Demystifying National Donor-Advised Funds A deeper look at Fidelity Charitable donors and how they give.

Transcription

1 S e p t e m b e r 2 0, 2017 Demystifying National Donor-Advised Funds A deeper look at Fidelity Charitable donors and how they give. Presented by: Amy Pirozzolo, VP Marketing, Fidelity Charitable Rachel Earl, St. Labre Indian School Jack Doyle, Amergent 1

2 Today s Speakers Jack Doyle President, Amergent Rachel Earl Chief Development Officer St. Labre Indian School Amy Pirozzolo Vice President, Fidelity Charitable 2

3 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 Agenda 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 3

4 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. 4

5 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 The number of DAF accounts is growing rapidly 174K 180K 184K 192K 206K 219K 242K 269K DAFs outnumber foundations 3: Number of donor-advised fund accounts in the U.S. Source: National Philanthropic Trust 2016 Donor-Advised Fund Report 5

6 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 The impact from DAF giving is also growing fast Total charitable giving in 2015 Total giving from DAFs in 2015 $ Billion $14.52 Billion 4.1% growth from previous year 17% growth from previous year $ billion Source: Giving USA 2016 $14.52 billion - National Philanthropic Trust, 2016 Donor-Advised Fund Report 6

7 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 Fidelity Charitable is now the country s 2 nd -largest grantmaker 149,051 NUMBER OF DONORS $1.0 BILLION $3.5 BILLION 90,164 NUMBER OF GIVING ACCOUNTS Total dollars granted to charities Grant dollars have tripled, supporting 2x the nonprofits as 10 years ago. 7

8 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 DAF donors... Are strategic and committed Seek to maximize the benefits of giving Take forward-looking approach to philanthropy of giving 8

9 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 DAF Donors are active and giving while living 88% of dollars granted to charity within 10 years Since inception: MORE THAN GRANTED TO CHARITIES $25 billion 61% OF ALL CONTRIBUTIONS RECEIVED Annual distribution rate: MORE THAN 25 % per year 9

10 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 Donors support charities using numerous methods Vehicles or methods used in the past 12 months, in addition to DAFs 91% CASH OR EQUIVALENTS 15% COMMUNITY FOUNDATIONS, PRIVATE FOUNDATIONS, OTHER TYPES OF VEHICLES AVERAGE PERCENTAGE OF TOTAL CHARITABLE GIVING DOLLARS MADE WITH A DAF 65% Most donors direct a majority of their giving with their DAFs. Cash gifts tend to be more casual. 10

11 The giving patterns of donors mirror national trends Donors support both local and national charities Education and religion are top charitable sectors EDUCATION RELIGION Fidelity Charitable Donors 27% 15% Overall U.S. Giving 15% 32% 11

12 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 Summing it all up: How Fidelity Charitable donors give Give strategically Give actively Give using numerous methods Give in their communities, but also more broadly 12

13 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 Reaching DAF Donors: Strategies for Nonprofits 13

14 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 14

15 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 Flag and follow up Recognize commitment to giving Target for a closer relationship 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. 15

16 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 Target with planned giving appeals Giving USA 2017: Fidelity Charitable Donors 8% 42% Have set up a bequest or legacy giving vehicle OF ALL GIVING IN 2016 WAS BY BEQUEST 19% Plan to establish a legacy giving vehicle in the future 16

17 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 How can you contact them? 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 Digital Second most effective outreach 17

18 What is DAF Direct? 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. Adding DAF Direct to your website and fundraising campaigns may benefit your organization as well as your donors by providing: A convenient way to donate The potential to grow your donor base Opportunities to educate donors 18

19 How to get DAF Direct 19

20 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 What do you do after you have your NEW-to-you DAF Direct widget? Make it easy to find all over your website Talk about it in your printed communications Tell stories of the donors with giving accounts At events, encourage donors to talk about their DAF giving accounts Emphasize to donors that only they can advise where the grants go; otherwise no good is achieved Explain the successor benefit % to your family or % to favorite charities 20

21 DAF donors grant right from your website 21

22 Giving Account Access 22

23 Successor Benefits 23

24 A closer look at a nonprofit with DAF donors 24

25 St. Labre Indian School Who 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 25

26 How did St. Labre contact them? All channels of communication Newsletters Appeals Web Site Personalized outreach 26

27 we just want to remind you 27

28 Newsletter Ad & Reply Device Opportunity to capture what donors have an exiting DAF for targeting later

29 Appeals back sheet of labels 29

30 Website 30

31 DAF Direct widget landing page 31

32 Targeted Letters Mailed Out 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. 32

33 St. Labre Results Began DAF promotions fall 2016 Fidelity Charitable-sourced Year-End Giving $44,550 ($ average) $58,160 ($ average) 10 x s DM average 30%+ in giving $57,118 ($ average) and it s not even the holiday giving season yet! 33

34 What your caging or opening room needs to look for 34

35 Sample of our acknowledgment letter The DAF grant is hard posted to Fidelity Charitable and SOFT Credited to the donor. NO tax receipt language! 35

36 Q&A Amy Pirozzolo Rachel Earl Jack Doyle 36

37 Thank You Fidelity 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