Let's face it...this is a time when many organizations should be putting pencil to paper to organize a principal gifts program in a coordinated way--with the goal to have immediate, long-term, and remarkable success as defined by everyone's standards.
What is a principal gift? Although there are different standards at different major organizations, it is reasonable to think of them as $1 million or above or $5 million and above at larger and more philanthropically successful institutions. At smaller organizations a principal gift could be $100,000 and above. Given the current economic climate and, in an effort to maximize the fundraising efforts throughout the institution, there is a growing need at many places to systematize more of the activities surrounding principal gift cultivation, solicitation and stewardship.
Many organizations have determined that without such a system in place, opportunities were not being maximized and "money was being left on the table." Those organizations who launched principal gift programs realized an important financial gain for key programs as well as improved satisfaction within their donor base.
Once a principal gift officer is appointed, where do you start?
Establish a Principal Gifts Roundtable: This is composed of all key major gift officers throughout the organization. The goal is to bring systematic review, discussion and implementation of a strategic plan for each principal gift prospect, from cultivation through solicitation and stewardship, resulting in a better targeted, consistent approach to each donor. With such a system in place, one anticipated result is increased success in numbers and levels of gifts as well as increased numbers of gifts at rising levels. This system arms staff with richer strategies to use with all prospects and donors, it establishes organization-wide stewardship strategies, aims to develop a richer list of prospects expecting to close within five years, and promotes increased team knowledge and spirit.
Establish a Donor Council: This is composed initially of four or five donors with principal gift potential themselves to work with a well-respected, engaging leader of the organization. Discussions are held around the key issues confronting the organization. These individuals are asked to be advisors to the leader and ambassadors within the community. Groundwork is laid for each of them to provide additional support to the organization and to help to develop additional opportunities and strategies for approaching principal gift prospects who can address some of the financial needs.
These two initiatives can make a significant impact at a time when all organizations are undergoing pandemic related challenges, that is, when decreasing resources are available to accomplish even greater objectives. Donors who have a commitment to the organization are more inclined to want to be involved and each would benefit from access to leadership as they are more assertively stewarded than in the past.
I have watched organizations with less progressive leadership reject such a plan, which is unfortunate. Senior development officers who are a little more insecure with their work may be threatened by such a venture and prefer to remain in a silo, presenting any number of objections. Nonetheless, leadership should work with them to move the staff beyond such a point and emphasize a goal of maximizing principal gifts a priority.
A principal gift officer who operates with sensitivity should be able to aid in progressing this opportunity and ensure that all members of the Principal Gift Roundtable feel a stake in the results and share in the success. This is not a one person show. This is a genuine team that can change the future for the organization.
Finally, a note about the principal gift officer. There may be someone who is ripe for this position within the organization or there may be a need for recruitment. What would an organization be looking for?
Someone with genuine creativity when it comes to fundraising--this should be demonstrated with a history of rock solid relationships with donors as well as significant experience in securing gifts of $1 million and above (or whatever the threshold may be).
Someone who has the experience of being able to handle the political aspects of this position--where significant gifts will be secured, so will the various organizational components and leaders be vying for the opportunity to benefit from a resulting gift. How one handles this in conjunction with leadership will be important.
Someone who is respected by senior leadership and has significant relationships that have been developed or could be developed with board members--it will be important for this individual to be supported by the organization at each juncture.
Someone who is a good communicator with each of the stakeholders.
There are outstanding performers within the major gifts area who can be successful in such a position. But it is important to recognize that not all good performers at the major gift level will necessarily be successful as principal gift officers. There should be no problem for anyone if that is the case.
Each individual has an important role to play in this type of program, a deep value that talented people can provide at every level. When a principal gifts program is established, sometimes major gift officers can take the lead, perhaps they can be assigned to steer a program in another direction, perhaps there is a specific mission within the group that they can achieve. Meanwhile, they are also working towards their own goals over the course of the year.
When appointing a principal gifts officer, this individual also needs to have an entrepreneurial initiative laced with a strong determination to drive the agenda towards the goal of increased levels of gifts and increased gifts. These are keys to the individual's success, likely shown through past experience. These should be coupled with the ability to understand the full impact of each priority and link it appropriately to the prospects.
As a final note, it is important for principal gifts officers to ensure that they are planning on working at the "right" organization. During the interview process, the candidate should insist on meeting not only with their supervisor, but with others who will have a role on the committee--primarily major gift officers, but perhaps other senior leaders as well who may play a role. It is important to fully understand how they feel about this position and understand if they will be on board or not for the success of this initiative--watching out for those who could potentially sabotage success. It is also important to meet with key leaders, the CEO, and board members who are likely to be involved so that it can be determined if they are "ready" for such a program.
It is not easy to organize a principal gifts program, but the benefits of doing so are significant and will make a long-term impact on the organization in many ways. And getting the best person to lead it takes time and careful assessment. And what a great step for a creative organization to take.