“The Entrepreneurial Museum:

Inviting Philanthropy to Build Contributed Income:

Memberships, Private Gifts and Major Gifts”

James HackneyJim.hackney@fundraisingcounsel.com

Baltimore Basilica, Maryland, USA, 1806

Atlanta, Georgia, United States of America

Michael C. Carlos Museum, Emory University, Atlanta, Georgia, USA

Michael C. Carlos Museum

Michael C. Carlos Museum

High Museum of Art, Atlanta, Georgia, United Staes

High Museum of Art

High Museum of Art

Lexington, North Carolina, United States of America

Davidson County Courthouse, Lexington, North Carolina, USA,1856

Supreme CourtWashington, DC, USA, 1935

For today: What must we accomplish to sustain our museum’s current operations and serve our community well?

AND

For the future: What must we achieve to position our museum for capital improvements and endowment growth that will fulfill our shared vision?

Key Issue

History51%

Art29%

Natural History7%

Sci-Tech3%

General5%

Other5%

Museums!

• 17,500 + Museums in the US• 775 Accredited by AAM

Source: American Association of Museums

Budgets!

Source: American Association of Museums

Under $200,00046%

$200,000-499,00024%

$500,000-999,99910%

$1,000,000-9,999,999

19%

$10,000,000+1%

How our society works

• Government• Business• NGO

Government

BusinessNGO

0%

5%

10%

15%

20%

25%

30%

35%

40%

Government Contributed Earned Investment

1989

2008

United States

Museum Operating Income –

20 year trend

American Alliance of Museums

2011 charitable giving Total = $298.42 billion

Source: Giving USA Foundation™/GIVING USA 2012

Types of recipients of contributions, 2011 Total = $298.42 billion

Source: Giving USA Foundation™/GIVING USA 2012

“I have a million euros to give you!”

21

Giving:

ANNUAL

CAPITAL

ENDOWMENT

Endowment

Capital

Annual

Successful fundraising requires◦MISSION/CASE: “What will my gift enable our

museum to do that it is not now doing or it will not be able to do?”

◦LEADERSHIP: “Who is going to tell the story and make the ask, keep us motivated and motivate others to give?”

◦RESOURCES/FUNDRAISING PLAN: “How are we going to do it?” “Where will the leadership gifts come from?” “Who will be our core sustaining supporters?”

CASE

23

LEADERSHIP

24

PLAN

25

Museum Gift Grid I

Source Unrestricted / Restricted Annual/Membership

Small gift current $25-$999 $1,000-$5,000income

Major gift income / $1,000-$50,000 $25,000-$1,000,000assets

Mega gift assets / $1,000,000+ $1,000,000 or more estate

Museum Gift Grid II

Major gift past donors established face-to-face peer every 3-5 yrs Museum/

suspects relationship president Donor

executive dir.

dev. officer

board member

volunteer

Identification Involvement Solicitation Solicitation Solicitation Driven by Method Relationship Frequency

Small gift in-house file minimal mail /email impersonal yearly or more Museum

purchase list phone

Membership event

front desk

Mega gift past donors personal rel. personal one who once or more donor

life event strong feelings evolves donor trusts desire for

inheritance specific interest stewardship admires, change

sale of stock up front believes in “pay-back”

recognition

CONNECTIVITY MATRIX

ANNUAL FUND

PLANNED GIFTS

Lo

w

Passion for your museum

Hig

h

LowHigh

Major Gifts

Created by Alexander Haas, Inc. 2011

ASK

CultivationSolicitationStewardship

Get people to give you 500 Euros every year.

Involve them in activities.◦ Receptions◦ Special tours◦ Lectures◦ Events for only Club members

Annual Giving Clubs

SAMPLE RANGE-OF-GIFTS TABLECampaign Goal of $20,000,000

No. of Gifts Size Amount Total % of Goal

1 @ $4,000,000 $4,000,000 $4,000,000 20%

1 @ $2,000,000 $2,000,000 $6,000,000 30%

3 @ $1,000,000 $3,000,000 $9,000,000 46%

6 @ $ 500,000 $3,000,000 $12,000,000 60%

10 @ $ 250,000 $2,500,000 $14,500,000 73%

15 @ $ 100,000 $1,500,000 $16,000,000 80%

20 @ $ 50,000 $1,000,000 $17,000,000 85%

25 @ $ 25,000 $ 625,000 $17,625,000 85%

Many under $ 25,000 $2,375,000 $20,000,000 100%

Capital Campaign for $20,000,000

Developing your range-of-gifts

table

RANGE-OF-GIFTS TABLE

• Top Gift– What is Needed

Balanced with Expectation

– 20%+• 10 - 30 Top Gifts

– 40 - 75% of total• “Public” Gifts

– 10% or less.

Campaign Coordinator Training

THE RANGE-OF-GIFTS TABLE

Educates leadership Educates prospective donors

Focuses volunteers

The number one reason people give……

Because they are asked!◦By the right person, for the right cause,

at the right time.