Matrix Uses What and When

Planned Giving Considers◦Donor’s personal goals◦Donor’s charitable goals◦Most effective gifts

Effective planning enhances all gifts◦Expands opportunities for large gifts◦Not all gifts are deferred◦Involves donors, advisor, and charity

Effective Planned Giving

1. Planned Giving focuses you on donor relationships

2. Planned Giving allows you to engage with donors

3. Planned Giving increases donor gift capacity

4. Making a planned gift commitment increases a donor’s support

5. Knowing about the planned gifting and stewarding should increase commitment to estate planning

5 Reasons Planned Gifts Create a Positive Giving

Impact

Financial Metrics

Growth rate of annual gift donorsDonor agesDonor retention rateNumber of contacts with donors

Single?Team?Volunteers?

Financial Metrics

Annual receiptsTypes of giftsKnown/unknownSize

Average gift sizeCompared to years of giving

Financial MetricsAnnual gift revenue by typeYear over year analysis of planned gift

revenue to identify trendsAnnual giving rates of increase for donors

with deferred gift commitmentsConsistency in giving rates for donors with

deferred gift commitments

Non-Financial MetricsRepeat gifts from membersCalls made (stewardship, cultivation,

solicitation)Major gift calls with legacy ideaPlanned giving proposalsGift commitmentsEducation events for potential donorsMarketing articles or asks

Attitudes of Donors: A Continuum of Change

Age Goals

25-40 Generate enough income to survive!

40-55 Build assets – gather and invest – long-term investment horizon

55-65 Position for retirement – shorter term investment horizon

65-on Live on income – preserve principal – short-term, conservative investment horizon

Intergenerational transfer of wealth from 1998-2052

$41-$136 trillion in total dollars $6-$25 trillion in gifts to charity Interesting observations on giving

attitudes and practices of wealthy

Great Potential for Asset Gifts: Boston College Social Welfare Institute

Your role◦Engage the donor◦Develop a vision for the gift structure

and impact◦Provide options to achieving the goal

(optional) The donor’s role

◦Brings charitable intent◦The Possessions/assets◦Determines the gift form

The Players in the Planning Process

Use the information you get to develop your relationship with that donor

Invite them to events in their area of interest

Tell them about advances in the field – by letter, e-mail, or phone

Continue to develop your knowledgeShare ways to meet their objectives

Building on Knowledge

A checklist for goal setting◦Providing for spouse◦Providing for family (children,

grandchildren, extended family)◦Addressing special needs – educational,

rehabilitation, medical, remedial◦Desire to maintain control◦Desire to allow flexibility◦Establishing (meeting) family values◦Support specific charities

The Planning Process

Benefits to the donor

◦ Allows the donor to plan the disposition of estate and to assign priorities to meet goals

◦ Allows donor to make a larger gift than with an outright gift

◦ Allows the donor to “invest” in the future of the nonprofit

Benefits to the nonprofit

◦ Simple◦ Easy ask◦ Builds

commitment◦ Builds future

contentment

Dream Today, Fund TomorrowMake Bequests

Publicly Traded Securities

Mutual Funds Privately Traded

Securities Real Estate Property Cash Bonds Intellectual Property Tangible Personal

Property

Types of Outright Gifts

The donor’s advisors◦Attorney◦CPA◦Insurance professional◦Financial planner◦Trust officer◦Stock broker◦Real estate agent/broker

The Players in the Planning Process

Ten Things You Can Do To Guarantee a Successful Program

Ten Things1. Understand and embrace the internal case

for planned giving2. Use the right metrics to measure

opportunity and success3. Use accounting codes that track results 4. Oversee trust and estate management to

maximize returns to charity

Ten Things5. Ensure the planned gift (endowment)

investment team works with the planned giving team to appropriately invest deferred gift assets and communicate results

6. Make a regular review of policies affecting planned gifts

7. Review internal roadblocks to planned giving success

Ten Things8. Ensure regular reporting on planned giving

at the executive committee and staff levels.9. Allow planned gift individuals access to

members.10. Take part in donor cultivation, stewardship,

and solicitation1. 5 calls2. 5 thank yous3. Attend thank you events

You won’t reach full potential without the Conference Executive support.

The Conference Executive approves the budget/financial support for the program

The board sets priorities for the CEO and through planning, for the staff

The board sets and populates the committees.

Why the Executive Committee is Important to Your Success

The chair sets the agenda for board meetings and determine what is reported to the board.

The board is your link to the community – donors will see the organization and its needs through the board’s eyes.

The board is a group of potential donors!

Why the Executive Committee is Important to Your Success

Each board member has his or her own idea about “planned giving”.◦ Some are positive.◦ Some are negative.

Most members measure success by the dollars coming through the door in that year.

The economy is driving greater needs – and creating greater concerns – than usual.◦ Donor may quit giving or give less.◦ With the stock markets up and down, interest rates up

or down, inflation and donors have less to give.◦ Gas prices, food prices, inflation in general….creating

lots of pressures.

Your Challenges In Engaging the Executive Committee

Planned giving concepts are complicated.Planned gifts are deferred – how could

revocable gifts that might come in ten years from now be important?

Your Challenges in Engaging the Executive Committee

The staff and volunteers must create a planBuild infrastructure, such as donor base and

relationships with advisorsCreate goals and reportsCharge the development committee with

responsibilityCreate marketing materialsReview investment policiesAdopt gift acceptance policiesCreate professional advisory councilCreate newsletters, contacting plan

The Factors for Success In Planned Giving

The Executive Committee must understand and embrace Planned Giving & Trust Services

The Desire that is in our Members Planned Giving is an Extension of StewardshipIt is Stewarding Accumulated PossessionsAn Enhanced Support for the Gospel

Commission A Donors Gift can Increase

The Factors for Success in Planned Giving

What is planned giving? Planned Giving is the Process of Best Gift Planning which involves:

the donorthe donor’s professional advisorsthe charity

The Planning Allows the Donor to:select the best assetselect the best method of making the giftselect the best timing for the giftdesign a gift that best meets the charity’s

needs

Start With an Education

Create a Volunteer Group and ask/appoint a Vibrant, Compelling Volunteer as Chairperson

Use the volunteer to take the recommendations to the Executive Committee

Use the Volunteer to be an advocate for Planned Giving

Tips for Education

Bring the internal case for support to the officersDoes the organization serve a long-term

purpose?Are you experiencing cyclical economic

variances?Do you face increasing operating costs?Do you have programs you would like to fund –

but don’t have the resources?Do you anticipate needs for future programs?Do you face increasing competition for funds?Are you losing donors through attrition?

Tips for Education

Expanding a development program takes more staff and volunteer support than an annual giving program:Planned gifts involve non-cash gifts – many of

which may have liabilityPlanned gifts may require additional time and

expertisePlanned gifts require patiencePlanned gifts involve the organization’s best

donors

Everyone Has a Role in the Success of the Program – Especially the Executive

Committee

Assist in design and planning

Recommend gift acceptance policies

Support investment policies

Support ethical guidelines

Establish goalsProvide leadershipBe consistentIdentify donorsVisit potential

donorsWrite or Email

thank you notesOutreach to

professionals

The Volunteers can

Drive strategic planningEnsure Conference

Executive CommitteeMake regular Reports to

Conference Executive Committee

Recruit a Planned Giving Committee

Set Goals

Define Giving Opportunities

Draft Resolution to Commit Gifts to Donor’s Directions

Assign Oversight of any Created Endowment

Establish Distribute Plans

Support Planned Giving & Trust Services

Leadership Duties

Annual reportGoals for coming yearMarketing objectives, plan, supportTrainingBudgetCommittee

Thank yousNew/old membersSet schedule for coming year

Checklist for Planned Giving Directors

In short, it’s pretty easyArticulate your organization’s needs and

expectationsUse a process that keeps you focused on

finding the right employee/volunteer Address problems early Help integrate the employee/volunteer with

the teamProvide positive feedback

Final Thoughts

Final Thoughts

Success is not serendipitousPlanningPreparationPlacing value on donor relationship

Support from the top is essential and will lead to success

Planned giving will strengthen the charity’s development culture

Teach executive committee members much about their own planning

Build a solid base of support for your charity’s future

Get the board involved early in the process – and keep them involved

Understand the importance of building relationships – long-term relationships – with donors

Steward your donorsMeasure your results

Final Thoughts

“You Make A Living By What You Get………But You Make A Life By What You Give”