Annual Joint Meeting. Blended Gifts. 10:45 11:45 a.m. & 12:30 1:30 p.m. Dr. Scott Janney, CFRE Chief Development Officer.

Transcription

1 Annual Joint Meeting February 14, :45 11:45 a.m. & 12:30 1:30 p.m. Dr. Scott Janney, CFRE Chief Development Officer

2 What exactly is a blended gift? Planned Gift / Major Gift

3 What exactly is a blended gift? Planned Gift / Major Gift Any charitable gift that requires planning by the donor, the organization and, often, the donor s professional advisor. (The Planned Giving Course) The largest gifts an organization receives. Some larger organizations consider $100,000 to be major, while others consider $2,000 a major gift. (Donor Search)

4 Learning Objectives, What You Will Learn: 3 What are the Best? 2 How Can I Incorporate into a Campaign? (Comprehensive, Capital, Annual) 1 Why are they Good for Donors/Charities?

5 Outline I. Why Donors Give / Donor Motivation II. Organizational Needs / Campaigns III. Blended Gift Instruments

6 Introductory Case Study 79 Year Old Total Giving to Bancroft $12,000 Close Friend and Associate of Campaign Chair $25,000 Cash Campaign Ask... Plus Name Something Significant IHO Chair Has Made a Large Life Insurance Gift

7 WHAT DONORS WANT

8 Two Questions: Why do donors give? What is your role in the process?

9 Donor Motivations The 2016 U.S. Trust Study of High Net Worth Philanthropy Believe in the mission 54.1% Gift can make a difference 44.0% Personal satisfaction 38.7% Same causes year after year 35.7% Give back to community 27.3% Religious beliefs 23.2% Tax benefits 18.0% Political or philosophical beliefs 15.7%..... Don't leave too much to heirs 2.7%

10 Donor Motivations The 2016 U.S. Trust Study of High Net Worth Philanthropy If you received no income tax deductions for charitable giving, would your household charitable giving increase, decrease, or stay the same? From The 2016 U.S. Trust Study of High Net Worth Philanthropy.

11 Donor Motivations The 2016 U.S. Trust Study of High Net Worth Philanthropy If the estate tax were permanently eliminated, would the amount you left to charity in your estate plan increase, decrease, or stay the same? From The 2016 U.S. Trust Study of High Net Worth Philanthropy.

12 Phil Cubeta: Don t assume you need to be an expert in financial techniques. You will be working with experts. Be a specialist in impact - be able to tell advisers and donors how your organization will have an impact on what the donor loves. Most advisers don t hold the impact conversation. Become good at it.

13 2014 Study of High Net Worth Philanthropy.

14 What donors want in their charitable advisors: Gift Officer Professional Advisor Knowledge about the advantages and disadvantages of each type of planned gift Help in deciding what type of planned gift to make Expertise in the details of executing the planned gift Effectiveness in getting the charity to treat the donor as he or she wants to be treated Sophisticated understanding of the donor s personal motivations to give 95% 99% 86% 97% 16% 98% 70% 11% 99% 82% 1997, Prince & Associates Inc., used by permission.

15 Most Trusted Adviser the individual who is selected on purpose by the wealth holder to oversee all of their affairs and all of their advisers.

16 To help wealth holders find the true intent for their wealth requires deep discovery, skillful discovery. It requires conversations in which there isn t a single product idea, service mix, or technical strategy dangling in the back of the adviser s mind.

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18 Three Stages of a Capital Campaign Preparation Follow-Up Campaign

19 Myth: Planned Gifts Don t Belong in Campaigns Fact: They Now Account for 30% of Major Comprehensive Campaigns

20 bancroft.org/plannedgiving

21 Opportunities & Obstacles Half Full

22 Table Talk During Lunch (Optional) Your opportunity to share an experience when: + A Planned Giving or Major Giving Officer brought a solution that you weren t expecting. - You saw a PGO or MGO solicit or close a small or unsuitable gift compared to organizational needs. + A Donor offered more than you expected with a gift instrument you weren t considering. - A Donor offered a gift that didn t make sense or was inappropriate.

23 Annual Joint Meeting February 14, 2018 Session #2 12:30 1:30 p.m. Dr. Scott Janney, CFRE Chief Development Officer

24 Table Talk From Lunch Your opportunity to share: + Time a PGO or MGO brought a solution that you weren t expecting. - Time you saw a PGO or MGO bring a smaller or less needed gift than your organization needed. + Donor offered more than you expected with a gift instrument you weren t considering. - Donor offered a gift that didn t meet the organization s needs as well as cash.

25 $63,250 Gift Annuity Quote:

26 NCPG Guidelines for Reporting and Counting Charitable Gifts Suggest Three (3) Goals: 1. An outright goal for gifts that are usable or will become usable for institutional purposes during the campaign period (whether one or more years). 2. Irrevocable deferred gift goals, for gifts committed during the campaign period but usable by the organization at some point after the end of the campaign period. 3. Revocable gift goals for gifts solicited and committed or pledged during the campaign period but in which the donor retains the right to change the commitment and/or beneficiary.

27 Campaign Thermometers: Oct 5, 2011

28 Campaign Thermometers:

29 NCPG Guideline s Key Principles: 1. Clear, transparent and easily understandable. 2. Comparison among organizations across the broad charitable community. 3. The donor s perspective. 4. Focus on counting and reporting, not accounting, valuation or crediting. 5. The IRS charitable deduction calculations were not created for the purpose of counting planned gifts. 6. Campaigns are finite, with a specific timeframe.

30 Counting, Reporting, etc. Recognizing In Donor Reports Counting Toward Naming Opportunities Reporting For Campaign Goals For Campaign Results

31 Counting, Reporting, etc. Recognizing Reports CRT & Cash LI & Cash St. Mary Bancroft FFV FFV Counting Naming PV PV Reporting Goals IRS FFV Results IRS FFV

32 Type of Gift Irrevocable Revocable NCPG (aka PPP) Count at face value if made during campaign. Report separately from outright gifts and revocable gifts. Count at face value if pledged during campaign and documented. Report separately from outright gifts and irrevocable gifts. CASE Same with requirement that both face value and discounted value must be reported to CASE. Lead trusts: report total value of payment stream as a pledge with annual distributions recorded as pledge payments as received, regardless of term of the trust. Same. Same with comment that institutions may want to consider age requirements with examples: Less than 50, not counted; 50 to 69 ; count at discounted value 70 and older; count at face value. Same. Source: 2008 NCPP Paper by Laura Hansen Dean and Phil Oswald

33 Campaign Goals $16,000, $14,000, $12,000, $10,000, $8,000, $6,000, $4,000, Revocable Rev - Irrevocable - Cash UnRev Cash $2,000, $

34 Everything you Always wanted to know about blended gifts But were afraid to ask

35 Types of planned gifts: Gifts Anyone Can Make: Bequests Beneficiary designations from: - Retirement Plans (IRA, 401k, 403b, etc.) - Life Insurance Gifts That Pay You Income: Gift Annuity Charitable Remainder Trust Gifts That Protect You Assets: Retained Life Estate Charitable Lead Trust

36 Giving Pyramid Planned Gifts Major Gifts Annual Gifts Events & Sales

37 Examples of : Immediate Endowment Three Campaign Goals Annual Gifts by Legacy Society Members Cash When a Deferred Gift Won t Do

38 Examples of : Immediate Endowment Three Campaign Goals Annual Gifts by Legacy Society Members Cash When a Deferred Gift Won t Do

39 Examples of : Immediate Endowment Three Campaign Goals Annual Gifts by Legacy Society Members Cash When a Deferred Gift Won t Do

40 Examples of : Immediate Endowment Three Campaign Goals Annual Gifts by Legacy Society Members Cash When a Deferred Gift Won t Do

41 Annual Joint Meeting February 14, 2018 Thank You! Dr. Scott Janney, CFRE Chief Development Officer Bancroft Cherry Hill, NJ

42 Exploring Donor Intent: Help the donor explore the PAST And FUTURE

43 Explore the PAST through Personal History The past is a source of knowledge, and the future is a source of hope. Love of the past implies faith in the future. Stephen Ambrose

44 Explore the PAST through Personal History Tell me why you chose to attend this College? What first made you interested in supporting the Hospital? Did anyone important to you ever need our services?

45 Focus on the Future Loyalty gifts are about helping the organization achieve its goals. Passionbased philanthropic investments are about helping donors achieve their goals. Advancement Resources

46 Focus on the Future Desire to help a student like themselves? Improve the thing that started the donor s interest in the hospital? Improve the service or the access for others?

47 Annual Joint Meeting February 14, 2018 Thank You! Dr. Scott Janney, CFRE Chief Development Officer Bancroft Cherry Hill, NJ