Pgs pggct hal_reed_uconn_11.16.2010


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Planned Giving Presentation for Hal Reed

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  • Annual $5,000 giverAttended a DMP presentationConversation with a trusted advisor; asked about concerns “ What do you worry about at 2 am?”Outliving his moneyGifted stock; No Capital Gains TaxCurrent Income DeductionIncreased Income by 24%Increased Giving $5,000Created Charitable Beneficiaries
  • A few years later Joe died unexpectedly.His planning resulted in…Now his heart and life continue on today.Joe did not know how to connect his concern and the non-profitsWe all have Joes we do not know aboutI
  • I want to begin with…Find them in your booklet…
  • The largest drop in giving in 2009 was from households of a net worth of $1 million or more and are headed by someone 65 years or older.
  • Affluent have increased in 2009Still well below 2007 levelsNow focusing more on conservation rather than growth
  • Is this a surprise to anyone?
  • Bequests have been down 5 out of the last 7 yearsOnly 8% of Americans include a charity in their estate plans
  • The latest numbers reported by the IRS in Giving USA 2009Number of trust tax returns has remained level for many years
  • 10/18/2010 HBJ article 31 of 100 surveyed in CTBy United Way could cease operations within 1 year
  • 413,000 new charities in the last 9 years!
  • There is now the College Sustainability Report Card“Only independent evaluation of campus and endowment sustainability”
  • Charity Navigator, Guidestar, Givewell.orgIndependent charity evaluatorsExamining your health
  • The American Institute of Philanthropy (AIP) is a nationally prominent charity watchdog service.
  • The 21st Century Donor studyCrisis of confidence highest among donorsAged 57 to 75, Traditionally the most generous demographicMSNBC reported on a Harris Interactive PollOnly 1 in 10 Americans strongly believes that charities are honest and ethicalA 2008 study: How Americans View Charities: A Report on Charitable ConfidenceFound general confidence in charities hit a low point in 2003And has not moved up or down significantly since then
  • High Net Worth Households Who Consulted Charity Plummets35% decline in the number of high net worth households that consulted non profit personnel when making charitable giving decisions. Only 1 in 4 High Net Worth Donors see non-profit organizations as a resource for planning advice
  • Non-Profit Internal ObstaclesInadequate BudgetLack of Board SupportIneffective ToolsToo Little TimeShort-Term Focus
  • The Chronicle of Philanthropy stated that,“The board of many non-profits do not understand the value of planned giving in building relationships with key donors, and do not prioritize gift planning in the charity’s budget.”How many would agree with that?I frequently get asked about what type of non-profit would be a good client for PGS.The answer is an organization that is committed to planned giving and has dedicated time and money to planned giving.
  • Planned Giving Benefits both the Non-profit and Donor during the financial crisis Yet, board members and fundraising staff shy away from planned giving programs…
  • Old Tools Are IneffectiveBaby Boomers don’t respond to direct mail, they hate to be called, won’t give via the Internet and only want face-to-face solicitation, potentially the most expensive method to raise money.
  • In the Chronicle of Philanthropy’s Gift Planner Survey 4 they found that:Only 17% full time in planned givingA third spent less than ¼ of their time on planned givingDo you feel like the gentleman on this slide?How many of you spend 100% of your time on planned giving?75%? 50%? 25%? Interesting….
  • Charities Have Been Eating Their Seed CornIn farming, there is always the temptation is to eat the seeds that must be saved to plant the following spring.
  • There is an imbalance, a lack of organizational stewardshipSimilar to the federal government, we focus on today and do not plan enough for tomorrowSo what happens to planned giving?
  • There is no sustainability.Organizations tend to start – stop – start - stop
  • As a result, the pressure builds on development professionalsIn 2009 the Center on Philanthropy’s measurement of Fundraisers Confidence plungedLowest level since the annual study began in 1998.The rating dropped from 82.73 to 58.00 (28% decline)
  • We are constantly inundated with messagesStatistics show that Americans today get as much mail in a week as their parents did in a year.
  • Over the last 40 years we have seen the number of marketing messages we receive grow exponentially.It is estimated that today we receive between 5,000-10,000 messages per day.Advertisers have studied how many we can absorb per day -100
  • How big is a trillion?1000 seconds = 15 minutes1 million seconds = 2 weeks1 billion seconds = 32 years1 trillion seconds = 32,000 yearsInc. Magazine: we spend less time per input, block reception wherever possible and install filtering devices
  • In 2005 a study was conducted with affluent individuals with assets between $1 million - $10 million
  • Those with a net worth between $1-$3 million are worried about income taxes.For those with a net worth between $3-$10 million are more worried about estate taxes, with income taxes a close second.This is why the invitation to our donor presentations is titled “Income Tax Reduction and Estate Tax Elimination.”In advertising it is commonly said that you want to join the conversation in the minds of your target market.There is currently a huge opportunity to discuss these issues and provide clarity.The primary way to disconnect from the current tax system is philanthropy.
  • In the same study that asked the affluent about their concerns, they also asked about their wealth priorities
  • Affluent - Age 55+Numerous – 6.7M Millionaires, 11.3M with $500,000+Affluent give 2/3 of all individual givingMore Generous – 98% give vs. 70% of US populationOptimistic – 2/3s are optimistic about the future.Dedicated – nearly half serve on a board, volunteer 147 hoursAssets – Age 55+ control 70% of US wealthAsset Growth – wealth grew strongest of all age groupsBaby Boomers – 78.2M, 5 people turning 60 every 60 seconds
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