Tuesday, January 27, 2009, at 12 noon, U.S. Eastern time

Lorry I. Lokey:
How do some of the nation's most prominent philanthropists decide which nonprofit groups are most worthy of their donations? Will the recession change the way they make those decisions?

The Guest

Lorry I. Lokey is founder of Business Wire, which distributes news releases. The company became a subsidiary of Berkshire Hathaway in 2006. Mr. Lokey has appeared on The Chronicle's list of America's top donors every year since 2000.

A transcript of the chat follows.

Peter Panepento (Moderator):
    Hello and welcome to the latest installment of our weekly live discussions series. Today, we're going to pick the brain of one of nation's largest donors. Lorry Lokey, the founder of Business Wire, committed $45.7-million to nonprofit organizations in 2008. That sum that placed him on the Chronicle's "Philanthropy 50" -- our annual list of the nation's 50 largest donors. Mr. Lokey has been a fixture on the list for several years and he is kind enough to give his time today for what should be an interesting discussion about how he makes his philanthropic decisions.

Peter Panepento (Moderator):
    To ask Mr. Lokey a question, please click on the "ask a question" link on this page and type your query. The conversation is text-based, so there is no need to call in. We'll display the latest questions and answers on this page as the discussion unfolds. It will refresh every minute. We'll also provide a full transcript after the discussion ends at http://philanthropy.com/live. There, you can find free transcripts of all of our previous discussions.

Peter Panepento (Moderator):
    Without further ado, let's get started.

Peter Panepento (Moderator):
    Aloha, Mr. Lokey (who is joining us from Hawaii this morning).

Question from Toni Salazar Loftin, University of Texas at Dallas:
    Mr. Lokey,

In your opinion, what is the biggest mistake development officers make when first meeting a new prospect?

Lorry I. Lokey:
    When they want to meet with me to discuss their organization and brief me with situations I might be able to comment on. Let's face it: When I say no money, I mean it, and these meetings are for the purpose of changing my mind. I don't like indirect advances. I can answer in an instant whether or not I am interested in being a donor.

Question from Shari Thorell, small nonprofit:
    How could a small institution with big aspirations engage donors with significant financial capability?

Lorry I. Lokey:
    I love this question. Go back through alumni files and come up with people who have made it big, either financially or in public recognition. You'd be surprized, for exAmple, what small schools like Whitman College in Walla Walla come up with, including Ralph Cordiner, president of General Eledtric in the 1950s and 1960s. And they have several more big time winners.

Your school's product is your testimonial. Use it. And they don't have to be famous. They can be people who went on for advanced degrees and became doctors, lawyers, managers, entertainers, politicians and so on.

Question from Elizabeth Stager, The Nature Conservancy, Wisconsin office:
    What are your thoughts about representatives of a non-profit trying to begin a brand new relationship with a prominent philanthropist during this unique economic time?

Lorry I. Lokey:
    As they say down on the farm, "if you don't ask, you don't git."

This year looms as a very dark picture for raising money, but keep up with contacts without necessarily asking for the money.

We're going to have the next two years with dismal donor records. I myself have to protect my capital by postponing grants already promised in order to regain lost capital, and most of us are in the same boat.

Question from Kim, small faith-based non-profit:
    Do you have any tips for reaching major donors to support organizations that address "hot button" issues, i.e. abortion alternatives?

Lorry I. Lokey:
    Not really. But I would suggest you Google them and see what activities they are involved in. Even Carolyn Kennedy's interests can be spotted that way. Google me and you get nothing but education as my hot button.

Question from Barbara Pierce, Development Consultant:
    How important is your relationship to the solicitor(s) in your decision to make a gift? In particular, what do you see as the ED's role in working with major donors?

Thanks so much for your time and generosity!

Lorry I. Lokey:
    Be friends with the donor, and keep on that basis whether or not a grant is forthcoming. Don't be a pest. Consider the donor as you would a neighbor, fellow passenger on the bus, a peer in the office. Beware of lavish entertainment or gifts. I don't like it as I don't want to feel "bought."

Unhappily, a lot of donors consider giving something they are stuck with. I consider giving a privilege, an honor, a stroke of good luck that I am in that position. But I want ED's to spend money wisely; that tells me my money will be spent wisely.

Question from Mary Worthington, Lewisville ISD Education Foundation:
    Dear Mr. Lokey, When you receive a request for a major gift from a small non-profit, what types of questions do you ask about the board of directors before saying yes to the gift request? Thank you! Mary Worthington

Lorry I. Lokey:
    Virtually all my grants go to areas I'm already familiar with. I do not respond to solicitations from organizations I am not familiar with or with the people I know within themn.

Your organization is an example of that. But there are plenty of other fish out there to cast your bait for, and many are interested in education and concerned about its years of neglect by states and federal government.

Question from Miriam, non-profit focused on children's hospitals:
    Good afternoon Mr. Lokey:

Funding sources for my non-profit (a children's hospital foundation) include public and private companies. Many companies are reducing donations due to the economic crisis. How can a non-profit best prove to a corporation/company that they are the most worthy recipient of corporate giving?

Thank you so much for your time! Sincerely, Miriam

Lorry I. Lokey:
    You can bet this year and next year will be tough. And what I'm about to write goes for everyone here today: You have endowments (I hope), and times like this is what endowments are all about.

They are for rainy days, but this time around we have a blizzard going, and the worst is yet to happen.

Keep up with your contacts, lighten up on pressure, trim the budget of the organization by at least 10%, seek partial payments on pledges being delayed.

If your endowment is small or nil, you are in for very difficult times. In my giving, one of the first questions I ask is how much is the endowment? The answer definitely answers whether or not I proceed with more questions.

Question from Chris Shea, Cross Hill Partners (Executive Search):
    As a search consultant in this sector, I am surprised that in hiring gift officers, institutions who invariably call themselves "donor-centric" do not think to check references with donors, but accept as adequate references from colleagues - be they superiors, peers or subordinates. Have you ever been contacted as a reference on a development officer ? Could a particularly effective gift officer persuade you to donate or to donate more to an institution otherwise off your radar and, conversely, might a weak gift officer bring home a smaller donation, regardless of the institution ?

Lorry I. Lokey:
    No, I have not been so contacted.v

I like gift officers who approach me on a peer level and truly are friendly whether or not I say yes. And if I become a donor, I, in effect, am adotping that organization as if I worked there or owned it or had close experience tties with it.

It becomes an investment that I want to follow and see success. My grants are not gifts. They are INVESTMENTS!!!

Question from Melissa Lago, GAIA:
    I was hired to start an individual donor program, shortly before the economy collapsed. What is the best way to approach new donors that have no personal connection to GAIA in this economic climate so that I can build this program?

Lorry I. Lokey:
    I have no idea what GAIA is. So be sure to spell out what you are; don't assume we all know initials.

I'm not too savvy on how to answer your question, but I would consider starting with friends and acquaintances to who might be able to refer you to others that could turn into donors. Build a base, and then broaden it and build on it.

Question from Junta de Beneficencia:
    You mention you can contact us with top fund raisers in the US. Junta de Beneficencia is a non profit organization now over one hundered years old. We have to raise funds to build a maternity hospital to replace old one, which is not doing a good job any more.

Lorry I. Lokey:
    Start with beneficiaries of the old hospital. Certainly there must be families out there that have benefitted from Junta de Beneficencia and now are well to do and mayabe even wealthy.

And where you succeed with a contact, get referrals from them for other potential donors.

Peter Panepento (Moderator):
    I'd like to thank everyone who has taken time to submit questions thus far. We've gotten a flurry of fantastic questions and -- because we only have one guest this week -- you might have to wait a bit before you receive a response. For those who are waiting for a response, I hope you are finding the rest of the conversation useful. This is an unusual opportunity to speak directly with a major donor.

Question from Perry Brogdon, small business owner:
    What does a small business have to do to be considered for some financial assistance from someone willing to donate some money to a struggling small business? We all need a little help from time to time.

Lorry I. Lokey:
    This is something I wouldn't even think of responding to because it is not non-profit. It's a business for profit and this session is about donor support of non-profits.

Now, from a business standpoint, consider others in similar lines of business who might want to invest for a small ownership share. They best would understand what you are about and what your success chances are.

Question from Aaron Stiner, ASU Lodestar Center:
    Good morning Lorry,

I work at the Arizona State University Lodestar Center for philanthropy and nonprofit innovation - we help build the capacity of the social sector by enhancing the effectiveness of those who lead, manage, and support nonprofit organizations.

Specifically, I am developing programs to help philanthropists - primarily individuals and families - make good, strategic giving decisions. If you were to seek resources in helping you make your philanthropic investments, what kinds of knowledge and tools would you look for? (Outside of just technical/legal support in how to setup a foundation or giving vehicle).

Thanks!

Lorry I. Lokey:
    This is a fine question but out of my league. I make grants only to recipients I already know about, and 99% of the $575 million has gone or been pledge to schools.

Sorry I can't help.

Question from Jessica, consultant:
    When reviewing a funding proposal or application, what would you say are the top three criteria you use to decide if the proposal is worth funding?

Lorry I. Lokey:
    1. Do I know them? 2. What do they have in endowment funds? 3. What is their reputation and degree of success?

Comment from Alison:
    Peter and Lorry, Not a question but a comment. Thank you for doing this. The questions and answers are very thought provoking. The whole discussion has been very useful!

Peter Panepento (Moderator):
    Thanks for the kind words. I hope you'll explore our archive of previous discussions, too: http://philanthropy.com/live.

We host these live chats every Tuesday -- and often they spawn some great ideas for folks in the nonprofit field.

Question from Margaret Rucks, Rucks Family Foundation:
    1.Have you witnessed a trend during this surge of economic crisis, whereby Philanthropists have diverted the funding of their primary Charititable organizations and areas of interst, toward non-profit organizations which address those without even the basic needs for human survival, even on an international level?

Lorry I. Lokey:
    Sorry, Margaret, I have no experience or knowledge of this.

Question from Ilana Dean-Schmidt, JEVS Human Services.:
    My organization benefits greatly from government grants and contracts. However, many of our most important services and efforts are not supported by government dollars. How does a largely government supported non-profit group best appeal to a major donor? Is this an asset or a hindrance from a major donor's perspective?

Lorry I. Lokey:
    Many colleges learned years ago they cannot count on local and state governments to give them primary support. In at least 22 states, such as Califonria and Oregon, state support is pitiful kand getting worse, although Oregon showed a small improvement last year.

You need to seek citizen support and build an endowment if not already in place. If you do have one, increase it to the point that government support becomes a minor factor.

It's easy for me to say that; it's hard to do it.

Question from Ken, Institute On Aging:
    As you receive proposals and "asks" from all manner of non-profits large and small, how do you determine the appropriate size of your gift?

Lorry I. Lokey:
    About 99% of my dollars are in the "huge" category--a million bucks on up to $75 million.

I want to invest where the amount means the project will be a success, whether it be a building, tuition help, endowment enhanbcement, faculty pay. I usually am the lead donor on these projects in California, Oregon and Israel.

I do not like giving small amounts, but I assure you that these small amounts--whether $5 or $500,000--are extremely important to all non-profits because they ccan account for as much as half of their campaign goals.

Question from Jon Hirst, HCJB Global:
    If a global nonprofit has a faith-based focus and also a relief focus, do you believe that major donors who may or may not have a faith themselves are willing to fund both sides?

Lorry I. Lokey:
    Personally, I don't give to faith basis. My personal interest is education, so relief isn't of interest either.

But many people have sympathies for both.

I have made more than $80 million in grants to half a dozen Catholic schools....not bad considering that I'm Jewish, but these are fine schools worthy of support. And about $100 million has gone to Jewish schools in the SF area and in Israel. Faith never has been a factor with me; quality of the institution has.

Comment from Alison:
    Peter, thank you I will check the archives. It has always been my idea on fundraising (my job relies on donations but I am not the "official" development person) that it is the person I am interested in first and their money second. If they decide not to donate that will not affect my interest in them one bit. Good luck to all in this annoying global financial turmoil. It will turn around, but as in the late 70's and early 80's, it will take time.

Question from Katie, George Eastman House (Rochester, NY):
    Mr. Lokey, in deciding what institution to give to (and how much), what kind of things do you look for from that institution? In other words, what are the deciding factors/variables that make you choose one institution over another?

Lorry I. Lokey:
    Please read my earlier answers to questions. I think you'll get the answers from those pretty well.

As for how much, I usually ask the school what it needs and then make a choice or decision from that. I don't think I ever have "told" them what I WANT.

Except: For my Portland grammar school I asked them about putting into every room computers and smart boards. They thought that was a dandy idea, and we did it.

Question from Dan, Minding Your Mind:
    The obvious question is, is the current state of the economy going to affect your giving this year?

Lorry I. Lokey:
    It certainly will affect giving.

First, it will mean delayed giving on pledges.

Secondly, I stopped taking on anything new last Oct. 1.

All pledges, of course, will be paid, but we are going to have to extend the time element. And that's why I say that endowments are so important. Now is when their income and even principle is needed.

Question from Alison Sheehey, Audubon:
    I am the Outreach Director of an Audubon Sanctuary. I would like to know what types of activities are likely to be funded. We have land protection opportunities, restoration projects, public outreach and education events, school programs, research projects and capital improvement projects (new Community Center, public trails). Do any or all of these environmental activities appeal in general to philanthropic organizations? Thank you.

Lorry I. Lokey:
    Sure they do. Not to me, but there are plenty of people very sympathetic to items on your list. Your activity is very important; just find the people who give it high priority to support.

Peter Panepento (Moderator):
    I'd like to offer a reminder that we host these discussions every Tuesday at noon Eastern time. Please check http://philanthropy.com/live for information about upcoming events. If you'd like to get reminders of upcoming events, please feel free to subscribe to our Philanthropy Today e-mail list or join "The Chronicle of Philanthropy" group on Facebook.

Peter Panepento (Moderator):
    Sadly, our hour is up. But Mr. Lokey has agreed to answer the remaining questions later today. We'll post the updated questions and answers to the transcript of this discussion tomorrow. Please feel free to visit http://philanthropy.com/live for a link to the transcript -- and to see the latest questions and answers. Thank you.

Peter Panepento (Moderator):
    Thank you to everyone who took the time to join us today. We received a ton of great questions -- so many that Mr. Lokey needs some extra time.

Please mark your calendars for next Tuesday at noon Eastern for our next discussion. The topic will be planning special events during a recession. Hope to see you all then.

 

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The following questions were answered off-line.

Question from Keith Reed, Far Hills Country Day School (and others) trustee:
     I have spoken with many potential donors (esp. seniors) who might be considering making planned gifts to their colleges, as so many in my parents' generation do. Especially when wealthier schools are involved, I ask them to consider the impact of their donation there versus an elementary school. A $10MM gift to an Ivy won't make a difference, but that same gift to a grade or secondary school can be transformational (or even ten $1MM gifts). Even if they leave $9MM to Princeton and $1MM to an elementary school, I feel it will have more impact than the original $10MM gift. Do you agree, or have any advice on how to approach planned gifts?

Lorry I. Lokey:
     I certainly do agree in principle with what you are saying, but I would be negligent to overlook the needs of the fat cat schools like Princeton, Yale, Harvard and Stanford.

Just to give you an example of what money can do for the elementary schools, every room should have computers and smart boards.

I set up computers in every room plus a computer room at my Alameda grammar school in Portland, and every room now has smart boards, also known as white boards. The total cost of this for 16 rooms was less than $200,000. And I did their new library, too, for about $200,000 or less.

I cannot do enough for that school because it's their fault I did so well in life. The high shool and Stanford certainly helped, but the grammar school laid the basis for the future.

Watch out for school districts that say all monies must funnel through them for distribution. Portland has that rule, and the district keeps 25 or 33% of it. I put an end to that by telling them 100% for Alameda or nothing at all, and lets have the well to doers from other schools wake up and support their schools.

Portlanders aren't dumb. The district went for it in my case, and now the principal's husband, a realtor, reports that property values have climbed in the school's area because of the quality of instruction and facilities at Alameda.

I tell you, those grants were far more satisfying than a couple of Masseratis and Porches.

Question from Jmes Purcell, Santa Clara University:
     Lorry, could you say more about why you your philanthropy invests in education? What should we stress about the ROI in talking with other donors?

Lorry I. Lokey:
     Ah, there you are, Jim. I was beginning to worry that you would not make it today.

Life begins with education, first years by the parents and then the school for 12-20 years. Without education, we are nothing. And, yes, one can become brilliant without much formal education once she/he learns to read and write, but that's mighty rare.

We need good schools not only for the learning process but also for the aging/development process on the path to adulthood.

There are tens of thousands of charities out there, but to me education is the most important. As parents we would like to see our childrden do even better than we in life's course. Without quality education it is not likely to happen.

Our faculties and teachers are grossly underpaid. They should be in six figures like some police and firemen are, yet we treat them like laborers.

As for what to stress, SCU has a whole barrel of things, such as faculty quality, curricum selection, several very good schools like business and law, high scholarship. It's been said that some students seek out SCU rather than Stanford because of SCU's atmosphere and facilities.

I should note for others reading this that I am a trustee and major donor at Santa Clara Univ.

Question from Jeannette Archer-Simons, CFRE, Consultant:
     Given some of the issues related to investment management by organizations, will you as a donor be asking any different questions about financial management than before, and if so, what types of questions would you expect a nonprofit executive or board member to be able to answer?

Lorry I. Lokey:
     No, I won't be changing my pattern because I already know the institutions. But, yes, donors should investigate financial reports and especially endowment efforts. A nonprofit exec or board member must be able to answer any question at all; if not known, the answer should be researched promptly and an answer given the same or next day.

Question from Rudy Engholm, Exec. Dir of LightHawk -- an Environmental Aviation nonprofit:
     Earlier you said you don't care for indirect advances. Would you prefer that someone simply ask you for a meeting with you to present a businesslike proposition for support, as opposed to the more traditional drawn-out donor "cultivation"?

Lorry I. Lokey:
     I don't need to be cultivated, Rudy, so the direct approach is fine with me. But I'm a bit of an oddball. So someone approaching me really ought to get a run down from people who know me and can tip off the seeker.

When I still owned the business, I would avoid the free lunches and dinners by having people come to my office with their pitch. More often than not, I even forgot to offer them something to drink.

One of these callers was a very nice guy from Univ of Oregon. After he left, he phoned his office and said (in my words) "we have a live, hot one here."

Two weeks later the president, development V/P and original caller visited my office again. I asked them what they needed, and I was given a booklet thing with about 10 high priority projects. I picked a small $4.6 million one but since have gone for most of the remaining nine.

From those visits the University will have received from my grants around $132 million for labs, library, faculty pay, research projects, chairs, alumni building and a few other things I can't remember.

My reward: It's the huge pleasure of seeing a major institution turn around and move up the ladder of quality universities.

My tie to the University? None other than I grew up in Portland and would have gone to the University if an uncle had not put in his two cents worth about Stanford.

All of this because a staffer asked for a meeting and the fact that I am very familiar with the University and thus formed an early favorable opinion about giving.

Question from Alyson Friedlander, Historic New England:
     I have always been interested in the relationship b/w the donor and the solicitor. Do you ever feel as thought you are really a friend? Or is there always the question of money?

Lorry I. Lokey:
     The money is the blood of the friendship. But as I run out of money to grant, I'll find out about the friendships. In reality it's a business relationship during which time one can enjoy the friendships. If they continue beyond the money, then that's one big momma of a bonus. It's probably a close relationship to a business whereby friendships abound as long as "you buy from us." Now that I'm retired, I find that indeed I do have a number of friends dating from business relationships. Ergo, I expect the same will happen on the philanthropy end, too.

Question from Elizabeth Stager, The Nature Conservancy, Wisconsin:
     What first inspired you to give away money?

Lorry I. Lokey:
     There was so much, it pulled my pants down. No?? How about I don't feel comfortable being so green when there is so much in need out there. Still no?? How about when one gets rather heavily endowed through work's good fortune reinvesting it by fertilizing the ground for what you took out. Or, how about I get a tremendous lift out of seeing what money can really good in making life gooder (sic). I much prefer being responsible for a new lab or library than I do owning a yacht or jet plane.

Question from Alexandra Kesman, Know Theatre of Cincinnati:
     Hi Mr. Lokey, How would you recommend an organization make the first contact with a major donor. What is too aggressive? Should the contact be directly with the organization or should it go through a board member?

Lorry I. Lokey:
     Read my other answers; they embody my answer to this.

Question from William Ray, Palo Alto Medical Foundation:
     Separate from your support for education, as a citizen-philanthropist do you see an increased role for private charitable support in improving the quality and accessibility healthcare delivery in communities like ours (Silicon Valley)?

Lorry I. Lokey:
     I certainly do, William, and the Paly fouindation is well established. I think we'll see a lot more interest by donors to support organizations like yours as well as for research facilities, such as my lead grant for Stanford's new $200 million stem cell lab. By the way, patients of money treated at the facility are prime prospects for future support, but I'll bet you knew that eons ago.

Question from Robin Mohr, CA non-profit:
     To what degree do you think major donors are motivated by "recognition opportunities" (donor walls, commemorative gifts, etc?)

Lorry I. Lokey:
     Except for stem cell labs and jouirnalism projects, I don't give a whit whether or not my name is on it. Bkut most people, I would guess, feel this is very important for it carries on into perpetuity. A good example of this is the selling of name bricks at a new building site. You'll see this all over, such as at the new Santa Clara University library and the lanaii dining area of the Maui Art and Cultural Center. The hundreds of bricks usually go for $100 for a regular zized one and up to $1,000 for a stone 18x24 inches or so. It's a great step for perpetuity on one hand and raising a lot of money on the other.

Question from D. Barrett, medium sized arts organization:
     Mr. Lokey, are you more apt to consider a request when it's made by a peer (perhaps a board member of the organization), or by a staff member of the organization, such as the executive director or development director. Does it matter to you?

Lorry I. Lokey:
     A peer communication carries a lot of weight, but in my case I know what I want to concentrate on so don't bother me with abortions, cancer, terrorists, camperships and so on. If I'm interested in something, a staff member certainly will be someone I would talk to. The staff member might even be more knowledgeable than the president. I will note that I know presidents by first names at all schools I do grants to, and they're gems. And their development people seem to be of the same quality. I think what I want to say is that whoever makes the pitch should be extremely well versed in what her/his organization is about. Assuming that's the case, a staff person is most welcome to talk to me if she/he can get throiugh the door.

Question from Elizabeth Seja Min, Consultant :
     Would you comment on the role of materials in the decision-making process for a significant gift? Should medium-size nonprofit organizations invest in really sharp materials for their major donors?

Lorry I. Lokey:
     I'm the last person on earth to ask this because expensive materials worry me about their cost. But a lot of people seem to think the fancier stuff is, the more important that project is. And I don't like to receive expensive toys nor even a lot of the cheaper ones like pens, paperweights, calculators and so on. I even worry about 10-page prospecti with each page encased in a plastic folder all within a leather type loose leaf binder. Unfortunately, I have a feeling that men in my position generally are impressed with such waste. What counts with me is neatness, short paragraphs, very few pages, including the introductory letter of less than 250 words. You need to hear from others who are less thrifty than I on this subject.

Question from Kim, Cancer Institute:
     If you had to name one thing that you would like the organizations you support to stop/or start doing, what would that be?

Lorry I. Lokey:
     I never make demands of conditions. Nor do I butt in as to how the funds are to be spent, whether it be paint color or the color of a person. I trust the organization to know best what it needs to do in construction, hiring and curricula. I'm making a grant, not a deal.

Question from Amber Hutchinson, Louisiana Disaster Recovery Foundation:
     Hello Mr. Lokey. My name is Amber Hutchinson and I am Fund Development Associate at Louisiana Disaster Recovery Foundation (LDRF). We are a small nonprofit organization in Louisiana who funds statewide nonprofit agencies that assit with the long-term hurricane recovery process. LDRF is a people first organization and we value those we support as well as those who support us. How would you suggest to approach prominent donors and philanthropists without making them feel that you are soliciting them strictly for their donation but also really intriguing them about the work and values of the organization and receiving donations because they honor the mission and work of the organization?

Lorry I. Lokey:
     Any philanthropist along with many donors know darned well want funds. Let's face it: You're not being friendly to be friendly. You want something and we know it. I turn off when I get calls or letters about wanting to meet me over breakfast, coffee, lunch or dinner to talk about the organization and what do I recommend. That's hogwash. So tell them you have medical, housing, food and many other needs and categories and can we talk about it to see if you might want to add your support to its efforts.

Question from Monica Coenraads, Rett Syndrome Research Trust:
     Mr. Lockey, I am the executive director of an organization that raises money for research for a serious childhood neurological disorder. The disorder is almost unknown in lay circles and yet has very promising science. I grapple with how to engage major donors who have no personal link to this disorder. Thank you for your time. Monica

Lorry I. Lokey:
     Talk to others in this kind of quandry to see how they handle it. All that comes to my mind is a very short letter — fewer than 250 words — that tell what RETT is, what it does and what it takes to cure. Maybe a before/after photo of a child, provided the "after" isn't a gravestone. Or maybe that woiuldn't be a bad approach either — the shock treatment.

Question from Christie, Development Consultant:
     Do you have any suggestions for working with prospects who are in the public eye? I am working with a client who has a prospective donor that was very recently appointed to a high level position in a high profile company and is in the news every day. I fear that every organization this individiaul has been involved in will be knocking on her door right now. I want to make sure that our timing is right. Thank you.

Lorry I. Lokey:
     Not knowing the person or company, all I can say is that the approach to him might best be one of conservatism — low pressure....perhaps just having a lunch or coffee break and getting a shot in about the charity and how much you enjoy working on it and seeing its results. Then next time, a little more padding. Next time after that, pop the big question. Bukt don't do a meeting for this purpose; let it be a natural meeting or one on another subject.

Question from Nancy Sumner, Development:
     How diverse should a Board of Directors be for a donor to consider contributing to the organization. One organization that comes to mind is an organization that was started by a church, is seperate from the church but all of the Board of Directors are church members.

Lorry I. Lokey:
     So far I have not looked at dirdectors in my grants. As for the composition, I believe stronglky in members of the organization with maybe one or two outsiders in order to get different perspectives. I did the outsider routine once in my business, and the guy was a self-=serving, pompous jerk. That ended outsiders for me, but there are lots of consultants who state youi must have at least one.

Question from Ray Highsmith, University of Mississippi:
     How important is it to have matching funds? A donor provided $1.5 million for an endowed chair at our Field Station but a $3 million match for student support is required which we seem to be having trouble coming up with. Thanks.

Lorry I. Lokey:
     I go for matches and have done it several times. In all cases the matches to my grants were met, but those were in better economic times. I usually go for 50-50 matches but I've seen some where it's 1 for 2 and even $1 from the donor to $3 from others. The 1 for 1 is most likely to succeed. You're having a hard time because of the economy.

Question from Elizabeth Stager, The Nature Conservancy, Wisconsin:
     What are your expectations and preferences for contact from organizations that are new to you? Do you prefer contact from fellow philanthropists and volunteer leaders? From staff? Both? Something else?

Lorry I. Lokey:
     I've answered this in earlier replies. I myself don't really want any calls. I know far more places I'd like to place grants than I have money for.

Question from Elaine, small nonprofit:
     If a fundraiser asks you for referrals of your friends who might also be interested in the same cause, how likely would you be to provide the names and contact information? In other words, is it wise to ask major donors if they would give us referrals, or do you find that offensive?

Lorry I. Lokey:
     This is another of those "if you don't ask, you don't git." I won't give names, but there are people who are glad to do it. Of course, if someone asks me for referrals, I'm glad to give any advice I can.

Question from Zach, Boston-area hospital:
     We're currently in a capital campaign and trying to get people to maintain their current giving while additionally supporting campaign priorities. Can you speak to how to help donors understand the importance of giving to both? Thank you.

Lorry I. Lokey:
     No, I can't speak on that because I'm in the same bind. These are terrible times, tho not as bad yet as the Great Depressioon which I remember too darned well from as far back as 1933.

Just do your best to keep at least partial payments coming, and be patient. Most people intend to live up to their pledges, but they're hurting, too, just like you.

Question from Patricia Bell, Grants for the Greater Good:
     Are donors taking a look at new nonprofits that they haven't funded before and is a Letter of Inquiry the best way to approach new donors?

Lorry I. Lokey:
     A letter of inquiry is but one of the tools uksed in the business. Others include friends to introduce you, tying into people at meetings and lunches, a cold call phone call (which some people resent), etc.

I have no idea whether or not donors are looking at this time. Like me, they're probably all tied up with declining investments.

Which reminds me, the loss of the first 20% of my investments was so discouraging that I decided to end it all with a jump.

It didn't work. Next time I'll try the second story of the building.

Question from Angela Reilly, The Eye Institute, Milwaukee:
     How important is the development officer in the process of your decision making-or are we a factor at all? Is it more about you and your interests in the organization, or does your relationship with, or opinion of, development staff members play a role?

Lorry I. Lokey:
     The dev. officer is an important vehicle to get to the heart of the university, the president as well as applicable faculty. Univ. of Oregon does a fine job in this direction, but Stanford, Mills College, Technion and Weizmann Institute also are on the front burner. I like emerging colleges that I'm familiar with, such as Portland State in Oregon and Ben Guerion Univ. in Israel. Neither of them holds a candle to the quality of Stanford, Technion or Weiz mann, but they are growing year by yearin respect for their programs, and those need to be supported. Both are on my calendar for future new gifts if the economy ever recoveres. I like Mills College and liked it long before one of my daughters attended and graduated from it. And I like it because it's a very good college for women and goes overboard in supporting women who hardly can afford the bus fare. And that's helped by women's families loaded with big bucks. I've established a new graduate school of business there, including the building and faculty.

Question from Terry Byrnes, Arthritis Foundation, No Cal:
     Major Donors are very busy people and it is often difficult to get a meeting. What has been the most meaningful stewardship meetings/converstions you have had with Stanford? Would you prefer a phone call to an email update, assuming a face to face meeting is difficult?

Lorry I. Lokey:
     Don't you call me as this is not an area for my grants. And usually I go to the schools and ask what they need most at that time. It's amazing how fast they come up with a list. Stanford does not knock itself out to reach me because they rightfully know my bias in favor of them. When I call with a request or question, they break a leg to get back to me with answers. The latest request is for them to escort a few friends of mine early in March to Stanford laboratories--the president of Technion in Haifa and one of its Nobel laureates, both of whom are chemists. Univ. of Oregon is doing the same thing for our visit there the next day. All this effort is a program I'm waging for a broader exchange of information and mutual cooperation among major school in order to avoid expensive duplication in laboratories.

Question from Beth Kyman, American Friends of the Hebrew University:
     Mr. Lokey, Do you welcome new grant requests from organizations that have not previously received support from you? Thank you.

Lorry I. Lokey:
     No because all present and future funds are committed. I'm just a poor Atherton boy. And at 82, I have just 34 years left to complete existingnpledges plus new ones for the same institutions.

Question from Katie, George Eastman House (Rochester, NY):
     Mr. Lokey, I work at an institution that has a local, national, and international presence in the world. One of the biggest issues we have is getting out-of-town prospects in our doors. Do you have any suggestions on what we might do to get these great prospects to see first-hand everything we have to offer?

Lorry I. Lokey:
     Do you have people touring Eastman's factory? Make sure, if you do, to get leaflets in their hands to come visit the House. Get listed in the city's travel brochures and weeklky activity postings. If appropriate, give each visitor a disposable Kodak camera so they can take pictures inside the House. Then take the cameras, develope the film and send prints to the guests' home addresses along with a pitch for donaations.

Question from Laura, mid-sized museum:
     How do you like to be thanked and involved with the organization after you make your gift?

Lorry I. Lokey:
     By being kept up to date with what the moneyddid and what diff

Question from Daniela Arredondo, Stelac Foundation:
    Dear Mr. Lokey, Thank you for this fantastic opportunity to learn from your experience and from your time. As your philanthropic passion is primarily focused on education, What is your advice to donors, both corporate or individual, regarding choosing the best programs to donate to; and the impact of giving on these areas that you have seen on your philanthropic experience?

Lorry I. Lokey:
    Because of the size of the grants at a couple of the schools, the money has led to a renaissance in terms of other donors coming to life and student enrollments jumping. I look wt schools with well managed and sized endowment programs in relation to their size...to faculty happy with their academic environment...a record of graduating students who go on to successful lives in their work.