February 20, 2024
From the desk of
Arthur C. Criscillis, Ed.D. ¦ Managing Partner
The First Visit: Successful or Suboptimal
I don’t know that I can count the number of times a gift officer has said to me that he/she/they had a good initial visit with a prospect but wasn’t quite sure what to do next. Suffice it to say, many, many times. I typically say that this is a common question. I follow that with the suggestion that the first visit may not have been as good as imagined. Why? One of, if not THE, main purpose of an initial visit is to give the gift officer a better idea of what might be appropriate next steps to take a prospect. To not have a better idea of next steps—and even to have proposed some as potential next interactions at the meeting’s conclusion—indicates that the initial visit was not successful.
When meeting with a major gift prospect (or potential prospect in a qualifying visit), the most important task is to ask questions. It’s less about what a gift officer says than it is what a gift officer asks. If a big part of what we are doing is seeking to understand a prospect and what that prospect values, then it is imperative that we ask and listen. As a mentor told me, you never learn anything with your mouth open.
If the prospect is or has been a financial supporter of your museum or arts organization, the one question the gift officer should ask without fail is “When you send us your gift, what is it that motivates you to do so?” Many arts supporters feel passionately about the arts—whether it’s driven by what they collect, the role the arts play in education, or the personal satisfaction they gain from seeing a great exhibition or a superb performance on the stage.
If the prospect is not a supporter, the gift officer should ask about the charities the prospect supports and the motivation that drives that support. (That’s a good way to learn what the prospect values and is a good question to ask those who support us—helpful, supplemental information.) If that prospect isn’t a donor, but is engaged in other ways, asking about the motivation for that is also helpful.
With that information in hand, the gift officer should seek to determine areas of interest for the prospect. Based on the information gathered in the initial conversation and in light of the current strategic priorities of your arts organization, the gift officer should indicate to the prospect that the CEO, the Board, and the senior management team are focusing on 3-5 top strategies. These are areas for which the gift officer will be seeking philanthropic support, but that should not be part of the conversation at this point. It is to simply describe these areas of focus, show why they matter, and illustrate impact they will have. Then ask the prospect for her/his/their impression of/reaction to those. Do any resonate more than others?
With that having been done, it is time to open the door to hear what the prospect thinks is important. A simple, “As you think about us, are there any areas that—to your way of thinking—are particularly important?” This may well open the door for the prospect to discuss a program or area that may not be a strategic priority but is still an area where support would be welcome.
If a gift officer only discusses what is important to the organization, a donor’s real passion may be undiscovered. If the gift officer only, in the interest of being “donor-centric,” asks the prospect about her/his/their interest, it is possible to leave undiscovered what could be an intriguing opportunity for the prospect. (“I think arts education with the schools is a high priority. But I did not know you were considering expanding your weekend family programming in the arts. I would like to know more about that.”)
By spending time in an initial visit learning more about the prospect and also getting that prospect’s perspective on important initiatives your leaders are pursuing—whether part of the strategic plan or part of the donor’s own interests—a gift officer will be well positioned to take welcome, important, and relevant next steps.
DAF’S: They’re Not Just For December Anymore
The 2024 National Study on Donor Advised Funds provides detailed information about DAFs that can help development professionals sharpen their DAF fundraising strategies. Researchers analyzed 57,539 individual accounts. This contrasts with most reports on DAF activity, which typically rely on aggregate 990 data from DAF-sponsoring organizations. The report was the result of voluntary participation by 111 DAF programs at community foundations and national and religiously affiliated sponsoring organizations across the country from 2014 to 2022.
Key Takeaways
Although gifts from DAFs spike in November and December, giving is steady throughout the year, the fourth quarter accounted for 32% of annual grant dollars. However, gifts of less than $50,000 were more prevalent at the end of the year than gifts of more than $50,000.
More than 90% of DAF accounts have succession plans in place for when the adviser dies. Of those, 69% had designated a successor adviser, such as a family member, and 30% selected either a charity or the sponsoring organization. The remaining 1% chose a combination.
Unrestricted grants are more numerous but account for far fewer dollars. Overall, 59% of the grants from DAFs in the study were unrestricted, but they tended to be smaller. Only 29% of grant dollars were general operating support, while 71% were earmarked for specific purposes.
One-fifth of DAFs were inactive from 2020 to 2022. More than one in five accounts made no grants in the final three-year period examined in the study. Looking throughout the entire study time frame, 67% of DAFs made no grants “within the same year they opened.”
The largest DAFs hold the lion’s share of assets. DAFs that have less than $100,000 make up 65% of accounts, but together, they hold only 3% of all DAF assets. DAFs that hold $10 million or more make up fewer than 1% of accounts, but they hold 60% of all DAF assets. Similarly, accounts with $1 million to $9.99 million account for just 6% of accounts, yet they hold 24% of all DAF assets.
DAF holders often support more than one charity. More than half of DAF holders support three or more organizations and 9% support 15 or more. The largest share of DAFs — 45% — support one or two organizations, while 24% support three to five organizations, and 11% gave to six to eight.
When it comes to targeting young, new donors, DAFs may not be the best bet. Baby boomers held roughly half of all DAFs. Generation X held just over 20%, the Silent Generation 18%, and millennials less than 10%. The oldest (Greatest Generation) and youngest (Gen Z) together accounted for 3%.
Engaging NextGen Leaders Will Challenge Funders
While a majority of private foundations seek to involve the next generation (NextGen) in philanthropic activities, many cite engaging a younger demographic as their biggest challenge ahead.
The 2024 Client Survey found that 62% of respondents plan to involve NextGen in charitable activities in 2024, but 35% expect difficulty in engaging younger family members. Other anticipated challenges include measuring impact (29%), creating a bigger impact (27%), devoting sufficient time to foundation matters (26%), and prioritizing granting opportunities (26%).
Other key findings
19 Years and Counting
Sandra Kidd is celebrating 19 years at Alexander Haas, and we couldn’t be more grateful for the expertise and results she brings to the Firm and her clients. A Senior Partner, she’s noted for her work on campaign planning and management, working with Boards and campaign leadership committees, and major and planned giving consultation. While her consulting clients are sector-wide, museums and cultural institutions are her passion.
Before joining the Firm, Sandra served as Director of Museum Advancement at the High Museum of Art*, the leading visual arts institution in the Southeast, where she headed the membership and development program and coordinated the High’s $130 million expansion campaign, which topped its capital goal and received a lead gift of $15 million, at that time the largest gift in its history.
Sandra has been both a speaker and participant at AAM and SEMC meetings, and, as a volunteer, serves on her local historical society board. The most rewarding part of her consulting career, she says, is the chance to work with donors and volunteers who are so generous with their money and their time.
*Alumni Client Partner
Where We Came From…
And Where We’re Going
Upon the announcement that our Firm has a new owner, David King, President of Alexander Haas, sat down with Maria Saporta and talked about what it means to Alexander Hass and its clients, current and prospective.
That conversation, in turn, led to a trip back down memory lane, to our beginnings. It’s an amazing story that begins in 1954 and Mrs. Leonard “Be” Haas.
Take a look at our history, and more information about where we are headed.
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