Planned Giving for the Small Shop Yavapai College Foundation Prescott, AZ Steve Walker Vice President of Advancement, Yavapai College Executive Director, Yavapai College Foundation Paul Kirchgraber Director of Development Yavapai College Foundation
Jan 04, 2016
Planned Giving for the Small Shop
Yavapai College FoundationPrescott, AZ
Steve WalkerVice President of Advancement, Yavapai CollegeExecutive Director, Yavapai College Foundation
Paul KirchgraberDirector of DevelopmentYavapai College Foundation
There are two rules forsuccess….
1. Never reveal everything you know
2. See rule #1
Sorry…these things will not be covered here today.
• Charitable Bequest• Non-Cash Asset• Charitable Gift
Annuity• Charitable Remainder
Trust
• Charitable Lead Trusts• Split Interest Gifts• Cost Basis• Payable on Death
(POD)
10 Reasons You Need a Planned Giving Program
1. If you’re not asking your prospects for planned
gifts, someone else is.
2. Eventually that “someone else” will steal your
cash gifts, too.
3. Cash-starved times are best times for planned
giving.
4. Organizations who even dabble in planned giving eventually earn 50% to 100% more than those who don’t.
5. A typical planned gift is 200 to 300 times the size of a donor’s largest annual gift.
6. Planned gifts do not affect prospects’ cash flow.
10 Reasons You Need a Planned Giving Program
7. Prospects are eager to make a planned gift, but simply don’t know how.
8. Prospects making gifts through their wills typically increase their annual support.
9. Anyone can make a planned gift.
10.It’s easy and it works.
10 Reasons You Need a Planned Giving Program
An ambitious endowment building campaign kick-started the
Yavapai College planned giving program.
Establish Program Goals
In Ten Years (by 2020)
1. Grow the endowment to $16 million2. Contribute $640,000 annually to Yavapai College
-Assume a 4% spending policy on endowed funds-Endowment goal driven largely by planned gifts and endowed scholarships
Marketing and Outreach
- Create a planned giving & endowment marketing plan. (Received training via the Arizona Endowment Initiative)
- Develop marketing materials
Getting Your Board on Board
Ensure long-term support of planned giving by your board leadership
Transformational GivingMassie Life Insurance Gift & Scholarship Plus Program
Developing your Infrastructure
Need to Establish: -Policies -Procedures -Guidelines in support of your planned giving program
So…how are we doing?
Sorry…But You Do Have to Learn the Basics
About Planned Giving Vehicles
Remember these from the start of today’s session?
• Charitable Bequest• Non-Cash Asset• Charitable Gift
Annuity• Charitable Remainder
Trust
• Charitable Lead Trusts• Split Interest Gifts• Cost Basis• Payable on Death
(POD)
Who is your target market for bequests?
True or False?The BEST indicator that a person is likely to leave a bequest is their WEALTH
Source: Samuel D. Caldwell, President, The Planned Giving Company. "The Old Gray Mare Ain't What She Used to Be: The Revolution in Planned Giving Marketing." 2007, 2008
FALSE: The best predictor is LOYALTY
78% of planned giving donors give 15 or more gifts
to the nonprofits they named in their will during their lifetimes.
According to a survey conducted by Lawyers.com and the Counsel for Aid to Education (CAE) Voluntary Support of Education (VSE)
Who is your target market for bequests?
2007 – Indiana University study determined who is most likely to consider making a bequest:
1. Between the ages of 40 and 602. Bachelors degree3. Yearly income between $50,000 and $75,0004. Motivated by a desire to do good & to do what’s
expected of them
Who is your target market for bequests?
2012 – American Charitable Bequest Demographics study determined who actually has a bequest in their will.
1. Single2. 40 – 70+3. Bachelor’s degree4. Income $100,000+5. Frequently attends religious services6. No children
80% Never Notify the Charity
More than 60% of Americans don’t have a valid will in place. That’s also our audience.
SOURCE: Russell James, Inside the Mind of the Bequest Donor, © 2013
SOURCE: Russell James, Inside the Mind of the Bequest Donor, © 2013
When do estate plans change?
Factors predicting when charitable plans are ADDED
When do estate plans change?Factors predicting when charitable plans are ADDED
1. Approaching death (final pre- death survey)
2. Becoming a widow/widower
3. Diagnosed with cancer
4. Decline in self- reported health
5. DivorceSOURCE: Russell James, Inside the Mind of the Bequest Donor, © 2013
When do plans change?Factors predicting when charitable plans are ADDED
6. Diagnosed with heart problems
7. Diagnosed with a stroke
8. First grandchild
9. Increasing assets
10. Increasing charitable giving SOURCE: Russell James, Inside the Mind of the Bequest Donor, © 2013
Identify Prospects and
“Work the List”
Identify Prospects
(Hint…many are already your donors)
Qualify Prospects
Get out and meet your donors (…who we know now, are our
best planned giving prospects)
7. Prospects are eager to make a planned gift, but simply don’t know how.
Build Your Donor Relationships
Start a Planned Giving Stewardship Society (Legacy League)
This is Eleanor
Legacy League Growth
Prior to 2008 43 members
As of 2015 164 members
“Your last will and testament is your final teaching.
What do you want it to say?”
~Rabbi Mordechai Leibling
Discussion.