is they allow us to bring pre-COVID reality into current financial planning. One factor that may have impacted 2019 giving over previous years is changes in the Tax Code, which raised the standard deduction and made charitable giving less appealing to some donors. Even with that change, givers to ECFA members were more generous overall than givers to other religious segments.

Cash Giving vs. Other Income

Giving to ECFA member organizations was broken down this way: 58% Cash Giving (cash, checks, online, etc.), 15% Non-Cash Giving (gifts in kind, donated services, etc.), and 27% Other Income (tuition, program fees, investments, etc.) Organizations directly touching people with needs, such as child sponsorship, human trafficking, missions, pregnancy care centers along with church giving tended to be higher in “cash” giving. Education, foundations, camps & conferences, and relief & development tended to receive more “Other” income.

Size of Organization

For the most recent year (2018-19), organizations with annual budgets of $5.0 million to $25.0 million saw the greatest increase in giving, ranging between 5.5% and 6.8%. Smaller organizations, $1.0 million or less, saw flat increases in giving.  Churches saw lower growth rates in giving compared to para-church ministries.

The COVID-19 Effect

ECFA prepared a supplemental report titled, “Defying the Odds: Giving Grows Despite the Pandemic.” This report summarizes data collected from nearly 1,300 Christ-centered non-profits and churches in November 2020. The bottom line is that despite incredible challenges, 2020 has seen remarkable resiliency and significant forward motion among ECFA membership. A few discoveries:

•  Almost 9 out of 10 say that 2020 giving year-to-date (January through September) was higher or the same as 2019. Rescue Missions are on the higher end and evangelism ministries on the lower end.

•  Optimism toward future financial revenue was stronger in November than when they asked the same question in 2019. Orphan care has shown the greatest growth in optimism, and student and youth ministries the least optimism.

•  Cash reserves have remained largely untouched in 2020.

•  Staffing levels remained the same in 2020 but might increase slightly in 2021.

I believe this report will show us what we already know – that God’s resources are still present and available, and His people will give to organizations and ministries they love – even during a pandemic. Now that we are emerging out of this pandemic, move forth boldly into 2021 in your fundraising activities.

About the Author: Kent offers clients over 35 years of non-profit experience including teaching, administrative, consulting, and directorships. Through his work as Development Director for The Potter’s House, Gospel Communications International, and Mel Trotter Ministries, Kent brings a wealth of experience in fundraising and development. He currently serves as a board member for the West Michigan chapter of the Association of Fundraising Professionals (AFP). His passion for seeing Christian stewardship principles applied in a systematic way helps the non-profit organization or ministry be successful in fulfilling its mission.

Major Donors, Strategic Planning

Big Vision = Big Dollars

by Kent Vanderwood
October 31, 2020

Is your ministry vision big enough to capture your donors’ attention? Major donors look for organizations that can make an eternal impact. They desire to fund ministries that are not content with the status quo but those that have a compelling plan to meet a significant need. Why should a major donor consider giving to your ministry? Your answer begins with an agile and comprehensive strategic plan.

Strategic planning is a very broad and often confusing topic. All non-profit organizations need a plan, but less than half have one – or a current one at least. The life cycle of a strategic plan is five years maximum and should be reviewed every three years. Consider these three questions:

1. What is a strategic plan?
2. Why does your organization need a strategic plan? 
3. How can you best leverage this plan for maximum fundraising results?

WHAT IS A STRATEGIC PLAN? Here is a definition: “A strategic plan results from an intensive process in which highly invested stakeholders reach consensus about the future direction of the organization over the next 3-5 years.” A strategic plan usually involves:
• Reviewing the organization’s purpose (mission), vision, and core values.
• Examining who you serve and/or should be serving in the future.
• Analyzing your organizational strengths, weaknesses, opportunities, and threats (SWOT).
• Understanding your “competitive advantage,” what you do better than anyone else.
• Establishing a limited number of “strategic goals” or objectives for the next 3-5 years.

Strategic planning is related to, but different than annual and long-range planning. While both are important, they should be driven by your strategic plan.

Annual planning generally happens in conjunction with your fiscal year and focuses on annual needs and operations. It may include items like budgets, projected personnel costs, staff assignments, facility maintenance, programming, and estimated costs of doing business.

Long-range planning generally happens every two to three years and focuses on what new programs you will add and what facility upgrades you need to make to accommodate these programs. It may also involve changes in staffing levels, service statistics, replacement of major equipment, and leadership succession plans.

WHY DOES YOUR NON-PROFIT ORGANIZATION NEED A STRATEGIC PLAN? A strategic plan accomplishes five critical goals.

1. It shows you are serious about your organization’s mission and that it is worth continuing.
2. It builds strong ownership and “buy-in” from stakeholders.
3. It helps you stay focused on what is most important—”doing the right things, the right way.”
4. It prioritizes your funding needs and
5. It provides incentive for donors to support you.

Donors give to your ministry for three reasons:

1. They believe in your mission (why and what you do).
2. They appreciate your vision for the future (as opposed to status quo).
3. They trust your leadership (this comes from relationships).

All three reasons are connected to your strategic plan. 1) Why you are in business, 2) what you want to accomplish, and 3) as a leader, will you do what you say you’re going to do.

People give to vision. A strategic plan helps you frame and present your vision.
Strategic vision provides long-term direction for your organization. What is your BHAG? (big, hairy, audacious goal, or better yet, big, holy, audacious goal). Your vision statement needs to be far reaching, but attainable. Here are two vision statements that may have sounded crazy at the time:

“We will put a man on the moon before the end of the decade and bring him back.” (President John F. Kennedy)

“A computer on every desk and in every home using great software as an empowering tool.” (Microsoft)

HOW CAN YOU MAXIMIZE YOUR STRATEGIC PLAN TO ENHANCE YOUR FUNDRAISING PLAN? Here are some tips to consider:

• Make sure your plan is current; if more than five years old, refresh it, or better yet, start over.
• Encourage your board to review and update your plan annually.
• Post a short version of your plans on your website to engage your entire constituency.
• Tie your annual fundraising goals/needs to your strategic plan initiatives.
• Take a copy with you to every donor cultivation meeting.
• Personalize the ask; if an initiative or goal in your strategic plan aligns with the donor’s interest area or “hits a hot button,” emphasize how their gift will accomplish that key strategic planning goal.
• Highlight your annual progress. Use a checklist or colorful graphic. Show what you have accomplished!
• Include your strategic plan, along with an update on progress, with every corporate or foundation proposal you submit. Smart foundations will request it.
• Rethink your strategic plan every five years. It gets stale setting on the shelf.

A good, current, and compelling strategic plan will greatly enhance your fundraising efforts. Please contact us at The Timothy Group if you need help creating big vision that will attract big dollars!

Author: Kent Vanderwood, Vice President

Development

Fine-Tuning Your Annual Fund Plan

by Kent Vanderwood
August 23, 2020

Are you fine-tuning your annual fund plan regularly? Like strategic planning, good fund development planning builds unity and harmony across your organization and constituency. Practice makes perfect, so it’s helpful to begin by understanding the basics.

What is an annual fund plan?

It’s closely partnered with your organization’s multi-year strategic plan. In fact, your annual fund plan is one of those sub-plans that rolls out of your strategic plan. The strategic plan provides the framework and foundation for your organization’s work. Then you create a fund development plan—guided by the organization’s strategic plan—to secure the financing to support that strategic plan.

Like institutional strategic planning, good fund development planning is a process that builds organization-wide understanding of and ownership for fund development. Like the process of institutional planning, the best fund development planning process generates learning and change, and produces alignment and shared accountability. And, just like institutional strategic planning, effective fund development planning also produces results.

What is a strategic plan?

A process devoted to developing a shared vision of the organization’s future.

A determination of the best way to make this vision happen.

A map that connects the dots between the vision of your organization and your fundraising efforts.

A two-fold plan; an annual plan based on needs and a long-range plan based on history.

What are 4 key steps to fine-tune your annual fund plan?

Assess (or compose) your fund plan.

Synchronize your fund to your strategic plan.

Compile the key pieces in your fund plan.

Play to the right markets.

Where can I find more specifics to help build a masterpiece plan?

You can start right here! Below you will find an in-depth slide presentation, sample calendars, sample plans, graphics and more. 

AFP-August_2020_Fine-Tuning-Your-Annual-Fund-Plan_Kent-Vanderwood_The-Timothy-Group

Sample_Academy-3-Year-Annual-Fund-Plan-1

Sample_Annual-Financial-Development-Plan_The-Timothy-Group

Sample_Annual-Development-Calendar-for-2021-2022

Sample_Ask-Piece_Immanuel-Schools_The-Timothy-Group

Sample_Ask-Piece-Personalized_Immanuel-Schools

Sample_Ask-Piece_Open-Door-Christian-Schools Sample_Ask-Piece_ World-Mission   About the Author: Kent Vanderwood, Vice President – Kent offers clients over 35 years of non-profit experience including teaching, administrative, consulting, and directorships. Through his work as Development Director for The Potter’s House, Gospel Communications International, and Mel Trotter Ministries, Kent brings a wealth of experience in fundraising and development. He currently serves as a board member for the West Michigan chapter of the Association of Fundraising Professionals (AFP). His passion for seeing Christian stewardship principles applied in a systematic way helps the non-profit organization or ministry be successful in fulfilling its mission.

Donor Relations, Fundraising, Major Donors

Low Pressure vs. Passive Donor Communications

by Kent Vanderwood
June 2, 2020

As non-profit leaders, we all know the importance of good, ongoing communication with our supporters and friends. Communication of our message in a meaningful way is an essential part of the fundraising formula. It is important that we keep our vision out front. During this challenging time of the COVID-19 pandemic, how and when we communicate to our donors is more than just important. It is critical.

Sensitivity & Scale

Most of the non-profit ministries we work with have scaled back their communication in some way. Since we are not doing face to face donor meetings, we have turned to other means – phone, mail, email, and even virtual meetings like Zoom or Go-to-Meeting. Some would ask, does this require that we also change the message? The urgency? The frequency? Most ministries have realized the need to be sensitive to donors during this time. Many have lost money or investments and are not as prepared to make gift decisions. Some have been directly impacted by COVID in their family. Others are fearful or worried about the future.

Care Over Solicitation

 At TTG, we have discussed the need to pivot from making direct “solicitation” calls to “care” calls or thank-you calls. Sharing what is going on at your ministry in a low-pressure manner is a good practice as we move through these uncertain times and look forward to a season of recovery. People need to know you are still there.

Low Pressure vs. Passivity

But we should not be passive in our approach. Being passive means that you do not take action, but instead let things happen to you. Passive activity involves watching, looking at or listening to things without taking action; being inactive. This is not how we want to communicate with our donors. Being low pressure in your approach does not mean you are being passive. It simply means you are adjusting your approach to the current situation. 

One of our school clients described how they are calling their regular donors and saying, “We are still here. God is faithful. Even though we are closed to students, we still have operational needs.” No direct ask was made, but they shared the need in a low pressure way. Many would respond, “How can we help?” This school saw increased giving over a year ago and met their annual fund goal in the midst of COVID-19. God is faithful.

Another client, a rescue mission, reported that as they increased their focus on thank you calls, they saw a parallel increase in the number of unsolicited donations to the ministry; this included some very large gifts that were unexpected. What if they would have been passive and didn’t reach out to these donors?

Donors who love your ministry will stay faithful if you communicate in a sensitive and loving manner. Being low pressure in your approach is fine. If they can’t give today, they will when they are more able.  

Recommended complimentary reading: “Ask For A Fish”. Order here.

Article submitted by Kent Vanderwood, Vice President for The Timothy Group. Kent currently resides as a board member for the West Michigan chapter of the Association of Fundraising Professionals (AFP). Through his work as Development Director for The Potter’s House, Gospel Communications International, and Mel Trotter Ministries, Kent brings a wealth of experience in fundraising and development. His passion for seeing Christian stewardship principles applied in a systematic way helps the non-profit organization or ministry be successful in fulfilling its mission.

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