Planned Giving Basics – Building Trust Takes Timecampaigns, strategic planning, and specific projects such as websites, officer training, publications, etc. [email protected]

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Planned Giving Basics –Building Trust Takes TimeThe 27th Annual Virginia Fund Raising Institute

July 18, 2018

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Kelly del Campo

Merricks, CFRE

Sheltering Arms

Foundation

• 20 + years not-for-profit experience– Development: annual fund,

major gifts, planned giving, capital campaign

– Public relations– Volunteer management– Executive leadership

[email protected]

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Bradley Purcell,

JD

• 25 years experience with 50+ non-profit clients with budget size from $50K to $50M.

• Major and planned gifts; Capital campaigns, strategic planning, and specific projects such as websites, officer training, publications, etc.

[email protected]

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Pam Seay

More than thirty years of experience in non-profit administration with focused expertise in board development and fund-raising

Recently retired from the Virginia Historical Society after nearly three decades, the last ten as Senior Vice President for Advancement.

[email protected]

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Today’s Talk -

Objectives

• Identify some of the pressing practical challenges posed by planned giving programs

1. Finding donors, starting therelationship

2. Conversation, building the relationship

3. Communicating with your support base

4. Policies and management

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Concrete Steps

We will also—

identify and assess concrete steps to meet those challenges.

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Reality for NPOs Since 2009

• 85% of new non‐profit revenue since 2009 has accrued to one sector – healthcare

• Do you work for a new NPO? – More than 300,000 have been founded since 2009, 89% in sectors outside higher education and healthcare.

Copyright © Planned Giving Advantage, Inc., 2018

Increasing Stress• Most economic growth since 2010 has been

in top 50 cities/MSAs. (1. www.EIG.org, The New Map of Economic Growth and Recovery, May 29, 2016; 2.“Six years later, 93% of counties still haven’t recovered from the recession,” Wall Street Journal, 1/12/2016.)

• Is the rapid increase in NPOs outside healthcare/higher education stressing the non–profit sector, at least outside of the growing MSAs?

Copyright © 2018 Planned Giving Advantage, Inc.

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Small Shops Who Do Everything

This Photo by Unknown Author is licensed under CC BY‐NC‐ND

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The Millionaire(s) Next DoorFigures from 2013 Survey of Consumer Finances, U.S. Government Study

• People of even average income ($55K/year) can have substantial net worth ($300K to $1M+).

• People of moderate incomes with substantial assets tend to be older.

• Such people can make deferred gifts.• They are in larger numbers than your NPO can

reach one-at-a-time (and don’t necessarily like one-on-one attention)


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Planned Giving is . . . .

The Solution to many donors’ problems

The Work Around for many obstacles to giving

The best “Approximation” given the conflicting needs of NPOs and

their supporters


Many Donors are “Doing PG” Already

Bequests: Donors often don’t tell you.

Retirement Accounts: Same thing, especially since they may spend the money.

12Copyright © 2018 Planned Giving Advantage, Inc.

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Trust provisions: May be subject to change. Is your NPO trustee? Insurance:

You’d only know if your NPO owns the policy.


Your First Big StepDATA

Survey your individual donor base--

• A “Planned Giving Program in a Box” for NPOs new to PG


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Your First Big StepDATA

• A great way to kick off a new program, or strengthen an established one.

• Begin survey with Donor Profile, followed by 2‐3 questions: “Is Sheltering Arms Foundation already in your estate plans? If so, please tell us.

This Photo by Unknown Author is licensed under CC BY

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Survey ResultsResidential Care Facility

St. Anne’s‐Belfield School2007

VirginiaHistoricalSociety(now VMHC)

ShelteringArms Foundation2017

List Size 3,500 1,000 approx

7000 2,000

# of Responses

40 25 50 9

Yeses 9 7 21 2

Would consider

3 1 7 1

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Communicating about Legacy Giving

PrintPrint

NonprintNonprintSocial MediaSocial Media

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Matching Content to Media

Does your organization need a planned giving

booklet?

What kind of a web presence?

Assemble digital content; use it as a resource for all your media.

Try as many

approaches as you can; Keep what works or is easiest to execute

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Who are Your Key

Groups?

Reflects your organization’s character:

• Education: Alumni/Friends, Employees

• “Insured” Healthcare: Grateful Patients, Employees

• “Uninsured” Healthcare: Consistent donors, Employees

• Social/Human Services and Museums: Volunteers, Employees

EVERYONE: Consistent donors

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Consistent donors• Vary from one organization to another

• 7 of the last 10 years? 15 of the last 20?

• Amount does not matter

• How do you communicate with them?

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Consistent Donors to PG Donors

• St. Catherine’s School: The Arcade Society Honor Roll

• VA Historical Society: Last 15 years

• Westminster Canterbury Richmond: Giving Longevity

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The Planned Giving Conversation

Is a dialogue, leading to a partnership

Requires preparation and training: Who is the

prospect? How can you help them?

Often involves people of advanced age; people of

moderate meansRequires LISTENING

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Do Your Homework

• Study the Prospect’s records/Talk with anyone who knows the Prospect

• What are the Prospect’s preferences for communication?

• Be prepared to mention bequests, life income gifts, etc., as work-arounds that may help.

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24Copyright © 2018 Planned Giving

Advantage, Inc.

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Dialogue and PartnershipDonors feel free . . .

• . . . to talk about themselves: their life and their legacy.

• . . . to appreciate that they are in control, and to understand the power they have to create their legacy.

• . . . to engage in a process of discernment.

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Building trust takes time.

The second visit can make all the difference.

Don’t expect to accomplish too much in one visit.

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Finding out why they give

• Heard it all before: “Giving Back, “Keeping a good thing going,” . . .

• Sure, they value your mission. Any other reason?

• The “one true thing” about that donor.

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Listening


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How to respond when they say . . .

Donors may say “I wish I could do more”

Well, they can – Bequests – a gift that costs them

nothing during their lifetime Life income gifts – a gift that actually

pays them. 31

When? How?Creating Opportunities for “the

talk”

• “talk” with a small “t” as it can be rather off-hand.

• Show up early at your events. • Don’t forget the telephone for follow-

up contact, second visits, hand-written notes etc.

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Advantage, Inc.

Now, Have the Talk!• Keep it short – leave while the Prospect

is still glad you’re there.• Introduce yourselves to each other – a

good introduction raises the issue of gift planning.

• Convey message of thanks – a thorough “thank-you.” “Your support is vital, and it always will be.”

• LISTEN TO THE PROSPECT34

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Preferred Communication Channel


Advantage, Inc.

• Listen and answer

• Patience, there’s always the next visit

To help protect your privacy, PowerPoint has blocked automatic download of this picture.


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(and another Prospect)


Advantage, Inc.

Thank You


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Four Practical Points

BudgetingPolicies: Accepting planned gifts, and counting them in campaigns

Benchmarking: Assessing progress

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Budgets

Labor is the biggest expense;

Labor is the biggest expense;

A print piece may cost $8‐

10K to produce and

print.

A print piece may cost $8‐

10K to produce and

print.

Budget for at least one event each

year. Inexpensive.

Budget for at least one event each

year. Inexpensive.

Capacity building grants are available

Capacity building grants are available

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Policies

Gift Acceptance: Policies on accepting a range of gift property and participating in structures like trusts, etc., plus procedures for enforcing the policies

1Gift Counting policies for recording gifts of property and planned gift vehicles in gift records, and Crediting policies for campaigns.

2Keep them simple, but complete. Cover the possibilities.

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Benchmarking—More DATA

• Measure activities/“expectancies,” not revenue

• Growth rate: 1% of your donor base each year. May plateau for established programs.

• Build the future: Yr1 – 12 expect., Yr2 – 20, Yr3 – 26.

• Create a program that will make a realistic contribution to your Next Campaign

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A Few Resources

• Virginia Gift Planning Council (www.vagiftplanning.org)

• National Capital Gift Planning Council

• Regional NPO resources for ex: Connect VA www.connectva.org

• Other organizations’ publications and websites

• PG Calc• Marketing/Communications: Robert

Sharpe; Pentera; Stelter• Advisory boards• Board members / volunteers• Networking• CASE

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Be Ready

• Ready to ask for gifts• Ready to accept gifts• Ready to say “Thank You”

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Today’s Talk -

Objectives

• Identify some of the pressing practical challenges posed by planned giving programs

1. Finding donors, starting therelationship

2.Conversation, building the relationship

3. Communicating with your support base

4. Policies and management

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Concrete Steps

Data

Relationship

The Passage of Time

Planning and Management

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Good Luck !

• Kelly Merricks

• Bradley Purcell

• Pam Seay

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Documents

Planned Giving Basics – Building Trust Takes Timecampaigns, strategic planning, and specific projects such as websites, officer training, publications, etc. [email protected]