PG Calc Your Partner In Planned Giving Success

PG Calc | Your Partner In Planned Giving Success Marketing Bequests – and Beyond Partnership for Philanthropic Planning Rhode Island June 21, 2018 Mike Valoris Senior Consultant PG Calc (617) 497 -4992 mike@pgcalc. com © 2018 PG Calc Marketing Bequests – and Beyond 1

PG Calc | Your Partner In Planned Giving Success The bequest from nowhere $300, 000 © 2018 PG Calc Marketing Bequests – and Beyond 2

PG Calc | Your Partner In Planned Giving Success Our discussion this morning • Basics about bequests • Why charities like bequest gifts • Why donors like bequest gifts • Marketing strategies to generate prospects • Moving Suspects to Prospects to Closing the intention • Engaging your Legacy Society members • Administering the realized bequest © 2018 PG Calc Marketing Bequests – and Beyond 3

PG Calc | Your Partner In Planned Giving Success Why bequest intentions matter • 80%+ of all planned gifts • Giving USA 2017: Bequests were $30. 36 Billion (8% of all charitable giving in 2016) • Bequests often exceed total lifetime giving • Any donor can do a bequest intention • The role of bequests in blended gifts © 2018 PG Calc Marketing Bequests – and Beyond 4

PG Calc | Your Partner In Planned Giving Success Let’s dispel the myth right now! • Realized bequests don’t just happen • Requires strategy – convert suspects to prospects to closed bequest intentions to realized bequests • Consistent awareness marketing lays the foundation • Requires basic knowledge and comfort by gift officers to discuss the topic • Patience, persistence, follow-up, being proactive © 2018 PG Calc Marketing Bequests – and Beyond 5

PG Calc | Your Partner In Planned Giving Success Why charities like bequests • Minimal cost to administer – highest ROI of all planned gifts • Create a bequest income pipeline (if a bequest program exists) • Potential for large gifts • Every non-profit can have a bequest program – but many fail to move forward • Every donor is a candidate, but……… © 2018 PG Calc Marketing Bequests – and Beyond 6

PG Calc | Your Partner In Planned Giving Success Why donors like bequests • Easy to arrange • Revocable • Retain control of the assets • Flexible (i. e. -if my spouse predeceases me) • Reduce estate taxes (applies to fewer donors under the new tax law) © 2018 PG Calc Marketing Bequests – and Beyond 7

PG Calc | Your Partner In Planned Giving Success Ways to make a bequest gift • Wills (pecuniary, specific, residuary gifts) • Revocable Living Trusts • Income in Respect of a Decedent (IRD) [IRA, 401(k), 403(b)] • Life insurance • POD and TOD • Donor-Advised Funds (DAF) © 2018 PG Calc Marketing Bequests – and Beyond 8

PG Calc | Your Partner In Planned Giving Success The Marketing Funnel • Not everyone will make a bequest intention – most will not! • The Marketing Funnel – 3 stages Ø Suspects – the broadest category Ø Prospects – self-identify from marketing or visits Ø Closing Prospects to make a bequest intention © 2018 PG Calc Marketing Bequests – and Beyond 9

PG Calc | Your Partner In Planned Giving Success Who are your best suspects? • Childless • Members of monthly giving program • Consistent long-time donors • Board of Trustee members • Major gift donors/Endowed fund donors • Donors with Donor-Advised Funds • Volunteers • Donor surveys © 2018 PG Calc Marketing Bequests – and Beyond 10

PG Calc | Your Partner In Planned Giving Success Objectives and messaging for marketing • Spreading awareness • Your organization welcomes bequest gifts • Mission! • Testimonials – but choose wisely • Lead generation • Have a marketing plan © 2018 PG Calc Marketing Bequests – and Beyond 11

PG Calc | Your Partner In Planned Giving Success Marketing channels • Inserts with mailers (i. e. gift receipts) • Tag lines on print communications • Organization publications- alumni magazine • Direct mail - newsletters, postcards • Electronic – web, email • Brochures • Telemarketing • Planned Giving Seminars © 2018 PG Calc Marketing Bequests – and Beyond 12

PG Calc | Your Partner In Planned Giving Success From prospect to……… • Be comfortable with the topic of bequests • Know estate and gift tax basics – new tax laws • You don’t have to know it all • Entering the discussion • Advancing the discussion • Have a printed brochure to leave behind • Patience, persistence, and follow-up • Watch for red flags © 2018 PG Calc Marketing Bequests – and Beyond 13

PG Calc | Your Partner In Planned Giving Success Effective use of your database • Rating and screening your database • Capture prospect information in your database • Give thought to your PG prospect coding system • Use codes that gift officers understand © 2018 PG Calc Marketing Bequests – and Beyond 14

PG Calc | Your Partner In Planned Giving Success Legacies societies – pay attention! • Have one! • Be inclusive • What do you know about these intentions? • Have you asked questions? • Do the gifts meet your current programmatic priorities? © 2018 PG Calc Marketing Bequests – and Beyond 15

PG Calc | Your Partner In Planned Giving Success Legacy Society Form – Part 1 © 2018 PG Calc Marketing Bequests – and Beyond 16

PG Calc | Your Partner In Planned Giving Success Legacy Society Form – Part 2 © 2018 PG Calc Marketing Bequests – and Beyond 17

PG Calc | Your Partner In Planned Giving Success Knowing about your bequest intentions • Gift negotiation: Ø From “bad to better” Ø From “good” to great” • Salvaging the challenging bequest intention Ø A gift for a prize Ø An endowment gift $1. 5 M short of the needed amount Ø A gift for a non-priority © 2018 PG Calc Marketing Bequests – and Beyond 18

PG Calc | Your Partner In Planned Giving Success Bequest administration • Have procedures • Use a system to track documents and progress • Probate vs. Non-probate assets • Don’t be shy!!! © 2018 PG Calc Marketing Bequests – and Beyond 19

PG Calc | Your Partner In Planned Giving Success Bequest administration - Documents • Documents you want: Ø Copy of the will or trust – why? Ø Copy of appointment of executor Ø Letter from authorized representative or attorney Ø Copy of the inventory Ø Copy of appraisal if real estate, art, or collectibles Ø Final accounting (if a residuary bequest) Ø Review fees charged (if a residuary bequest) © 2018 PG Calc Marketing Bequests – and Beyond 20

PG Calc | Your Partner In Planned Giving Success Bequest administration - Process • Receive notice of estate • Send Estate letter #1 -request documents and information • Send Estate letter #2 in 30 days if no response to Letter #1 • Send Estate letter #3 in another 30 days if no response to Letter #2 • Send a Family Acknowledgment Form • Track documents requested and received • Track funds received and still due – and when expected • Provide information requested by executor (i. e. tax ID#) © 2018 PG Calc Marketing Bequests – and Beyond 21

PG Calc | Your Partner In Planned Giving Success Bequest administration – Follow-up • The simplest estate can take a minimum of 6 -9 months • Look at the assets in the estate – CDs vs. real estate • Periodically follow-up – ie. Every 60 -90 days • Try for partial distributions © 2018 PG Calc Marketing Bequests – and Beyond 22

PG Calc | Your Partner In Planned Giving Success Bequest administration - Issues • Restrictions Ø Program no longer exists Ø Program that is already overfunded • Gift does not meet your gift acceptance policy (i. e. named endowed fund for less than minimum) • Uncooperative executors • Getting funds from retirement accounts © 2018 PG Calc Marketing Bequests – and Beyond 23

PG Calc | Your Partner In Planned Giving Success In conclusion • Marketing lays the foundation for bequest intentions – lead generation • Funnel Suspects to Prospects to Closed Commitments • Have a Legacy Society and “work it” • Engage with donors about their commitments • Have procedures for administering realized bequests © 2018 PG Calc Marketing Bequests – and Beyond 24

PG Calc | Your Partner In Planned Giving Success Marketing Bequests – and Beyond s? Questions? Comments? Discussion? Debate? Mike Valoris Senior Consultant PG Calc (617) 497 -4992 mike@pgcalc. com © 2018 PG Calc Marketing Bequests – and Beyond 25