SuddesGroup

1X 10X 50X

January 26, 2009 | Nick Fellers

If an investor is giving you 1x in response to a mail campaign, any sort of an event or ‘totally unsolicited’ then he or she would likely give 10x in response to a one-on-one (personal) visit-with-an-ask and 50x if the visit includes a dialogue around the funding plan (as part of the full case-for-support and ask).

This is not scientific but it’s far from arbitrary. This is my own little way of thinking about potential based on what I’ve seen at many organizations (start-ups to colleges). It’s a way of thinking about

1. The potential of your current relationships.

2. The potential of new relationships (if we visit!)
3. Why we need to be visiting

Everybody says they need more prospects. Instead of trying to get more people to give 1x think about how you can get more people to give 50x!

• 1x is clearly emotional. I’ve seen a lot of people cry at events – but the giving is still impersonal and ‘charitable’ in nature.

• Sitting with someone one-one-one (or 2-1 / 2-2) allows you to listen and respond. It makes the ask personal and seems to trigger another level of discernment in giving – increasing a commitment to an organization ten-fold (10x).

• But to really get the big big gifts (50x) we need to do a better job of walking our prospects through a funding plan and going back and forth, having a dialogue about the ask… giving context and providing the FULL case-for-support. These conversations are much more strategic.

At my seminars I share a story of a school that met with parents and supporters. They asked everyone to “prayerfully consider giving at a level that was significant”. Those that had previously contributed $2000 through the auction responded with $20,000 gifts. The school was still frustrated. They had $1M prospects giving $100K and $100K prospects giving $20K.

As much as the prospects liked the school they had no context for how much money to consider. They had no way of guessing that $1M might be the linchpin for the campaign… there was no discussion that gave the committed families and supporters a framework to think bigger.

This school went back to each supporter with a complete funding plan. For a $1Million dollar ask, for example, they would ask for the $1Million (a specific number). More than that they would have a discussion around WHY the $1Million and what it would enable the school to do (leverage, leadership, timing, etc). The prospects had a broad context in which to consider the ask and many of them increased their gifts by five times and some by 20 or 30 times!

I’ve met with billionaires and many many millionaires. Trust me, nobody has disposable income. Nobody is going to guess that a $1Million will help. $10K or $50K is a lot to anyone! It’s not until we show up that we can get 10X. It’s not until we dialogue about 50X that we can get 50X.

A rhetorical question: Is it easier for you to visit with every current funder and ASK (10X) or to get ten more prospects to give? From there, is it easier to get your best prospects to 50X or to get 5-10 more visits?

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San Diego Boot Camp - Day 1

January 16, 2009 | Nick Fellers

Last night we wrapped up at our first day on the campus at The University of San Diego. It was great but I think the weather was even better. While much of the country is being hit by an Alberta Clipper and frigid temps we are having a heat wave - mid 80’s every day. We have attendees from Alaska, Minnesota and Green Bay - can you imagine coming from -20 to 85? We also have attendees from Hawaii (they bough coats - no joke).

Some quick bullet points - or discussions that have been unique to this class (a very partial list)

• Designated giving: I’ve rarely, rarely ever had a gift designated. I know this is something many others deal with all the time. I really think this is because we’re not communicating where the money goes and so the investor has to put some sort of framing around this on their own.

• On that same note, only one person has EVER asked me how much money goes to overhead - I immediately asked him if he had ever worked with The United Way and he said, ‘Yes, why do you ask?’ Again, if you communicate your purpose + where the money goes + funding plan then it’s not about overhead.

• IMPACT DRIVES INCOME
  INCOME = Communicating your Purpose and / or vision
  DRIVES = Communicating Where the money goes (your buckets, circles or priorities - for those that have been to camp)
  INCOME = Communicating your Funding Plan and having a discussion about how the prospect could fit in to that plan.

• 1X 10X 50X
  1X = What is given without a case for support + dialogue (one-on-one). Perhaps through mail or event.
  10X = What is invested as a result of your showing up and having a dialogue around 1-2 pieces of your case for support (purpose/priorities/plan).
  50X = What is invested when you walk through ALL THREE PIECES of your case for support - only when you enter into a discussion about what is really needed and talk about serious funding can a prospect begin to discern, think-about or work towards a leadership gift or transformational gift.

• What economy?
  One of our attendees from last year’s San Diego camp called in to report presenting the opportunity for $2.0Million AND closing. The prospect HAD been impacted (negatively) by the stock market but was committed to the PURPOSE/PRIORITIES/PLAN of this organization - they asked - and worked through the mechanics (it was not a given - had to have a DIALOGUE about how to make this happen).

• And this one’s just for Alums.
  Calculator Time? 15 Seconds.

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Archived Seminar: Build Your Funding Strategy/Plan

November 12, 2008 | Nick Fellers

We had a great seminar today - lots of participation and discussion around a relationship-based funding model and how to build your funding strategy and funding plan. Some teleseminars are live only (not archived). Others are archived. We’re going to archive this for three days only then move it over to the Online Learning Center ($).

In this seminar we discuss:

• A new look at “conventional” nonprofit funding silos (annual fund, special events, direct mail, grants, major gifts, endowment, planned giving, campaigns)
• A 100 Day funding plan to generate $100,000
• The triple ask (operations, projects & endowment)
• How to build a funding plan
• Top-down focus (not bottom-up)
• The master prospect list
• Simplicity, focus and return-on-energy
• Edit: “Year-end Funding Strategy”

Read more

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Your Funding Plan Supports Your Case

November 21, 2006 | Nick Fellers

I’ve been a road warrior the past two months. For schools, entrepreneurial start-ups and other organizations a big epiphany continues to be the idea that your funding plan actually is part of your case for support.

To me, the funding plan is the HOW behind the big picture dollar goal and the big picture dollar goal is what you need to deliver on your vision. So, in essence, this is HOW you will deliver on your vision. Is that important? You bet!

I’ve found that most organizations don’t have a funding plan.

Three simple action steps here:

• Determine the dollar amount you need for both operations and projects. What is the lump sum? Do the math! 80% of organizations can’t answer this question.
• How many investments would you need - and at what amounts to achieve this goal?
• When? (One year? Three years? Five years?)

The funding plan does a few things as it relates to your case:

• It makes it believable
• It shows a potential investor how she/he would fit into the funding vision.
• It also illustrates that you’re not just picking a number out of the air - there is logic.

Extra bonus: There are times when you can actually ask the potential investor, “Where do you see yourself in this plan?” Then, you let them select a dollar level.

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Leadership Consensus Building

July 25, 2005 | Tom Suddes

Leadership Consensus Building is both a lightning fast alternative to a feasibility study and a process to:

• Engage top stakeholders.
• Gather input and feedback around your message and priorities.
• Commit to a funding plan

This seminar is led by Tom Suddes and is 30 minutes in length.

MP3 File | Seminar Guidebook

You should use this LCB process IF:

• Your VISION/MISSION/MESSAGE is NOT clear, concise and compelling … and CANNOT be delivered in a consistent way by all of your STAKEHOLDERS.
• You are planning a Campaign … since this process is considerably more productive and
  valuable than the typical “Feasibility Study” or “Internal Case Statement”.
• Your “needs” require FUNDING that is greater than you’ve ever attempted!!! (And,
  you are not celebrating your “150th anniversary” nor have “10,000 great relationships”
  in your database.)

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