2013 Mid-Iowa Planned Giving Days_Stammer Stutter Pause


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Planned gifts have often been thought of as the private purview of credentialed development, legal, and financial professionals. With terms like “present value methodology,” “four-tier system of taxation,” and “current IRS-mandated discount rate,” it’s no wonder why many of us feel this way and hesitate to enter into discussions about planned gifts. Studies and talks with donors, however, remind us that the tax benefits of making planned gifts are not the primary reason they are made. Donors want to make a difference in the world they live in, both now and in the future. Conversations about planned gifts are easy if you understand human nature and understand the basics of carrying on a conversation. Throw out the law school admissions form on your desk and learn to talk with donors about their dreams and wishes for your organization with ease!

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2013 Mid-Iowa Planned Giving Days_Stammer Stutter Pause

  1. 1. How to Start the Planned Giving Conversation without Choking!
  2. 2. Your Presenter Katherine Swank, J.D. Senior Consultant  Author and Frequent Presenter on Planned Giving, Prospect Research and Industry Topics  Member, State Bar of Arizona; Drake University Law School  20+ years development professional • • National healthcare, public broadcasting, law school National Director of Planned Gifts $300M healthcare organization  12 years as affiliate faculty for Regis University’s Masters in Global Nonprofit Leadership program Target Analytics, a Blackbaud Company
  3. 3. Our Agenda Focus for Success The Secret to Understanding Planned Giving A Prescription for the Magic Pill The Recipe for Success Setting Activity and Outreach Expectations Planning the Conversation Asking for Planned Gifts When You Need Help Q&A
  4. 4. Focus, Focus, Focus  Many people agree that their largest gift to charity would be through their estate plan Facts about Bequests United States % of Planned Gifts are Bequests 90% % of population that has a will 40% - 50% % that have included a bequest to charity 7% - 8% % that say they will consider doing so 10% -14% Average Bequest Gift $35,000 - $70,000
  5. 5. Future Opportunities  When it comes to high net worth households, well over half say they have already made a planned gift Currently Have Would Consider Within 3 Years 55.9 Will with Charitable Provision CRT or CLT CGA 17.3 8.4 20.9 17.2 37
  6. 6. You Don’t Have to be a ‘Know-it-all’ The most successful planned gift fundraisers are People-People
  7. 7. The Secret Do you want to know the secret?
  8. 8. • An expert on the topic • An advocate for the gift vehicle, not a solicitor • A like-minded friend to others who also make and consider planned gifts • A living example • A resource Planned gifts that you can make with little or no cost: When you make your own legacy gift you become: Make Your Own Gift First • Bequest or codicil – when making or updating your will add your charitable gifts • Beneficiary designation for • Retirement account • Life insurance • Bank accounts
  9. 9. The Magic Pill Are you looking for the magic pill?
  10. 10. Close Your Door
  11. 11. The Recipe for Success Do you want the recipe for success?
  12. 12. Talk to People
  13. 13. They’re Waiting to Meet You
  14. 14. Set Reasonable Activity Goals  Best practices for prospect contact % Time for PG Activities Priority Activities # Avg. Contacts/Mo. Personal visits 6-10 6-10 Telephone Conversations 11-15 Personal Letters 11-15 Personal visits 6-10 Telephone Conversations 16-20 Personal Letters 50% or More 6-10 Personal visits 25% - 50% Telephone Conversations Personal Letters 25% or Less 1-5 11-15 * Planned Gift Officers Survey, Partners for Philanthropic Planning
  15. 15. Know How to Reach Your Goals If your conversion rate from call attempts to completed calls is 5:1 You will need to attempt 1,200 calls per year That’s equal to 23 calls per week Or 5 calls every day If your conversion rate from completed calls to appointment is 4:1 You will need to talk to 240 people a year to get 60 appointments Example Goal: 20 confirmed bequest intentions this year through personal contact You will need to meet with a minimum of 60 prospects per year Set aside a minimum of 1 hour per day to make prospect/donor calls 5 per month x 12 months
  16. 16. #1 Priority  Close your door or reserve a meeting room  Post a friendly note or door tag so that others will not disturb you  Schedule phone-calling time as a meeting on your daily work calendar  Choose differing times during the week  Early morning, early afternoon, late afternoon, evening hours 2-3 nights a month  Consider using an outline to get the conversation started  Read the Blackbaud white paper: How to Talk with Donors about Planned Gifts Purchase these door tags at www.askingmatters.com/store
  17. 17. Plan, Track & Report MON • 8:30 – 9:30 a.m. - Call people that have bequest intentions • Say “thank you”; fill them in on recent accomplishments TUES • 11:00 – Noon - Call Board/Committee members; Volunteers • “Was just thinking of your generosity and service to this organization and wanted to say Thank You.” Seek a 30-minute appointment to better understand their involvement WED • 1:45 – 2:45 p.m. - Call people who have responded to marketing mailing or publication • Seek a 30-minute appointment related to their request • 2:30 – 3:30 p.m. – Call planned gift prospects • Say “thank you” for their loyalty or for attending an event or for…… (fill-in-theblank). Seek a 30-minute appointment to fill them in on recent accomplishments THURS and better understand their involvement
  18. 18. Offer an Inviting Environment THIS NOT THIS
  19. 19. Our neighbors’ friend parked his tiger in the hallway It’s Never Too Late Then and Now Nostalgia Tour 2013 1985 2013 October 22, 2013 Stammer, Stutter, Pause by K Swank My first apartment without roommates! 21
  20. 20. Have a Conversation Plan “I’m calling to thank you…” “We’re reaching out….” “Your opinion – your thoughts – your input…” “We met at the …….” “Would you be available to meet with me for lunch next week?” “the president suggested i call you…”
  21. 21. Use Language that Works! “I’m new to Drake University Law School. . . hope to meet as many loyal donors as is possible in the next few weeks. . . The Dean has suggested that you would be a very important person for me to meet. . . I’m hopeful that you might have 30 minutes in the next two weeks to meet me for breakfast, lunch, or another convenient time.”
  22. 22. Overcome Objections Can’t give you a gift right now “I am not coming to ask you for a gift. I would like to introduce myself and learn about your association with us and update you. . . I don’t feel it would be proper to ask you for anything at this visit.” “I can assure you that I will keep my promise and not ask for nor accept any gift at this time.”
  23. 23. Overcome Objections Can’t meet with you now “I understand that you’re busy and I appreciate your honesty . . . We’re taking time to talk to as many people as possible . . . Would you be able to schedule lunch or a quick meeting at the end of the month?”
  24. 24. Reach Out; Get Out • Usually informal • Meet at a neutral setting like a restaurant or a café • Unless there is a reason to invite them to your offices First date • Learn why the prospect is involved • Explore his/her interest in programmatic areas • Explore his/her interest in the community Objective
  25. 25. You’re Special
  26. 26. Listen More Than You Speak Use a series of open-ended questions What first brought your attention to the National Multiple Sclerosis Society? Are you receiving any of our publications? • Did you see the last issue? • What article or story was most interesting or most hopeful to you? What do you think we do best? • Is there any area of the organization where you could see yourself becoming more involved?
  27. 27. Talk about Giving Decisions Keep the conversation going… How did you come to include The American Heart Association in your charitable giving? Are there other organizations that are important to you as well? What is the single most important reason you continue to contribute to us?
  28. 28. Watch the Webinar by Dr. James Russell, J.D., Ph. D., CFP® Professor, Texas Tech University Research on brain activity when fundraising prospects are solicited for traditional gifts vs. planned gifts
  29. 29. Keep the Relationship Going Always take the opportunity to set another meeting Create events that allow your prospects to meet others, meet leaders, see you again Have a calendar of other organizational activities and events
  30. 30. Things to Think About for Meetings Be creative and appropriate If others are involved, meet alone before you part • Meet back at the café • Meet with an expert • See something in action • Go to your office • Sit in a quiet area of the lobby • Escort your guest down the elevator; to the front door; to the parking lot, etc.
  31. 31. People Give to People • You have a large qualified pool of planned giving prospects • Your ability to build relationships and solicit the appropriate planned gift with these constituents is the key factor in realizing as much of this potential as possible
  32. 32. The Payoff is Mission Funding Prospect Pool Average Gift Amount Total Potential 2% of Total Potential 25% to 50% of your database $50,000 $250,000,000 $5,000,000 5,000 for example NOTE: Does not represent any assumed period of time 100 People
  33. 33. Focus on Your Best Prospects  Segment  Analytic modeling  Organizational profile  Target market  By gift type  Don’t blanket market multiple vehicles  Dilutes your message  Confuses your audience
  34. 34. Be Inclusive with Marketing Individuals that have already notified you of a planned, deferred or legacy gift All board and committee members; professional-level staff members and employees of 10 years or longer Those who are deemed likely to make a planned gift to your organization Donors of stocks, securities and mutual fund shares no matter the amount of the gift Volunteers All donors who have made single-year gifts of $10,000 or more Donors who have made gifts at any level for 10 or more years or have given your organization 25 or more gifts including recurring/monthly gifts Add your own here!
  35. 35. Start by Marketing Simple Gifts Bequests Easy to understand Easy to talk about Most Common Forms Specific gift amount % of estate % of remainder after all specific gifts have been made Account for 9 out of every 10 planned gifts made Create simple donor stories Share your own gift Ask others to join you
  36. 36. Add Other Gifts as Appropriate Charitable Gift Annuities 5%-6% of all planned gifts Range from $5,000 to over $1,000,000 Best Annuity Prospect Existing annuitants They know the organization They know you They are comfortable with the process and your stewardship Marketing tactics Personalized examples Impact of annuity proceeds Use visuals that evoke emotion
  37. 37. Marketing techniques that work In-person visit Written materials A financial seminar 85% of respondents to a survey about charitable gift annuities said they were introduced to the giving vehicles one of three ways
  38. 38. Don’t be Tempted to Follow that Sexy Blonde • Other Gift Vehicles - Including charitable trusts • Fewer than 2 of every 100 gifts • Highly technical gifts very difficult to market - Most high net worth households that have made CRTs learned about the vehicle from their financial advisor - Fewer and fewer prospects are seeking information from charities on this gift type • Discuss only with highly qualified prospects
  39. 39. High-Volume Marketing The #1 goal of planned gift marketing is to get a face-toface appointment with an interested prospect • Planned gift marketing is the smallest part of your overall planned giving program • Successful planned giving programs are proactive and seek to build relationships with top prospects • Anyone can start the planned giving conversation and is a lead generator
  40. 40. Contact Conversion Rates  Face-to-face visits are by far the most effective way to close planned gifts Activity % of Contacts to Gifts Personal visits (face to face) 30% Personal Telephone Conversations 20% Mail/Phone contact by a vendor service Mass Mail Marketing (newsletters, postcards, etc.) 5% - 10% < 1%
  41. 41. Marketing Ideas that Work Create a marketing plan that works for you! • Find your best combinations of marketing activities that produce results Targeted Marketing • Market simple planned gifts to the right prospects • Keep the message simple • Use single subject brochures For all marketing pieces • Use few words to market a big concept • Highlight the giving concept, and not its technical operation Do not rely on what others do • What works for one organization may not work for yours • Test, revise and retest • Be patient
  42. 42. Marketing: Start by Learning Be your own example Get on other organization’s marketing lists Watch your own reaction to their cultivation and solicitation of you If you felt motivation to respond, determine the element of the piece that moved you Consider how can you use this lesson when talking to prospects Determine why you reacted the way you did
  43. 43. Donor Stories  Are among the most effective marketing tactics for garnering planned gift leads  Focus on your message  Create interest and appeal  Tell simple stories, capture hearts  Make it personal More examples can be found at www.leavealegacy.org
  44. 44. Simple Messages Work  It’s about why the legacy was made  Not how the gift was made  Nor the amount of the gift  Look for known prospects with confirmed planned gift intentions:  Consider gathering stories from surviving family members of a bequest-giver whose gift is already at work  Find planned gift donors that are thrilled to have created something special
  45. 45. Give the Donor a Reason to Notify • Most donors don’t even realize that you would like to be informed, or why it is important to tell “If you have made an estate provision for the Gardens, or a planned or deferred gift, please let us know so we can welcome you into the Perennial Friends Society and make sure your gift intentions are properly carried out.”
  46. 46. Asking for Planned Gifts Prepare for the ask; be confident and review your steps • Targeted likely prospects with information about specific gift types • Your prospect has responded favorably to the information • You know mission components of most interest her or him • You have told the story of your own planned gift • You have shared information about the levels of funding that are needed to support her or his areas of interest • Where appropriate, involved leadership and key players
  47. 47. When it’s Time to Make the Ask  The simplest ask is to prospects who you expect to make gifts of less than $100,000  Can be informal or formal  “As you plan for the future, would you consider making a legacy gift to Planned Parenthood? A gift of $70,000 or higher will make the impact you are interested in. We would expect a gift of that size to affect the lives of thousands.”  “In addition to your ongoing annual support, would you join me as a Legacy Society member? Our average bequest gift is usually between $15,000 and $30,000. Are you in a position to consider a gift of that amount?”  “If it would be helpful, I can provide you with sample gift language for your review and consideration.”
  48. 48. When it’s Time to Make the Ask  Larger planned gift asks are often formal  Use a simple proposal:  • Case statement on the importance of planned gifts to your organization  Formal ask letter and ask amount  Representative donor legacy story or description of the expected impact of the future gift  Short list of the gift restriction language that you prefer, to your your desire for unrestricted gifts “In additionincludingongoing annual support, I’d like to ask you consider joining me as a Legacy Society member. Your desire to see a steady increase in our services can be met with a legacy gift at the $200,000 level or higher. I’ve gathered some information that I think you will find useful and I ask you to read and consider our proposal.” • “If you don’t mind, I’ll follow up with you at the end of the week. If you have any additional questions or would like more information before then please contact me.”
  49. 49. Getting Help Reach out to your colleagues Network at this meeting  • Look to your Board for expertise • Development committee • National office, for affiliated organizations • Ask for referrals of local advisors • Find a mentor Read articles and books on planned giving vehicles • Marketing and Qualifying Leads • Getting face-to-face with prospects • Simple planned gift topics Get out and meet with your prospects and donors • The more you do • The more you know
  50. 50. Summary Make your own planned gift commitment Plan success by making outreach your #1 responsibility Promote planned gift vehicles that are right for your office and staffing levels Focus your efforts on the right prospects Keep marketing simple Get out and date! Open-ended questions – enjoy your time with people Ask for the commitment
  51. 51. Contact Information Thank You! Katherine Swank, J.D. Proud Graduate of Drake Law School, Class of ‘85 843-670-7278 (Mountain Time Zone) katherine.swank@blackbaud.com Twitter: @KatherineSwank LinkedIn: http://www.linkedin.com/in/katherineswank
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