Gifts of non-cash assets, e.g., real estate and art
How do They Compare to Other Gifts?
Planned gifts are often larger than outright gifts
The typical capital gift target is 20X donor’s largest annual fund gift.
The typical planned gift target is 100X-300X donor’s largest annual fund gift.
A charity’s planned giving pool may be 5X-10X LARGER than its capital pool.
2. Planned giving is marketing driven, relies on self-identification, and is the most personal form of fundraising – no other charitable gift elevates the charity to the level of the donor’s own family.
What Have We Learned?
NCPG Survey 2000: Key Findings
42% of Americans die intestate – That’s 42% of your donors
Only 1 in 3 donors told the charity about the bequest in advance
More than 2/3 who made a planned gift also made a cash gift
The average age when a will is created is 44
NCPG Survey: More Key Findings
8% of Americans have included charities in their estate plans; half included one or more
21% of bequest donors had no prior affiliation with the charity
34% of donors indicated that they learned of the idea of a bequest through the charity’s published materials and website
12% learned of the idea from financial advisors
Other Things You Should Know. . .
The average bequest = $20,000 - $70,000
75% – 80% of planned gifts are bequests
A very small % of donors ever change that commitment [think stewardship]
Other charities are educating your donors and closing planned gifts – shouldn’t you?
An intergenerational wealth transfer of at least $41 trillion is taking place during the next 50 years. At least $6 trillion is expected to go to charity. Total Low Estimate (2% secular real growth in wealth) Middle Estimate 3% secular real growth in wealth) High Estimate (4% secular real growth in wealth) Number of estates 87,838,311 87,838,311 87,838,311 Value of estates** $40.6 $72.9 $136.2 Estate Fees $1.6 $2.9 $5.5 Estate Taxes $8.5 $18.0 $40.6 Bequests to Charity $6.0 $11.6 $24.8 Bequests to Heirs $24.6 $40.4 $65.3 * Derived from tables in Millionaires and the Millennium: New Estimates of the Forthcoming Wealth Transfer and the Prospects for a Golden Age of Philanthropy, Schervish, Paul G. and Havens, John J., Social Welfare Research Institute, Boston College, Boston, MA, October 1999, http://www.bc.edu/bc_org/avp/gsas/swri/swri_features_wealth_transfer_report.htm. **All dollar values are in trillions of 1998 dollars.
What Does This Translate To?
A GIFT PLANNING OPPORTUNITY
Who Are These Planned Giving Donors?
Planned Giving Donors Are Loyal, But Not Necessarily Wealthy
Only a small percentage of PG donors are wealthy. Most are in moderate income and non-estate taxable brackets
LOYALTY, not capacity or age, has the highest predictive value in identifying PG donor prospects
*Many of the statistics cited here and elsewhere in this presentation have been developed by The Planned Giving Company from analysis of 4,600+ planned giving donors in 40 of its client organizations across varying sizes and market sectors.
Typically, people don’t Google PG websites. They go there in response to a direct marketing probe
65% of the traffic (page views) on PG web pages are DIRECT LINKS (i.e. visitor types in the discrete URL on a direct mail piece)
Visit Your Loyals
The most effective way to cultivate planned gifts is with face-to-face visits
Proactive PG officers make 85 to 100 face-to-face visits annually
Fewer than major gift officers because of the time needed for charitable gift planning
PG Calling: the New Frontier
Loyalty selection is the key.
Loyals will take your call
Allows you to qualify large numbers of prospects when they can’t be visited by you and your staff
PG Calling: the New Frontier
Personally connect with your “loyals” and thank them for their long-term support (no one ever has)
Schedule gift planning discussions with PG specialists
Identify and close planned gifts
Gift Value Expectations
As an interactive form of marketing, telephone response rates will be higher than direct mail response rates
Many loyals will reveal estate gifts that have already been arranged simply because someone is asking
Loyals will explore CGAs, bequests, beneficiary designations, and other gift plans because of two-way communication
Gift Value Expectations: Is It Worth It?
Assume an average estate gift of only $25,000
Assume that 2% of your loyals provide for your charity in their estate plans after being cultivated through a calling program
Assume that 5,000 loyals are called
Gift Value Expectations
Result: A $2,500,000 pipeline of planned gifts from 100 new planned gift donors
Yes, it is definitely worth it!
Marketing: the New Way
Loyalty screening 90%+ accurate
Flash cards 85% readership
Attractive print sds Free / drives traffic
Donor-friendly websites Easy, available 24/7
Face-to-face visits Best prospects
PG phone mail The new frontier
Your Charity is Now Part of the Family… Now What?
Recognition and Stewardship are Critical
Recognition Components The Legacy Club or Society – Get Creative!
Your Legacy Club Brand
Should stand out from the rest
Be in the same “family” as your other pieces
Relate somehow to your mission
Be unique – Don’t accept cookie-cutter stuff
Must make donors feel special and apart
Certificate of Membership
Legacy Clubs With A Brand
Lapel Pin / Ribbon Rosette
Bestowed at special recognition event
Identifies them to the rest of your community
Prompts word-of-mouth interest from peers
“Hey, where did you get that?”
“What did you have to do to get that?”
”What is the pin for?”
Esp. in DC, PEOPLE LOVE THE LAPEL PIN
Annual Special Event / Gathering
Welcomes and celebrates new members
Invite prospects to hear peer testimonials
Cements their love / Interest
Reinforces their commitment and good decision
Opportunity for them to get an “inside look”
Opportunity for your board to interact with them
Opportunity to THANK THEM AGAIN
Opportunity for them to interact with your product
Opportunity to meet your ‘stars’ [drs., curators, profs., etc.]
Special discounts on your merchandise
Pre-press releases sent to them day before
Special reserved seating and / or transport
Special receptions or hospitality suites
Advance notice before general public
Thanksgiving greetings / New Year’s greetings
Use of logo on their social / professional networking profile or blog
Donor’s name inscribed in society book
Catalogued into permanent collection
Carved in stone / wood / glass in donor wall
Name listed in any honor rolls
Annual honor roll of donors
Invitations and Access
Give them invitations and access to special events, lecture series, and ceremonies throughout the year nationally
Endeavor to provide access to similar events in collaboration with your local chapter and association.
Feature Articles and Photos
Donor’s story published in the in-house magazine and on the website when gift is announced and when it matures
Inspires others to do the same because donors relate to others like them
If you have a quarterly journal or monthly magazine you could consider giving it to them gratis
Offer them complimentary use of the Board Room at the national headquarters in Washington, D.C. (subject to availability)
Determine what each donor would like
Hand-deliver the first check if possible
Send subsequent checks with a cover letter
Send them anniversary cards (of their gift)
Invite them to volunteer as members of a legacy planning donor advisory committee
Ask them to host a regional PG reception
The National Committee on Planned Giving
The preeminent association for professionals in the charitable gift planning field
The National Capital Gift Planning Council meets monthly in Washington, DC.
LEAVE A LEGACY
A campaign that encourages people from all
walks of life and all income levels to think
beyond their lifespan when doing good works.
American College of Trust and Estate Counsel
A national organization of approximately
2,600 lawyers elected to membership by
demonstrating the highest level of integrity,
commitment to the profession, competence and
experience as trust and estate counselors
GIFT-PL NCPG members-only discussion list for all issues and queries related to gift planning
ABA-TAX A tax law internet discussion group sponsored by the American Bar Association Tax Section. Participation is limited to practitioners, law professors, and law students
ABA-PTL Sponsored by the Probate Division of the Real Property, Probate & Trust Law Section of the American Bar Association, intended primarily for the use of Section members and related professionals so they can discuss estate planning and administration issues by e-mail
GIFT-PLAN A moderated planned giving forum, focusing on issues of interest to U.S. gift planners
Yahoo PLANNED GIVING An open list for discussion of gift planning topics
IRS Publications At IRS.gov
IRS Publication 526 Charitable Contributions Information about the types of contributions that can be deducted, how much can be deducted, and reporting
IRS Publication 561 Determining the Value of Donated Property This publication explains what kind of information a donor must have to support the charitable contribution deduction for a non-cash gift
IRS Form 8283 Noncash Charitable Contributions This form is used by donors claiming a total deduction of over $500 for all property contributed to charities in one calendar year. A charitable organization is required to complete Part IV of Form 8283 when a deduction of $5,000 or more is being claimed for a donation of property
IRS Instructions for Form 8283
IRS Form 8282 Donee Information Return This form is filed by the charitable organization whenever it sells, exchanges, or otherwise disposes of gift property that was reported on Form 8283 when disposal occurs within two years of the date of receipt