 Welcome, thank you so much for joining us glad to have each and every one of you back with us today this entire week is dedicated to fundraising Academy as the nonprofit Power Week and we are talking about major gifts and our guest back again is Jack Alotto and Jack has a certified fundraising executive. Not allocation certification credentials and you also serve as a trainer with fundraising Academy and so today we are talking about the major gift fundraising cycle and we're just thrilled to have this conversation with you at such a deep, deep level as we move forward. So thank you again to fundraising Academy for remaining as a wonderful partner of ours and for the nonprofit show extremely grateful to have you as part of our team and again the entire week is dedicated to fundraising Academy. Thank you to our presenting sponsors, we are esteemed to have each and every one of you as part of the show and truly as part of the sector because you are sponsors exist not just for us here with these episodes but truly for each and every 1.8 million nonprofits around the US and many also globally so thank you for all that you do and all that you are here to serve right alongside. Julia Patrick CEO of the American nonprofit Academy good to be back here with you Julia. I'm Jared ransom her nonprofit nerd but also your nonprofit nerd CEO of the Raven group and again our guest today is Jack Alotto welcome back Jack. Thank you for having me I love coming on this show. Yeah, good well I was teasing you in the in the green room chatter. You know it's always a good thing when we have you on and you come back. Yeah, yesterday and for those of you who are with us or for those of you that need to find this on the archive. We really jumped into major gifts, the discussion which is what we're having a week. I learned some amazing things yesterday, and it was a really interesting framework about what is a major gift. And so what a great way to start. But today we want to explore with you Jack. More about how major gifts and the process of developing these relationships and stewarding these relationships fits into the fundraising Academy cause selling cycle, Jared and I have become big groupies of your whole program. And we learned something new all the time but we really wanted to explore how this all fits into the whole concept of major gifts. So, help us understand this a little bit better. When you look at this slide in front of you which is the traditional major gift cycle. It appears that each of these stages are of equal length, or take as the same amount of time when that's really not the case. In fact, experienced fundraisers know that cultivation takes way long much longer than so solicitation. One of the wonderful things about the cause selling cycle is that it fits so elegantly into this major gift traditional fundraising cycle. And what it what it what we talked about in the cost selling cycle is that some things are going to take a lot more time to do than other things in this cycle. Okay, so that I appreciate your honesty, and I appreciate you helping us navigate that because yeah, I can see that if we get stuck on these phases, and then we're like wait a minute, it's not working. We're going to get a little bit overwhelming or make you feel like you're not working. So, let's talk about major gift in relationship to your cause selling, and and we've got these four steps. We're going to really talk about the first part of this because this is a long conversation, right. Right. And so when we talk about major gift identification. What does that look like. So in the major gift identification when we bring cost selling to identification, we really have two phases of identification, the first being prospecting. And the second, what we talk about in cost selling is the pre approach. And just to briefly tell you how we approach prospecting in the cost selling cycle is that we have a number of places where we have to go out and find major gift donors. One of my favorite, my very favorite, and it worked for me in my own career is, is getting referrals, getting referrals of other major gift donors, first from our board. Going to our board members and asking them, do you know anyone who in your circle of influence or in your network, who would be interested in making a major gift to our organization. And the second place that really worked for me in my career to find major donors was by asking other major donors, that same question. So anybody in your circle of influence who like you would be interested and motivated to make a gift to our cause. So that is really one of the most powerful prospecting tools we have. There are others like attending events, networking like going to the Kiwanis or other organizations, the Chamber of Commerce, and definitely on your website. The second part of this identification process that we talk about in cost selling is what we call the pre approach. Now, this is where we determine what information we need from our prospects to know about our prospects, so that we can anticipate their questions when we meet with them. Some of the things that we try to find out in the pre approach, maybe if we got a referral from a board member, we might ask them questions, what do you know about this prospects interest in this cause that we have. This is also the place where we determine or qualify our major prospect as to their ability to make a major gift to our organization. So this is where we learn who to call what to ask for why and when and where to call them. This is where we begin to start to anticipate their questions. I have a quick question, Jack, and I want to jump in there. So I love the referral where you're literally asking, you know, other invested individuals who they might know and who they believe you should be talking to. And I'm curious, because again, I've been a part of these episodes, and we've had Tony Bell on with fundraising academy. He talks about the mad and test is the mad and test and approach to the prospecting and pre approach is that where we might want to put that into place here. Yes, this would be an area where we do it. You know the other thing about referrals, since you brought it up, Jared, if I ask you for a referral and you say I think Julia Patrick might be a major gift donor. You know what I'm going to do. I'm going to say would you please introduce me to her. Yeah, think of all the time that saves in getting to a prospective major donor. Yeah, it's just an I love that method as my number one go to method there are others certainly that are just as effective but that is really a powerful way, since you brought up referrals. Well, do you think some people might think that's too intrusive that they will say, Oh, I'm not comfortable doing that. I'm just thinking devil's advocate here. But I'm curious if you've seen some pushback. Oh yeah, of course people are going to say, Oh no, I don't want to give you names of people who are in my network. And that's okay. You know, with our board members with our major donors, we are so respectful. And so if they say, I don't want to do that. I don't feel comfortable do that. Certainly, we're not going to keep pushing them to do something they want. But you know, I think as we get to build the relationship with our board members and our major donors, they're going to begin to trust us hopefully, and they're going to feel comfortable in doing that for us. Absolutely. Well, and I'll say that and I do a lot of board training and a lot of board work. I believe that this is one of the problems that we have with our boards is that we don't explain this. When we're onboarding or even interviewing prospective board members that this is a part of their responsibility is helping us make those introductions and cultivating those relationships. When we're just specifically talking about the board. Yeah, this has got to be something that our boards understand is a part of the responsibility. So I'll get off my soapbox. Yeah, absolutely. It gets me all riled up hair on fire moment. I've lost some height. I just saw three inches go down. I can't afford to lose any more hair on fire. Let me tell you. So, because I don't want to join Jack's club. No offense. I love being a ball man it's great. Okay, now we've talked about this and we're navigating towards cultivation, which is another big phase. Talk to us about that because I think this is where I sometimes feel like there's an overlap and and how do we know when we're from when we want the first phase and we're moving into cultivation. So after we've done that pre approach and we've we've we've figured out lots of things about their interest their motivations, their values that kind of thing. Now we move into cultivation and the two phases that from the cost selling cycle that fit into the major gift fundraising cycle in cultivation are approach and need discovery what we call in the cost selling cycle. So approach is where we set a meeting. Now we've understand we've maybe anticipated some of their questions, etc. We discover and try to understand that's why it's called discovery. Try to understand what the donor or prospects interest is in our cause in our programs in our services. And then we try to make a great first impression. So some of the things that we like to say in cost selling is make eye contact. This is really so important for me. I don't care whether it's in the fundraising or just when I meet people, if they're not making eye contact with me. It makes me feel kind of strange shake hands like you mean it maybe we're not shaking hands anymore if it's a fist bump, you know, do it like you mean it if it's an elbow bump whatever it is, make sure you meet it. And here's something that I really urge everyone to do. Forget the traditional greetings during this approach. Everyone asked how are you doing. Do we really want to hear how they're doing. Start with a more interesting question. You know something that will get their attention, as opposed to that traditional, how are you feeling this kind of thing. During the second phase of this cultivation process. This is where we were where we discovered their needs, the donors needs. How do we do that, we do that to really important ways. One, we ask open ended questions, and then we listen to their answers with this is how we begin to understand their gifting motivations. That's the heart. I we say this is the heart of the cost selling cycle. And of course, before we do any of these things we want to rehearse them. Okay, I've got to know. What else do you recommend we say instead of how are you doing. You know, sometimes you know what works for me. I look around their office if they have photos out I may ask them questions. Oh, is that a photo of your son's high school graduation, or is this from a, it looks like you went on vacation somewhere. Sure. You know, where did you observe your surroundings observe. Certainly during the pandemic, I find myself off. How are you guys doing. I always ask, how are you doing, because we're in the middle of the pandemic, you know, and so that is really an important question. But you know, do we, you know, I mean, I think, if someone says we know this, how are you doing in someone answers, we know this morning I had an argument with my dog. You know, and because she wouldn't eat her food, or she didn't want to go potty outside or whatever it is, or I had an argument with my children because they wouldn't eat breakfast. I mean, is that really do we really want to hear all those things. I mean, I don't know. Right. Yeah, and it's really just become the, the custom question and I there's been so much conversation about, and as the person even answering honestly so I love being aware. And I was just thinking if you do meet in person, you know, something with that could be, you know, did you get here okay was the traffic alright, you know, just something that's not that standard and we're all accustomed to answering. I'm curious, Jack, how much in addition to the pre approach and the prospecting. Do you depend on Google search right and maybe some wealth mining or data mining information how much of that do you do in addition to this to this meeting. So definitely Google, you know, internet searches, you look at social media, you can find out a lot about people on social media, LinkedIn, Facebook, Instagram, lots of information out there to help you prepare for that approach. And it's also a great way to find out about their needs, what they're interested in. You could look at public records on Google, you know, if they get to other nonprofit organizations. Definitely look into your own CRM your customer relationship database, because there is where you're going to find a lot of information have the attendant events. You could start your conversation by asking them. Hey, I noticed that you came to our gala last year. You came to an open house. What was your impression of that there's that open ended question. What was your impression of the work we do. All of those open ended question closed ended questions really are very short responses open ended questions help us build relationships and at the heart of cause selling is relationship building. To follow along with that, you know, the relationship, undoubtedly, I'm thinking here based on the conversation that started this, this nonprofit power week out yesterday. You know, these are really people that we should already be knowing. Right. I mean, it might be that you are new, you know, as a development person are new to this individual but don't you think that that's probably a fair assessment to say, these folks that we're going to be talking with they already have some sort of relationship with us. Some of them do some of them may not, you know, I remember in my own career Julia when you know I worked for an animal welfare organization and you know several communities have more than just one animal welfare, they may have the Humane Society and they may have like a foundation for rescue animals or whatever. I would go through the records of other animal welfare organizations and find names in there, who I was not familiar with, had not been giving to our on animal welfare organization. And then I would start my research on them to see if they had a good fit. We knew that they already gave to animal welfare. So now how do we get them to understand about our program. Interesting. You know, makes sense, especially if you're thinking about actually working this and expanding it. And one of the things I want to touch briefly on, because you had some really interesting comments yesterday about defining for your organization, what that major gift was. One of the things that we ended with right before we left was, do you identify with that prospective donor that they are a major gift. This would be a major gift. Right. And I would say, yes. Yeah, you said that and I was fascinated and I'm wondering if this dovetails to the need discovery piece where it's like a donor wants to be considered a major gift. Right. Yeah, totally I love this. You know, we say it we say all the time and constantly treat every donor as if they're a major gift donor. Yeah, with that same level of respect and care that you would treat any donor and that's true. I remember working just briefly I remember working and people in a faith based organization and older people retired people would send me to $1 bills. Yes. But that gift was as meaningful to me because it was a gift of their heart. It was a gift of love as a $10,000 gift. Okay, so, so that that's number one. I think it's really important when we say if I'm meeting with a prospective major donor and I say, we are asking a small number of people to make to step up and make this major gift. I am creating an exclusive group of people, and I'm asking you to join that exclusive group group of people by making a significant gift, a major gift that will have significant impact. What an honor that is to ask somebody, even if they can't make that major gift. It's an honor to be asked. That's the way I look at it. Jack, you hit on something that I love in the philanthropy world is receiving that recurring gift from someone and and I just brought back so many fond memories of a check that has, you know, scribbled handwriting, maybe $5, $10, but kind of like that tithing to the organization. And it is just the sweetest, best, you know, gift and I always, you know, look forward to seeing those in the mail. I think that's just right. It's beautiful. I think so many of us have served in this role and have been honored to have a similar experience, I think is is fantastic. Now, I wasn't on yesterday. So thank you Julia for catching me up to speed and I am curious if you touched on this yesterday and if not perhaps we can dive a little deeper today. A major gift. Is that defined as a one time gift or consecutive so for instance, you know, working with an organization that currently their major gift is 2500 and I really think that they have the possibility of taking it to 25,000 big jump. However, my understanding is that that would be a 25,000 or whatever your major gift definition is over the course of a set amount of time and I'm curious if it is a one time. Here's the big check, or if it is more of that definition, you know, over a given amount of time. Good question because we didn't talk about that we didn't talk about duration, we talked we spoke more about. It's like a one action so yeah really good question Jared. Yeah, you know I think it could be. First of all, a one time gift is still a major gift. But here's where our professionalism and where the cost selling cycle works so well in that kind of innovation part that approach and that need discovery is to keep them giving. Yes, to make it a recurring gift if you're doing it right. If you're really cultivating them along the lines of the two things that we talked about in cost selling, then they're going to come back. And then I know you're going to talk about stewardship later this week. That is really key to getting that recurring gift. Really, really interesting. You've talked about a lot of things that for our viewers that might have just joined us or have not fully engaged in the cost selling cycle. So thinking about some of those back episodes that we have where we had Tony Bell on and we went through step by step with with a lot of depth. That might be something really to revisit and and allow yourself to get back into some of that knowledge in that process because it fits so beautifully with what it is we're talking about. And again, this is a full week of really diving into this exclusively with that concept. Yesterday was fascinating to talk about what a major gift is. And I think that you just spelled a lot of myths for me. And being asked and asking, having sat on both sides of the desk. I was like, wow, I mean a lot of light bulbs went off Jack and they had they continued throughout the day. So I appreciate that you and Pearl Hogan were on. We had two documents that we offered to provide everybody and they were specific graphs and systems for defining what a major gift is. And so those are available. And really, really super interesting. We're going to continue this conversation throughout the week. We're going to be talking more about the prospecting piece of it. How you steward these folks and this information. What does that mean with the relationships, and then we'll follow up the full week with the main man himself, Tony Bell, answering questions that have already started to come in. And they're very, very interesting questions. And so we will, Jared will actually be with him on that day. And we'll be talking about how this dovetails to the world of fundraising when it comes to major guests. This has been fascinating and I'm so appreciative Jack, that you would come on and talk about this. Really, really interesting. For those of you who are living in this world or want to engage in more relationships with major gift donors. Drop us a line let us know you're thinking what maybe questions you might have, because again this is an amazing opportunity to spend a full week on this. It's fascinating. And I will be back tomorrow. Yes, you will. Thank you so much. And for those of you that might have questions. If you join us live you're welcome to use the Q&A as we are live an episode. And if you prefer you can send us an email there's many ways and how you can get in touch with us but the American nonprofit Academy. On that website you can submit information questions Twitter is another platform so feel free to reach out to us if you'd like for us to add in a question, perhaps for Jack tomorrow or for Tony on our fry yay ask and answered. More than happy to address those as long as we get them from you so thanks again. It's amazing. I want to put up here on the screen. Jack's information, because really an interesting voice to have, not only somebody who has had a successful career in this very topic, but also you are a lead trainer was for CFRE correct. Yes, I run a study group for that. I'm a big fan of CFRE, and I run a study group for them. Awesome. Cool. Well, I love your perspective because it's really something that I think with as we mature, you know, in this process of being successful fundraisers being competent fundraisers and really aligning our donor investors to our missions. It has to be more scientific, it can't just be so charismatic and get filled it's it has to have some science behind it. If we're really going to be successful and so, Jack, this has been an amazing opportunity for us to have you with us and be really be able to get into your mind. Again, if we haven't met, I'm Julia Patrick, President and CEO of the American nonprofit Academy been joined by Jared Ransom, CEO of the Raven Group, who's been my co host we're now moving into our third year of this. It's really an honor to be able to get the great minds of people like Jack with us to discuss these amazing things. We also want to thank all of our presenting sponsors about you, we would not be here, having these robust discussions and Fundraising Academy folks who told the story yesterday, Jack, Jared, and we kind of talked with with the fundraising Academy folks and said, we've got this crazy idea do you think if we did a full week of just one topic, anybody would watch and they're like, yeah. Absolutely. So that's, that's where we are today and it took us, you know, almost a year to put this together and get this formalized because we had so much that we wanted to talk about, and we had so many people asking us questions about this very daunting major gift topic. And so I think that what I've been learning from you Jack is that it's something that we don't need to be so fearful about. Oh right. But we need to be strategic about. Yes, absolutely. Yeah, yeah, I, I'm not, I don't think we should ever be afraid to ask people for money because we honor them. We want them to join with us in in doing something really important in our world. Absolutely. That's a cool way to end this. Well, it's been magical. We've got a lot more to talk about. It's been a journey already to understand what these processes can look like and how they can be natural. I think Jared and I have both been very amazed at the natural progression of the cause selling cycle, and that it takes away some of that. Well now what do I do and some of that anxiety, and that if you can just follow through and understand, I think it's really an amazing thing. Before we sign off today I've got one more quick question for you and maybe it's not that quick but we don't have much time left. Okay, and you mentioned Jack about the CRM issue about pulling people, you know pulling data and understanding who you're working with who's worked with you in the past. I'm wondering if some of this information can be generated and back into those those data, that data process. You know how you know I mean briefly because I know we're running out of time. How you use your database. The first thing I would do is determine what a major gift current donor looks like. By looking in your database. Who are they what do they look like what causes are they giving to what's their linkage to your organization what are their interests, what are their motivations. Once you understand your current donors, then go out into the world and find other people who have those similar traits. Love it. Wow, well that's a magical way to end this segment. We're really excited to have you back on again tomorrow. We're going to deep take a deep dive even further into the cycle. Set you up I think really well with a great and confident foundation for what we're talking about major gifts. And as we end every episode we want to remind all of you and ourselves. Stay well. We'll see.