Major Gifts

1

Planned Gifts
More Similar than Different
Major Gifts

Kristi Edwards, CFRE, CSPG, regional
manager Arizona, Yavapai County Greater Sedona
Community Foundations kedwards_at_azfoundation.org 19
50 Rock Castle Dr., Prescott, AZ 86305
2
Session Objectives

• v Explore and discuss key insights to major and
  planned giving while identifying the prospects,
  cultivation ideas, stewardship, and methods to
  measure success.
• v More alike than different, major and planned
  giving can provide present and future
  sustainability.

3
What Are Major Gifts?

• What is the dollar amount?
• 100, 500, 1,000, 5,000, 10,000
• Group discussion.

4
What Are Planned Gifts?

• There are two types current (outright) deferred
  (testamentary).
• Planned gifts may possess one or a combination of
  the following characteristics
• Gift is made upon death.
• Gift involves lifetime financial benefits to the
  donor.
• Gift is structured to minimize estate, gift, or
  income taxesoften avoidance of capital gains!

5
Planned Giving Fundraisers Bag of Tricks

• Bequests (80 85 depending on source)
• Insurance policies
• Charitable remainder trusts
• Charitable lead trusts
• Charitable gift annuities
• Pooled income funds
• Life estates
• Bargain sales
• Retirement plans

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Critical Factors for a Major and Planned Gifts
Program

• Viable mission statement.
• Compelling case statement.
• Good community reputation.
• Gift acceptance policieswhat can your NPO
  accept?
• Permanence and history of fundraising.
• Mailing list and annual fund in place.
• Culture of board philanthropy, commitment, and
  support.
• Donor and prospect tracking system.
• Major and PG development action plan.
• Major and PG stewardship program.
• For PG the expertise or availability to must be
  in placecan administration support, i.e.
  resources, asset reserve?

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Steps for Acquiring

• Strategic plan or fundraising action plan
• Research
• Solicitation
• Stewardship

8
Major and Planned Giving Prospects

• Board, volunteers, and sometimes staff.
• Referrals from donors, board, staff, or
  volunteers.
• Individuals who have been donors for three or
  more consecutive years.
• People who have benefited from your NPOs
  service.
• High net-worth individuals.
• People owning appreciated assets.
• Specific to major gifts
• People between 50 and 64--give more to charity
  than any other group.
• Specific to planned gifts
• Attendees at estate planning seminars.
• Previous planned giving donors.
• Referrals from allied professionals.
• Childless couples, same-sex couples.
• Elders (retirees are the best prospect!).
• Others?
• Women, women, women!

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Donor Characteristics

• Younger Donors
• Specific goals and definite ideas.
• More likely to remain engaged with project.
• Want to have an impact, support their societal
  priorities.
• Augment estate, meet tax planning goals.
• Seek leverage require feedback.
• (material from Farr Healey this page and next
  three)

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Marketing Considerations

• Younger Donors
• Straightforward approach.
• Explain financial benefits to donor.
• Emphasize investment strategies and stewardship
  of gifts.
• Show how gift can help the family establish its
  legacy.

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Donor Characteristics

• Older Donors
• Mission oriented.
• Loyal to charities that have been helpful to
  their families.
• Want to do the right thingsupport the less
  fortunate and betterment of others.
• Seek security and immediate income benefits.
• Focus on economic benefits.

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Marketing Considerations

• Older Donors
• Softer approach.
• Explain financial benefits and contribution to
  the future stability of charity.
• Reinforce pride in doing something good.
• Show how to endow annual support through a
  planned gift.

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Prospect Cultivation Ideas

• Invitation to a special event.
• Lunch or dinner with board chair.
• Cocktail party in board members home.
• Ask to serve on committee.
• Participate in focus group or serve on panel.
• Board phone call to thank for gift.
• Deliver a book or gift.
• Ask opinion or advise.
• Call them regularly to provide updates.
• Others?
• Less productive for major/PGs is direct mail.

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Asking for Major Planned Gifts Some Truisms

• People give to people.
• The right person makes the difference.
• The one who asks must first give.
• See each prospect face to face.
• Ask for a specific amount ask for enough seek
  the maximum gift.
• Dont accept a gift that is too small.
• Qualify the prospect.
• Tenacity prevails.
• Seize the magic moment.
• You can research, cultivate, involve, and
  enlist--but ultimately you have to ask!
• After you ask, the next response is theirsdon't
  rush it, sit quietly and patiently wait.
• No is an okay answer.
• Dont forget the thank you note.

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AFP Maxim

• Select the right person.
• To ask the right person.
• At the right time.
• For the right amount.
• In the right way.
• For the right reason.
• Kristi counsels Just do it This perfect
  scenario seldom presents itself.

16
You Dont Make a Pickle By Taking a Cucumber and
Sprinkling a Little Vinegar Over It. You immerse
it!

• Personal Solicitation
• Is 16 times more effective than mail, per author
  James Greenfield. My experience is that it is
  almost always successful.
• Most effective when peer or senior staff (or in
  tandem) conducts solicitation following courtship
  period.
• Recommended for all major and planned gifts.
• Again, one-on-one is the most effective form of
  solicitation for planned and major gifts!

17
YahooYou Got the Gift,Now What?

• Celebrate, celebrate, dance to the music! (Three
  Dog Night)
• Thank you note, thank you lunch, etc.
• A gift (more discussion to follow).
• Media release.
• Story in your organizations newsletter.
• Reception.
• Special mailing.
• Inclusion on donor wall.
• Others?
• Silent gratitude does no good!

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You Got The Gift!Stewardship Checklist (from
Robbie Healey)

• Reconfirm the importance of the gift.
• Set date for next meeting/gift receipts.
• Discuss recognition and publicity internal
  external.
• Schedule donor visit to your organization.
• Contact reports.
• Several thank yous leadership, volunteers,
  awardees.
• Call periodically to check in.
• Send articles about the gift.
• Invitations to events.
• Annual reports.
• Cards birthday, anniversary, etc.
• Send progress updates emphasize the importance
  of the gift.

19
BummerYou Didnt Get the Gift, Now What?

• Is it the program? Perhaps you might be
  interested in hearing about some of our other
  programs or our campaign to build our endowment?
  
• Is it the timing? Perhaps this is not a good
  time to consider such a gift. Ask to come back
  in a month and meet again.
• Is it the amount requested? Would you consider
  a deferred multi-year pledge?
• Is it the person making the ask? Oh dear!
• Thanks for letting me/us tell you about our
  programs and needs.
• Always leave the door open for a return visit.
• Common reasons campaigns fail
• Insufficient cultivation before the ask.
• Failure to actually ask for the gift.
• Unrealistic goal.
• Need is not well articulated or is not real.
• Too few qualified, connected prospects (1)

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Stewardship The task is not to get a donation,
but to develop a donor via relationship building.

• Return all calls/e-mails within 24-hours.
• Acknowledge all gifts ASAP. The industry
  standard is 48 hours.
• Hold donor briefings about topics that impact
  your organizationan environmental NPO could host
  a forum on forest fires or water aquifer
  depletion. Bring in an outside expert to speak.
• Organize donor tours to see the results of your
  programs or grantmaking.
• Provide financial information about your
  organization or include it in an annual report.
• Describe how the community has benefited from
  their gifts.
• Phone calls or visits from volunteers or staff
  describing clients successes and program
  stories.
• Acknowledge mistakes and apologize. Dont be
  defensive.
• Stay in touch--even when you are not asking for
  money. Ask the donors opinion on something.
• Communicate regularly. Share breaking news with
  them about your organization. Consider informal
  presentations.
• Listen, listen, listen. People like to tell
  their stories.
• Keep the donor connected with the gift.
• Others?

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Measurable Outcomes

• Major Gifts
• Target amount raised.
• Number of gifts.
• Size of gifts increased donors moving to higher
  level.
• New donors added.
• Others?
• Planned Gifts
• One-on-one PG meetings (contacts).
• Interest expressed by qualified prospects.
• Bequests written.
• Value of bequestcaution, very approx.
• Bequests received.
• New PG written (irrevocable).
• Value of new irrevocable PG written.
• PG (non-bequests) received.
• Referrals from financial advisors.
• Others?

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Parting Thoughts on Similarities

• Need cultivation time.
• Appropriate stewardship.
• Generally larger gifts.
• Require 11 interaction.
• Provide sustainability.
• Strategic planning advised.
• Cost effective.
• Helps establish a long-term relationship with
  donor.
• Thank you!

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Planned Giving Resources

• www.ncpg.org membership, books, audiotapes, CDs
• www.plannedgivingedu.com certification programs
  for PG from American Institute of Philanthropic
  Studies at Cal State University Long Beach Fdn.
• www.pgtoday.com - Planned Giving Today newsletter
  also articles on web
• First Steps in Planned Giving G. Roger
  Schoenhals, editor
• Planned Giving for the One Person Shop David
  Schmeling
• The Art of Planned Giving Douglas E. White
• Association of Fundraising Professionals three
  state chapters
• Crescendo Interactive 1-800-858-9154
• Planned Giving Design Center www.azfoundation.or
  g
• Leave A Legacy www.leavealegacyarizona.org,
  [phone]