Matrix Uses What and When Effective Planned Giving

Matrix Uses What and When

Effective Planned Giving Considers ◦ Donor’s personal goals ◦ Donor’s charitable goals ◦ Most effective gifts Effective planning enhances all gifts ◦ Expands opportunities for large gifts ◦ Not all gifts are deferred ◦ Involves donors, advisor, and charity

5 Reasons Planned Gifts Create a Positive Giving Impact 1. 2. 3. 4. 5. Planned Giving focuses you on donor relationships Planned Giving allows you to engage with donors Planned Giving increases donor gift capacity Making a planned gift commitment increases a donor’s support Knowing about the planned gifting and stewarding should increase commitment to estate planning

Financial Metrics �Growth rate of annual gift donors �Donor ages �Donor retention rate �Number of contacts with donors �Single? �Team? �Volunteers?

Financial Metrics �Annual receipts �Types of gifts �Known/unknown �Size �Average gift size �Compared to years of giving

Financial Metrics �Annual gift revenue by type �Year over year analysis of planned gift revenue to identify trends �Annual giving rates of increase for donors with deferred gift commitments �Consistency in giving rates for donors with deferred gift commitments

Non-Financial Metrics �Repeat gifts from members �Calls made (stewardship, cultivation, solicitation) �Major gift calls with legacy idea �Planned giving proposals �Gift commitments �Education events for potential donors �Marketing articles or asks

Attitudes of Donors: A Continuum of Change

Great Potential for Asset Gifts: Boston College Social Welfare Institute Intergenerational transfer of wealth from 1998 -2052 $41 -$136 trillion in total dollars $6 -$25 trillion in gifts to charity Interesting observations on giving attitudes and practices of wealthy

The Players in the Planning Process Your role ◦ Engage the donor ◦ Develop a vision for the gift structure and impact ◦ Provide options to achieving the goal (optional) The donor’s role ◦ Brings charitable intent ◦ The Possessions/assets ◦ Determines the gift form

Building on Knowledge �Use the information you get to develop your relationship with that donor �Invite them to events in their area of interest �Tell them about advances in the field – by letter, e -mail, or phone �Continue to develop your knowledge �Share ways to meet their objectives

The Planning Process A checklist for goal setting ◦ Providing for spouse ◦ Providing for family (children, grandchildren, extended family) ◦ Addressing special needs – educational, rehabilitation, medical, remedial ◦ Desire to maintain control ◦ Desire to allow flexibility ◦ Establishing (meeting) family values ◦ Support specific charities

Dream Today, Fund Tomorrow Make Bequests Benefits to the donor ◦ Allows the donor to plan the disposition of estate and to assign priorities to meet goals ◦ Allows donor to make a larger gift than with an outright gift ◦ Allows the donor to “invest” in the future of the nonprofit Benefits to the nonprofit ◦ ◦ Simple Easy ask Builds commitment Builds future contentment

Types of Outright Gifts Publicly Traded Securities Mutual Funds Privately Traded Securities Real Estate Property Cash Bonds Intellectual Property Tangible Personal Property

The Players in the Planning Process The donor’s advisors ◦ Attorney ◦ CPA ◦ Insurance professional ◦ Financial planner ◦ Trust officer ◦ Stock broker ◦ Real estate agent/broker

Ten Things You Can Do To Guarantee a Successful Program

Ten Things 1. 2. 3. 4. Understand embrace the internal case for planned giving Use the right metrics to measure opportunity and success Use accounting codes that track results Oversee trust and estate management to maximize returns to charity

Ten Things 5. 6. 7. Ensure the planned gift (endowment) investment team works with the planned giving team to appropriately invest deferred gift assets and communicate results Make a regular review of policies affecting planned gifts Review internal roadblocks to planned giving success

Ten Things Ensure regular reporting on planned giving at the executive committee and staff levels. 9. Allow planned gift individuals access to members. 10. Take part in donor cultivation, stewardship, and solicitation 8. 1. 2. 3. 5 calls 5 thank yous Attend thank you events

Why the Executive Committee is Important to Your Success �You won’t reach full potential without the Conference Executive support. �The Conference Executive approves the budget/financial support for the program �The board sets priorities for the CEO and through planning, for the staff �The board sets and populates the committees.

Why the Executive Committee is Important to Your Success �The chair sets the agenda for board meetings and determine what is reported to the board. �The board is your link to the community – donors will see the organization and its needs through the board’s eyes. �The board is a group of potential donors!

Your Challenges In Engaging the Executive Committee �Each board member has his or her own idea about “planned giving”. ◦ Some are positive. ◦ Some are negative. �Most members measure success by the dollars coming through the door in that year. �The economy is driving greater needs – and creating greater concerns – than usual. ◦ Donor may quit giving or give less. ◦ With the stock markets up and down, interest rates up or down, inflation and donors have less to give. ◦ Gas prices, food prices, inflation in general…. creating lots of pressures.

Your Challenges in Engaging the Executive Committee �Planned giving concepts are complicated. �Planned gifts are deferred – how could revocable gifts that might come in ten years from now be important?

The Factors for Success In Planned Giving �The staff and volunteers must create a plan �Build infrastructure, such as donor base and relationships with advisors �Create goals and reports �Charge the development committee with responsibility �Create marketing materials �Review investment policies �Adopt gift acceptance policies �Create professional advisory council �Create newsletters, contacting plan

The Factors for Success in Planned Giving �The Executive Committee must understand embrace Planned Giving & Trust Services �The Desire that is in our Members �Planned Giving is an Extension of Stewardship �It is Stewarding Accumulated Possessions �An Enhanced Support for the Gospel Commission �A Donors Gift can Increase

Start With an Education �What is planned giving? Planned Giving is the Process of Best Gift Planning which involves: � the donor’s professional advisors � the charity �The Planning Allows the Donor to: � select the best asset � select the best method of making the gift � select the best timing for the gift � design a gift that best meets the charity’s needs

Tips for Education �Create a Volunteer Group and ask/appoint a Vibrant, Compelling Volunteer as Chairperson �Use the volunteer to take the recommendations to the Executive Committee �Use the Volunteer to be an advocate for Planned Giving

Tips for Education �Bring the internal case for support to the officers �Does the organization serve a long-term purpose? �Are you experiencing cyclical economic variances? �Do you face increasing operating costs? �Do you have programs you would like to fund – but don’t have the resources? �Do you anticipate needs for future programs? �Do you face increasing competition for funds? �Are you losing donors through attrition?

Everyone Has a Role in the Success of the Program – Especially the Executive Committee �Expanding a development program takes more staff and volunteer support than an annual giving program: �Planned gifts involve non-cash gifts – many of which may have liability �Planned gifts may require additional time and expertise �Planned gifts require patience �Planned gifts involve the organization’s best donors

The Volunteers can �Assist in design and planning �Recommend gift acceptance policies �Support investment policies �Support ethical guidelines �Establish goals �Provide leadership �Be consistent �Identify donors �Visit potential donors �Write or Email thank you notes �Outreach to professionals

Leadership Duties �Drive strategic planning �Ensure Conference Executive Committee �Make regular Reports to Conference Executive Committee �Recruit a Planned Giving Committee �Set Goals �Define Giving Opportunities �Draft Resolution to Commit Gifts to Donor’s Directions �Assign Oversight of any Created Endowment �Establish Distribute Plans �Support Planned Giving & Trust Services

Checklist for Planned Giving Directors �Annual report �Goals for coming year �Marketing objectives, plan, support �Training �Budget �Committee �Thank yous �New/old members �Set schedule for coming year

Final Thoughts �In short, it’s pretty easy �Articulate your organization’s needs and expectations �Use a process that keeps you focused on finding the right employee/volunteer �Address problems early �Help integrate the employee/volunteer with the team �Provide positive feedback

Final Thoughts �Success is not serendipitous �Planning �Preparation �Placing value on donor relationship �Support from the top is essential and will lead to success

Final Thoughts �Planned giving will strengthen the charity’s development culture �Teach executive committee members much about their own planning �Build a solid base of support for your charity’s future �Get the board involved early in the process – and keep them involved �Understand the importance of building relationships – long-term relationships – with donors �Steward your donors �Measure your results

“You Make A Living By What You Get………But You Make A Life By What You Give”