Major Gifts: Preparing For & Handling Objections

by Mike Perkins, Senior Consultant
Petrus Development

(This is the final article in a series focusing on the basics of major gift giving.)

Years ago, I learned an essential fundraising lesson: responding to a benefactor’s objections or concerns is an expected, and critically important, element of each major gift ask.

Our Vice-President for University Advancement, accompanied by the university’s Chairman of the Board of Trustees, departed our office full of hope and excitement, setting forth to ask a long-time and very generous benefactor to Chair our large comprehensive campaign and make the multi-million dollar lead gift. It was a sure thing! Two hours later, the VP returned, calling her staff together to deliver some bad news: the benefactor had declined the Chair position and said yes to a gift of $100,000. She took responsibility for the results, admitting to two mistakes: first, she had assumed that the benefactor’s past giving record guaranteed a yes to this ask for this project; and second, she did not properly prepare the Chair of the Board to respond to objections from the prospect. She encouraged each of us to learn from her errors.

When we solicit major gifts, on average only ten percent of prospects will respond with an immediate “yes!” Five percent will offer a flat, “No.” Fifteen percent will offer a lesser amount than requested, and seventy percent will want to consider the request for at least a few days before making their decision. Most prospects will respond by expressing concerns or objections. Their concerns are what make each ask unique. Our preparation and response to their concerns determines whether our beneficiaries are well-served and our organization’s mission is fulfilled.

As emphasized in last month’s article in this major gift series, “Making the Most of the Face-to-Face Visit,” we must be attentive to the benefactor, both listening and observing in an effort to learn more about him or her. The information we gather in cultivation visits prior to the solicitation enables us to prepare well for any concerns expressed in response to the ask. For example, if we learned that his or her daughter has been accepted to an Ivy League school, we prepare a response for that concern because we can expect the client to voice it after we present the opportunity to support our project with a major gift.

Preparing the Ask Team

Prior to the solicitation, it is wise to gather the ask team in advance and prepare for every possible concern or objection. Most major gift solicitations will include two or three persons who know the prospect well. Make a list of everyone’s thoughts on what the prospect might say and prepare your responses accordingly. Rehearse the ask and the team’s responses to every possible objection. Establish clarity regarding which team member will address a specific concern. Train your team so that each person listens to the prospect’s concerns and is attentive to their tone of voice and body language. Teach patience so that the prospect voices concerns uninterrupted, and teach your team to mask their emotions so that the prospect perceives that his or her concerns are well-received.

Responding to Concerns

When the prospect is finished speaking, your team should respond to each concern with passion and confidence. Take your time. Closing the gift requires patient persuasion.

Common concerns often revolve around these general categories: the ask is too high; fear that assets are insufficient to make the gift AND live well in retirement or care for their families; the timing is wrong; the ask is for the wrong project; they do not support the current administration of your organization; they are already giving to many other causes; they need time to think or to discuss the gift with their spouse or advisors; the economy is not conducive to a gift of that size at this time; and, finally, they’d feel more comfortable making a smaller gift.

Your response should follow these 10 key concepts:

1.  Thank the benefactor for his or her past support, leadership and honesty.

2.  Use inclusive words such as “our organization” or “our shared vision.”

3.  Do not argue or try to be overly persuasive.

4.  Share your insights about your own decision to give or other donors who had the same reaction to their asks, but ultimately made a gift.

5.  Tell the prospect exactly why you are suggesting this gift level at this time, for this purpose.

6.  Stay committed to the ask amount at this moment.

7.  Be prepared to provide alternative ways the prospect can make the gift.

8.  Confidently emphasize your organization’s priorities and the need for many gifts to fund these priorities.

9.  If the prospect requests more time to consider the ask, make a definite appointment to meet or speak again so that you control keeping the ask alive.

10. Encourage the prospect to share the joy of giving by consulting with their family members and legal or financial counsel.

Following these principles, your responses might sound like this:

Prospect:  “That’s a lot of money.”
Team:    “You are one of only a few people we can ask for a gift of this magnitude, and you have expressed to us your vision. We believe this project fulfills your vision for our future together.”

Prospect:  “We don’t think we can do this. Our daughter wants to go to a private school, and we also might have to cover my father’s medical bills.”
Team:    “You must be so proud of your daughter, and we appreciate your honesty in sharing your concern for your father’s health. We will certainly keep him in our prayers. Perhaps we can share with you some ways you can structure your gift so that you can provide support for them while also supporting your vision for our future. Apart from those manageable concerns, how do you feel about our proposal?”

Prospect:  “I have been waiting for the stock market to bounce back and until it does, I’m not in a position to make this type of financial commitment right now.”
Team:    “I know how you feel. I’ve been watching the market, too. But what is important right now is that you intend to make this gift in the very near future. We can work with you so that you can fulfill your pledge contributions when the timing is right for you. We are hoping to get our strongest supporters on board so we can build momentum as we ask others for their support.”

Conclusion

As you receive and respond to concerns voiced after a major gift ask, you and your team need to be open and honest with the prospect. Thank them for their time and support. Listen carefully and respond accordingly. Attentive listening is the ultimate sign of respect for our relationship with a benefactor. Respond thoughtfully, offering alternatives that meet the benefactor’s needs. But stay committed to the ask amount even when the benefactor contends that the amount is too large or that he or she had a smaller gift in mind. By listening and making professional suggestions, you can keep the dialog open and close the gifts that can transform your organization now and ensure its future.
           
For more information on major gift asks, I recommend The Ask by Laura Fredricks, parts of which were employed in this article.

Mike Perkins is veteran fundraiser with 26 years of experience in university development, not-for-profits, and educational institutions and a Senior Consultant for Petrus Development.