MEMO

CLIENT: The New Mom Project (TNMP)

CAMPAIG Annual Campaign, 3 Year Fundraising Plan
N:
Re: Individual Major Gifts Plan
To: Gwen Broda
CC: Ibrahim Inayatali
From: Chelsea Dowson
Alex MacDougall
Holly Groeneveld
Colleen Edwards
Sarah Law
Date: April 16, 2017

Executive Summary
TNMP is a Toronto based charity, that distributes baby boxes, filled with
necessities for newborn babies to new moms and families who are at-risk or
low income within the GTA. TNMPs current funding portfolio is made up of
grants, events and direct marketing (mail and online). Currently, TNMP does
not receive any major gifts.
In this plan we provide suggestions for TNMP to implement a major gift
strategy into their fund portfolio. We suggest best practices, and also
consider some modifications to best fit their needs as they develop their
plan. We suggest setting the major gift level at gifts of $500 or above, and
provide examples of solicitation and recognition techniques based on this
suggestion.
History
TNMP has not yet begun to develop a major gift plan to integrate into
their fundraising strategy. Major gifts can seem very daunting, however, are
a form of fundraising that has a high rate of return. Major gifts are essentially
relationship building, and matching aspects of the organizations mission to
people's passions, and if done effectively, can result in large gifts that can
make all the difference for a charity.

Policy
Currently, TNMP does not have a specific set of policies or guidelines
that they can refer to when negotiating a major gift with a donor. Having
policies in place is a fundraising best practice that is strongly suggested so
that if a donor wishes to donate a large sum but has very unreasonable
conditions (ex: influence on programming, or naming rights), TNMP has
something to turn to as a reason not to accept the gift with the conditions
attached.
In order to start a major gifts program, its important to have a rule
book or manual in place to set a standard. Establishing a plan increases
efficiency by reducing redundancies, minimizing errors, and making the
evaluation process easier. TNMP should create a manual so that major gifts
volunteers can follow a template based on best cultivation and solicitation
practices. The manual would also outline different levels of giving and the
opportunities offered at each level and how to respond to the donor based on
their gift level.

Tactics
Cultivation
Donor cultivation is basically building a relationship with a prospect,
and increasing their knowledge of and affinity with TNMP. Because TNMP will
likely be setting a lower level for what they consider to be a major gift, the
process will likely be very short. For organizations seeking significantly larger
major gifts, the process can take anywhere from 3 to 24 months based on
industry standards. The solicitation phase is the point in which you ask a
prospect for financial support and they become a donor until the ask is
made, he or she has to be cultivated.

Creating a Plan

It is beneficial to develop a plan that that will provide general

guidelines for approaching a potential major gift donor. This plan can be
adjusted as needed depending on the prospect, timeframe, etc. Your plan
should account for many variables, including the answers to questions, such
as:
 What does TNMP consider to be a major gift?
The term major gift is flexible based on donor support, giving history,
and overall revenue. As TNMP is still a young organization, with a
relatively limited donor base, we suggest that TNMP consider a major
gift to be gifts of $500 and above.

How will TNMP develop a relationship with the prospect?

It is beneficial to determine what sort of interactions would be
appropriate and necessary for TNMP to carry out in order to receive a
gift. This would ensure consistency between donor interactions, and
provide a guideline for the individuals carrying out the interactions.

It would also be beneficial to have a clear message and case for

support to present to potential donors. Donors, especially those giving at a
higher level want to ensure the effectiveness of their gifts. This will be
addressed in the Strategy section of this document, as the proposed The
Baby Book would be able to provide cases for multiple levels of giving.

Developing a Relationship

Once you have a plan in place, and a potential prospect, its time to
start building a relationship with this person. Since the major gift level for
TNMP is set relatively low, the process for securing a major gift will be less
involved, and require less time than other organizations with higher major
gift levels. Especially since TNMP is just starting to develop a major giving
plan, their initial major donors will likely be discovered through their
networks of advocates and volunteers, and the initial need to develop
familiarity and linkage with the organization may not be necessary. But, as
the plan develops in scale, TNMP will need to be prepared to put effort into
discovering donors who may have interests that align with TNMPs mission
and programming, and TNMP staff and volunteers will need to develop a
relationship with this individual; familiarizing these prospects with the
organization and developing a case as to why this individuals interests
should lead to financial support.

Tracking and Analysis

No matter the scale of the plan, or number or prospects, it is lucrative

that TNMP maintain records tracking actions and interactions with prospects
and donors, as well as recording any notes that may provide useful
information for acquiring a gift. There are many options for Customer
Relationship Management systems. TNMP could invest in a system like
Raisers Edge, but for the size of the organization, this expense is not
necessary at this time. A Microsoft Excel spreadsheet, or Microsoft Word
document would be adequate for maintaining this information.

Since the entire cultivation process has been tracked, you can evaluate
and adjust your plan based on successes and failures. TNMP will begin to
develop best practices for soliciting major donors based on what works
specifically for organization. For example, you and your major gifts
volunteers will begin to develop a conversation style or method for leading
into the major gifts discussion with a prospect.

Strategy
In order to secure larger gifts, we suggest TNMP develop a booklet of
gifts, at different support levels outlining the impact of their gift. Interim
Place, a Toronto-based womens shelter, currently uses a similar model for
securing major gifts1. By providing potential donors with an example of the
impact of their gift, they are better able to envision the benefits that their
gift can provide. These gift opportunities also provide miniature cases for
support for TNMP programming. They describe the need for funding, and the
solution that will result from a donation. Though, there cannot be a strict
reliance on the booklet of gifts, some donors may wish for their gift to
support in different ways, or an opportunity may be presented to grow
TNMPs programming. The options should not limit the gifts provided;
solicitors should be prepared, to converse and discuss the other
opportunities that a gift can provide.
If the donor does chose one of the options, stewardship can be guided
by that choice. It can be based on, and directly report on the families
impacted by the specific gift.

The Baby Book

For the opportunities book, we suggest considering a theme of The Baby
Book. Gifts could follow the pattern of Babys First with each option
adapted to TNMPs specific need. This theme fits well with TNMPs clients
moms and babies, and also has a sentimental value. Many parents document
their childs milestones in baby books. These are cherished records of history
for many families, and to present gift levels in this way will likely evoke
memories of the donors own childrens, or children in their lives baby
books. Also, without a gift, for some of these families, these milestones may
not be achievable, no matter how ordinary they seem.

Below we have presented some potential opportunities for giving to

include in The Baby Book.

1 http://www.interimplace.com/ways-to-give.html
 Name Summary of Case for Support Valu
e

This generous donation will provide 5 new $500

mothers and their babies a brand new baby box
Babys First Time
with all the fixings inside to make sure that
Home
each precious newborn has the best possible
start in life.

As you know, summers in Toronto are hot! In $600

order to keep the little ones happy and health
all summer long some basic essentials are
Babys First
needed such a light clothing, hats, sunscreen,
Summer
and water toys! This generous gift will provide 6
new mothers with all the summer essentials to
keep their little ones cool all summer long.

As you know, Canadian winters are unlike any $700

other. They can be frigidly cold and dangerous
without proper dress. Coats, hats, boots can
Babys First Winter
become very expensive! Your generous gift will
ensure that 7 new mothers and their babies will
be warm and happy all winter long.

This donation will provide 10 new moms and $700

Babys First Car their babies with a car seat to ensure that the
Ride newborn has a safe ride home from the hospital
and every day after that! Safety first!

This gift will provide 5 new mothers and their $100

babies a brand new stroller. Whether theyre 0
Babys First Walk in taking a walk in one of our beautiful local parks
the Park or a simple stroll to the grocery store, this is an
essential purchase for any new mother and one
that most struggle to afford one.
Prospects

For the major gifts plan, it is important to look to those who have the
capacity to give large donations, and an interest in the organizations work
and clients served. Therefore, for the purpose of this plan, major gift
prospective donors could be nurses, doctors and health professionals. People
who work in the health sector will feel a close connection to the TNMP cause
as it promotes the health and wellbeing of infants, and many may even
witness the unfortunate consequences of unsafe sleeping arrangements and
when families cannot afford the necessities for raising a healthy, happy baby.
Based on information about health professionals income, they would be able
to make a major gift, based on the level set of $500. This does not mean that
TNMP should never look at other professionals or individuals as prospects,
but it is a good place to start in terms of major gifts. If TNMP truly speaks to
an individual, and that prospect strongly believes in the mission and impact
TNMP has, that person will find the money to give a major gift.

Pipeline

Although, the importance of a donor database has been addressed in

previous parts of this plan, when it comes to major gifts it can also be helpful
to utilize your donor database as a method for tracking current donors
potential to give. Databases, such as, Raisers Edge, can make this tracking
very easy. Users can set up reports, and be notified of gift increases or when
donors give at or above a certain level. Utilizing Excel is feasible as well. But
it will require more time and vigilance to check records. If using Excel the
individual entering the data will need to track and record these changes, and
identify potential donors manually.

Once these individuals are identified they can be stewarded through

what is called the donor pipeline. This is a term that refers to moving
donors from lower lever giving, increasing their gift size or frequency, to
major donor status. It is very beneficial to be able to identify major donors
within your own database, as it is likely that they will already have strong
ties or interest in the organization.

Recognition
TNMP currently has an office space that is utilized for building the
boxes, and as office space for Gwen. The current programing, is boxes that
are delivered to clients. Since this provides few physical spaces for naming
opportunities that clients, donors and the general public would be able to
see, naming is not ideal for TNMP. Instead we suggest creating a virtual
donor wall. The wall would be hosted on TNMPs website. It would also be
very useful to identify particular giving levels. For example, the levels could
be based on childrens literature such as Goldilocks and the Three Bears.
Recognition Gift Value
Level
Baby Bear $500 - $999
Mama Bear $1000 - $1999
Papa Bear $2000 - $4999
Goldilocks $5000 and above
These levels would be the lifetime gift value of the donor, so it is
important to create levels that are able to accommodate donors as their gifts
continue year after year, and grow in size. The recognition levels also can be
used to create clear guidelines regarding recognition and stewardship.
Recognition for major donors cannot be limited to having their names on the
donor wall. It is also very important that they receive adequate stewardship
and recognition based on their gift size, and these activities should be
consistent for all donors at this level. Here is an example of a brief
stewardship plan based on the levels above:

Recognition Level Stewardship Activity

Baby Bear Thank You Letter and Receipt
Thank You Call from Executive
Director
Name on Donor Wall
Stewardship Letter at 3 months
(talking about the impact of gift)
Mama Bear Thank You Letter and Receipt
Thank You Call from Executive
Director
Name on Donor Wall
Stewardship Letter at 3 and 6
months (talking about the impact of
gift)
Christmas Letter
Papa Bear Thank You Letter and Receipt
Thank You Call from Executive
Director
Name on Donor Wall
Stewardship Letter at 3, 6 and 12
months (talking about the impact of
gift)
Card from a Baby Box Recipient
Option to help deliver boxes
Christmas Letter and Ornament
 Goldilocks Thank You Letter and Receipt
Thank You Call from Executive
Director
Name on Donor Wall
Stewardship Letter at 3, 6 and 12
months (talking about the impact of
gift)
Card from a Baby Box Recipient
Option to help deliver boxes
Christmas Letter and Ornament
Meeting with TNMP Director
Special Guest at Mothers Day
Appreciation Event

Revenue
The revenue goals of this plan are set based on the moderate growth
goals set in Summary of Needs, Case for Support and Outcome Definitions.
The year to year growth of this goal is 15% to allow for a 10% growth in
clients served, and to account for inflation (2.07%)2 as well as any other
additional expenses. A summary of these revenue goals can be found in the
appendix. We suggest that major gift revenue account for 30% of TNMPs
annual revenue. This may be lower in the first year or two as TNMP develops
and establishes a system of major gift solicitation.
As TNMP develops its major gifts processes the gifts received may be smaller
and fewer. But as recognition of the organization increases, and the donor
base grows, the number of potential donors will increase. The key to revenue
from major gifts is donor relationships. Therefore, to ensure revenue donors
should be tracked, stewarded and recognized for gifts. As these relationships
develop TNMP, and its volunteers, will be able to identify characteristics that
signal the opportunity for a major gift.

Expenses
The primary expense for this plan is time. Acquiring major donors
requires a significant amount of relationship management and tracking. This
will require time to do effectively. But this time is not unmanageable. We
suggest TNMP put aside one hour per week to commit to major gifts
relationship management. This time could be utilized to send emails, make
phone calls, record notes about previous meetings and update the donor
database.

2 https://www.statista.com/statistics/271247/inflation-rate-in-canada/
Appendix

Major Gifts Revenue Growth Year to Year

Year 1 Year 2 Year 3
$2,387. $2,437. $2,489.
Survival 76 90 10
$8,130. $8,537. $8,964.
Continuation 90 45 32
Modest $10,530. $12,110. $13,927.
Growth 90 54 12
$29,880. $35,857. $43,028.
Stretch 96 15 58