II. Why is Planned Giving Important to You?
A. It’s where the money is
1. The typical major gift is 20-30 times the donor’s largest annual gift
2. The typical planned gift is 200-300 times the donor’s largest annual gift.
B. It’s a part of the “triple ask” – appealing to the donor
on three different levels
1. Annual gift - disposable income
2. Major gift - savings
3. Planned gift - lifetime accumulated
assets
C. Planned gifts are a win-win for the donor
1. They are “affordable” for a donor with limited
resources
2.
The Donor receives satisfaction from creating or adding to his or her
personal legacy.
D.
When a donor says “no” to your major gift solicitation (Plan B)
1. I’m
concerned about living expenses for retirement
2. I’m concerned about a healthcare crisis
3. I want to help my children or grandchildren with their education, etc.
4. Most of my investments are not liquid.
III. Realities of a Small Shop
A.
Advantages
1.
You’re the boss
A.
Set priorities
B.
Allocation of time and resources
C. Manage relationships
D. Determine marketing strategies
2. Awareness of planned giving activities
throughout the institution
3. Determine
your own pace and timing
B. Challenges
1. Where to start – where to
focus
2. Learning
curve
i.
learning techniques of planned giving
ii. institutional
politics
iii.
working with the business office
iv. marketing
3. Lack of time
4. Stress and isolation
5. Finding insiders that
“get it”
IV. Meet, Meet, Meet
A.
Planned giving is built on trusting relationships and referrals. People must know that you are trustworthy, competent and
responsible so that they will confide in you and feel good about referring people that they know to you.
1. INTERNAL
a. People in positions of authority
i. Board members
ii. Trustees
iii. Deans, department chairs,etc.
b. People with institutional history
i. Alumni office
ii. Retired employees
2. EXTERNAL
a. Professional
resources (Attorneys, investment advisors, tax preparers – potential advisory council members)
b. Existing donors
c. Volunteers
Needed: Elevator speech on planned giving
and why it’s important.
Planned giving is a way for people (alumni, friends, parents, retired faculty
and staff) who care deeply about the institution to commit to its future
success with no current cost.
(tailor this to specific audiences – have 3 or 4 versions)
(not any different from the major gift officer)
V. Creating a Prospect Pool: Identifying
Primary Prospects
A. Do some research (web, publications, conferences,
blogs, etc.)
1. Are your primary prospects
the blue and white hairs? Not for bequests.
a.
Research suggest that most donors over 70 have either already included you in their estate plans or they
have decided that they are not going to.
b.
Almost 66% of bequest donors and 55% of charitable remainder trust (CRT) donors were under 65
at the time of their commitment. (The Planned Giving Company).
2. To what age groups
do you begin to market?
a.
Study presented in the Journal of Gift Planning (NCPG) found:
i. average
age for writing a first will was 44
ii.
average age for first charitable bequest was 49.
b. Another study about peopling writing their
first will:
i.
41% are under age 40
ii.
25% are ages 40-49
iii.
19% are ages 50-59
3. What term describes most primary prospects?
LOYAL.
a. One study found:
i.
77% of planned giving donors make 15+ gifts to
the annual fund
ii. 41% of planned giving donors give 10+ consecutive
years to the annual fund
iii. Over 90% of planned giving donors exhibit loyal
patterns of giving.
b. Opportunity
to collaborate with Annual Giving Programs on
stewardship and marketing
4. Do primary prospects
have children or grandchildren?
c.
Possibly, but they’re in the minority according to Russell James, a researcher at UGA.
d. 50% of existing donors
with a will or trust without children include charity in their wills.
e. 17.1% of donors with children include
charity in their wills.
f.
9.8% of donors with children and grandchildren include charity in their wills.
B.
Look at the profile of your known planned giving donors (constituency, age, giving history, etc.)
VI. The Conversation about Planned Giving
A. Start with a discussion about
the institution, its impact and the donor’s passion for the institution.
B. Ask the donor for support
with a current significant gift.
C. If the donor declines or
is noncommittal, suggest the possibility of a commitment through the estate.
1. Be careful when using words like
“bequest,” “annuity,” “charitable remainder trust” and even “planned giving”
because some people will become confused.
D. If the donor is open to an
estate commitment, either:
2. Continue
the discussion based on your comfort level
3. Suggest another visit to discuss in greater detail with an “expert”
(staff member, board member, volunteer, attorney on retainer, etc.)
VII. Marketing – Plant the Seeds
A. Annual plan
1. Create 12-18 month plan (www.plannedgiving.com)
2. Focus on bequests – have sample language available
3. Use examples from other shops, web consultants
4. Budget
B. Audiences
1. Internal resources – train fellow development officers
2. Institutional resources – administration, boards, deans,
advisory boards
3.
Prospects – alumni, friends, retired faculty
C. Methods
1. Shotgun or rifle – define your targets
2. Planned Giving Newsletter?
3. Web site
4.
Direct mail
5.
General development mail
6. Calling programs
7. Email
D. Materials
1. Purchased brochures
2. Custom designed brochures
3. Software illustrations (Crescendo, PG Calc)
4. Dealing with Planned Giving myths (The Planned Giving Company)
a. Planned gifts compete with major gifts
b. Planned gifts are a distraction in campaigns
c. The real dollars are in current gifts
d. Etc.
VIII.
Policies and Procedures for Planned Gifts
A.
Why do you need them?
1. You
know what your institution is willing to offer to donors.
2. They protect you from having to make decisions on the spot.
3. Let the institution
be the policy maker.
4. They
present an opportunity to educate your Board as well as get buy-in from them.
B. Gift annuities
1. Minimum
amount?
2. Minimum
age?
3. Funded
with real estate?
4. Payment
frequency limits?
C. Will the institution serve
as trustee for a charitable remainder trust (CRT)?
D. Will the institution serve
as trustee of a charitable lead trust (CLT)? If so, under what conditions?
E. Will the institution
serve as personal representative of an estate? If so, under what conditions?
F. To what extent can
planned gifts be used to fund naming opportunities?
G. Life insurance – are
paid up, whole life and term policies all acceptable?
H. What is needed to recognize
(book) a planned gift?
1. Written
statement from donor
2. Copy
of the document
IX. Planned Giving Recognition Society
A. Publish
names so as to influence others to do a planned gift
B. Obtain written documentation
C. Amount
of commitment is not important.
X. Relationships with the Business Office (accountants – numbers!)
A. Recording and counting planned
gifts
1. Technical aspects of
planned gifts
2. Counting standards
- CASE, NACUBO (National Association of College and University Business Officers),
FASB (Financial Accounting Standards Board)
3.
Approval
4. Documentation
B. Financial reporting vs. Donor
reporting
XI.
Measuring Success
A. Understand management’s perspective on the
successful operation of planned giving
1.
What is the role of the planned giving office
i. “support department”
ii. quasi-major gift office
B. Creating the Correct Expectations
of Success: Program and Personal evaluation; different from major gift officers.
1. Personal communications (visits,
emails, letters, telephone calls)?
2.
Money raised
i.
Revocable gifts
ii.
Irrevocable gifts
iii.
Conversions of revocable gifts to irrevocable gifts
3. Proposals submitted
4. Joint credit with other gift officers
XII.
Developing as Planned Giving Professional
A. Create a plan for yourself for continuing education.
B. Join local, statewide
or national groups [CASE, PPP (NCPG), ACGA, AFP]
C. Listserves and BLOGs
D. South Carolina Planned
Giving Council (www.scpgc.com )
Kanuga Conference on Planned Giving
Hendersonville, NC
May 3-4, 2011 (Beginner and Advanced Tracks)
