show me the money: fundraising that taps into the 90% of all wealth that is not cash
DESCRIPTION
Want some great reasons for your charity to take any and all non-cash donations? Wonder why other charities seem to increase their fundraising in good years and bad years, quickly build up their endowments, have the resources they need? Well, find out in the webinar. Here’s the real story: This is personal. Russ’s wife was diagnosed with a rare terminal disease some years ago. She owes her life to the extraordinary work of the charity that supports her illness. That charity has had the resources to provide so much because it takes advantage of almost anything a generous donor wants to contribute. That got Russ to thinking: What if the charity had not taken those donations? Would his wife and other needy people still be alive? Would she be doing as well as she is doing? Why are charities leaving so much money on the table? If 90% of the wealth is not cash, why shouldn't charities be thinking out of the (cash) box? What would it do for the world if all charities took advantage of the 90% of wealth that donors want to contribute?TRANSCRIPT
Sponsored by: A Service
Of:
Show Me the Money: Fundraising That Taps into The 90%
of All Wealth That Is Not Cash
Russ Mack
January 22, 2013
Sponsored by: A Service
Of:
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Institutional Memories of
Nonprofits Since 1993
www.cjwconsulting.com
(866) 598-0430
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Today’s Speaker
Russ Mack Executive Director
Leave No Donation Behind
Hosting:
Cheri J Weissman, CJW Consulting & Services, Inc. Assisting with chat questions: Jamie Maloney, Nonprofit Webinars
Show Me The Money! Fundraising That Taps Into The 90%
Of All Wealth That Is Not Cash
Leave No Donation Behind, a charity supporting charities 5
The why
The how (our charity)
Your charity ________
Today's purpose & deliverables • A case for your charity taking any and all non-
cash donations – You are serving your donors
– It's where the money is
– Your mission needs it
• Some simple steps that can put you in position to tap into non-cash donations immediately
• Invitation to a boot camp
Leave No Donation Behind, a charity supporting charities
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Your charity could make good use of more resources!
Takeaways
A simple 3-step process any charity can use to open themselves up to significant non-cash donations . . . almost instantly
A powerful incentive – we are just starting to see the greatest transfer of wealth the world has ever seen, as baby boomers age (and guess what they have most of?)
Perhaps the most powerful reason for taking non-cash donations – you are helping your donors
A charity’s (free) offer to help any charity take non-cash donations: tools, resources, phone support
A Donate Rescue program that will take a charity’s discards and turn them into contributions (also free, and done by a charity)
Leave No Donation Behind, a charity supporting charities
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This is personal • Diagnosed with a terminal disease
• Rare and hard to diagnose
• Owes her life to a charity
Board Meeting Dec 2012 8
What if the charity had not taken non-cash donations?
• Started by 4 patients with $800
• The charity does it all…and well: patient support, advocacy, research, medical education
• They can afford to do it all . . . because they take it all, basically any contribution
Show Me the Money! (Turning non-cash contributions into in-kind contributions, resources, cash)
Be able to take it all…in 3 steps:
1. Commit
– Do it right (by the rules)
– Get the best help and expertise
2. Change
– Eliminate limitations
– Assign Donor Stewart
– Develop policies and processes
3. Communicate
– Within organization
– Community
– World at large Leave No Donation Behind, a charity supporting charities
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Cheat sheet
You can’t fail…with help!
1. Education and information
– Access to experts
– Resources
– Forms, templates, checklists
2. Coaching and consulting
– Problem-solving
3. Donation Rescue Program – The option for when you are about to give up
– Get resources and cash from your donation discards
Help from another charity o Leave No Donation Behind
o Russ Mack, Executive Director
o 248 760-2360
o www.LeaveNoDonationBehind.org (in progress)
Leave No Donation Behind, a charity supporting charities
Are we there yet?
10
New resources for your charity . . . Starting now! I. Why. Why. Why.
– The opportunity – The even bigger opportunity (crazy, really)
II. How . . . The Basics (your “get started now” package)
– Commit – Change – Communicate
III. Confidence that you can do it all . . . now – Support available – The “cost” of that free support
Leave No Donation Behind, a charity supporting charities
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Tired of
chasing
cash?
Leave No Donation Behind, a charity supporting charities
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These donations look familiar?
Leave No Donation Behind, a charity supporting charities
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a. $50,000 life insurance policy
b. $400,000 yacht
c. $30,000 vehicle
d. $500,000 appreciated stock
e. $20,000 antique German shotgun
f. $300,000 house
g. $50,000 in Kruggerands
h. $20,000 stamp collection
i. $500,000 bequest
j. $10,000 cash
These donations look familiar?
Leave No Donation Behind, a charity supporting charities
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a. $50,000 life insurance policy
b. $400,000 yacht
c. $30,000 vehicle
d. $500,000 appreciated stock
e. $20,000 antique German shotgun
f. $300,000 house
g. $50,000 in Kruggerands
h. $20,000 stamp collection
i. $500,000 bequest
j. $10,000 cash
All sorts of non-cash donations available
Real property:
Residential homes
Rental properties – from single family homes to apartments
Commercial properties of any sort
Vacant land, such as recreational acreage, home site lots
Time shares
Property:
• Cars
• Boats
• Planes
• Jewelry
• Frequent flier mileage
• Farm equipment
• Gold & silver
• Livestock
• Etc.
Financial instruments:
• Securities
• Retirement plan assets
• Patents
• Savings bonds
• Closely held stock
• Gas & mineral interests
• Life insurance
• Life insurance death benefits
Leave No Donation Behind, a charity
supporting charities 15
Real estate misunderstood
Great signs:
Single family residence
Free and clear
“Buyer in the wings”
Strong, fast local market (can sell fast)
Property in perfect condition
Donor is very cooperative, able to help
Easy
Challenging
Warning signals:
Liens on property
Multiple owners
Possible environmental issues
Maybe legal or title issues
Market for property is not good
Property needs improvement
Donor is not in a position to be much help
Leave No Donation Behind, a charity supporting charities
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“The largest transfer of wealth. . .”
• Estimated $41 trillion (steady number)
• $6 billion (or more) expected for charities
• From WWII gen & baby boomers
• Big effects: women more important, more vs. fewer charities, etc.
Ahead of the curve?
Leave No Donation Behind, a charity supporting charities
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• A church in Chicago was offered $50,000 in Kruggerands. Church secretary didn’t take message, thought they were German coins.
• A prominent nationally-recognized academy for the learning disabled in Michigan was offered a $20,000 antique German shotgun. But a gun didn’t seem appropriate for the silent auction. Plus, a gun and a school -- academy didn’t want the association.
• Condo’s are often routinely turned down by Habitat affiliates because of charter, or the ongoing costs of association dues
• 26 foot motor homes, corn silos, construction bulldozers . . . they can be very valuable . . . But these often sit or get passed over . . . because no one seems to know what to do with them
• Very few charities will take a real estate property that has money owing or needs fix-ups to make it sellable . . . But there is at least one charity that can partner to get this done . . .and the affiliate still gets money from the donation
Leave No Donation Behind, a charity supporting charities
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Money left on the table
“Not us! We don’t leave money on the table!”
3 biggest secrets . . . why non-cash donations are lost: 1. “Never thought of you.” Your charity
never even has an opportunity for the non-cash donation because you don’t show that you would consider, let alone welcome, non-cash donations.
2. “No one home” or “Lost in the cracks.” Donors call and never get a call back, connect with the right person, etc.
3. “You have to be kidding me?!” Charity passes on the donation. Donor not happy.
= $100,000+ a year in lost opportunities Leave No Donation Behind, a charity supporting charities
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Why do charities miss the boat (literally)?
• Perceived lack of time, expertise, resources
• Legitimate concern about complexity and risk
• Misunderstandings about what can and can’t be done as a charity
• “Zero factor” – potential donation becomes more intimating as you add zero’s. . .example: boat worth $500…$5,000…$50,000…$500,000…$5,000,000…etc.
• “Oprah factor” – charities feel what Oprah said she saw in all of her 25,000 interviews: _____________
Leave No Donation Behind, a charity supporting charities
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Every donation counts Generous donors contribute anything they
have to any charity they want.
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We make sure charities...
Leave no donation behind
Our vision:
Our mission:
New resources for your charity . . . Starting now! I. Why. Why. Why.
– The opportunity – The even bigger opportunity (crazy, really)
II. How . . . The Basics (your “get started now” package)
– Commit – Change – Communicate
III. Confidence that you can do it all . . . now – Support available – The “cost” of that free support
Leave No Donation Behind, a charity supporting charities
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Get buy-in and excitement throughout
• Decision makers
• Leaders
• Staff
• Donors
• Volunteers
• Community
Lead with big picture – what will it mean for everyone
Overcome objections
Etc. Leave No Donation Behind, a charity supporting charities
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• Modify anything that might limit: bylaws, charter, policies and procedures
• Develop policies and processes – complexity will vary:
– Conflict of interest
– Gift acceptance policies
• Recommendations:
– Best practices…templates available
– Make it as simple as possible
– Don’t scare yourself into inactivity
– Don’t wait “until everything is nice and neat” – you will lose your energy, enthusiasm, six months, and who knows how many frustrated donors and lost donations Leave No Donation Behind, a charity
supporting charities 24
Also Recommended:
Make it simple Good exercise to
go through Speeds up
decisions and actions
Solves issues upfront
Etc. Templates
available
Leave No Donation Behind, a charity supporting charities
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As charities… we are conduits
Leave No Donation Behind, a charity supporting charities
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Recommended: “Donor Stewart”
Responsibility: Be the lead in helping donors make contributions
Qualities: • Listener, good people skills • Problem solver • Creative • Not an expert
Process: 1. Capture information 2. Acknowledge the potential contribution,
share with leaders 3. Seek appropriate expertise and propose a
solution (to leaders) 4. Facilitate solution (with help as necessary) 5. Thank donor and keep up relationship
Leave No Donation Behind, a charity supporting charities
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The Basics . . . Communicate 1. Communicate from top
down or inside own – Board – Leadership – Staff – Key donors – Volunteers – Community of supporters – Potential donors – Etc.
2. Expand to local community 3. Communicate to world at
large
Leave No Donation Behind, a charity supporting charities
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1. Announce changes 2. Them make info
permanent in all your communications (website, brochures, etc.)
The charity that saved my wife’s life Rare disease
Pulmonary Hypertension Association started with $800 and four patients at a kitchen table
$132,000/year in 1999
$10 million/year today, growing
Serious endowment, growing
They take anything and everything
Monthly fundraising e-newsletter
• Sophisticated, above reach of most charities
• But it does play a major part in the fundraising success of PHA
• Some key take-aways (for any charity)
– Personalized
– Suggests that they are open to anything
– Keeps it simple – provides one key contact person . . . with direct contact info
Leave No Donation Behind, a charity supporting charities
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800 sq feet library Population: 1000
Ask
Offer ways to give
Make it easy
Powerful and effective communication
As simple as . . .
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Please remember _________ charity in your will.
New resources for your charity . . . Starting now! I. Why. Why. Why.
– The opportunity – The even bigger opportunity (crazy, really)
II. How . . . The Basics (your “get started now” package)
– Commit – Change – Communicate
III. Confidence that you can do it all . . . now – Support available – The “cost” of that free support
Leave No Donation Behind, a charity supporting charities
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Save a Donation* - Today (*to your charity)
• This is a big, big deal!
• There comes a time when a non-cash donation won’t work for your charity
– Too much time, resources, or expertise
– Other factors
– Even with our help it’s not something you want to take on
• You give up
• But hold on, all is not lost
• Before that donor reaches for the phone to call the next charity. . .
• We’ll step in (as a charity), rescue the donation if possible, split the proceeds with you
• Yeah, we know, it sounds too good to be true
• Try us! What have you got to lose
• We turn your discards into your donations
• Our mission: leave no donation behind! Leave No Donation Behind, a charity
supporting charities 35
Save those challenging non-cash contributions!
VetPower
Are we there yet?
36
Yup. Just about.
The deal. . .what we need from you
Your stories – to inspire other charities and nonprofits
Your learnings – so other charities can improve based on your lessons learned and best practices
Your referrals and recommendations
Your impossible-to-handle donations – so Leave No Donation Behind can afford to continue educating and consulting
-
Leave No Donation Behind, a charity supporting charities
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Leave No Donation Behind, a charity supporting charities
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In today’s world
women as well
Shackleton was heading for the South Pole. That was a real adventure. Every bit as dangerous as he advertised*.
Helping donors make contributions, turning those contributions into valuable resources. A piece of cake! Harness those sled dogs. Let’s go. . .
*FYI. Shackleton advertised looking for 60 in his expedition. 5,000 applied! Leave No Donation Behind, a charity
supporting charities 39
Show Me the Money! (Turning non-cash contributions into in-kind contributions, resources, cash)
Be able to take it all…in 3 steps:
1. Commit
– Do it right (by the rules)
– Get the best help and expertise
2. Change
– Eliminate limitations
– Assign Donor Stewart
– Develop policies and processes
3. Communicate
– Within organization
– Community
– World at large Leave No Donation Behind, a charity supporting charities
40
Cheat sheet
You can’t fail…with help!
1. Education and information
– Access to experts
– Resources
– Forms, templates, checklists
2. Coaching and consulting
– Problem-solving
3. Donation Rescue Program – The option for when you are about to give up
– Get resources and cash from your donation discards
Help from another charity o Leave No Donation Behind
o Russ Mack, Executive Director
o 248 760-2360
o www.LeaveNoDonationBehind.org (in progress)
Sponsored by: A Service
Of:
Find listings for our current season of webinars and register at:
NonprofitWebinars.com