PLANNED GIVING: THE SECRET TO A SUCCESSFUL CAMPAIGN

Transcription

1 PLANNED GIVING: THE SECRET TO A SUCCESSFUL CAMPAIGN Chesapeake Planned Giving Council March 29, 2017 Dr. Bruce Bigelow Dr. Carol Kolmerten WHERE DOES WEALTH LIE? 30-40% 15-20% 15-20% 15-20% 10-15% REAL ESTATE CLOSELY HELD STOCK PUBLICLY TRADED SECURITIES QUALIFIED RETIREMENT PLANS CASH/CASH EQUIVALENTS 1

2 HOW HAVE CAMPAIGNS CHANGED? HISTORICALLY, CAMPAIGNS WERE Funded only with Cash Gifts Short in Duration Focused on a Single Purpose Managed by Outside Counsel Staffed by Volunteers Unusual Events in the Life of the Charity THE NEW CAMPAIGN NOW Campaigns Solicit Gifts of All Sorts Campaigns Often Stretch over Multiple Years Campaigns Encompass All Aspects of Charity s Needs Campaigns Rely on Outside Counsel for Guidance and Perspective Only Campaigns Are Staffed by Professional Fundraisers Campaigns Are Normal and Constant State of Affairs 2

3 EVERY CAMPAIGN SHOULD INCORPORATE PLANNED GIVING INTO ITS PLAN: WHY DON T THEY? COUNTING DILEMMAS VALUATION DIFFICULTIES COUNTING: What Is the Problem? Consistency Clarity Consumer Concentration Accountability 3

4 COUNTING: Definition Counting and Reporting: Counting and reporting are arithmetic activities. Counting is the numeric summary of activity, results and progress toward goals. Reporting is the process of conveying to a lay audience clearly and transparently what has happened during a specific timeframe COUNTING: WHAT DOES THE PROFESSION RECOMMEND? TWO KEY ORGANIZATIONS HAVE ADDRESSED THIS ISSUE NCPG TASK FORCE 2005 CASE SERIES OF TASK FORCES MID-1990 S CGP Metrics Task Force reiterating counting guidelines

5 COUNTING: BOTH CPG AND CASE SUGGEST MEASURING COMMITMENTS A commitment is a good faith promise to make a gift at some time, now or in the future. And the key to counting and reporting is to communicate all meaningful development activity over a given period of time. CASE/CPG Counting Recommendations Fundraising campaigns of whatever duration, should set three separate and complementary goals and should report fundraising results along three complementary dimensions: 5

6 CASE/CGP Counting Recommendations 1. An outright goal for gifts usable or that become usable for institutional purposes during the reporting period (whether one or more years). 2. Irrevocable gift goals, for gifts committed during the reporting period but usable by the organization at some point after the end of the period. 3. Revocable gift goals for gifts solicited and committed during the reporting period but in which the donor retains the right to change the commitment and/or beneficiary. Charities should report their progress toward each of these goals separately, using face value numbers. VALUATION: Definition Valuation: Valuation is an assessment of the actual value of an item to the person or organization that possesses it. CPG defines valuation as a reflection of the present value of the ultimate purchasing power of the gift. As a result, valuation differs from organization to organization and the value to each organization is specific. We can agree on the process for assessing value but not on the value itself. 6

7 WHAT ROLE HAVE PLANNED GIFTS TAKEN IN CAMPAIGNS? SAMPLE SET OF 21 TOP TIER PRIVATE LIBERAL ARTS COLLEGES OVER 12 YEARS: RANGE FROM 12% TO 42% PLANNED GIFTS AVERAGE OF 26% PLANNED GIFTS SOME YEARS EXCEEDED 80% What Do Planned Gifts Bring to a Campaign? New donors Larger gift commitments Blended gifts Legacy pipeline for future Better Return on Investment Estate Gifts $56.83 Major Gifts $33.33 General Donations $19.11 Direct Mail $ 3.66 Events $

8 How to Integrate Planned Giving into a Successful Campaign Begin with the Feasibility Study Feasibility studies are both informationgathering and teaching opportunities Ask questions that encourage donors to think about major gifts and planned gifts Ask which Ways of Giving might work best for the specific organization Offer quick examples of the benefits of giving both deferred gifts and non-cash gifts Example #1: Capital Campaign (looking for cash) Discuss Cash Now planned giving opportunities in a series of small groups at the beginning of the campaign period (or better yet, during the feasibility study) Explain these examples: IRA Rollovers, Donor Advised Funds Offer special board information sessions on how special life-income options (Pooled Income Funds or CRTs) can fund construction/renovation 8

9 Example #2: The Endowment Campaign Identify your committed constituency Conduct one-on-one conversations with top prospects, beginning with board members Discuss how prospects can think about using noncash assets such as retirement plans--to increase the size and impact of their gifts Introduce virtual endowment options so donors can blend current giving with an estate commitment Work directly with donor advisors to create plans for each major prospect Example #3: The First Campaign Explain major and planned giving possibilities with staff members Offer small group sessions on Creative Ways of Giving so that committed donors can understand what, at first, might look complicated Have the steering committee create a sense of community of giving by telling others (on website, in letters, in blasts) about ways of giving 9

10 Example #4: The Campaign with Limited Numbers of Donors Use the ideas in Example # 3 plus Find a way of giving that is institutionspecific ( Tithe for Two for a church or Give Back Your Deposit for a retirement community) Example #5: A Campaign with a Membership Group Use feasibility-type interviews at both national or regional conferences to meet with members to discuss the case, explaining why dues only is not enough and to explain non-cash gift options Make use of a series of focus groups, asking advice about which benefits and which ways of giving to stress Create a planned giving Legacy Society with a recognized association personality as the spokesperson or Honorary Chair Appeal to tax benefits, as well as helping the next generation, as few membership organizations are a donor s first charitable priority 10

11 CONCLUSION Planned Gifts Respond to Donor Needs and Interests Planned Gifts Integrate Donor Stories with Organizational Priorities The Best and Most Successful Campaigns Will Include Planned Gifts as a Major Component of Their Goals 11