An Association Board's Role in Fundraising & Planned Giving
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This document discusses planned giving and fundraising best practices. It notes that planned giving made up 8% of total charitable donations in 2009. The document provides guidelines for boards to oversee planned giving efforts, including creating a plan and policies, and ensuring donations are used as intended. It also offers tips on identifying good planned giving prospects, maintaining relationships with donors, and respecting ethics in fundraising. Next steps discussed are collecting examples to share and identifying potential planned giving candidates.
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An Association Board's Role in Fundraising & Planned Giving
- 1. Presented by Mary Hastler & Beth Yoke
- 2. What is planned giving? Why is it important? Board oversight of a planned giving effort What individual board members can do The ethics of fundraising Next steps & learning more
- 3. In 2009 the total amount of giving was $303.75 billion Those contributions came from: Individuals (75%) Foundations (13%) Bequests (8%) Corporations (4%)
- 4. Create a planned giving plan and establish goals Develop guidelines and policies Provide guidance & support to key committees & member leaders, such as the Financial Advancement Committee and the Fiscal Officer Ensure that donations are used according to the intent of the donor
- 5. YALSA’s giving options Who are good prospects Who existing donors are Where to find information on the web site Whom to direct individuals to for more information How YALSA formally recognizes donors Tax status of ALA/YALSA
- 6. Collect good examples of planned giving materials from your college & other organizations & share with Fiscal Officer & Executive Director
- 7. Characteristics of good planned giving prospects: ◦ Age: 40 – 60 ◦ Have a college degree ◦ Do not have children, or have grown children ◦ Have a long relationship with YALSA ◦ Have donated to YALSA or similar organizations in the past ◦ Are passionate about YALSA’s mission ◦ Have the capacity to make a gift* *studies show this is the least critical factor
- 8. Seize opportunities to interact one-on-one with existing donors Keep in touch with donors in between meetings
- 9. The personal touch is important Keep in regular touch with potential donors Look for ways to help or support potential donors Bring donors closer. Find ways to connect them with YALSA and the work of the association
- 10. Respect donors and potential donors Avoid paying those who raise funds on an organization’s behalf a commission or percentage of funds raised Truthfully describe the purpose for which funds will be used and accurately describe YALSA’s mission and programs Ensure that donations are used only for their intended purpose
- 11. Personally invite someone to attend the Trivia Night at Midwinter Think about who may be good candidates to reach out to about planned giving and send the name(s) to the Fiscal Officer & Executive Director Look out for fundraising and planned giving requests from your alma mater, and share good ideas with Fiscal Officer & Executive Director Take part in future board discussions to help develop a planned giving plan and to put a gift acceptance policy in place
- 12. Association of Fundraising Professionals: www.afpnet.org Chronicle of Philanthropy: http://philanthropy.com The Foundation Center: http://foundationcenter.org National Council of Nonprofits: www.councilofnonprofits.org
- 13. What haven’t we covered? What would you like to know in more detail? What relevant experiences would you like to share?
Editor's Notes
- BETH STARTS & CONTINUES THRU THE 1ST 5 SLIDES Good afternoon and welcome to the board’s first Wednesday session for September! Thanks for coming everyone. Mary and I are here today to have a discussion with you about the board role in fundraising. I’d like to go over a few features of our webinar software before we get started. We will be communicating with each other via chat throughout the webinar. To ask a question, please type it into the chat box and Mary and I will respond. If you would like to not see the chat during the course of the webinar, you can go ahead and click on the “full screen” button and that will eliminate the chat and attendee list boxes. To undo Full Screen, just click on the button again. During the course of the webinar, we’re going to do a few poll questions, when you see the poll appear on your screen, please just click the button next to the answer you’d like to select. Following this webinar you will receive a copy of the recording as well as the slides used in today’s PowerPoint. If at any point during the webinar you experience audio issues, please type into the chat box to let me know and I will work with you to resolve them. Lastly, if you have a question during the presentation, please feel free to go ahead and type that question into the chat box and Mary or I will respond. We also will have some time at the end of the presentation for a Q&A session. Let’s go ahead and take a look and what we’ll cover in today’s webinar.
- Before we get into the webinar, let’s take a look at what we’ll cover during this hour. In the first half of the webinar, I’ll talk about some general aspects of planned giving, including the board role and where ALA comes into play. In the second part of the webinar Mary Hastler will go over some specifics in relation to how individual board members can support planned giving.
- Planned giving is when an individual chooses to name YALSA as a beneficiary in their will Why? Because the Board has a duty to ensure the fiscal health of the organization Let’s take a look at the chart. Of the billions of dollars raised by charities and nonprofits in 2009, only 4% of that came from corporations. This statistic can help the board make informed decisions in terms of where to put the most resources and time when it comes to fundraising. Individuals means someone who gave cash at some point during 2009 Bequests mean someone who passed away in 2009 and left something to an organization in their will Foundations are grant making institutions that include organizations such as the MacArthur Foundation and the Gates Foundation Corporations are for-profit entities that make philanthropic donations The take away here is that planned giving and fundraising are a practical and strategic approach for YALSA to acquire funds to support critical projects. It’s also another way to engage members and advocates in the association.
- Here’s a list of common activities for boards when it comes to planned giving and fundraising. So, what is YALSA already doing and what should the board explore? The board already has the Financial Advancement Committee in place and works with staff to make sure that donations are used appropriately. What the board doesn’t have at the moment is a strategy or plan for seeking planned gifts, nor does it have any guidelines policies in place. The Council of Nonprofits has some sample gift agreements that YALSA could choose to adapt. There are guidelines can be for: Gift acceptance, Endowment spending and Stewardship. This is something that the board will want to explore sometime in soon via a discussion in Connect or an action item at a board meeting. ALA does have some procedures and systems in place, including the management of the long term investment fund, the work/scope of the Endowment Trustees and the Legacy Society, whose main purpose is donor stewardship. Also, the budget process has procedures for divisions making transfers into their endowments. In terms of how Division donations are processed by ALA under the Operating Agreement, 100% of donation funds go to the Division. ALA doesn’t assess any overhead on them.
- Giving Options: Friends of YALSA, Leadership Endowment, Morris Endowment, Books for Teens. Several people have asked where their money will do the most good, and that’s a tough question. We usually say that they should put their money towards supporting something that they’re most passionate about. Sarah, as part of her presidential initiative, is focusing on building the Leadership Endowment, as the principle is too small at the moment to get enough interest to use for anything. Also, the FAC decided that for 2012 all FOY funds raised will be toward supporting the new strategic plan. Three members have taken the step to include YALSA in their will: Bill Morris, Regina Minudri and Pam Holley (talk about how the Morris Endowment got established) Two additional members are seriously considering: Linda Braun and David Mowery Individuals should be directed to the Executive Director Donor recognition is spelled out on the Give to YALSA page on the web site ALA is a 501c3 non-profit, and YALSA is a division of ALA. Please note that by itself YALSA is not a non-profit. YALSA has no legal identity.
- MARY TAKES OVER BEGINNING WITH THIS SLIDE Marketing materials can include: Newsletters, like the Friends of YALSA Newsletter Solicitations , like the planned giving mailing that went out last year to all Past Presidents Thank you letters or emails, like those sent by the FAC chair and Fiscal Officer Ads for fundraising events or initiatives Invitations, for example, board members can personally invite someone to attend the Trivia Night at Midwinter Swag (but the thank you for donating gift must be a token—it can’t be equal to or more than the donation, or the donation is no longer tax deductable to the person who gave. Also, it is not the best use of funds raised)
- This goes back to the idea of needing a plan or strategy The most likely donors are probably those who are passionate about YALSA and its mission It’s important to emphasize that the size of the donation isn’t important. Some people assume that planned giving is only for the wealthy, but that is not so. If every YALSA member left $500 in their will to YALSA, we’d have $2.7 million to spend on our programs and services. Think of how much more we’d achieve with that money!! Also, having many people give a little, rather than a few giving a lot, helps to show potential donors and funders that YALSA is widely supported and that many people are passionate about what we do. If you know of anyone who might be good to reach out to about planned giving, please share their name with Penny & Beth
- Appropriate interactions with donors: Thank them for their gift Update them on recent YALSA accomplishments Make them feel included at events by introducing them to others, sitting with them, etc. Show an interest in things that are important to them Listen to what they have to say Invite them to an upcoming YALSA event Thank them again!
- Invite potential donors to face to face events Interact with potential donors at conferences, etc. Point them towards YALSA resources and services that might be useful to them and/or that will be helpful to them in their work or personal lives Encouraged them to get more engaged in the association Offer yourself as a resource to tap if they ever have questions or want to learn more about YALSA
- Always err on the side of caution, and if you’re not sure about something, check in with Penny and Beth
- What else could you do?
- These are good resources for anyone to check out, but especially so if your self-assessment indicated the need to learn more about the board’s fiduciary duty to the organization
- Allow some wait time to see if anyone will jump in Ask some questions of them to get them started, if necessary: Does anyone have personal experience, perhaps from working with their library’s foundation or friends group they want to share? Do you know of a model that YALSA might adapt? Does your alma mater have any best practices that might be adaptable for YALSA?