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Round Table Round Up: Comprehensive Sponsorships and Partnerships
Although corporate giving should not be the focus of fund development efforts for organizations overall, it can be an important component of the annual fund. And, some organizations lend themselves particularly well to a comprehensive program.
Corporate, service club, faith, and student groups can make more informed decisions when you offer them either a comprehensive sponsorship or comprehensive partnership package. You benefit because a single solicitation annually frees your valuable time for deeper cultivation opportunities.
So, what are they exactly? Comprehensive packages share these characteristics:
- They are part of your annual fund strategy.
- You send one solicitation per year in which you offer a menu of tiered offerings, graduated from small to large, with benefits calibrated to financial size.
- Donors have some choice and flexibility.
- Donors care about your mission but also appreciate the self-interested “halo effect” they derive from association with your nonprofit.
Comprehensive sponsorships focus more on event benefits. Your sponsors will still receive valuable touch points from you throughout the year in order to cultivate relationships.
While both comprehensive sponsorships and partnerships provide your donors visibility, comprehensive partnerships offer a variety of ways for them to engage with you. This can be through events, volunteerism, education, workplace giving, complimentary memberships or use of your facility, and more.
What do you have to offer your sponsors outside of event benefits? What volunteer engagement activities can you offer your sponsors?
These two questions help determine which path is best for you.
So which is better for you? Start with some self-analysis of your organization and donor base.
| Comprehensive | ||
| Sponsorship | Partnership | |
| X | X | Your donors value events and local visibility |
| X | You have limited time, staff and energy to support a comprehensive plan | |
| X | You have other high-value marketing opportunities for your sponsors outside of events | |
| X | Your donor may add value through expertise, connectivity, etc. | |
| X | Your nonprofit has a significant volunteer opportunities | |
Whichever route you choose, these key steps will help you design your comprehensive program:
- Determine what benefits donors can receive and distribute these across tiers you establish. Identify the donation amount associated with each level.
- If you’re creating a comprehensive partnership program, what engagement options would your donors value?
- Bomb proof your plan. Confirm you can fulfill the benefits you provide. Are the tiers graduated appropriately? Does the monetary value of all benefits exceed 30%? (An added benefit of this exercise is that it helps you determine the non-deductible portion of a donor’s gift.)
- Identify whom you’ll approach.
- Meet with your donors to explain your comprehensive program and gain their support.
- Listen during these meetings and document their wishes. It will help you with cultivation and guide changes to their partnerships with you.
Ultimately, both of these programs are best for growing and cultivating existing sponsors and relationships. Through the process, you will learn what your donors value about your organization as you begin to build stronger relationships with them and offer them opportunities to have a deeper investment in your mission. And remember, this is not a one-size-fits-all approach. If you are trying to determine the best program for your organization, please reach out to us so we can help you!
Round Table Round Up: Board Manuals
Your Board Manual: A Training Tool and a Permanent Resource
The Board Manual plays a key role in Board Orientation and Training, but it should also be an ongoing resource for members. Board members are often reluctant to fulfill their roles because they don’t feel knowledgeable about the organization they have agreed to serve. These are your highest level volunteers who are making a commitment to assist in the overall accomplishment of your mission. A well-designed manual will provide the basic information they need to be empowered to take action on behalf of your organization.
Your Board Manual should be a living document that reflects current circumstances. As policies, key staff, or processes change be sure to update those pages in hard copies and/or electronically. Assign a staff member the role of making changes as needed and sharing updates with Board Members.
How should your manual be distributed? Hard copy or electronically? This is an organizational decision and, for security reasons, you probably don’t want to simply email it. Depending on your culture, it may make sense to provide a hard copy but also have a protected page on the website with an electronic version. If providing electronically, make sure it is optimized for mobile platforms.
Why do board members need a manual?
• Know the people — List of all board members, their terms, and their contact information; a list of staff; an organizational chart
• Know the responsibilities — Description of board member responsibilities; job descriptions of the officers; all committee description and a list of members
• Know the legal framework — Articles, bylaws, Form 990, board-related policies, liability insurance
• Know the organization — A short organizational history, highlighting the key historical events; mission statement; fact sheet about the industry
Sample Table of Contents
- History of the Organization and Current Annual Report
- Board Roster
- Agendas & Minutes
- include most recent
- 3 hole punch agendas for meetings to add to binder
- include events and meeting dates
- Core Corporate Documents
- Articles of Incorporation and Bylaws
- Tax-Exempt Status – IRS
- Tax-Exempt Status – State
- Mission, Vision, Tag-line, logo
- Board Member Policies to sign and return
- Conflict of interest disclosure statement
- Code of Ethics for Board Members
- Expectation Policy
- (Also included: Emergency contact information sheet for board members)
- Description of Programs and Services
- Strategic Plan
- Project info if they are in a campaign
- Staff Profile
- Organizational Chart
- Volunteers: How the organization involves volunteers
- Personnel Policy Manual
- Financial Overview
- Current Budget and financial statements
- Most recent Audited Financial Statements
- Most recently filed Form 990
- Revenue and expenses at a glance (pie-chart)
- Fund Development Resources
- Case Statement & Messaging Matrix
- Board Role in Fundraising/Donor Pyramid
- Current Board Analysis
- Board Operations
- Board of Directors’ Responsibilities
- Executive Committee Function Committees – Brief description of each
- Telephone Meeting Call-in Information and Protocol
- Critical Corporate Resolutions and governance policies
- Executive compensation policy
- Full board review of the 990
- Whistleblower protection
This information was presented at our May 2017 Kennari Consulting client round table.
Intern Spotlight
Meet Claire Timmer, a Senior at Aquinas College majoring in Business and Communication and minoring in Community Leadership. Claire spent both semesters of her Senior year interning at Kennari Consulting before graduating in May.
What were you looking for in an internship?
When I began my search for a Senior year internship, I was looking for a place where I could further my knowledge in the nonprofit sector. Additionally, I was seeking to learn the ways in which the business sector (my major field of study) intersects with the nonprofit sector (my minor field of study). Working with the team at Kennari Consulting, coming into work each time has been exciting, as I am learning new things every day I am here. No one day is the same as the next when you are an intern at Kennari Consulting, and I thoroughly enjoyed that.
What did you learn from your internship at Kennari Consulting?
Over the course of my internship at Kennari Consulting, one overarching lesson I learned time and time again, was that I had a passion for fundraising and I wanted to turn that into a career after graduation. I learned that there are a multitude of opportunities in the philanthropic world, specifically in Grand Rapids. At Kennari Consulting, I had a behind the scenes look at the day to day tasks and operations of both a consultant and a fund development professional. Kennari Consulting gave me the opportunity to shadow their team of consultants each week. I sat in on meetings with numerous clients, shadowing the consultants and learning a wealth of information as it pertains to philanthropy and fund development. I also had the opportunity to work in the office at Kennari Consulting where I learned the day to day office tasks and operations of the business side of a consulting firm.
What projects did you work on over the course of your internship?
During my internship at Kennari Consulting, I also had numerous opportunities to work closely with our clients. For example, in the fall semester, I worked closely with the Hispanic Center of Western Michigan to plan their Entre Amigos table hosted luncheon. During the fall semester, I also spent time researching data that Kennari Consulting regularly provides their clients with. For example, I read and studied the Burk Donor Survey and then I presented the information from the Survey to one of our clients. The information I collected from the Burk Donor Survey was highlighted in a Kennari Consulting newsletter as well. During spring semester, I worked with Holland Museum on their first ever Trivia Night table hosted event. I also gained marketing experience working with Our Hope Association to promote their role in the Art Van Charity Challenge. It is evident that Kennari Consulting gave me the opportunity to work hands on with our clients, which is a benefit that an intern elsewhere typically does not experience.
How will this internship help you in school and/or your career?
As a result of interning at Kennari Consulting, I learned that I want to work in fund development in the nonprofit sector post graduation. Kennari Consulting provided me with the opportunity to work hands on, directly with their clients, from which I learned so much. Another huge benefit of interning at Kennari Consulting is that you make great connections within the community! I met numerous individuals over the course of my internship and I am so grateful that I made connections with so many of them.
I am so grateful to have interned at Kennari Consulting and I will be forever grateful for all the knowledge and experience their amazing team provided me!
Claire has been an invaluable asset to our team during her two semesters at Kennari Consulting. We are so grateful for her hard work and willingness to step up and tackle every project sent her way. While we will miss having her in the office, we are so glad we’ll have the opportunity to see her in the future as she begins her career in the nonprofit sector.
To learn more about Kennari Consulting’s internship program, please email Kim Kvorka at kim@kennariconsulting.com.
Round Table Round Up: Planned Giving Basics
Individuals have traditionally comprised the largest donor segment (71% in 2015), so paying attention to this donor segment is important now – and for your long term future.
Some key philanthropic developments impact how you work with individual donors:
- Fund development is no longer primarily about transactions, e.g. events, direct mail. Today our ongoing relationships with our donors are key as we connect inclined donors to mission and impact and work for lasting connections through relationship cultivation.
- Inherited wealth from the Silent and Greatest generations has enabled philanthropy by second and third gens. They are frequently forging their own charitable paths, however, based on their own personal interests.
- A significant wealth transfer known as the Great Transfer began in 2005 with the Greatest Generation’s wealth shift to their Baby Boomer heirs. The impact is estimated at $12 trillion. As Baby Boomers die, the Greater Transfer to their heirs, estimated to be over $30 trillion, will take place up to the year 2055. In Kent County alone, a mere 5% spin off of inherited wealth to the county’s nonprofits would mean over $321 million in nonprofit fund balances between 2005 and 2055.
In this environment, having a planned giving program is key for organizational sustenance and for taking part in the wealth transfer now underway. Currently, the best prospects for a planned giving program are living, Greatest Generation donors (births in the 1920s, 1930s and early-mid 1940s) whose aggregate $12 trillion in wealth is transferring and Baby Boomers (births from 1946-1964) who will inherit these funds. Don’t assume your most elderly donors aren’t creating wills into their 80s and beyond; new research shows 65% of donors added their final charitable gifts within the last five years of their lives.
A planned giving program need not be complex. After all, 80% of all planned gifts to nonprofits are simple bequests made via wills or trusts, and they usually represent a donor’s largest gift. For those more complex plans, often prompted by unusual family issues or significant wealth or tax issues, know — and be known by — financial advisors and estate/trust attorneys in your community. They will handle the more sophisticated planned gifts, with your nonprofit a possible beneficiary.
Be ready for these opportunities! Create simple planned giving materials, and organize and promote a legacy society exclusive to your planned gift donors. With your board, consider whether an endowment — often the “depository” for planned gifts — is sensible. And always cultivate your relationships with your planned giving donors. These are among your very best friends — people who have a history of loyal support for your organization, e.g. In 3 or more of the past 5 years regardless of amount, and who wish to perpetuate their impact on your mission when they’re no longer here.
And a bonus: Lest you think that a planned gift will negatively impact annual gifts from that donor, new research shows that annual giving actually increases by 75% once a planned gift is in place.
This information was presented at our February 2017 Kennari Consulting client round table.
Join Us March 29! Resources & Results – Get to Know Kennari Consulting
You’re Invited!
Kennari Consulting provides a combination of consulting services to help you learn and grow, as well as direct services to augment your internal capacity. Kennari Consulting is one of the largest full-service fundraising consulting firms in Michigan. Sandi Frost Steensma started Kennari Consulting in 2007 because she realized that nonprofit organizations needed more customized, day-to-day, “nuts and bolts” fundraising support as well as campaign coaching. Today, the firm has 10 staff members and serves more than 60 nonprofit organizations with consulting and direct services including, but not limited to: annual fund, capital & comprehensive campaigns, endowment building, planned giving, grant writing, strategic planning, and database training. Join us on March 29 to explore our customized, comprehensive services and learn more about how you might partner with Kennari Consulting.
Date: March 29, 2017
Time: 12:00 PM – 1:00 PM
Location: 401 Hall St SW, Grand Rapids, MI 49503 – First Floor Conference Room
RSVP: Click here to Register
Celebrating 10 Years as Kennari Consulting
I can’t believe that we have already reached the 10-year mark. It seems like just yesterday that I started Kennari Consulting working by myself as a sole practitioner. Now here we are, a team of ten, having served almost 140 clients and helping them raise millions of dollars to support their important missions.
I could talk about a lot of things, but I want to mention three important lessons I’ve learned in these ten years.
- Listening is critical. As we’ve grown, we’ve added many services because our clients were asking for them. We grew because we listened to what our clients have needed to grow their capacity. And for our clients, listening is just as critical. The better they listen to and understand their donors, the better job they do of engaging people in their mission. Engaged people contribute more gifts to the organizations they love.
- Relationships drive action. Donors are better champions and advocates for an organization when they are engaged in the mission. Our clients who adopt this philosophy have seen tremendous success. I also continue to see this dynamic evolve in the overall funding community, in powerful collaborations between nonprofit organizations, and in public-private partnerships. It really is true: “Connectedness matters.”
- Change is constant. After the economic downturn of 2008, donors became more discerning about their giving and how they give. So I have seen many shifts in the philanthropic landscape. They include a new emphasis on planned giving, a greater role for public-private collaborations, an increased focus on endowment funding for stability, the rise of online giving, and much more. It just goes to show that fundraising is not a static profession. We must be in tune with the donor community, and ready to adapt our processes and tools to respond quickly to changes as they happen. A good consultant is always learning.
I could say more, but the most important thing I can say is this: thank you. Thank you to our faithful clients for partnering with us to succeed. Thank you to funders who give so generously to support their communities. Thank you to board members who give selflessly of their time and talents so that the organizations they serve can thrive. And thank you for allowing us to walk alongside you for these past 10 years. It has been a privilege and a joy.
Kennari Consulting celebrated its 10 Year Anniversary on February 2, 2017.
Round Table Round Up: How Are You Renewing Your Major Donors?
Donors renew at a predictable rate depending on the number of times they have provided the organization with a philanthropic gift. First time donor renewal rates should be 25-50%, second time donor renewal rates should be 50-75%, and multiple time donor renewal rates should be 75% and up. However, these renewal rates are greatly influenced by the work that you and your team are doing in the meantime. In the first part of the year, it is hard to face the reality of those big gifts that didn’t make it into your mailbox at year end. But don’t let them go without a deliberate effort to earn their gift again!
To positively impact your renewal rate among your major donors and in turn your overall fundraising success, your major gift program should contain a lot of the same elements that your less than major gift program contains but on a more personal, deliberate scale. All major gift programs encompass the following:
- Renewing Major Donors
- Acquiring Major Donors
- Cultivating Major Donors to make a Larger Gift
While this may look like something that could be tackled with a good direct mail campaign and communication plan, major donors should be treated with a deeper degree of attention and individual care in order for them to feel that you appreciate their support and that you have used their gift wisely. You also want to always be working on building your relationship with them so that you are building their inclination to your mission, and cultivating them to their highest giving potential. You can earn their trust and support but you have to pay close attention.
When developing a renewal plan for your Major Donors, consider the following:
- Knowledge of your top donors – who are they? Why do they give? How did they become involved? What is their giving pattern? Which of your top donors are your game changers?
- Segmenting your donor base – who are you calling a major donor? What is your communication plan for each segment? What information do you let your major donors in on and how often do you contact them? Who contacts them?
- Giving Levels – Giving levels serve an important purpose, and can act as a catalyst to your moves management plan.
- Volunteer Support through a Donor Development Committee
This information was presented at our January 2017 Kennari Consulting client roundtable.
Key Take Aways: 2016 Burk Donor Survey
The seventh annual 2016 Burk Donor Survey, studying American’s philanthropy and how fundraising practices affect non profit organizations, provided a few key take away points for Kennari Consulting.
In 2015, donors responded most often — 44% of the time — to direct mail. Online giving, at 29%, was second.
Kennari take away: Direct mail matters – make it a priority!
“Giving back” is the strongest motivator for volunteerism. The survey also found that most respondent volunteers were already donors.
Kennari take away: Ask your donors to become volunteers and not just the other way around!
Compared to 2014, donors gave more in 2015 because:
- Their personal financial situations were stable or improved.
- A specific nonprofit(s) impressed them with their efforts.
- They responded to a special request.
- They joined a recurring giving program.
Kennari take away: Promote monthly giving to your donors!
The number one way donors research nonprofits is by spending time on their websites. They are influenced to give when they find information – evidence-based info – quickly.
Kennari take away: Make sure your website clearly and effectively communicates your mission achievement!
Please contact us if you’d like more information regarding the Burk Donor Survey.
Planned Gifts Increase Annual Gifts, Study Finds
In a recent study, Dr. Russell James debunks the myth that Planned Giving erodes annual fund giving. In fact, the exact opposite is true.
Pentera’s Planned Giving blog, PGBuzz, provides a nice overview of the findings:
Planned gifts, rather than cannibalizing annual giving to charity, actually trigger increases in annual gifts, according to new research that should allay the fears of some nonprofit fundraisers.
Russell James, a Texas Tech professor, has been conducting an in-depth analysis of charitable bequests and found that donors who added a charitable beneficiary to an estate plan increased their average annual giving by more than $3,000 after making the planned gift. The research supports a 2007 study by Indiana University which found that donors who had included a charity in their wills gave more than twice as much to charity in annual gifts as donors who did not have the charity in their wills.
“This is great fodder for your annual fund department, VPs, and CFOs,” said Pentera President and CEO Claudine A. Donikian of the research. “Starting or nurturing a planned giving program will have a positive impact on annual fund giving and current giving.”
The James Research
James, an attorney, Ph.D., and CFP®, has been analyzing the charitable findings of a huge ongoing research study by the National Institute on Aging that is following more than 20,000 Americans, asking them the same questions every two years and even collecting data after they die. He looked at more than 9,000 answers in regards to annual and planned gifts to reach his conclusion:
Average Annual Giving Before and After Making a Planned Gift
Average Annual Gift PRIOR to Making Planned Gift – $4,210
Average Annual Gift AFTER Making Planned Gift – $7,381
James found that after arranging the planned gift, the donors’ annual gifts increased by an average of $3,171. He also found that donors made larger annual gifts in the study years immediately before and immediately after adding the charitable beneficiary. Donors revealed their largest annual gift to date when answering questions two years before making the planned gift, and two years after the planned gift they made their largest annual contribution ever recorded in the study years.
James presented the research results as part of a “myth-busting” session at the National Conference on Philanthropic Planning in October. His entire slide presentation, officially titled “Golden Nuggets from Ivory Towers: Recent Powerful Research Impacting Gift Planning,” is available here:
www.slideshare.net/generosity/planned-giving-myths
The results directly contradict the belief of some annual fund fundraisers who think that planned gifts result in a decrease in annual giving. But this is not the first study to show that planned gifts help annual giving.
For more information on how your organization can strategically blend planned giving and annual giving, please contact us or email our Senior Project Manager, Steve Ozinga.
Reference:
Planned Gifts Increase Annual Gifts, Study Finds. (December, 2014). PGBuzz. Retrieved from http://plannedgivingbuzz.blogspot.com/2014/12/planned-gifts-increase-annual-gifts.html
2015 EPIC Awards Finalist
Kennari Consulting is honored to be nominated for Small Business of the Year in the 2015 EPIC Awards! The EPIC Awards, presented by the Grand Rapids Chamber of Commerce, celebrate local businesses and people who are doing greats things in the community by being Entrepreneurial, Progressive, Innovative, and Collaborative. Seven categories of awards recognize businesses and individuals supporting the community, demonstrating growth, finding ways to innovate, and working with others as mentors and collaborators.
We join an esteemed list of organizations this year, including clients and many community partners.
Congratulations to all nominees. We look forward to celebrating with each of you at the celebration event on June 1!