Planned Giving in a Small Shop

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Presentation called Planned Giving for Small Shops: It CAN Be Done! at AFP-Toronto congress November 28-30, 2011.

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  • Planned Giving in a Small Shop

    1. 1. Planned Giving in aSmall Shop: It CAN Be Done! Ligia Peña Fundraising Coach ligia@diversa.ca www.diversa.ca @lpdiversa
    2. 2. Time for a POP Quiz!
    3. 3. Time for a POP Quiz!The definition of planned giving is making a gift withthe right asset, in the right way, at the right time forthe right purpose.
    4. 4. Time for a POP Quiz!The definition of planned giving is making a gift withthe right asset, in the right way, at the right time forthe right purpose. ☐ True
    5. 5. Time for a POP Quiz!The definition of planned giving is making a gift withthe right asset, in the right way, at the right time forthe right purpose. ☐ True ☐ False
    6. 6. Time for a POP Quiz!
    7. 7. Time for a POP Quiz!From the list below, pick out the correct statementabout planned giving.
    8. 8. Time for a POP Quiz!From the list below, pick out the correct statementabout planned giving. ☐ Tax and financial benefits are the main motivating factors in planned gifts
    9. 9. Time for a POP Quiz!From the list below, pick out the correct statementabout planned giving. ☐ Tax and financial benefits are the main motivating factors in planned gifts ☐ A planned gift is always made later - a person’s death
    10. 10. Time for a POP Quiz!From the list below, pick out the correct statementabout planned giving. ☐ Tax and financial benefits are the main motivating factors in planned gifts ☐ A planned gift is always made later - a person’s death ☐ The most common type of planned gift is a bequest by will
    11. 11. Time for a POP Quiz!
    12. 12. Time for a POP Quiz!When assessing your readiness to start a plannedgiving program, you should look at your currentdonor base. Before starting your planned givingprogram, a rule of thumb is that you need aminimum of:
    13. 13. Time for a POP Quiz!When assessing your readiness to start a plannedgiving program, you should look at your currentdonor base. Before starting your planned givingprogram, a rule of thumb is that you need aminimum of: ☐ At least 100 donors who have given to you every year for the past 3 years, and at least 1000 donors over the age of 50
    14. 14. Time for a POP Quiz!When assessing your readiness to start a plannedgiving program, you should look at your currentdonor base. Before starting your planned givingprogram, a rule of thumb is that you need aminimum of: ☐ At least 100 donors who have given to you every year for the past 3 years, and at least 1000 donors over the age of 50 ☐ Experience soliciting major gifts
    15. 15. Time for a POP Quiz!When assessing your readiness to start a plannedgiving program, you should look at your currentdonor base. Before starting your planned givingprogram, a rule of thumb is that you need aminimum of: ☐ At least 100 donors who have given to you every year for the past 3 years, and at least 1000 donors over the age of 50 ☐ Experience soliciting major gifts ☐ If not a planned giving person, then at least a lawyer and an accountant on your board
    16. 16. Time for a POP Quiz!When assessing your readiness to start a plannedgiving program, you should look at your currentdonor base. Before starting your planned givingprogram, a rule of thumb is that you need aminimum of: ☐ At least 100 donors who have given to you every year for the past 3 years, and at least 1000 donors over the age of 50 ☐ Experience soliciting major gifts ☐ If not a planned giving person, then at least a lawyer and an accountant on your board ☐ Minimum of 5 years with an active fundraising programs
    17. 17. Time for a POP Quiz!
    18. 18. Time for a POP Quiz!You should set realistic goals for each phase of yournew planned giving program. Which one of thefollowing goals would not make sense for year one.
    19. 19. Time for a POP Quiz!You should set realistic goals for each phase of yournew planned giving program. Which one of thefollowing goals would not make sense for year one. ☐ Create your case for support
    20. 20. Time for a POP Quiz!You should set realistic goals for each phase of yournew planned giving program. Which one of thefollowing goals would not make sense for year one. ☐ Create your case for support ☐ Develop your basic policies and procedures
    21. 21. Time for a POP Quiz!You should set realistic goals for each phase of yournew planned giving program. Which one of thefollowing goals would not make sense for year one. ☐ Create your case for support ☐ Develop your basic policies and procedures ☐ Solicit the board to give their own planned gifts
    22. 22. Time for a POP Quiz!You should set realistic goals for each phase of yournew planned giving program. Which one of thefollowing goals would not make sense for year one. ☐ Create your case for support ☐ Develop your basic policies and procedures ☐ Solicit the board to give their own planned gifts ☐ Raise $100,000 in new planned gifts
    23. 23. Time for a POP Quiz!You should set realistic goals for each phase of yournew planned giving program. Which one of thefollowing goals would not make sense for year one. ☐ Create your case for support ☐ Develop your basic policies and procedures ☐ Solicit the board to give their own planned gifts ☐ Raise $100,000 in new planned gifts ☐ Develop and begin to implement your marketing plan
    24. 24. Time for a POP Quiz!
    25. 25. Time for a POP Quiz!When it comes to planned giving, it’s important thatyour ‘behind the scenes’ administrative systems are inorder. Pick out the most important element thatshould be in place.
    26. 26. Time for a POP Quiz!When it comes to planned giving, it’s important thatyour ‘behind the scenes’ administrative systems are inorder. Pick out the most important element thatshould be in place. ☐ Maintain a tickler system allowing you to follow up with your donors in a timely and appropriate way
    27. 27. Time for a POP Quiz!When it comes to planned giving, it’s important thatyour ‘behind the scenes’ administrative systems are inorder. Pick out the most important element thatshould be in place. ☐ Maintain a tickler system allowing you to follow up with your donors in a timely and appropriate way ☐ Ensure all gifts can be receipted and acknowledged promptly
    28. 28. Time for a POP Quiz!When it comes to planned giving, it’s important thatyour ‘behind the scenes’ administrative systems are inorder. Pick out the most important element thatshould be in place. ☐ Maintain a tickler system allowing you to follow up with your donors in a timely and appropriate way ☐ Ensure all gifts can be receipted and acknowledged promptly ☐ Call members of your planned giving advisory committee on a monthly basis
    29. 29. Time for a POP Quiz!When it comes to planned giving, it’s important thatyour ‘behind the scenes’ administrative systems are inorder. Pick out the most important element thatshould be in place. ☐ Maintain a tickler system allowing you to follow up with your donors in a timely and appropriate way ☐ Ensure all gifts can be receipted and acknowledged promptly ☐ Call members of your planned giving advisory committee on a monthly basis ☐ Have your planned giving policies and procedures reviewed by a lawyer
    30. 30. Time for a POP Quiz!
    31. 31. Time for a POP Quiz!Answer true or false to this statement:
    32. 32. Time for a POP Quiz!Answer true or false to this statement:Your organization might consider partnering with alocal community foundation so you can have enendowment fund. All community foundations sharethese features:
    33. 33. Time for a POP Quiz!Answer true or false to this statement:Your organization might consider partnering with alocal community foundation so you can have enendowment fund. All community foundations sharethese features:- They are public charitable organizations
    34. 34. Time for a POP Quiz!Answer true or false to this statement:Your organization might consider partnering with alocal community foundation so you can have enendowment fund. All community foundations sharethese features:- They are public charitable organizations- They hold permanent endowment funds
    35. 35. Time for a POP Quiz!Answer true or false to this statement:Your organization might consider partnering with alocal community foundation so you can have enendowment fund. All community foundations sharethese features:- They are public charitable organizations- They hold permanent endowment funds- They support community organization within a defined geographic area
    36. 36. Time for a POP Quiz!Answer true or false to this statement:Your organization might consider partnering with alocal community foundation so you can have enendowment fund. All community foundations sharethese features:- They are public charitable organizations- They hold permanent endowment funds- They support community organization within a defined geographic area- Can legally hold endowment funds for other registered charities
    37. 37. CAGP defines PG ....
    38. 38. CAGP defines PG ....Gift planning is the donor-centeredprocess of planning charitable gifts,whether current or future gifts, thatmeets philanthropic goals andbalances personal, family, and taxconsiderations.
    39. 39. The cause 1% 2% 20% 77% Your personal values 2% 4% 29% 65% The charitable organization 2% 5% 26% 67% Tax savings 7% 16% 47% 29% The timing of the charitable request 16% 29% 41% 14%Personal control or advisory role in use of donation 26% 33% 28% 14% Personal/family legacy for the future 31% 32% 22% 15% Long-term giving through a private foundation 41% 40% 15% 4% Public recognition 60% 29% 9% 2% 0% 38% 75% 113% 150% Not at all important Not too important Somewhat important Very important The timing of the charitable request Personal control over, or an advisory role in the use of the donation Personal/family legacy for the future Long-term giving through a private foundation Public recognition Source: Scotia Private Client Group survey, June 2006.
    40. 40. We’re getting old
    41. 41. We’re getting oldStatistics Canada’s calculations:
    42. 42. We’re getting oldStatistics Canada’s calculations:- The number of people over the age of 65went from 2.4 million in 1981 to 4.2 millionin 2005
    43. 43. We’re getting oldStatistics Canada’s calculations:- The number of people over the age of 65went from 2.4 million in 1981 to 4.2 millionin 2005- Estimated to increase to 9.8 million in2026
    44. 44. We’re getting oldStatistics Canada’s calculations:- The number of people over the age of 65went from 2.4 million in 1981 to 4.2 millionin 2005- Estimated to increase to 9.8 million in2026 = colossal wealth transfer
    45. 45. Planned giving vehicles
    46. 46. Planned giving vehiclesBequests:
    47. 47. Planned giving vehiclesBequests:✓ Specific
    48. 48. Planned giving vehiclesBequests:✓ Specific✓ Residual
    49. 49. Planned giving vehiclesBequests:✓ Specific✓ Residual✓ Contingent
    50. 50. Planned giving vehicles
    51. 51. Planned giving vehiclesLife insurance:
    52. 52. Planned giving vehiclesLife insurance:✓ Transfer of ownership
    53. 53. Planned giving vehiclesLife insurance:✓ Transfer of ownership✓ Existing policy - premiums owing
    54. 54. Planned giving vehiclesLife insurance:✓ Transfer of ownership✓ Existing policy - premiums owing✓ Donation of a new policy, see this example ...
    55. 55. Life insurance example • Female donor, non-smoker, aged 32 years old • Purchases a life insurance policy and transfers ownership to the organization • Premiums are of $420 per year for 10 years • The organization will receive death benefit of $25,000 • Net cost of this gift, after tax savings = $2,470Gift to the organization as owner andbeneficiary (death benefit of the policy) $25,000Annual premium payment (payable over 10 years) $420Charitable tax receipt $420Annual tax savings (tax credit of 48%) $173Net cost of annual premium (after tax savings) $247True cost of gift ($ 247 X 10 years) $2,470
    56. 56. Planned giving vehicles
    57. 57. Planned giving vehiclesLife insurance:
    58. 58. Planned giving vehiclesLife insurance:✓ Transfer of ownership
    59. 59. Planned giving vehiclesLife insurance:✓ Transfer of ownership✓ Existing policy - premiums owing
    60. 60. Planned giving vehiclesLife insurance:✓ Transfer of ownership✓ Existing policy - premiums owing✓ Donation of a new policy
    61. 61. Planned giving vehiclesLife insurance:✓ Transfer of ownership✓ Existing policy - premiums owing✓ Donation of a new policy✓ Charity primary beneficiary
    62. 62. Planned giving vehiclesLife insurance:✓ Transfer of ownership✓ Existing policy - premiums owing✓ Donation of a new policy✓ Charity primary beneficiary✓ Charity co-beneficiary
    63. 63. Planned giving vehiclesLife insurance:✓ Transfer of ownership✓ Existing policy - premiums owing✓ Donation of a new policy✓ Charity primary beneficiary✓ Charity co-beneficiary✓ Charity is contingent beneficiary
    64. 64. Securities Gift of cash Gift of proceeds securitiesFair market value of stocks $10,000 $10,000Cost of stocks $1,000 $1,000Capital gain $9,000 $9,000Taxable capital gain (based on a 50% tax $4,500 $0rate)Charitable tax receipt for the donation $10,000 $10,000Income tax credit for the donation $5,000 $5,000Maximum tax on the capital gain ($4,500 x 50%) = $0 $2,250Net financial advantage of the gift ($5,000 - $2,250) = $5,000 $2,750
    65. 65. Other planned giving vehicles
    66. 66. Other planned giving vehicles✓ Charitable gift annuities
    67. 67. Other planned giving vehicles✓ Charitable gift annuities✓ Charitable remainder trusts
    68. 68. Other planned giving vehicles✓ Charitable gift annuities✓ Charitable remainder trusts✓ Life insurance groups
    69. 69. Other planned giving vehicles✓ Charitable gift annuities✓ Charitable remainder trusts✓ Life insurance groups✓ Ecological gifts
    70. 70. Other planned giving vehicles✓ Charitable gift annuities✓ Charitable remainder trusts✓ Life insurance groups✓ Ecological gifts✓ Interest-free loans
    71. 71. Other planned giving vehicles✓ Charitable gift annuities✓ Charitable remainder trusts✓ Life insurance groups✓ Ecological gifts✓ Interest-free loans✓ Strip bonds
    72. 72. Other planned giving vehicles✓ Charitable gift annuities✓ Charitable remainder trusts✓ Life insurance groups✓ Ecological gifts✓ Interest-free loans✓ Strip bonds✓ Residual Interest
    73. 73. Other planned giving vehicles✓ Charitable gift annuities✓ Charitable remainder trusts✓ Life insurance groups✓ Ecological gifts✓ Interest-free loans✓ Strip bonds✓ Residual Interest✓ RRSP & RRIF
    74. 74. Getting started ...
    75. 75. Getting started ...A. Who receives planned gifts?
    76. 76. Getting started ...A. Who receives planned gifts?B. Should every charity set up a planned givingprograms?
    77. 77. Getting started ...A. Who receives planned gifts?B. Should every charity set up a planned givingprograms?C. When’s it time to start?
    78. 78. Getting started ...A. Who receives planned gifts?B. Should every charity set up a planned givingprograms?C. When’s it time to start?D. Planned giving vs Endowment program?
    79. 79. Getting started ...A. Who receives planned gifts?B. Should every charity set up a planned givingprograms?C. When’s it time to start?D. Planned giving vs Endowment program?E. We’re ready, what do we do?
    80. 80. Getting started ...A. Who receives planned gifts?B. Should every charity set up a planned givingprograms?C. When’s it time to start?D. Planned giving vs Endowment program?E. We’re ready, what do we do?F. Who’s on the planned giving committee?
    81. 81. Getting started ...A. Who receives planned gifts?B. Should every charity set up a planned givingprograms?C. When’s it time to start?D. Planned giving vs Endowment program?E. We’re ready, what do we do?F. Who’s on the planned giving committee?G. How will the program be staffed?
    82. 82. Getting started ...
    83. 83. Getting started ...H. We don’t meet the criteria, what do we do?
    84. 84. Getting started ...H. We don’t meet the criteria, what do we do?I. How will it be funded?
    85. 85. Getting started ...H. We don’t meet the criteria, what do we do?I. How will it be funded?J. How do we count & recognize the gifts?
    86. 86. Getting started ...H. We don’t meet the criteria, what do we do?I. How will it be funded?J. How do we count & recognize the gifts?K. How a consultant can help.
    87. 87. Who are the prospects?
    88. 88. Who are the prospects?➡ Donors who have contributed for many years
    89. 89. Who are the prospects?➡ Donors who have contributed for many years➡ Meet with them to introduce them to planned giving concepts
    90. 90. Who are the prospects?➡ Donors who have contributed for many years➡ Meet with them to introduce them to planned giving concepts➡ Work with 1 or 2 volunteers
    91. 91. Who are the prospects?➡ Donors who have contributed for many years➡ Meet with them to introduce them to planned giving concepts➡ Work with 1 or 2 volunteers➡ Get all board members to make a planned gift & encourage them to approach their network
    92. 92. Who are the prospects?➡ Donors who have contributed for many years➡ Meet with them to introduce them to planned giving concepts➡ Work with 1 or 2 volunteers➡ Get all board members to make a planned gift & encourage them to approach their network➡ Establish a planned giving society
    93. 93. Marketing is key
    94. 94. Marketing is key✓ Continuity
    95. 95. Marketing is key✓ Continuity✓ Consistency
    96. 96. Marketing is key✓ Continuity✓ Consistency✓ Repetition
    97. 97. Marketing is key✓ Continuity✓ Consistency✓ Repetition✓ Cumulative effect
    98. 98. 10 Commandmentsof PG marketing
    99. 99. 10 Commandments of PG marketingBy Phyllis Freedman : http://www.smart-giving.com/
    100. 100. 10 Commandments of PG marketingBy Phyllis Freedman : http://www.smart-giving.com/I: Thou shall rethink what 60, 70, 80even 90 look like.
    101. 101. 10 Commandments of PG marketingBy Phyllis Freedman : http://www.smart-giving.com/I: Thou shall rethink what 60, 70, 80even 90 look like.II: Thou shall use a serif font and largepoint size font.
    102. 102. 10 Commandments of PG marketingBy Phyllis Freedman : http://www.smart-giving.com/I: Thou shall rethink what 60, 70, 80even 90 look like.II: Thou shall use a serif font and largepoint size font.III: Thou shall not reverse white type outof color.
    103. 103. 10 Commandments of PG marketingBy Phyllis Freedman : http://www.smart-giving.com/I: Thou shall rethink what 60, 70, 80even 90 look like.II: Thou shall use a serif font and largepoint size font.III: Thou shall not reverse white type outof color.IV: Thou shall speak plain English, omitthe technical.
    104. 104. 10 Commandments of PG marketingBy Phyllis Freedman : http://www.smart-giving.com/I: Thou shall rethink what 60, 70, 80even 90 look like.II: Thou shall use a serif font and largepoint size font.III: Thou shall not reverse white type outof color.IV: Thou shall speak plain English, omitthe technical.V: Thou shall design for “skimmers”.
    105. 105. 10 Commandments of PG marketingBy Phyllis Freedman : http://www.smart-giving.com/I: Thou shall rethink what 60, 70, 80even 90 look like.II: Thou shall use a serif font and largepoint size font.III: Thou shall not reverse white type outof color.IV: Thou shall speak plain English, omitthe technical.V: Thou shall design for “skimmers”.VI: Thou shall address unspoken donorobjection.
    106. 106. 10 Commandmentsof PG marketing
    107. 107. 10 Commandments of PG marketingVII: Thou shall always include suggestedlanguage.
    108. 108. 10 Commandments of PG marketingVII: Thou shall always include suggestedlanguage.VIII: Thou shall make the materials yourown.
    109. 109. 10 Commandments of PG marketingVII: Thou shall always include suggestedlanguage.VIII: Thou shall make the materials yourown.IX: Thou shall use testimonials.
    110. 110. 10 Commandments of PG marketingVII: Thou shall always include suggestedlanguage.VIII: Thou shall make the materials yourown.IX: Thou shall use testimonials.X: Thou shall always incorporate a call toaction.
    111. 111. 10 Commandments of PG marketingVII: Thou shall always include suggestedlanguage.VIII: Thou shall make the materials yourown.IX: Thou shall use testimonials.X: Thou shall always incorporate a call toaction. Plus 3 extras ...
    112. 112. 10 Commandments of PG marketingVII: Thou shall always include suggestedlanguage.VIII: Thou shall make the materials yourown.IX: Thou shall use testimonials.X: Thou shall always incorporate a call toaction. Plus 3 extras ...XI: You shall always be real incommunications with donors.
    113. 113. 10 Commandments of PG marketingVII: Thou shall always include suggestedlanguage.VIII: Thou shall make the materials yourown.IX: Thou shall use testimonials.X: Thou shall always incorporate a call toaction. Plus 3 extras ...XI: You shall always be real incommunications with donors.XII: “Remember XYZ in your will” on allXYZ newsletter mailings.
    114. 114. 10 Commandments of PG marketingVII: Thou shall always include suggestedlanguage.VIII: Thou shall make the materials yourown.IX: Thou shall use testimonials.X: Thou shall always incorporate a call toaction. Plus 3 extras ...XI: You shall always be real incommunications with donors.XII: “Remember XYZ in your will” on allXYZ newsletter mailings.XIII: Thou shall show the face of your work.
    115. 115. To sum up ...
    116. 116. To sum up ...1. Familiarize yourself with key planned givingterms
    117. 117. To sum up ...1. Familiarize yourself with key planned givingterms2. Surround yourself with knowledgeable people
    118. 118. To sum up ...1. Familiarize yourself with key planned givingterms2. Surround yourself with knowledgeable people3. Take it one step at a time (policies, etc.)
    119. 119. To sum up ...1. Familiarize yourself with key planned givingterms2. Surround yourself with knowledgeable people3. Take it one step at a time (policies, etc.)4. Find 1 “champion” on your board
    120. 120. To sum up ...1. Familiarize yourself with key planned givingterms2. Surround yourself with knowledgeable people3. Take it one step at a time (policies, etc.)4. Find 1 “champion” on your board5. Learn from other pros
    121. 121. To sum up ...1. Familiarize yourself with key planned givingterms2. Surround yourself with knowledgeable people3. Take it one step at a time (policies, etc.)4. Find 1 “champion” on your board5. Learn from other pros6. Market your program
    122. 122. To sum up ...1. Familiarize yourself with key planned givingterms2. Surround yourself with knowledgeable people3. Take it one step at a time (policies, etc.)4. Find 1 “champion” on your board5. Learn from other pros6. Market your program7. Talk to donors, again & again & again
    123. 123. Thank you and good luck! Ligia Peña Fundraising Coach ligia@diversa.ca www.diversa.ca @lpdiversa

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