Aebi adnet presentation

A Model for Helping NPOs Create a Sustainable

Future

Presented by

Jacky Alling

Kimberly Kur

ARIZONA ENDOWMENT

BUILDING INSTITUTE

AEBI Description

The Arizona Endowment Building Institute was created in 2005/2006 to give Arizona

nonprofit organizations the tools and education they need to develop and

implement planned giving and endowment building programs. The objective is to

increase current outright gifts to endowments and future gifts via Wills and

other planned giving vehicles.

Topics for Today

•AEBI’s roots

•The current AEBI program

•Why nonprofits choose

•Why ACF chooses to do AEBI

AEBI Roots

•Leave a Legacy, Planned Giving Round Table

•Planned Giving Institute

•Designed to be a flexible program that adapts to the needs of each class.

•Part of a continuum of planned giving and endowment education– PG Basics, PG 101, PG 202

Funding Partners

The Virginia G. Piper Charitable Trust

The Stardust Foundation

The Arizona Community Foundation

One Nonprofit’s Take

Participation in AEBI gave us the guidance, structure, and, frankly, a kick in the pants to formalize and engage our endowment building. The things we learned had direct influence on our request and receipt of a $2 million initial gift that was the cornerstone of a formal campaign launched in January 2008. To any organization considering participation, I can only say, "€œDo it!"

— Foundation for Blind Children

AEBI CLASS 1 CHARITIES

Crisis Nursery

Desert Botanical Gardens

Florence Crittenton Services

The Phoenix Zoo

Valley Presbyterian Church Foundation

CLASS 2 CHARITIES

Ballet of Arizona

Beatitudes Center DOAR

Prescott College

SARRC

Foundation for Blind Children

CLASS 3 CHARITIES

All Saints Episcopal Church & School

Phoenix Symphony

Sojourner Center

St. Mary’s Food Bank Alliance

St. Vincent de Paul

UMOM

Yavapai College

CLASS 4 CHARITIES

Area Agency on Aging

A New Leaf

Banner Health Foundation

Beatitudes Campus

Catholic Charities Community Services

Gompers Habilitation Center

CLASS 5 CHARITIES

Arizona Animal Welfare League

Christian Care Communities

Phoenix Art Museum

Phoenix Rescue Mission

Rainbow Acres

SARRC

CLASS 6 CHARITIES

Musical Instrument Museum

YWCA of Greater Phoenix

Tumbleweed Center for Youth Development

VALLEYLIFE

Boys and Girls Club of Metro Phoenix

AEBI Program Overview

ENDOWMENT

ACTION

PLAN

Nonprofit Team

Monthly Meetings

Nonprofit Deliverables

Mentor and Director Support

Key Ingredients of the Secret Sauce

MentorsBoard

engagementData

screening

Who Gets Involved

•Selection Committee

•Nonprofit teams– Staff: Executive Director, Director of Development, Finance

Officer

– Volunteers: Board Chair, plus two other board members

•AEBI Director– Designated by the Arizona Community Foundation

•Mentors– Recruited by director or nominated by participants

•Guest presenters

Mentor Role

•Participate in monthly team and mentors’ meetings

•Provide guidance for the AEBI work of the assigned charity team

•May provide presentations

•Assist the director with adjusting the curriculum for the current class needs

Mentor Characteristics

1. Willing to commit to full participation in all curriculum sessions, and other required meetings.

2. Committed to encouraging philanthropic support for charities, as demonstrated through their professional and volunteer activities.

3. Experience in planned gifts or estate planning.

4. Available to their assigned charity for advice and support during the program’s 15-months.

Curriculum

• Each team member and each mentor will receive Diana Newman’s “Endowment Building” book.

• Training topics include:– Legal structures for endowments

– Developing a case for support

– Donor solicitation and cultivation

– Donor stewardship

– Marketing planned gifts

– Policies, e.g., Investment, Spending, Windfall, Gift Acceptance

– Gift agreements

– Board and committee engagement

– Working with allied professionals

AEBI Meetings

• For Each Nonprofit

– Monthly Group Meetings

• educational presentation plus a work session breakout

– Separate Team Meetings

• team sets dates to meet as a team to work on assignments

• with mentors and/or AEBI director (as needed)

• For mentors: monthly mentor meetings for progress reports and curriculum review.

• No meetings are held in June, July or December.

Nonprofit Action Items

•Planned Gift Testimonial

•Data for Screening

•Presentation to your Board about AEBI, Planned Giving and Endowment Building

•Case for Support

•Windfall Policy

•Investment Policy

Nonprofit Action Items

•Spending Policy

•Gift Acceptance Policy

•Top 10 Cultivation Action Plans

•Top 10 Stewardship Action Plans

•Marketing Plan with Budget and Case Statement

•Endowment Goal

•Endowment Action Program

Cost Considerations for the Charity

•AEBI fee is $5,000 per charity for the entire course (covers Blackbaud data screening)

•Planned Giving Round Table participation is expected

•Cost of Endowment Action Plan creation and implementation

Connecting with Alumni

•ACF maintains a contact list for each nonprofit participant that includes the executive director and the director of development.

•Each alumni is invited to attend the monthly sessions.

•AEBI director provides alumni with on-site presentations on specific topics upon request.

Application Process

•Review the selection criteria

•Seek board approval and a board resolution to participate

•Identify and confirm team members

•Complete and submit application

AEBI Selection Considerations

• Have and maintain a volunteer and/or donor database.

• Have enough individual donors to speak with about planned

giving (about 1,000).

• Have a solid reputation for good fiscal management over

several years.

• Employ enough paid staff to follow up with the program’s

assigned tasks – Executive Director and Development

Director at a minimum.

• Exhibit evidence of board/volunteer leadership support for the

project, including the commitment of your Board President

and one other volunteer leader to actively participate on your

AEBI team.

AEBI Selection Considerations

• Commit to fully participate in all program trainings.

• Exhibit willingness and ability to pay the $5,000 participation

fee.

• Have been in operation for at least 10 years.

• Have an annual operating budget of at least $1 million.

• Have been fundraising for at least 5 years in the individual

sector, raising a minimum of $250,000 annually.

Selection Committee

• Meets annually to select the next cohort.

• AEBI funders are represented and professional advisors connected to planned giving and endowments also participate.

If a Nonprofit Is Not Ready?

What do we tell a nonprofit that is not ready for AEBI?

•Enroll in another seminar within the AEBI spectrum, such as the Planned Giving and Endowment Building 101 and/or 202 seminars.

•Join AFP and PGRT and attend their monthly meetings for education and peer networking.

Common Challenges

• Marketing plan

• Creating and adopting policies

• Database management

• Turnover of team members

• Keeping up with pace of AEBI

Lessons Learned

• AEBI can’t do everything. We can provide the information and tools, but the nonprofit must provide the resolve to continue their efforts after the program ends.

• Alumni have not been easy to continue contacting for follow up. (Turnover can be an issue.)

• Recruiting qualified nonprofits is becoming more difficult—fewer nonprofits are primed to participate.

Why Nonprofits Choose AEBI

Nonprofits are seeking a new (or improved) revenue model to support their programs.

Making long-term changes to the way you do business is difficult. AEBI offers a structure for change.

If you do what you’ve always done, you’ll get what you always got.

Nonprofit’s Viewpoint

“These months of learning, planning and effort have created a new emphasis on endowment development. Our leaders, staff and trustees are better prepared to promote and manage endowment. We are privileged to have been selected and grateful to the staff and funders who had the vision to execute this program. The impact of this process will continue for years.”

— Valley Presbyterian Church Foundation

Why AEBI is a good fit for CFs

We can set the example on endowment building.

We create sustainable capacity within our grantees so that future grants from our organization can have new impact.

We can afford to take the long view.

We can build goodwill throughout the nonprofit and professional advisor communities.

Why AEBI is a good fit for CFs

We create opportunities for new agency funds.

We foster positive relationships with development community and allied professionals.

Nonprofits will participate because the program is run by a grantor (as opposed to a consultant).

Full spectrum of courses can help all nonprofits, as opposed to consultants who can only help clients with money.

For More Information…

Contact

Ed Knight, J.D., AEBI Director

eknight@azfoundation.org

602.381.1400

Also, feel free to contact:Kimberly Kur - kkur@azfoundation.org

Jacky Alling - jalling@azfoundation.org