planned giving strategies that work

37
Planned Giving Strategies that Work Rod Miller www.ExecIAE.com September 15, 2010 Use Twitter Hashtag #npweb Special Thanks To Our Sponsors

Upload: 4goodorg

Post on 27-May-2015

2.189 views

Category:

Business


0 download

DESCRIPTION

How to stimulate the easiest gifts to make – planned gifts that secure an institution’s future! Gain insights to develop and execute strategies so that you help stakeholders plan the management of assets and simplify the disposition of estates to ensure benefit to family, friends and your nonprofit mission. Learn how to blend personal solicitation and marketing to enhance planned giving. A donor-centered approach to demystify planned gift vehicles and their benefits will be outlined. By understanding the principal motivations of potential donors and matching these to available planned gift vehicles, thoughtful nonprofit board members, executives and advancement leaders will benefit stakeholders and the nonprofit institution. Components and relative benefits of bequests in wills, annuities, a variety of trusts, retirement accounts and other planned gifts to nonprofits are described, along with how to build a comprehensive program that provides estate, taxation and wealth management information. The respective roles of planned giving newsletters, seminars, financial and legal advisors, board trustees and individual visits will be described. This webinar will offer ways to make planned giving productive anytime, anywhere. Hear how to execute planned giving strategies that bring real returns on investment.

TRANSCRIPT

Page 1: Planned Giving Strategies That Work

Planned Giving Strategies that WorkRod Miller

www.ExecIAE.com

September 15, 2010

Use Twitter Hashtag #npweb

Special Thanks To Our Sponsors

Page 2: Planned Giving Strategies That Work

A Proud Sponsor of NonprofitWebinars.com

Helping ordinary people raise extraordinary amounts for nonprofits is all we do, and we love it.

Page 3: Planned Giving Strategies That Work

Today’s Speaker

Hosting: Sam Frank, Synthesis Partnership

Assisting with chat questions: Chris Dumas, FirstGiving

Rod Millerwww.ExecIAE.com

Page 4: Planned Giving Strategies That Work

Planned Giving Strategies that WorkRod Miller, CEO

Executive Institutional Advancement Exchange

www.ExecIAE.com

Page 5: Planned Giving Strategies That Work

What is a Planned Gift?

1. Made during an individual’s life

2. Benefits nonprofit (NPO) in future

3. After death of the individual and/or beneficiary

7© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 6: Planned Giving Strategies That Work

Common Planned Gifts

• Outright gift in future (even to annual fund)

– Stocks/bonds

– Real estate, antique or other property

– Retirement fund

• Trust instrument or bequest in Will

– Irrevocable

– Revocable

• Annuity or variable asset

• Life insurance

8© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 7: Planned Giving Strategies That Work

Bequest in Will

• Make and review

– Seek % of estate

– Restricted/unrestricted

– Beware narrow terms of application

• Change with Codicil

– Have wording readily available

(obtain legal advice)

9© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 8: Planned Giving Strategies That Work

Why Emphasize Planned Giving

Estimated 50% to 66% people die without a Will

USA (66% of African-American/75% of Hispanic populations)

Canada, Australia, Great Britain…

Rapidly growing assets of ageing baby boomers

10© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 9: Planned Giving Strategies That Work

Essentials for Success

Older people

Assets

% of estate

11© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 10: Planned Giving Strategies That Work

Operating Priorites

• Planned, energetic engagement

• Understand planned gift principles

• Respect individual’s family/financial needs

• No specific advice or influence

• Frequent, creative communications

12© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 11: Planned Giving Strategies That Work

What to Emphasize

“Good advice for gift planners: stop talking about tax savings and the technical aspects of gifts.

Instead, combine the emotional appeal of your mission with the impact the donor’s gift can make, and you will have a winning formula.”

- Phyllis Freedman, “Planned Giving Blogger”

July 20, 2010

13www.ExecIAE.com

Page 12: Planned Giving Strategies That Work

www.ExecIAE.com 14

Page 13: Planned Giving Strategies That Work

Focus Future

www.ExecIAE.com 15

Page 14: Planned Giving Strategies That Work

Focus Future

www.ExecIAE.com 16

Page 15: Planned Giving Strategies That Work

Focus Future

www.ExecIAE.com 17

Page 16: Planned Giving Strategies That Work

Focus Future

www.ExecIAE.com 18

Page 17: Planned Giving Strategies That Work

Value of Planned Gift to Donors

• Opportunity to make a larger gift

• Avoid capital-gains tax

• Retain individual income

• Convert a highly appreciated asset

• Set value of assets for tax purposes

• Cut taxes on transfer of owned business

• Pass assets to heirs and/or NPO

19© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 18: Planned Giving Strategies That Work

Types of Givers

• Impulsive

• Habitual

• Careful

• Thoughtful

© Executive Institutional Advancement Exchange LLC 2010www.ExecIAE.com

20

Page 19: Planned Giving Strategies That Work

Align Expectations and Efforts

• 100-day plan to execution

• Personal engagement

(board trustees, CEO, advancement)

• Initial 5 to 7 year commitment

© Executive Institutional Advancement Exchange LLC 2010 www.ExecIAE.com

21

Page 20: Planned Giving Strategies That Work

100-day Plan to Execution

1. Return on Investment (R.O.I.)

2. Task force for planned gifts

3. Policy for gift acceptance

4. Actions for planned giving team

5. Highest potential planned givers identified

6. Schedule visits for engagement

7. Follow-through benchmarked to best practice

Commence initial execution and engagement for results.

22© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 21: Planned Giving Strategies That Work

Measure R.O.I. Benchmarks

1. Strategy

How well matched: stakeholder

values/mission

2. Operations

What pace: discovery, engagement, asking

3. Behavior

What priority: on big opportunities

GoalBuild capacity of each Planned Giving Officer

© Executive Institutional Advancement Exchange LLC 2010www.ExecIAE.com

23

Page 22: Planned Giving Strategies That Work

Capacity per Planned Giving Officer

• Make/coordinate minimum 5 visits per week, in year-1

• By year-3, some closures on planned gift instruments

• Within 5-7 years, planned gifts may provide income

• Some estimate planned gifts at 10 times what’s notified

24© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 23: Planned Giving Strategies That Work

1. Planned Gifts Task Force

Purpose: identify and help engage new potential donors

– understood limited term > “thanks” > new blood

Good leadership – succession, mix board trustees and peers

– Diversity of background, sex, occupation, geography, etc (“right” people)

Action meetings/agenda/minutes

– Strong staff support

– Invited, informed, involved and thanked

– Interesting meetings(pre-planning with chair, solicitation materials)

25© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 24: Planned Giving Strategies That Work

NPO Stakeholders

Board

•Network

Previously Involved

• Board

• Staff etc

• Clients

• Contacts

• Professions

Community Affiliates

• On/Near Site

• Any who value services

NPO Family

• Management

• Staff

• Clients

• Patients

• Students

• Parents

26© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 25: Planned Giving Strategies That Work

Discover Planned Gift Potential

“Easiest gift to make…”

• Engage planned gifts task force at board-level

• Gather information from members of institution

• Mine institution’s database

• Showcase benefits from planned gifts

• Frequent news items/newsletters/updates

• Information seminars on planned giving

• Inform financial/legal professionals

27© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 26: Planned Giving Strategies That Work

2. Build Relationship for Change

Discover who cares

Engage

CEO

Share interests & values

Listen

Suggestoptions

Partner for

remedy

28© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 27: Planned Giving Strategies That Work

Most Effective Communication

Personal visits by

1. board-level peer

2. CEO

3. advancement professional

Additional visits by board member/CEO/professional

Each followed by a personal

1. letter (with visit/telephone follow-up)

2. phone call, with brief follow-up letter

29© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 28: Planned Giving Strategies That Work

3. Marketing Support

1. Brochure/web– How to make planned gift to NPO

2. Word-of-mouth, viral– Launch and repetition: “NPO accepts planned gifts/how”

3. NPO web/publications/mailings– Advertise: “Photo + 50-150 word stories on who benefits”

4. Community affiliates/community news– For information: “Photo + 250 word story on who benefits”

5. Estate, wealth management sessions– Specialist information offered by NPO

6. NPO planned giving newsletter

7. Media-worthy stories

30© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 29: Planned Giving Strategies That Work

Marketing Support/2

One well-briefed

NPO point-of-contact

for

Planned Giving inquiries

31© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 30: Planned Giving Strategies That Work

Overview Planned Gift Vehicles*

Planned Gift

Elements

Charitable

Gift

Annuity

Deferred Charitable

Gift Annuity

Charitable Remainder

Trust

Grantor Lead Annuity

Trust

Retained Life Estate

Income Beneficiary

No more than 2 individuals

No more than 2 individuals

One or more individuals

NPO None

Holds Remainder NPO NPO NPO Donor NPO

Rate of Return Funct. Age/# beneficiaries

Funct. Age/# beneficiaries

Min. of 5% market value

Variable Not Applicable

Payments to Beneficiary

Fixed amount Fixed, deferred payment

Fixed percentage

Fixed amount None

Term Life income Life income Life inc. ben… Life/spec. term Life of spouses

Federal Taxation Portion Portion Inc. tax-free… May be... Appraise value

State/City Tax Varies Varies Varies Varies Varies

Rec. Min. Gift $10,000 $10,000 $100,000 Open Personal Res…

Accepted Assets Cash/stock Cash/stock Cash/stock… Cash/other… Real Estate

Rec. Min. Age of Beneficiary

65 35 60 No minimum To set

32• For Example Only: obtain advice from qualified

lawyers on all details

Page 31: Planned Giving Strategies That Work

Comparison of Options

Computer simulations available

to project examples, based on

variables of age, asset base,

percentage returns (where applicable)…etc.

33© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 32: Planned Giving Strategies That Work

Inform Legal/Finance Professionals

Keep interaction based on “information-only”

• Lunch/breakfast briefing about NPO (on-site)

– Tour examples of how bring benefit

– NPO planned giving materials

Presented by CEO

• Visits/mailings: NPO planned giving materials

34© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 33: Planned Giving Strategies That Work

Estate/Tax Planning Update

• Seminar on ways to

– Reduce taxes on income, capital gains and estates

– Use a trust to control assets and pass assets to heirs

– Plan a financially secure retirement

– Bypass capital gains taxes on stocks, real estate etc.

– Plan gift arrangements to maximize your estate and family inheritance

Presented by qualified (institutional) lawyer… free

… no solicitation

35© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 34: Planned Giving Strategies That Work

Family Wealth Management

• (Live-in) Workshop(s) on ways to

– Sustain philanthropic intent of parents/grandparents

– Use various trusts to save income, gift and estate taxes

– Provide for children’s or grandchildren’s education/future

– Obtain valuable tax and other financial benefits from gifts

– Plan for IRA distributions and beneficiary arrangements

– Establish or maintain family foundation

Conducted by NPOs professionals, with qualified (institutional) lawyers/financial planners… free

… no solicitation

36© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com

Page 35: Planned Giving Strategies That Work

100-day Plan to Execution

1. Expect R.O.I.

2. Planned gift task force

3. Gift acceptance policy

4. Agree team actions

5. Identify high potential

6. Schedule visits

7. Follow-through benchmarked

to best practice

…Secure initial results© Executive Institutional Advancement Exchange LLC 2010

www.ExecIAE.com37

Page 36: Planned Giving Strategies That Work

Suggested Reading

Philip S. Brain Jr., “Establishing a Planned Giving Program” in Henry A. Rosso, Achieving Excellence in Fund Raising, San Francisco: Jossey-Bass, 1991

Rod Miller, “Beyond Benchmarking Institutional Advancement: Jump-Start to Fund Raising Excellence” in D. Cushman and S. King (Eds), Excellence in Communicating Organizational Strategy, Albany, NY: The State University of New York Press, 2001 (Sample on-line via GOOGLE)

Gerard M. Condon, Esq and Jeffrey L. Condon, Esq, Beyond the Grave: the right way and the wrong way of leaving money to your children (and others), New York, Harper, 2001

38

© Executive Institutional Advancement Exchange LLC 2010 www.ExecIAE.com

Page 37: Planned Giving Strategies That Work

Find the listings for our current season of webinars and register at

NonprofitWebinars.com

Chris Dumas [email protected]

707-812-1234

Special Thanks To Our Sponsors