Planned Giving in Small Shops An Essential Component

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Planned Giving in Small Shops An Essential Component in NGO Fundraising Christine Kwan The

Planned Giving in Small Shops An Essential Component in NGO Fundraising Christine Kwan The Hong Kong Council of Social Service

Planned Giving Basics n Planned giving is the cultivation of donors for the purpose

Planned Giving Basics n Planned giving is the cultivation of donors for the purpose of receiving major gifts, usually in the future. n The gift is made from donor’s assets, not current income. n Because of size and complexity, they require planning and often are transmitted through a legal instrument such as a will or a trust.

US Experience n Philanthropic Giving Index (June 2005) by The Centre on Philanthropy, Indiana

US Experience n Philanthropic Giving Index (June 2005) by The Centre on Philanthropy, Indiana University Ø Ø fundraisers rated planned giving as the 2 nd most successful solicitation technique. (especially with health & religious non-profits) 6. 9% of fundraisers report that their organization received 51 -75% of their revenue from planned gifts.

US Experience n “Leave a Legacy” campaign http: //www. leavealegacy. org Ø a national

US Experience n “Leave a Legacy” campaign http: //www. leavealegacy. org Ø a national effort to inspire people from all walks of life and all income levels to think beyond their lifespan when doing good works. Ø donors to remember a cause or a charity in their will or estate plan.

UK Experience n Planned giving up 50% in 4 years. n 2002: http: //www.

UK Experience n Planned giving up 50% in 4 years. n 2002: http: //www. rememberacharity. org. uk Ø Ø achieved 32% awareness of its message in the 1 st year; constitute a major proportion of nonprofits’ incomes.

To Sum Up Planned Giving has the following advantages: n contribute towards NGO’s development

To Sum Up Planned Giving has the following advantages: n contribute towards NGO’s development programs regardless of economic downturns n cost effective n offer attractive options to donors

To Sum Up but it also requires… n organizational patience n time n legal

To Sum Up but it also requires… n organizational patience n time n legal and financial planning advice n non-profits to establish own Gift Acceptance Policies for its planned giving program

What about HK? n Not tax-driven, $0 estate duty with effect from Feb 11,

What about HK? n Not tax-driven, $0 estate duty with effect from Feb 11, 2006 vs. overseas: planned gifts can decrease taxes & increase inheritances to loved ones. n Culture of passing wealth to the next generation vs. overseas: charity as the primary estate beneficiary

Ageing Population n HK ageing population 27% 12. 1% 13%

Ageing Population n HK ageing population 27% 12. 1% 13%

Ageing Population n A larger and wider spectrum of elderly population: ¡ ¡ n

Ageing Population n A larger and wider spectrum of elderly population: ¡ ¡ n age groups: under 75, 75 -84, 85 or above different health conditions & socio-economic characteristics A higher elderly dependency ratio: ¡ ¡ ¡ 2004: 164 2013: 378 mid 2033: 428

Implications n What should be done to prepare for the challenges in an anticipated

Implications n What should be done to prepare for the challenges in an anticipated aging society? n How to prioritize NGO’s fundraising strategies in the next 5 year plan (20072012)?

Assess Readiness n Institutional Audit ¡ ¡ n Assess financial viability / stability Review,

Assess Readiness n Institutional Audit ¡ ¡ n Assess financial viability / stability Review, adapt mission statement Program Audit ¡ ¡ Interview supervisors, board, key supporters to initiate buy-in Review donor base strengths & weaknesses Staff Audit n ¡ ¡ Identify staff/ budget resources Assess educational preparation

Prerequisites n Review your audits n Select model ¡ ¡ ¡ Volunteer-driven Staff-driven Combination

Prerequisites n Review your audits n Select model ¡ ¡ ¡ Volunteer-driven Staff-driven Combination n Want to get started n Decide what to promote

Available Platforms HKCSS support initiatives: n Will Power for Legacy n Life Care Movement

Available Platforms HKCSS support initiatives: n Will Power for Legacy n Life Care Movement ¡ www. lifecare. org. hk

Keep In Touch Christine Kwan HKCSS T: 2876 2453 christine. kwan@hkcss. org. hk

Keep In Touch Christine Kwan HKCSS T: 2876 2453 christine. kwan@hkcss. org. hk