The Case of the Mature Portfolio

Dear Diary,

I would like to tell you of the time I had to dissolve a mature portfolio, redistribute, and recreate fragments of it for a new major gift fundraiser. Disclaimer: Events in this situation have been edited and do not represent any recent affiliations.

Let’s start with some guiding definitions: A mature portfolio is a portfolio that is stewarded by a tenured major gifts fundraiser. Perhaps, the individual is tenured by experience (over eight years in the industry, for example) or they’re tenured at the organization (have worked there for over four years, for example). Aside from tenure, the portfolio is also considered mature due to the prospects. They’re a mix of prospects that know the organization very well, have attended events, and have been part of the organization’s communication orbit for several years either through connectors or community members. These are people who know the organization, and how and when they want to make a gift - they’re going to take their time and expect varying levels of communication. 

This is also a portfolio that has been designed specifically for the fundraiser. However, there is a major fault within it- there has been stagnancy. There has been minimal movement across the prospect stages, and most of the prospects have been in cultivation for a little over 3 years. As the strategic partner, I’ve worked with the fundraiser to slowly move these prospects along. However, with little policy guiding prospect management and portfolio activity, progress has been gradual (think of a very cute snail).

Now, with the fundraiser departing the organization to a new opportunity, something must be done with this portfolio, and this was my plan and course of action. 

First Task: Portfolio analysis - It is critical to know what you’re dealing with. How many prospects are in each prospect stage? How is the portfolio weighted? Are there drastic numbers in solicitation versus any other stage? All this matters because it helps you with the product.

Second Task: Who does your organization want to fill the vacancy? Will it be another mature fundraiser or someone fairly new to the field. 

Third Task: What is the new hire timeline? It is important to know this so you can create an interim plan. Other mature fundraisers will have to manage the prospect in the time being, especially those with upcoming solicitation plans. 

The Situation: The portfolio was 108 prospects - 40 in qualification, 56 in cultivation, and 12 in solicitation. 12 prospects had active plans in the 6-figures range and were asked in the last 3 months. Also, my fundraiser was leaving in a week and the new hire would fill the position in 6 months. So, I immediately created a plan for the portfolio- the departing fundraiser and I decided on who would manage those in cultivation and who could wait until the new hire was “seated,” in addition to who could help ensure the 12 solicitations were properly managed. It ended up being a tenured fundraiser returning to my organization that filled the vacancy.

When the new major gift fundraiser arrived, they received a portfolio of 120 prospects. Although the new fundraiser was returning to the organization, they were not familiar with these prospects, so the portfolio (majority adopted from the previous fundraiser) were folks pushed back into qualification. To be exact, 120 prospects were in qualification with 56 fast tracked (after several months) into cultivation since they were adopted and the relationship building process was smooth. My process required that the adopted 56 prospects be put back into qualification because this new fundraiser had to start brand new relationships with each person. Although already qualified by someone else, the new fundraiser had to ensure that they knew how to move the relationship forward. Once they had a grounded relationship, the prospects were quickly put back into cultivation. 120 also meant that aside from the 40 prospects in qualification that were adopted, 24 new prospects were added for qualification. The decision was for the new fundraiser to have a larger portfolio between 100 and 150. 

In the end, the entire process took majority of the year. I had to keep track of how these prospects were being managed in the interim, and once the new fundraiser arrived, I had to build their new portfolio. This part was simple since it was transferring adopted prospects and making sure they landed in the correct stage. Additionally, I had to find new prospects to add to their portfolio that were within relevant parameters (for example, capacity range and state). 

My biggest takeaway: A process like this can be smooth when there is an actual standard of procedure, and respected partnerships. Teamwork is always a superpower when working on portfolio management. 

Until next time, March 15th!

Art Credit: LeNia Stitt