Building A Planned Giving Program

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Building A Planned Giving Program
2008 Great Rivers Conference Wednesday, February
13, 2008 Jan L. Bates, CFRE
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Session Objectives

• Why Does Your United Need or Want a Planned
  Giving Program
• Provide an Overview of Planned Giving
• Getting Started
• Roles of Staff, Volunteers, Advisors
• Finding a Champion
• Rationale for Case Development Policies
• Evaluating a Planned Giving Program
• Understand Five Steps to Conducting Successful
  Planned Giving and Endowment Programs

United Way of America
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External Influences

• Corporate downsizings
• Flat participation
• Corporate charitable interests closely aligned
  with strategic marketing
• Competition for the charitable dollar
• E-based fundraising
• In 2005, 26 of campaign was designated

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What is an Endowment?
Principal
Income
United Way
United Way of America
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Planned Giving is
A donor service...
A gift planning technique that enables donors to
make gifts of assets to United Way.
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Giving Technique

• Payroll Deduction is a technique for giving
  income
• Planned Giving is a technique for giving assets

United Way of America
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Wealth is in Assets Today
United Way of America
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Bequest Potential

• 50 of population dies without a will
• Of those who have a will, 50 are out-of-date
• Only 8 of those who have a will include a
  charitable provision
• Only 20 of those who file estate taxes (lt1 of
  the population), include a charitable provision
• Only 3 of Tocqueville givers made a planned
  giving commitment
• Over 60 of planned giving income is from bequests

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Status of Will (General Population) 2006 UWA
Public Opinion Poll
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In the Years Ahead There Will Be Two Types of
United Ways

• Extinct

• Endowed

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Planned Giving Overview

• 2008 Great Rivers Conference

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Planned Giving involves

• Donors choose the timing of the gift (now or
  later)
• Planning on the part of the donorIt is a Stop
  and Think
• gift
• A team effort (donor, financial or legal
  advisor, gift planner)
• Some gifts return an income
• Enhanced tax benefits, lower cost of giving

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Three Ways to Hold Endowment Funds
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2
Within United Way
United Way
Foundation Created by United Way
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United Way
Community Foundation
United Way of America
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Community Foundations and United WaysCompete or
Collaborate?

• On-going Grants
• Health/Human Service Focus
• Broad and Diverse Donor Base
• Broad and Diverse Decision Makers
• Endowment is a Means to an End

• One-time Grants
• Broad Focus
• Narrow and Affluent Donor Base
• Small Number of Decision Makers
• Endowment is an End

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The purpose of the Endowment Fund is to diversify
and expand United Ways resources by investing
planned gifts such as bequests and trust gifts
Endowment Fund Purpose

• Increase resources beyond what is possible
  through the annual campaign
• Stabilize the community against fluctuations in
  the annual campaign
• Provide a flexible source of funding to respond
  to emergencies or emerging issues

United Way of America
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SEVERAL WAYS TO USE FUNDS

• Endow special project or initiative
• Field of interest
• Unrestricted endowment fund
• Strategic operations endowment

Tocqueville Weekend 2/28-3/3
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Planned Giving Vehicles
2008 Great Rivers Conference
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Building Blocks for a Stronger Community
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Review Again..Why Planned Giving and Endowment

• Tax-wise giving options increase a donors
  capacity to care
• Endowment income enhances and sustains the impact
  of community care agenda
• Provides long-term planning for the community
  needs
• Provides a strategic operating endowment to plan
  for technical vitality, technology growth, and
  capital investment

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When You Come To A Fork In The Road . . .
Take it. Yogi Berra
Are you going to take the road?
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Getting Started 5 Steps
2008 Great Rivers Conference
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Wait a minute

• Finding a Champion

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Five Steps to Planned Giving Success

• Develop Your Case
• Start With Bequest
• Contact Your Long-term Donors
• Develop Your Policies
• Marketing

United Way of America
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What is a Case?

• Roadmap
• Business plan
• Vision and specific goals for a planned giving
  program for your United Way.

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Why?

• Any charity can promote the benefits
• of planned giving and/or a major gift
• Benefits alone dont make the charity
• unique in stakeholders eyes

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Donors want to know WHY United Way? You need
to - Articulate the case - Respond to
objections
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Why Do a Case?

• Will the stakeholders support the program?
• Will it compete?
• Campaign
• Agencies
• Community Foundation
• Why do you need it?
• How will funds be used?
• Where will they be invested?
• How much will it cost?

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HOW?

• Board Approves Goals And Vision Committee
• Goals And Vision Committee Obtains Feedback
• Committee Creates Their Vision
• Board Approves Vision

United Way of America
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Outcomes

• Build support/ownership/empowerment
• Confirm the business need
• Identify customer needs
• Identify resources
• Provide benchmarks
• Provide compelling case to educate and
• cultivate prospects and donors and partners
• A Plan for I M P A C T!

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Bequest Program

• Staff Makes Commitments
• Messages On Agendas, Letterhead, etc.
• Senior Mailing List Developed
• Wills Identification Mailing
• Legacy Recognition Society Created
• Board Approached
• On-going Mailings

United Way of America
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Top 10-20 Prospects

• Staff Develops Draft Prospect List
• (Most Loyal And Long-term)
• Planned Giving Committee Recruited
• List Reviewed With Committee
• Research Conducted On List
• Planned Giving Advisory Committee Recruited
• Top 10-20 Prospects Contacted

My story Lesson learned
United Way of America
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Policies (Professional Program)

• Prospect List Developed Of Top Professional
• Review List With Various Volunteers
• Recruit Professional Advisors To Help
• Advisors Review Case And Develops Policies
• Professional Cultivation Plan Developed

United Way of America
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Marketing

• Materials For Giving Stock
• Loyal (Diamond) Donor Program
• Tocqueville Legacy Circle
• Cultivation Brochure Developed
• Recognition Society Material Developed
• Advertising Plan Developed
• Seminars Held

United Way of America
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Evaluating a Planned Giving Program
2008 Great Rivers Conference
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Evaluation success
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Report Sheet On Activities
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Roles Staff and Volunteers
2008 Great Rivers Conference
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Staff and Volunteer Roles

• Staff
• Provide staff support for volunteers
• Develop systems to communicate importance of
  bequests and other planned gifts
• With volunteers, identify prospects, manage
  make calls
• Implement marketing strategies produce
  collateral material

United Way of America
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Staff and Volunteer Roles

• Volunteers
• Serve on vision task force and EPG committee
• Cultivate, solicit, and make calls
• Professional advisors assist in articulation of
  policies, develop strategies to educate
  prospects, and cultivate other professional
  advisors
• Possible pro bono assistance from marketing
  professionals

United Way of America
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If there is a trap out there we find it!
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Show Stoppers

• Not taking the time to do a case
• No consistent, quantifiable story
• More likely to take a lower priority
• Immediate needs
• Long-term commitment
• Fear
• Viewed as competitive (campaign, agencies,
• community foundation)
• Stakeholders not informed/involved

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Help from United Way

• United Way Retiree Association
• Training
• Telephone And Onsite Consulting
• Best Practices
• Online Endowment and Planned Giving Toolkit
• Link To Planned Giving Website www.uwgift.org
• Turn-key Vehicles
• Pooled Income Fund
• National Charitable Gift Annuity Program
• Strategies Newsletter

United Way of America
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Planned Giving is...
a long term, low key, education effort-
Collaboration, not competition
Guided by the values of United Way and our
mission
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Good luck..get started.ask for help when needed
Questions Answers
Thanks for coming..
Jan L. Bates, CFRE batesjanet2005_at_sbcglobal.net