september 20, 2017 demystifying national donor-advised funds · fidelity charitable is the brand...

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S e p t e m b e r 2 0 , 2 0 1 7

Presented by:

Amy Pirozzolo, VP Marketing, Fidelity CharitableRachel Earl, St. Labre Indian SchoolJack Doyle, Amergent

Demystifying NationalDonor-Advised FundsA deeper look at Fidelity Charitable® donors and how they give.

F I D E L I T Y C H A R I T A B L E

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Today’s Speakers

Jack DoylePresident,Amergent

Rachel EarlChief Development Officer

St. Labre Indian School

Amy PirozzoloVice President,

Fidelity Charitable

F I D E L I T Y C H A R I T A B L E

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1. LEARN

How donors are using DAFs

2. EXPAND

Strategies & Best Practices to Reach DAF Donors

3. UNDERSTAND

A closer look at a nonprofit with DAF donors

4. Q&A

Agenda

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

F I D E L I T Y C H A R I T A B L E

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What is Fidelity Charitable?

Since our inception as a public charity in 1991, our mission has remained the same —to grow the American tradition of philanthropy by providing programs that make charitable giving accessible, simple, and effective.

F I D E L I T Y C H A R I T A B L E

The number of DAF accounts is growing rapidly

Number of donor-advised fund accounts in the U.S.

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

5Source: National Philanthropic Trust 2016 Donor-Advised Fund Report

DAFs outnumberfoundations

3:12008 2015

174K 180K 184K 192K 206K219K

242K269K

F I D E L I T Y C H A R I T A B L E

The impact from DAF giving is also growing fast

Total charitable giving in 2015

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

6$373.25 billion – Source: Giving USA 2016$14.52 billion - National Philanthropic Trust, 2016 Donor-Advised Fund Report

Total giving from DAFs in 2015

$373.25 Billion $14.52 Billion4.1% growth from previous year 17% growth from previous year

F I D E L I T Y C H A R I T A B L E

Fidelity Charitable is now the country’s 2nd-largest grantmaker

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

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Grant dollars have tripled, supporting 2x the nonprofits as 10 years ago.

Total dollars granted to charities

149,051NUMBER OF DONORS

90,164NUMBER OF GIVING

ACCOUNTS

2006 2016

BILLION$1.0

BILLION$3.5

F I D E L I T Y C H A R I T A B L E

DAF donors...

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

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Are strategicand committed

Seek to maximize the benefits of giving

Take forward-looking approach to

philanthropy of giving

F I D E L I T Y C H A R I T A B L E

DAF Donors are active and giving while living

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

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Since inception:

61%OF ALL CONTRIBUTIONS RECEIVED

$25 billionGRANTED TO CHARITIES

MORE THAN

25%per year

Annual distribution rate:

MORE THAN

88% of dollars granted to charity within 10 years

F I D E L I T Y C H A R I T A B L E

Donors support charities using numerous methods

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

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Most donors direct a majority of their giving with their DAFs. Cash gifts tend to be more casual.

91%CASH OR EQUIVALENTS

15%COMMUNITY FOUNDATIONS,

PRIVATE FOUNDATIONS,

OTHER TYPES OF VEHICLES

Vehicles or methods used in the past 12 months, in

addition to DAFs

65%AVERAGE PERCENTAGE OF TOTAL CHARITABLE

GIVING DOLLARS MADE WITH A DAF

F I D E L I T Y C H A R I T A B L E

The giving patterns of donors mirror national trends

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Donors support both local and national charities Education and religion are top charitable sectors

Fidelity Charitable Donors

Overall U.S. Giving

EDUCATION RELIGION

27% 15%

15% 32%

F I D E L I T Y C H A R I T A B L E

Summing it all up: How Fidelity Charitable donors give

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

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Give strategically Give actively Give using numerous methods

Give in their communities, but also

more broadly

F I D E L I T Y C H A R I T A B L E

Reaching DAF Donors:

Strategies for Nonprofits

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D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

F I D E L I T Y C H A R I T A B L E

Market DAF giving

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

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F I D E L I T Y C H A R I T A B L E

Flag and follow up

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

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Make sure to flag DAF donors in database.

Recognize them in stewardship, not the DAF sponsor.

Seek to engage, even if initial gift is small.

Recognize commitmentto giving

Target fora closer relationship

F I D E L I T Y C H A R I T A B L E

Target with planned giving appeals

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

8%OF ALL GIVING IN 2016 WAS BY BEQUEST

Fidelity Charitable Donors

Have set up a bequest

or legacy giving vehicle42%

Plan to establish a

legacy giving vehicle

in the future

19%

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Giving USA 2017:

F I D E L I T Y C H A R I T A B L ED E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

A survey of Baby Boomers indicated that one-third of them declared “I now do everything on my phone”… they are truly embracing the digital way of life. We need to make it easy for them to give within their comfort zone…

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Second most

effective outreach

Digital

How can you contact them?

F I D E L I T Y C H A R I T A B L E

What is DAF Direct?

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DAF Direct is a free, easy-to-install web application that enables your donors to initiate grant recommendations from their donor-advised fund (DAF) directly from your website or online fundraising campaigns.

The potential to grow your donor base

A convenient way to donate

Opportunities to educate donors

Adding DAF Direct to your website and fundraising campaigns may benefit your organization as well as your donors by providing:

F I D E L I T Y C H A R I T A B L E

How to get DAF Direct

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F I D E L I T Y C H A R I T A B L E

What do you do after you have your NEW-to-you DAF Direct widget?

D E M Y S T I F Y I N G N A T I O N A L D O N O R - A D V I S E D F U N D S

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Make it easy to find all over your website

Talk about it in your printed communications

Tell stories of the donors with giving accounts

Explain the successor benefit% to your family or % to

favorite charities

Emphasize to donors that only they can advise where the grants go; otherwise no good is achieved

At events, encourage donors to talk about their

DAF giving accounts

F I D E L I T Y C H A R I T A B L E

DAF donors grant right from your website

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F I D E L I T Y C H A R I T A B L E

Giving Account Access

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F I D E L I T Y C H A R I T A B L E

Successor Benefits

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F I D E L I T Y C H A R I T A B L E

A closer look at a nonprofit

with DAF donors

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F I D E L I T Y C H A R I T A B L E

St. Labre Indian SchoolWho we are:• Founded in 1884 (6 years after the battle of the Little

Bighorn) by 3 Ursuline nuns from Toledo, OH.• Provides a quality private Catholic education, food, clothing

and shelter for children from the Northern Cheyenne and Crow reservations.

• We believe all students deserve a superior education and that all students can achieve at the highest levels by educating the whole child.

• 750 students across 4 Montana campuses:

• St. Labre Indian School (Pre-K-12) Ashland, MT (main campus)

• Pretty Eagle Catholic Academy (K-8) St. Xavier, MT• St. Charles Mission School (Pre-K-8) Pryor, MT• St. Paul’s Mission School (K-8) Hays, MT

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www.stlabre.org

F I D E L I T Y C H A R I T A B L E

How did St. Labre contact them?

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All channels of communication

• Email

• Newsletters

• Appeals

• Web Site

• Personalized outreach

F I D E L I T Y C H A R I T A B L E

Email: “we just want to remind you”

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F I D E L I T Y C H A R I T A B L E

Opportunity to capture what donors have an exiting DAF for targeting later

Newsletter Ad & Reply Device

F I D E L I T Y C H A R I T A B L E

Appeals – back sheet of labels

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F I D E L I T Y C H A R I T A B L E

Website

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F I D E L I T Y C H A R I T A B L E

DAF Direct widget – landing page

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F I D E L I T Y C H A R I T A B L E

Targeted Letters Mailed Out

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After a receiving our letter, a donor called to let us know she made St. Labre the beneficiary of her donor advised fund account!

Dear Mrs. Smith

One of the most special blessings St. Labre Indian School receives is when friends remember our students during the holiday season. As was so profoundly stated by one of our third graders, “Christmas is a time for love, joy and giving.”

Your Donor Advised Fund (DAF) makes it easy to give the gift of hope and a brighter future to the children of the Crow and Northern Cheyenne tribes. You have already committed to providing long term support for your favorite charities by establishing a fund, but did you know that only 21.5 percent of the charitable contributions deposited in a donor advised fund are actually distributed to charity each year?

YOU hold a child’s future in your hands. Will you join me in helping us create a holiday season filled with wonder and hope for our Indian children? Please consider including St. Labre Indian School in your end of year giving.

F I D E L I T Y C H A R I T A B L E

• Began DAF promotions fall 2016

• Fidelity Charitable-sourced Year-End Giving

- 2015 $44,550 ($262.00 average)

- 2016 $58,160 ($295.00 average) 10 x’s DM average

- 2017 $57,118 ($293.00 average)

and it’s not even the holiday giving season yet!

St. Labre Results

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30%+ in giving

F I D E L I T Y C H A R I T A B L E

What your

caging or

opening room

needs to look

for…

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F I D E L I T Y C H A R I T A B L E

Sample of our acknowledgment letter…

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The DAF grant is “hard” posted to Fidelity Charitable and “SOFT Credited” to the donor.

NO tax receipt language!

F I D E L I T Y C H A R I T A B L E

Q&A

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Amy PirozzoloAmy.Pirozzolo@fmr.com

Rachel EarlREarl@stlabre.org

Jack DoyleJDoyle@amergent.com

Thank YouFidelity Charitable is the brand name for Fidelity® Charitable Gift Fund, an independent public charity with a donor-advised fund program. Various Fidelity

companies provide services to Fidelity Charitable. The Fidelity Charitable name and logo are registered service marks of FMR LLC, used by Fidelity

Charitable under license. Giving Account is a registered service mark of the Trustees of Fidelity Charitable. 729729.2.0