Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

0

Share

Download to read offline

What's Your Legacy? Implementing a planned giving program

Download to read offline

Webinar given to Nonprofit Hub audience on 10/14/2020

Related Books

Free with a 30 day trial from Scribd

See all
  • Be the first to like this

What's Your Legacy? Implementing a planned giving program

  1. 1. What’s your legacy? Implementing a planned giving program Lisa M. Chmiola, CFRE October 14, 2020 Nonprofit Hub
  2. 2. About Lisa: Lisa M. Chmiola, M.S., CFRE, has nearly 19 years in philanthropic development experience: • Major and planned giving roles in education (public and private) and religious institutions, following initial career experience in event-based philanthropy • AFP Master Trainer since 2014 • Presented at four AFP International Conferences, and a variety of AFP and other industry association regional conferences, chapter meetings, and webinars. • Adjunct instructor in Rice University’s Center for Philanthropy and Nonprofit Leadership. As Chief Fablanthropist for Fablanthropy (fablanthropy.com), she is available for consulting, training, and 1:1 coaching opportunities.
  3. 3. What we will cover: • Background on planned giving • Structure to support a successful legacy giving program • Prospecting for and documenting of planned gifts • Common objections to planned giving • Communication and stewardship strategies • Next steps to implement www.fablanthropy.com
  4. 4. Why is planned giving so scary? • Spoiler alert: everyone dies! • Contemplating legacy is a long, emotional process • Psychology of planned giving has been extensively researched by Dr. Russell James: www.encouragegenerosity.com • Impostor syndrome: planned giving often viewed as complex www.fablanthropy.com
  5. 5. What exactly IS planned giving? • Planned giving/gift planning/legacy giving • “The act of making a commitment to give a charitable organization a major gift, over time or at death, as part of the donor’s overall financial and estate planning.” – The Fundraising Authority, LLC • “The integration of personal, financial, and estate planning concepts with an individual donor's plan for lifetime or testamentary giving.” – Association of Fundraising Professionals Sources: http://www.thefundraisingauthority.com/planned-giving/launch-planned-giving/ http://afpglobal.org/topics/planned-giving
  6. 6. Most common planned gift vehicles • Bequests • Gift made via a will; can be a set amount or percentage, or remainder of estate (“remainder beneficiary”) • Estimated $43.21 billion in 2019, or nearly 10% of all giving, per Giving USA 2020 • Make sure your organization has sample language available for donors/advisors who may not contact you: • Example: “I (we) hereby give, devise, and bequeath the sum of $__________ (or _____ percentage of….. or residual of my estate) to Organization, address, tax ID, or its successor organization, for its general purposes (unrestricted) or for (specific purpose e.g. endowed fund). Sources: https://givingusa.org/tag/giving-usa-2020/
  7. 7. Most common planned gift vehicles • Beneficiary designation on retirement account • Gift made by naming organization through administrator of account (e.g. Vanguard, Fidelity), therefore, easy to change • Avoids income & estate taxes • Must be a percentage of proceeds, not specific dollar amount • When working with donors, be aware if your organization is a primary or contingent beneficiary • Contingent or secondary/tertiary beneficiaries only receive funds if primary beneficiary does not Source: https://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/leaving-a-charitable-legacy-with-an-ira
  8. 8. Most common planned gift vehicles • Gifts of insurance • Simplest: name organization as a beneficiary on policy • Whether a group term (e.g. employer provided) or individually-owned policy • More complex: Donor can also name organization owner of individually-owned policy (irrevocable) • If policy is not paid in full, charity would need to continue to make premium payments or policy may lapse; donor may make cash gifts to offset this • If policy is valued at more than $5,000, a qualified appraisal will be required Source: https://charitablesolutionsllc.com/new-book-charitable-gifts-of-noncash-assets/
  9. 9. Other planned gift vehicles • Charitable Gift Annuities • Trusts • Real Estate • Gifts of real property (e.g. artwork, jewelry) Source: https://charitablesolutionsllc.com/new-book-charitable-gifts-of-noncash-assets/
  10. 10. But first, build a solid foundation Before embarking on a planned giving program, assess these aspects of your organization: 1. Donor Base – solid annual support, moving into major gifts work 2. Leadership Support – both staff leadership and board of directors 3. Strategic Plan – ensure your organization has a plan for the future 4. Gift Acceptance Policy – what kinds of gifts will you accept? 5. Staffing – who will handle day-to-day work of PG? 6. Communication Plan – for organization overall 7. History – at least 10 years’ existence is recommended 8. Patience – results may not show for 5-10 years Source: https://afpglobal.org/topics/planned-giving
  11. 11. Who are planned gift prospects? • Existing legacy donors • Organizational leadership (volunteer and staff) • Loyal donors • Younger donors • YOU! www.fablanthropy.com
  12. 12. How to document planned gifts? • Why is documentation important? • Confirms donor’s wishes are known • Clarifies if donor is comfortable with being acknowledged for gift • What should be documented? • Contact information (donor/executor/advisor) • Gift intent (unrestricted vs. restricted) • Gift vehicle and value (if known and willing to share) • Permission for public recognition/request for anonymity • Example: https://louisiana.giftlegacy.com/org_files/2013/pdf/planned%20giving%20form%20fillable.pdf www.fablanthropy.com
  13. 13. How to document planned gifts? • Additional materials can include: • Copy of donor’s will, beneficiary designation, insurance policy • Gift agreement • Correspondence with donor • Additional considerations: • Storage of document hard copies – fireproof • Storage of electronic information – backups • Who has access to each? www.fablanthropy.com
  14. 14. What if they object? • What about my family? • I’m not wealthy; why would I give this way? • I don’t have a professional to assist me. • Won’t making a bequest be costly to me? • I don’t want my plans to be known. Source: https://bloomerang.co/blog/obstacles-ahead-dealing-with-objections-to-planned-giving/
  15. 15. How to communicate your plan? • Inclusion in existing marketing/communications/proposals • On response devices, include check box at minimum for “I have already included organization in my legacy plans.” • BONUS: “I would like information on including organization in my legacy plans.” • When feasible, consider a planned gift component in a major gift proposal, especially for endowed fund gifts. • Targeted planned giving communications • How will responses/inquiries be handled? • What is the procedure for receipt of a notification or gift? www.fablanthropy.com
  16. 16. Stewardship … it’s for life! • Likelihood of gifts realized in your tenure = low • Upon notification: • Prompt and appropriate acknowledgement • Attention to documentation/record keeping • Over time: • Regular visits/conversations when/where feasible • Inclusion in important communications • Invitations to events • Engagement as volunteers www.fablanthropy.com
  17. 17. What we covered & action steps • Continue to educate yourself/team on planned giving: • Local planned giving council • National Association of Charitable Gift Planners: https://charitablegiftplanners.org/ • Encourage Generosity (Dr. Russell James’ research): http://www.encouragegenerosity.com/ • Find a mentor or coach • Assess your organization on foundational items: • Donor base • Board support • Strategic plan • Gift acceptance policy • Staffing www.fablanthropy.com
  18. 18. What we covered & action steps • Build a prospect list • Create/evaluate documentation plan • Explore objections • Build communication plan • Create stewardship strategies www.fablanthropy.com
  19. 19. Questions? Let’s connect: www.fablanthropy.com • links on Resources page • sign up for Fabulous + Philanthropy on Contact page @fablanthropy (Facebook, Twitter, Instagram) lisa@fablanthropy.com

Webinar given to Nonprofit Hub audience on 10/14/2020

Views

Total views

103

On Slideshare

0

From embeds

0

Number of embeds

2

Actions

Downloads

1

Shares

0

Comments

0

Likes

0

×