What Women Want: Understanding Women\’s Philanthropic Objectives

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What Women WantUnderstanding the Needs and Objectives of Women's Philanthropic Giving, including Planned Gifts

Thursday, October 15 - 1:30 pm - 3:00 pm

Katherine Swank, J.D., Consultant

Katherine Swank, J.D.| Page #2 © 2009 Blackbaud

Understanding the Objectives of Women's Philanthropic Giving

Your Presenter

Consultant, Target Analytics™, a Blackbaud Company Law degree, Drake University School of Law Over 20 years as a development officer & consultant, including

National Director of Planned Gifts, $10 million annual revenue Lead manager, $20 Million Capital Campaign Internal fundraising consultant to 60+ national and chapter offices Over $215 million raised during career

9 years as adjunct faculty, Regis University Masters in Nonprofit Management Program Courses: Wealth and Philanthropy; Financial Resource Development

Author and frequent presenter



Our Agenda

Women! and Philanthropy

What Women Want and What They Support

Involving Women in Your Organization

Planned Giving and Women

Marketing and Communications for Women

Approaching Women in Economically Strained Times

Summary and Resources to Get You Started



Wealth and Philanthropy in America

In each of the past two years, charitable gifts have exceeded $300 Billion 2008 was only one of three years in the past 40 when giving has declined from the

previous year 2% decline – larger than 1% historical decline in recessions Decline was lower than some anticipated

Charitable giving in the U.S. grows faster than the economy GDP has risen 150% in past 50 years Giving has risen 190%

80% American households donate annually In 2007, personal wealth grew 5% worldwide

$109.5 trillion; 6th consecutive year of growth Estimated during 2008/2009 personal wealth may have decreased as much as

30% $76.65 trillion today?



Demographics of Women in America

Populations Facts Women Men

Number in the U.S. (2007 figure) 153.6 Million 149.4 Million

Age is less than 42 Fewer More

Age is 42 or greater More Fewer

Age is 85 or older Twice as many Half as many

Married 62.4 Million

Widowed, Divorced or Never Married 59.8 Million

Mothers (children of all ages) 82.8 Million

Percentage that Volunteer 30% 23%

Bachelor Degrees Obtained among 25-29 Year Olds

32% 25%



Affluent Women

Almost 70% of women are employed 3.4 million women with gross assets of $675,000+ 46.3% of top wealth-holders are women (IRS, 2005)

Average net worth - $1.7M 10.4 million privately-held women-owned firms

Accounts for 2 out of 5 U.S. businesses Women are playing bigger roles in family financial planning and buying stocks

and bonds says a new study just released by NBC Universal in the past few weeks As many as 40% of employed women say they are the family breadwinner



Affluent Women

Profile of a female “millionaire” (Stanley 2001) 49 yrs. Overcame a family or work obstacle 1 in 20 have never been married Of those married, half are divorced at least once Homeowner Many are self-employed Might be earning as much as 3/4th of the household income Give more to charity than millionaire men Are charity “worker bees”



Women and Philanthropy

Self-made women donate 7% of their annual income Men in the same category donate 5%

Women donate 3.5% of their wealth on average While men donate 1.8%

Women donated $109 million to presidential candidates in checks of $200 or more in the recent presidential campaign Triple the amount female donors donated in 2000 The Internet played a large role in filling women’s desire to build a relationship and

learn something about a candidate Nearly 60% of female donors cite “giving back” as a motivator

Help those with less Emotion is part of giving

Only 25% of affluent women cited “tax legislation” as a motivator Compared to 40% of men



What Women Want

Want greater control of their own resources Choose charitable interests separate and distinct from spouse Emphasize cooperation and partnerships in their giving Leverage gifts to insure their interests are matched Seek challenge over competition Greater accountability expected Are less likely to seek public recognition – but will accept it if offered

But do not seek to be anonymous



Six “C’s” of Motivation for Women’s Giving

Create new solutions to old problems Use their financial power to effect change rather than to preserve the status quo Commit to an organization and its vision Enjoy a personal connection with the institution or organization Collaborate and work with others as part of a larger effort Celebrate!

Shaw-Hardy, Sondra C. and Martha A. Taylor, Reinventing Fundraising, Realizing the Potential of Women’s Philanthropy, Jossey Bass, 1995.



What Women Support

90% of female donors give to social causes

80% of grants made by women’s foundations go to women or girls at low income levels

Most support goes to: Organizations that serve the needs

of children Opportunities for women Education Health issues

Also support: Economic opportunities for all Diversity The Arts Environment



Giving to Charitable Sectors

• Percent of High Net Worth Households That Give to Each Sector



How Women Give

Giving Circles or Collective Giving Offer high engagement for philanthropic objectives Collective decision-making Educational opportunities

Matching gifts and challenge grants Leverage financial involvement

Not uncommon for women to want to be involved first and become contributors second



Barriers to Giving

Are afraid of outliving resources Don’t feel ownership of family money Don’t think they are philanthropists Aren’t encouraged to make donations by advisors Aren’t asked to make gifts of impact Take longer to decide about major gift decisions Economic uncertainty



Overcome the Barriers

Cumulative Giving Opportunities Donor Advised Funds Grow an Endowment Fund over Time

Joint and Group Gifts Giving Circles

Multiple payments Multi-year commitments Planned Gifts that allow flexibility Planned Gifts that provide security



Involve Women in Your Organization

Donor education programs for women prompt: Larger gifts Unrestricted gifts Long-term gift planning Leadership roles with the organization

Women, especially the younger generations, often want to be hands-on Expect active involvement in the project or with the organization



Women’s Connection to Planned Gifts

Many bequest and gift annuity donors have annual incomes of $70,000 or higher “Affluent” Households are those with annual incomes of over $77,500

• More than 20% of households• Many of these households are considered “millionaires”• Almost ½ are headed by “retirees”• Average net worth $2.2M

• $1.4 million in liquid or investable assets Half consider themselves conservative investors Long-term accumulation of assets

Women will soon control as much as three-fourths of planned giving assets More than 50% of bequest and charitable gift annuity donors are women Just under 50% of charitable trusts are by women



Future Opportunities

• High Net Worth Households’ Plans for Charitable Giving



Baseline Women in Your Current Donor Ranks

Understand women’s place in your donor ranks Leadership and committee positions Number of women and couples

Average gifts from women Activities that women participate in Average length of time involved % of Donors % of Volunteers

Which types of appeals do women respond to? Direct mail, direct response Workplace giving Special Events Face-to-face, etc

Number of legacy gifts from women Which gift vehicles are the most

used? % of all legacy giving



Connect to Your Female Constituents

Seek to understand their desires One-on-one discussions Surveys Focus groups




Gather women together and ask them about their general interest in your mission and programs What interests them in your organization? What do they think your most important programs are? What would they most like to see their gifts support? At what level do the see their gift support? Do restricted or unrestricted gifts most interest them? What do they think you could be doing better? What kinds of information and communications they would like to receive from you? How often they would like to receive those communications? What other ways would they like to be involved in the organization?




Also ask them about their interest in planned gifts and legacy giving: Are they interested in making planned gift arrangements to benefit the organizations

they value? What planning vehicle(s) would they use?

• Would they consider making a bequest or trust gift?• Describe charitable gift annuities and other life income gifts to see if these

methods appeal to them• Inquire about gifts of stock and real estate• Gifts from a retirement account or life insurance policy

What types of information would they like to receive about these gift giving options? Would educational sessions about financial planning and planned gifts interest them? At what level would they consider making planned gifts? Do restricted or unrestricted gifts most interest them?




Finally, ask them how they would like to be thanked and recognized for their gifts: What forms of recognition most appeal to them? What types of recognition from other organizations have they liked the most? How would they like to find out about the gifts of others? In what manner would they like to celebrate their own gifts of impact and/or celebrate

with others who have made similar gifts of impact?



How to Talk to Women

People respond to publications and communications that most closely mirror how these individuals view themselves

Consider female-slanted communications that reflect the unique make-up of your organization’s women donors Age Physical appearance Financial status Interest and values

You may find that you have more than one distinct female profile



How to Talk to Women



Marketing Planned Gifts to Women

Market the right gift vehicles to the right people Know your audience

Pick one subject Do not mix gift type messaging

Focus on the things that motivate the planned gift Do not focus on the details of the planned gift

Details do not work well for marketing Consider different versions by audience type or generation



Donor Stories

Focus on your mission Tell stories, capture hearts

Avoid technical language and tax features

Keep it simple

More examples can be found at www.leavealegacy.org



Web or Video Presentation

http://www.leavealegacy.org/ultimategift_video.asp

• Tell the story in a media presentation • 3 minutes or less



Donor Motivation

It is about impact and emotions, not technicalities

Use visuals that provide impact

Use few words



Response Mechanisms that Work

Give a reason to notify:

“If you have made an estate provision for the Gardens, or a planned or deferred gift, please let us know so we can welcome you into the Perennial Friends Society and make sure your gift intentions are properly carried out.”



Financial Seminars

“All of the presenters at this unique seminar are highly experienced and especially

interested in helping women attain financial security and understand charitable strategies. Each of these presenters has graciously agreed to donate their time and share their knowledge in order to advance the skills of our donors, founders and women in the community.” At the seminar, practical information and tools will be shared about estate planning including wills, trusts and living wills as well as financial strategies for managed-wealth growth.



Build a Story Bank

Create a mechanism to capture stories

For tips read The Story Bank: Using Personal Stories and The Art of Story Banking http://www.familiesusa.org/assets/pdf

s/Winter2002ImPRESSive.pdf

http://www.familiesusa.org/assets/pdfs/ImPRESS_story_banking6de2.pdf



Major Asset Categories• According to the IRS, households with net worth between $1.5M-$10M

have their worth spread among these asset categories

11.0%

14.0%

9.0%

17.0%

13.0%

9.0%

15.0%

10.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

PersonalResidence

InvestmentReal Estate

CloselyHeld Stock

PublicCompany

Stock

OtherFinancial

Assets

Cash RetirementAssets

BusinessAssets



Use Your Database to Unlock the Power of Women

Give every donor his/her own record If system allows separation of spouses or joint record names

Collect and retain data: Date of birth or age Business name, title Education level Household income or wealth indicators Marital status Religious affiliation Geographic indicators such as ZIP code or Cluster data



Capture Interests and Biographical Data

Drive donors to your website to volunteer their personal information Biographical Business information Contact #’s Personal Interests Volunteer Opportunities Mission Support



Prospect Screening Services

Business connections

Foundation and Nonprofit Affiliations

Indicators of Wealth and Biographical Information

Household Income Estimates

Giving to Other Nonprofits

Liquid Assets & Life Stage

TM



Giving in Good and Bad Times

More than 80% of affluent households make charitable donations Households with annual incomes of $100,000 or higher tend to continue to make

donations during economically tough times Donations may be restricted to those organizations with which they have the closest

bond Helping people who have less Keeping community assets in place, such as libraries and the Arts

People who make gifts of $1,000 or more tend to continue to make gifts Households with incomes of $50,000 or less often become non-donors Planned gifts are less affected by these hard times Households conducting financial planning and creating future charitable gifts may

actually increase during recessionary times Do not decrease your communications about planned gifts in favor in cash gifts

Ask for both!



Giving During Good and Bad Times

If your female donors do not think this is a good time to make a gift you can still grow the relationship

Create focus groups Aim to accomplish one of more of things in the coming months while you wait out

the recession and people’s financial fears Review your marketing materials to make certain they reflect the planned gift types

that are of interest to your constituents Review vendors materials to see if they offer a good fit for your constituency and

revised objectives Review your website pages for clarity of message, ease of navigation, visual

components Create donor stories with compelling messages – not technical components Gather photographs that show the impact of legacy giving

• A photograph of the donor(s) does not necessarily show impact

Call your bequest donors, gift annuitants and trust donors and Thank them once again!



Summary

Women are generous donors Charitable priorities tend to follow specific programmatic objectives Understand your unique female constituencies Listen to your female donors Speak to them as they would like to be spoken to Highlight the impact of their gifts in your communications Involve them in multiple ways; create desired giving opportunities

including Planned Gifts that interest them Those who know you, support you in both good and bad times



Additional Questions and Resources to Get You Started

Contact:

Katherine Swank, [email protected] Phone 800.443.9441 x3926

Follow me on Twitter: @KatherineSwank LinkedIn: http://www.linkedin.com/in/katherineswank

New Book:

http://www.blackbaud.com/bb/desktopreference/boostgiving.aspx

White Papers: http://http://www.blackbaud.com/company/resources/whitepapers/whitepapers.aspx#Prospect

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What Women Want: Understanding Women\’s Philanthropic Objectives