House Party Best Practices

Securing campaign gifts with Intentional Gatherings

House Parties can be an excellent tool for fundraising in project campaigns, capital campaigns, endowment campaigns and more.

House Parties are fun, non-threatening and very effective.

Principals at Clemons-Associates have enjoyed a 71% close rate using this amazingly productive tool [feel free to read that point again if you want to :)].

Summary:

Targeted constituents receive an invitation to come to a ‘house party’ – typically hosted by someone they know - at a private home, country club, place of business or private venue.

The invitation makes it clear that the evening will be

a fundraising event.

Participants arrive and are served some refreshments.

Participants sit through a brief but compelling presentation.

The Host, a Peer, Staff Member, Board Member, SME or known Community Leader –someone articulate, enthusiastic about campaign and respected by participants – stands up and asks attendees to make a contribution. They remind prospective donors this is a very worthy cause and multi-year pledges are welcome.

Good Idea: The Host or a Peer announces they are making a gift and challenges each individual to dig deep...make a “stretch” gift.

PRO TIP #1: Having the Host make the ‘ask’ (ask audience to make a “stretch” gift) seems to have a much stronger appeal than a salaried Staff Member

PRO TIP #2: Have the Host ask that each participant schedule a one-hour coffee or lunch meeting with the organization’s key leader/campaign committee member. The post-presentation one-on-one meeting covers questions, due diligence and can result in a larger gift.

What is the size of a House Party?

• Intimate fundraising event; 15-75 people (not a giant gala)

• In a private home (can also be a country club, restaurant room, museum venue, board room or office space)

• Two-hour maximum (one-hour window is preferred) Sample timeline:

30-45 minutes of dining, beverages and fellowship

10-20 minute presentation and Q&A

2 minute “ask” (call to action; appeal)

20-30 minutes for more dining, interactivity and fellowship

PRO TIP #1: On serving alcohol: Follow the custom and culture of the community and the organization

PRO TIP #2: It is a fundraising myth that donors give more money when they are drinking/intoxicated

1) Let the Planning Begin

Get Organized

We are asking the Host to ‘sponsor’ the event (open up their home, order appetizers, provide wine/cold beverages, allow access to their SMART TV or big screen…), but there is heavy lifting BEFORE you show up to event.

Staff/Campaign Committee should invest time, resources and talent on preparing, orchestrating ALL House Party elements so as to make the evening a smashing success. Read on.

Decide on the Concept and Set a Goal

Decide on a fundraising goal. Consider how many people

will attend, how much they may be willing to give and what is a comfortable range to ask for. Some people will decide to suggest a donation amount while others will allow guests to decide on their own amounts. Just remember,

someone during the evening has to ASK (very specifically make the ASK!) or guests may not be inclined to donate.

Choose the Event Venue

Creativity is key when planning the event. Think about what type of event fits best with the community and what timeline compliments event objectives. Potential formats are:

· Cocktail party • Dinner party

· Wine or Beer tasting • Pool party

· Watch party • Backyard Grill Out

· Appetizers/Beverages • Board Room

PRO TIP #1: Have the event at a venue owned or frequented by your LARGEST prospective donor (e.g., six or seven figure target)

Pick a Date

Is the event a better fit for a weeknight or weekend?

Ideally, plan communicating date at least six weeks in advance to allow plenty of time for planning. If there are key guests targeted for attendance, run dates by them first to ensure they can come. A co-host can share in the planning/funding and also bring in additional guests.

PRO TIP #1: Be mindful of summer travel schedules, holidays and other significant dates PRO TIP #2: The party may benefit from corresponding with a watch party for the “big game” or alumni school contest PRO TIP #3: If you are a faith-based organization, consider having this event ‘replace’ or augment Wednesday evening services (but remind pastor of the dynamics and the campaign’s desired results.

Make the Guest List

Once the type of event is decided, begin working on the guest list. Using organizational database names or the campaign’s profiled targets, aim for individuals in a 60 – 200-mile radius (if they live farther, invite key guest to spend the night, suggest nearby lodging or even make arrangements).

PRO TIP #1: Your best prospective attendees are those who KNOW THE HOST and have the propensity, capacity to give

Invite

Use a simple, straight forward approach and keep the details simple (what, when, where and time). Consider using printed invites (postcards are popular and inexpensive) AND electronic (email, text) invitations.

PRO TIP #1: Use the branded/themed campaign stationary

PRO TIP #2: Personalize each invitation (hand write name and mailing address on envelopes)

PRO TIP #3: Hand write a personal note on invitation “we look forward to seeing you!”

PRO TIP #4: Ensure invite details satisfies the schedule of your #1 prospective donor! Make arrangements with their handlers to have target arrive promptly and attentively!

Best Practices:

• Call individuals one week out from Event as a ‘Reminder’

• If prospective donor cannot attend, ask them if they would consider meeting for coffee/lunch to review campaign collateral; consider a contribution • 75-80% of invitees will attend if they are contacted by phone from a colleague (invested volunteer) upon receiving the invitation and reminded about event date, time and dress attire (like a doctor’s admin does before the appointment).

Decision Points

1. Single host or host team

2. Venue: Whose home? Who’s Club? Whose office complex?

3. What time?

4. Theme?

5. Fundraising goal (do we want to set a goal for the

evening?) e.g., Lowest Target Gift per donor: $5,000 over 5-

year period 6. Who/Which party is assigned to track/organize relative a) gifts/pledges; b) follow-up appointments with attendees

Work with the Board, Staff, Consultants, Designers, Exhibitors, Subject Matter Experts to crystalize your organizational need

Know what key points drive home the fact that the campaign is overdue (timewise) in terms of impacting constituents. Make statistical reference to the last six or seven-figure investment into the facility. State that there has not been a comprehensive campaign to fund UPDATES, NEW EXHIBITS, DESIRABLE SPACES…in X number of years and that the public (or your audience) deserves better. Compare your product to a best-in-class peer.

Example:

In the case of the Oklahoma Center for Nonprofit, volunteer solicitors made points like:

a) In the last forty years, the Center has impacted as many as 2,000 nonprofits and its Members annually. But regretfully, the Center is limited to delivering exceptional training and programming for its constituents due to very small and poorly designed training spaces. b) While the Center is graciously thankful for the current property donated by Chesapeake Energy, the Center has ‘outgrown’ this space in the last 40 years. Given Oklahoma Center for Nonprofits is one of the TOP FIVE of its kind in the United States, state leaders and Board Directors are working with the Center’s executive team to move into a more functional, beautiful and naturally aligned space.

TIP #1: Practice and Rehearse. Get comfortable with your ‘story’ and be sincere about identifying the need.

TIP #2: It s a GREAT idea to rehearse the materials and practice on each other (peer volunteers), Board Members, staff or family members so that your 3-4 solid points correctly represent the need. Practice in your vehicle on the way to a solicitation. Practice with a business colleague and convince them that the Case for Support is relevant, immediate and imminent for future success.

2) Present Campaign Materials

Focus on educating, not selling.

The organization has gone through great lengths to consider all aspects of the capital project, endowed programming, the timeline, the fundraising need and the associated campaign goal.

The Committee has worked hard with multiple consultants to develop compelling, inspiring and professionally-designed visual tools – use them. Consider sitting down with a prospective donor and after breaking the ice over a coffee, lunch or dinner, Identify the Need and break out your visual tools. Recommendation:

a) Take out the branded Campaign Folder and begin with the CASE FOR SUPPORT. Discuss the merits of the project and how much time was invested by the Board, Executives and Committee(s). If applicable, mention that several gifts or Gift-in-Kind contributions have already been at play relative to facility renovation, pre-construction cost analysis, campaign development, visual renderings, etc.

b) Move to the VISUAL RENDERINGS and showcase the beautiful elevations of the new facility. Have your talking points prepared to highlight key features of main spaces. Discuss how new spaces are perfectly aligned with Exhibits, Patron Experiences, curated Programming, Training, Member Certification, Storytelling, Advocacy...and will remain poignantly and prominently represented in the updated facility.

c) Have your laptop charged and quickly open to show donor the two to three-minute FLY-THROUGH VIDEO of the soon-to-be improved facility. You can sit back and let the stirring visuals and music move/motivate your donor…or stop film at intervals and point out specific highlights which you feel might be of special interest to your donor.

d) Have donor read or quickly scan LETTER from the CHAIRPERSON or Executive Leader as appropriate.

TIP #1: Branded Presentation. It is a GREAT idea to show the donor the branded and well-designed HOUSE PARTY PowerPoint which walks him through The History, the Vision, current Need, the Impact, and specific Fundraising Elements (giving opportunities) surrounding the campaign. TIP #2: Pre-Meeting Review. It is a GREAT idea to have donor read the CASE FOR SUPPORT (hard copy or online), review the visuals and scan the giving levels/naming opportunities before you meet with him/her. Before your meeting, consider sharing a link to branded campaign elements (website resources) or drop off a completed campaign folder which has all materials ‘tiered’ and professionally represented.

3) Provide Emotional/Psychological Justification

There is magic in the word “because”.

The word “because” is an extremely powerful trigger word. It works better than any other word or phrase to provide an emotional/psychological justification for taking action. And your Ask will not be as successful as it should be if you don’t provide that justification.

Your description of the need sets the emotional stage. You're asking for their help keys the brain to respond positively – as long as there is sufficient justification. People want to help, but there is a hierarchy of needs in their subconscious mind that needs to have a rational underpinning for a yes answer.

The word “because” satisfies their subconscious need to rationalize their decision. Studies show that the last part of “the Ask” – how their donation will make a difference – doesn’t have to be as strong as you think; it should be since the use of the word “because” already provided sufficient justification.

Think of the all-time great parenting phrase “because I said so.” It’s not really a reason except as a reminder of authority, yet it works like a charm. It’s the same authority level the child was just questioning, except now the donor’s mind has a justification for their decision.

TIP #1: Sprinkle ‘because’ into several of your phrases… Example: Donna, because the Oklahoma Center for Nonprofits is a charity near and dear to you and your husband – and because this organization has a 40-year history of elevating all nonprofits on a statewide basis – many donors are stepping up and committing stretch gifts to this important campaign.

Example: John, because we know you love Oklahoma as much or more than any patriot and statesman....and because you have been truly blessed in many business ventures and can be a difference-making contributor, we are hoping you participate in this unique campaign representing 40 years of impactful service to Oklahomans…

Example: Dave, because OKCNP has positively transformed so many lives in so many ways – from learning to leadership, from training to certification – we are hoping you will consider a significant gift to our once-in-a-lifetime campaign.

4) Show how a Donation will make a Difference

Articulate how the donor's gift satisfies a societal need.

The phrasing you use to show how the donor’s donation will make a major difference (and significantly change the organization for the better) is going to vary depending on what type of relationship you have with the prospective donor and your personal approach.

That’s stating the obvious, but there’s a reason for that. If the first sentence of your Ask conveys the right level of emotion and need, then they already know how their donation will make a difference.

So, when you say, “We are counting on you to help us because we need key business leaders (or patriots, visionaries…) contributing significant donations to achieve this transformational campaign goal?” you’ve stated the obvious, but you’ve also called up the emotional need that you covered in the first part of your Ask.

Using the words “achieve our goals” as the object of the phrase serves to return the donor’s mind back to the initial statement of need and its emotional underpinnings. There is no need to say more.

In fact, if this is a face-to-face donation request, use your ‘how their donation will make a difference’ words succinctly; Look the donor in the eye and exude sincerity, authenticity and gratitude.

5) Solicit (Make the Ask)

In simplest terms, ask for the donor’s help in being a DIFFERENCE MAKER…while helping to achieve the campaign goal through generous philanthropic involvement.

So, the essence of an Ask needs to be short and sweet. Aim for a face-to-face meeting, look directly in the donor’s eye and make your appeal (after giving the visual ‘pitch’ time to sink in and resonate). You are simply ‘storytelling’ to an individual who can appreciate the positive impacts made by the organization; don’t overthink the Ask as being a hired gun volunteer ‘fund raiser’. You are a favored friend and presenting an important opportunity. You are an informed and committed volunteer…appealing to another committed community leader about to make a contribution to an important cause that has a significant funding goal.

Before we talk about the close, let’s make sure we’re on the same page when it comes to the Ask. To be clear, mentioning that your organization needs money is not an Ask. Talking about why you need money is not an Ask. Explaining your organization’s financial status is not an Ask.

Specifically defining how much you need, why you need it and then directly asking someone to give a certain portion of that amount—that, my friends, is an Ask. No doubt, you’ve heard that one of the main reasons donors do not support an organization is, “They didn’t ask me to.”

So let’s start on the same page and define an Ask as a deliberate and well-thought-out request to a donor for a specific financial gift.

For the record: An Ask is not about wrenching a check out of some guy’s hand. Your job is to Ask, and it is his/her job is to decide. That takes the pressure off both of you if you understand the role each of you play in the donation process.

That said, there are ways to approach the close of your Ask in order to turn the tide in your favor.

How to Phrase your Ask

Identify The Need – Again, go over the need and appeal to the competitive spirit of a business leader. Tie your Ask back to how you started the discussion.

Example: “Robert, we have a national best in the Oklahoma Center for Nonprofits...but to stay in this position, we need a remodeled state-of-the-art facility to stay ahead of the curve and continue serving statewide Members in the nonprofit sector. The Centered on Impact Campaign goal is significant, and we are counting on you for a substantial contribution. Would you consider a six-figure gift to this campaign in your annual philanthropic plans?”

Use strong emotional phrasing – Paint as powerful a picture as you can while using just a few words.

Example: “Sally, OKCNP has been paramount in shaping the lives of constituents from youth to veterans to financially challenged families fighting a medical crisis. The Centered on Impact Campaign Committee is asking you to invest in the future of an institution that has a successful 40-year track record of positively impacting and improving lives.”

Use the power of collective numbers/donor movement – Paint as powerful a picture as you can with regard to collective spirit, momentum and dynamic ‘mojo’ surrounding the campaign.

Example: “Bob, Oklahoma donors are very generous, and we have raised $7 million dollars thus far in a few short months. While some key leaders have been especially generous, our campaign total is $18 million, and we are looking for key philanthropists with great capacity to step up. We know you have been blessed through several successful business ventures and the committee is counting on you for a sizable contribution. Would you like to see our Gift Table or campaign Naming Opportunities?”

Remember the common fundraising rule, you can NEVER offend a prospective donor by asking for too large of a gift.

Use the power of ego or ‘personal branding’ – If a donor asks “Are there naming opportunities associated with giving levels?”, this is usually a good thing. Be prepared to pull out the Naming Opportunities document.

Example: “Joan, I know we have discussed your potential $100,000 gift but the new and impressive Training Rooms are associated with a $150,000 naming opportunity. I know you to be a humble servant and a generous donor, but the Chairman, campaign committee and our staff love the idea of your (or your family’s) name on this special space for the next century. Your (your family’s) name on this prominent space will be a constant reminder of your loyal and valued contributions associated with this great organization.”

Appeal to the Left Brain (if you have hit all high points in the Right Brain) – If a donor asks “Can I make a pledged commitment over X number of years?”, be prepared with the answer.

Generally, and within many capital campaigns, six and seven figure gifts can be segmented (spaced) over 3 – 5 years whereby donor fulfills gift commitment and takes a tax deduction in sequential calendar years. The Chairman/Committee should set policy in this area but it IS a nice way to trade up donors (larger multi-year commitment) looking for strategic tax deductions (personal or corporate) within philanthropic plans.

TIP #1: Silence. Once you make the Ask, be quiet

A common fundraising industry antidote is “the first one to speak loses”. You are making an important appeal. Give the donor time to reflect on your words, the visuals, the campaign's business case, the associated impact and their giving capacity and pledge timeline.

TIP #2: Ask for Their Help – Be Specific with a targeted dollar figure “Can you help us with a contribution of $250,000…?” Feel free to substitute “me” or “them” in place of “us” if the fundraiser type calls for it, but “us” works best. Of course, this approach demands that you do some personal homework associated with the donor’s capacity and propensity…and know that $250,000 is your target giving level (vs. $5,000 (too low) or $5 million (likely too large).

The crux of this phrase is that it's a direct question and, in particular, a direct request for their help that requires a direct response.

The word “help” is also powerful. As human beings, we are socially engineered from an early age to give help when it’s requested. To not give help when it's directly requested is perceived as “bad” and therefore requires an excuse for saying no.

TIP #3: Focus on emotions, not reasons.

We all like to think we’re logical when it comes to making financial decisions, but if that were the case, brands like Gucci, Louis Vuitton and Porsche would be out of business. People who can afford luxury brands don’t buy them because they need them; they buy them because it makes them feel good.

Your donors don’t inherently need to support you; giving you money doesn’t put food on their table. They do so because they want to—it makes them feel good. It satisfies an emotional need, whether it makes them feel kinder, more significant, more connected or passionately generous. Emotions almost always play a major role in arbitrary financial decisions. So while you might want to use logic and reason in closing your Asks (because logically, the OKCNP organization needs money to remodel or repurpose this vast facility), focus on the emotional aspect of giving and how it will make your donor feel to partner with you financially. Emotional satisfaction is a more compelling motivator.

TIP #4: Focus on them, not you.

You need funds. You have Design, Construction and FT&E bills/loans to pay. You are behind fundraising targets by two months. Guess what? Your donor doesn’t care, nor should he. It’s very easy for those factors to creep into how you approach your donors for money because those are the issues weighing heavy on your mind, but they have no place in your close.

Desperation is the mother of pushiness, and the average donor doesn’t want to feel coerced into giving. They want to be educated and inspired. Instead of ruminating on how much you need his gift, shift your thinking to “What’s in this for my donor?” A chance to be a difference maker? A chance to ‘give back’? A chance to help a great nonprofit in every category? An opportunity to support a cause that’s very personal to him/her? A safe, trusted place to leave a legacy gift? A tax benefit? Change your focus from you to your donors; this will help you close your Ask with less desperation and more relevance. TIP #5: Focus on educating, not selling.

An organization that teaches a donor about a challenge has a much higher chance of success than one that just pitches a cause. For example, don’t use: “

Here’s what we’re doing, will you please write us a check?” Educate. Talk about the impacted patrons, visitors, tourists and Members. Showcase the designs and new spaces. Explain why there’s a need for funding. Similarly, give donors a firsthand experience by inviting them to a personal walk through of facility, meet with the architect, meet with the chairperson, attend an event or get involved in a way that gets them up close and personal with your organization.

Each interaction gets you closer to the final step of your Ask; it’s a chance to deepen your relationship and explore various (or larger) contributions.

TIP #6: Focus on listening, not talking.

This may be the toughest point, but it’s crucial: You must be okay with silence. Once you’ve made your Ask, stop talking. A lot of us get into a mode where we feel the need to convince, as if our donor doesn’t fully understand the need. Or the Ask. And so we keep going on and on, reiterating the same points and asking for the same gift in ten different ways.

But there comes a point in your close when the best thing to do is stop, focus on your donor and just listen. Give him time to respond. He may need to think for a few minutes—that’s perfectly fine.

Or he may have a few questions. Give him time to formulate them. The more comfortable you are with giving your donor space and allowing him to respond without trying to dodge a “no,” the less desperate you’ll seem. Plus, listening will help you understand what his “no” means if that’s his initial answer. Not every no is a dead-end; some mean “not today” or “not that amount” or even “I want to do more.” But you’ll never be able to decipher if you keep trying to convince.

6) Thank them for their commitment (or consideration)

Of course, thank him or her for their time, energy, interest in the opportunity and serious consideration of a ‘stretch’ gift (contribution).

Best Practice Ideas --

Immediately following the meeting or same day:

• Send them home with branded material, business case and all visual renderings

• Send a follow-up text or email reiterating key points that the donor warmed up to

• Send a branded ‘thank you card’ expressing your sincere appreciation

• Have Chairman phone, text or email donor reiterating key points of the campaign and thank them for a) gift; b) consideration of forthcoming gift

• Have a Campaign Committee phone, text or email donor reiterating key points of the campaign and thank them for a) gift; b) consideration of forthcoming gift

Same week/Following Week:

• Send a follow up text or email reminding donor of opportunity and that you are looking forward to their gift being added to total campaign

• Send donor updates/links to advances in campaign or building project

• Send donor a reminder of the five-year pledged contribution window (if applicable)

• Send donor a reminder of the Naming Opps based on gift levels (if applicable)

• Send donor a reminder of tax deduction(s) associated with gift (if applicable)

TIP #1: Be Patient (time can work to your favor)

You have made a great pitch.

If a donor does not answer you with a pledged contribution or gift right away, this could be a GOOD thing. If he or she states, I need to talk to my spouse, fund advisor, CPA or lawyer, this could directly be tied to a large (or much larger) gift – much more significant than a ‘go away’ donation delivered at your meeting.

TIP #2:: Follow Up, Follow Up, Follow Up.

In the next few days, reach out to donor and ask open ended questions.

Offer to have a Campaign representative (Executive Director, Chairman or other representative) walk through any elements he or she is concerned with or considering.

TIP #3:: Practice, Practice, Practice

The final Clemons-Associates tip is that if you feel nervous when making Asks in-person or on the phone, the best way to get more comfortable is to practice. This means running through Ask conversations in your head, practicing in front of a mirror, and holding practice conversations with your friends, staff, fellow volunteers or even family members.

Consistent practice is a great way to get comfortable with making Asks.

TIP #4:: Listen. Stay Relevant.

Like most things in fundraising, mastering the art of the close is about staying donor centric. Resist the urge to push. Listen. Smile. Stay relevant. And make the prospective donor a partner in your conversation, not a skeptic you’re trying to win over. That’s ultimately what you want in your donors anyway.

Craig Clemons with Friend, Philanthropist and President/Founder/Board Chairman of Express Employment Professionals, Bob Funk, Sr.

Seeking expert assistance from seasoned professionals?

Contact Craig Clemons at craig@clemons-associates.com or one of our rock star associates for more details. Clemons & Associates is on standby to help you with brand identity, strategic messaging, campaigns, digital assets and programs/projects.