What You Really Need to Know about Giving USA 2013

Philanthropic giving in the USA increased for the third straight year in 2012, but only modestly.

Overall giving in 2012 totaled $316.23 billion, an increase in current dollars of 3.5 percent over 2011. Adjusted for inflation, the increase is just 1.5 percent. That’s the finding presented in Giving USA 2013, the report researched and written by the Indiana University Lilly Family School of Philanthropy and just released by the Giving USA Foundation™.

Click the photo to get a free copy of Giving USA Highlights.

I had a chance to sit down and talk with Dr. Patrick M. Rooney, Associate Dean for Academic Affairs and Research at the Lilly Family School of Philanthropy. He asserts that, at current growth rates, it would take at least six years for a return to pre-recession giving when adjusted for inflation. He anticipates growth will indeed continue to be slow since the overall economic recovery is slow.

For more than half-a-century, giving has hovered at two percent of Gross Domestic Product. When GDP grows strongly, giving is robust. When GDP growth is sluggish, so is philanthropy. With many economists predicting 2013 GDP growth of just 1.9 percent, Rooney’s prediction seems entirely reasonable.

Here are some highlights from the report:

–2012 saw marked year-over-year growth in corporate giving (12.2 percent in current dollars), which is strongly linked to companies’ profits. For 2012, corporate pre-tax profits surged upward 16.6 percent, according to the Bureau of Economic Analysis.

–Uncertainty fueled by mixed economic indicators may have moderated giving by individuals, who historically account for the largest percentage of total giving. Positive trends, such as the 13.4 percent increase in the Standard and Poor’s 500 Index between 2011 and 2012, the slight rise in home values, and overall lower unemployment rates and fuel costs, were combined with budget concerns and tax reform discussions. In addition, personal disposable income rose 3.3 percent and personal consumption expenditures rose 3.6 percent last year, virtually mirroring the growth in individual giving (3.9 percent in current dollars).

–Giving by individuals rose to $228.93 billion in 2012, an estimated 3.9 percent increase (1.9 percent adjusted for inflation). Income and wealth are key drivers of household giving, as is a sense of financial security. Giving by taxpayers who itemize their gifts represented 81 percent of the total donated by individuals in 2012.

–Giving by bequest decreased an estimated 7.0 percent in 2012 (8.9 percent adjusted for inflation) to $23.41 billion. Itemizing estates contributed 78 percent of the total, or $18.31 billion. Bequest giving tends to be volatile from year to year, as it is highly influenced by very large gifts from estates that closed during that year. For example, Rooney explains that if we remove one exceptionally large bequest from the 2011 numbers, we find that bequest giving was close to the same in 2012 and 2011 when adjusted for inflation. So, the big dip in 2012 should not set off alarm bells. With real estate values and stock portfolios rebounding, the future for bequest giving is encouraging.

–Giving by corporations rose 12.2 percent in 2012 (9.9 percent adjusted for inflation), to an estimated $18.15 billion, including gifts from both corporations and their foundations. The two entities provide cash, in-kind donations and grants. Increasing the 2012 total was the estimated $131 million corporations gave to nonprofits working on relief efforts in the aftermath of Hurricane Sandy.

–Giving by foundations increased 4.4 percent (2.3 percent adjusted for inflation) to an estimated $45.74 billion in 2012, according to figures provided by the Foundation Center. Giving by community foundations grew 9.1 percent last year, which helped to bolster the total. Operating and independent foundations increased grant making by 3.5 percent and 3.9 percent, respectively. While stock values increased in 2012, foundations often use a multi-year rolling average when valuing their portfolios. Therefore, as stock values continue to climb, we should see stronger future growth in foundation giving.

–Looking at foundation giving, 45 percent comes from family foundations where a member of the family continues to be actively involved in running the foundation. In a sense, these organizations blur the line between foundation and individual giving. Giving by family foundations can often be very relationship driven as with individual giving.

While the data provides a number of interesting insights about the charitable behavior of Americans, it also hints at serious warnings, according to a panel of experts that gathered in Philadelphia to present the Giving USA findings. The panelists included Jon Biedermann, Vice President of DonorPerfect; Robert Evans, Founder and Managing Director of The EHL Consulting Group; Eileen R. Heisman, ACFRE, President and CEO of the National Philanthropic Trust; and Rooney. Here are their warnings:

When Opportunity Knocks, Open the Door!

A pessimist is somebody who complains about the noise when opportunity knocks.”

– Oscar Wilde, poet and playwright

“Even when opportunity knocks, a [person] still has to get up off his seat and open the door.”

– Anonymous

“Opportunity knocks at the strangest times. It’s not the time that matters but how you answer the door.”

– Steve Gray, prominent New Zealand television presenter

 

Most nonprofit organizations attempt to woo donors and prospective supporters in a variety of ways. Wise nonprofit organizations seize the chance to woo donors and prospective supporters in fresh ways when the opportunity presents itself. The challenge is that those opportunities are not always obvious. Sometimes, the wooing of donors and prospects might be an unexpected, happy side-effect of simply seizing the opportunity to do something good.

The latter was the case for the Philadelphia Orchestra during its recent 40th anniversary residency and tour of China.

The Orchestra was the United States’ first cultural ambassador to China in 1973. During the anniversary trip, the Orchestra performed in venues ranging from acclaimed concert halls to elementary schools. In addition to its own performance schedule, the Philadelphia Orchestra performed in joint concerts with local orchestras. Besides performing, the Orchestra also participated in a number of coaching sessions.

The Orchestra’s anniversary trip generated positive publicity in Philadelphia and rave reviews in China. The Orchestra’s journey was a source of pride for Philadelphia’s classical music fans, myself included, who saw the organization emerge from Chapter 11 bankruptcy protection less than a year ago.

However, as you might expect, not everything on the trip went according to plan. Toward the end of the tour, a group of musicians and administrators took an early-bird flight from Beijing to Macau. Unfortunately, bad weather trapped the plane on the tarmac for several hours.

Most of us would have seen the delay as an opportunity to complain, read, play on an iPad, or make phone calls. However, the Orchestra folks had another idea. They seized the opportunity to do something good for all of the trapped passengers. Without thought, I suspect, to how it would play to the outside world, the Orchestra folks offered to perform a pop-up concert. Four members of the Orchestra’s string section unpacked their instruments and performed Dvorak’s String Quartet No. 12, subtitled “American.”

Click to watch video of Philadelphia Orchestra pop-up concert on airplane in China.

You can hear Juliette Kang on violin, Daniel Han on violin, Che-Hung Chen on viola, and Yumi Kendall on cello by streaming the video here. As you can hear from the applause and cheers, the passengers on the plane greatly appreciated the surprise mini-concert.

The Orchestra had done a good deed by spreading a bit of joy at an uncomfortable time. If that were all that the musicians achieved, it would have been enough. However, the Orchestra ended up unexpectedly achieving far more.

With so many smart-phones on board, it was inevitable that videos would be posted on the Internet. The Philadelphia Inquirer reported on the event. But, the publicity reached far further. NPR, The Huffington Post, and other media picked up the story. Moreover, as of this posting, nearly two million people from around the world have watched the videos!

15 Common Planned Giving Myths Debunked (Part 2)

Last week, I presented eight planned giving myths that were identified and debunked by fellow fundraising professionals from the Smart Planned Giving Marketers Group on LinkedIn.

This week, I’m presenting the seven additional myths I promised along with a bonus myth.

Continuing to embrace planned giving myths can be harmful. Doing so will make you less helpful to your donors, less able to raise money, and less able to realize your career aspirations. That’s why I felt it important to identify and debunk some common gift planning myths.

Judging from the large number of readers Part 1 attracted, I know plenty of folks around the world agree with me. While I have numbered the myths, strictly for reference purposes, I am presenting them here in alphabetical order by contributor:

Michael J. Rosen, CFRE, President, ML Innovations:

In my book, Donor-Centered Planned Gift Marketing, I go into detail when debunking five planned giving myths which I’ll summarize here:

MYTH 9 — Planned giving is very difficult.

Gift planning can certainly be challenging, However, for the most part, it involves fairly simple gifts: Bequests, CGAs, appreciated property (i.e.: stock).

MYTH 10 — One needs to be a planned giving expert to be involved in gift planning.

Nope. While it would be helpful to be a planned giving expert, it’s not necessary. The vast majority of planned gifts will come from Bequests. CGAs and appreciated property are two other simple, popular types of planned gifts. You don’t need to be an overall planned giving expert to master those planned giving vehicles. However, you should be familiar with other gift planning options and know who to call for assistance when a donor wants to talk about those other options.

MYTH 11 — All planned gifts are deferred.

No, they’re not. For example, a gift of appreciated stock is a current gift. Even with a deferred gift such as a Bequest, depending on the age of the donor, you might not need to wait all that long for the gift to be realized.

MYTH 12 — Good marketing focuses on organizational needs.

Nope. Good marketing actually involves being donor centered.

MYTH 13 — Planned gift marketing should be passive.

Many development pros think it is inappropriate to actually ask for a planned gift. However, 88.7 percent of donors say otherwise. So, why have only 22 percent of Americans over the age of 30 been asked to make a planned gift?”

Charley Shirley, CPA, Senior Consultant, Donor By Design Group LLC:

15 Common Planned Giving Myths Debunked (Part 1)

Sadly, many myths about planned giving continue to exist. Some of these keep nonprofit organizations from engaging in gift planning. Others lead development professionals to make terrible, costly mistakes.

All planned giving myths are dangerous.

Statue of Athena, Greek Goddess of Wisdom.

That’s why I believe that debunking common planned giving myths is important. In fact, I feel it’s so important that I addressed five of them in the very first chapter of my book, Donor-Centered Planned Gift Marketing. I’ll summarize them next week in Part 2 along with some other myths.

For now, I’m going to share eight myths identified by the members of the Smart Planned Giving Marketers Group on LinkedIn. The remaining seven will be featured next week.

Greg Warner, President of MarketSmart, started the Group which now numbers 577. If you have any interest in planned giving, you should join.

Recently, Greg started a terrific discussion to identify and debunk common planned giving myths. So far, the Smart Planned Giving Marketers Group has identified and debunked 15 planned giving myths. While I have numbered the myths, strictly for reference purposes, I am presenting them here in alphabetical order by contributor:

Ronald Blaum, Director of Gift Planning, Church World Service:

MYTH 1 — The Estate Tax is a mandatory tax.

To stimulate conversation in a group setting, I’ll often ask this question: ‘Paying estate taxes are voluntary, right?’ And, of course, people say, ‘No, they are not.’ Then, I proceed to show how the use of charitable gifting strategies and other techniques can make most, if not all, estates tax-free. With the higher estate exemption, the far greater concern for most people should be minimizing the negative impact of Income Tax on qualified plans, not estate tax. Think about what assets to use for gifting, not just the dollar amount or percentage of an estate.”

Reeve Chudd, Partner, Ervin, Cohen & Jessup:

MYTH 2 — My kids will resent me doing it.

I’ve been handling estates with charitable bequests for 34 years, and not once have I heard the heirs doing anything but enjoying the recognition their parents receive posthumously from charitable recipients. Further, when a name appears on a building or a program as a permanent memorial of a deceased donor, I see their children relishing their name connection to such philanthropy.”

Greg Lassonde, CFRE, Legacy Giving Specialist:

MYTH 3 — Age is an important factor in list segmentation.

The reality is that sometimes age is an important secondary factor in list segmentation. One example of this is Charitable Gift Annuities. If your organization’s minimum age for issuing a CGA contract is 70, you might want to mail only to those older than 55 (going that low for deferred CGAs).”

As Greg notes, while age can be an important secondary factor, the reality is that planned gift opportunities exist at every age level. For example, while it’s best to make a CGA appeal to older prospects, Bequests should be marketed to a broader age band, particularly those in their 40s and 50s. The points here are that while age is certainly of some importance, it is more important to recognize that the quality of the relationships is what is critically important, and that virtually everyone is a prospect for some type of planned gift.

Hazel Lloyst, CFRE, Capital Campaign Manager at Loyalist College:

MYTH 4 — [You can] judge a donor by their outward appearance.

From experience, I have found that many of my most frugal donors turned out to be the most generous, altruistic donors upon their passing. It was a pleasure to work with them over the years and hear their stories. It was always with tremendous gratitude that I was able to ensure their wishes were followed upon their passing while helping to ensure the timely transfer of their estate.”

Phil Melberge:

MYTH 5 — It costs too much.”

When is an Investment NOT an Investment?

If it looks like a duck, swims like a duck, and quacks like a duck, then it is probably a duck. But, not always.

If it looks like an investment, involves tax consequences like an investment, and produces a return like an investment, then it is probably an investment. But, not always.

So, when is an investment not an investment?

When it’s a Charitable Gift Annuity.

“A CGA is a contract (not a ‘trust’), under which a charity, in return for a transfer of cash, marketable securities or other assets, agrees to pay a fixed amount of money to one or two individuals, for their lifetime,” according to the American Council on Gift Annuities. 

I’ll admit that CGAs do look a great deal like an investment vehicle. A CGA involves a proposal that contains an illustration of how the gift will work; it involves tax benefits; and, it involves a rate of return. It’s easy to see why donors and even many development professionals think of CGAs as an investment opportunity.

The ACGA Board of Directors voted recently to make no changes to the suggested maximum CGA return rates that originally became effective January 1, 2012. The current rate schedule will remain in effect until further notice. This news prompted a planned giving professional to post the following message on a listserv: 

We usually do a promotion to current annuitants and recent inquiries, when the new CGA rates get announced. Whether they go up or down, it’s a message I can easily work with (either promoting the new increased rates, or ‘act now before rates go down in July,’ etc.).

Not sure what to do since they are staying the same – they’re not so great that staying the same is anything to brag about. Just curious what others are doing, or if laying low on this and focusing promotions in other areas.”

That posting demonstrates that some development professionals tend to think of CGAs as investment vehicles rather than philanthropic instruments. There are a number of reasons why this is problematic:

A Donor Offers You $5,000. Now What?

Congratulations! You’ve done everything right, so far. As a result, a prospect has offered to write a $5,000 check to your nonprofit organization. She only has one question: “Who should I make the check out to?”

So, what should you do next?:

A. Let loose with an enthusiastic, sincere, “Whoohoo!”

B. Thank the donor and tell her the proper name of the organization for the check.

C. Tell the donor the information is on your organization’s website.

D. Thank the donor, tell her the proper name of the organization for the check, and then say, “And, let me just ask, if I may, do you have any appreciated stock?”

If you’re like most development professionals, you probably answered “B.”

While that’s not exactly a wrong answer, there is a better one that will be more helpful for the donor and for your charity: “D.”

Sadly, many development professionals wrongfully assume that all donors of means know, at least, the basics of financial planning and tax avoidance. However, that’s simply not the case.

Sometime ago, I served on the board of a nonprofit organization. At one of the charity’s events that I attended, a modest donor came over to me and expressed an interest in donating $5,000. She simply needed to know the organization’s official name so she could put it on the check.

As in the above scenario, after thanking her and providing the information, I asked if she had any appreciated stock.

Puzzled by my question, she replied, “Yes, I do. Why do you ask?”

Why “Ask”?

At Michael Rosen Says…, I listen to my readers. And, I even sometimes take requests.

Recently, I received an email from Anton Wishik, a professional editor who recently transitioned to the development world. I thank him for the message. He wanted to know why I insist on using the word “ask” as a noun.

The inquiry caught my attention for a number reasons:

1. As a former newspaper editor, the proper use of language continues to matter to me.

2. According to the good folks at Merriam-Webster, the word “ask” is indeed a verb, not a noun. So, Mr. Wishik has a valid point.

3. Mr. Wishik’s inquiry gives me the chance to write about one of my favorite topics: The “ask.” (Ooops, there I go again.)

With his permission, here is the email I received from Mr. Wishik:

As a longtime editor who just recently started working in the planned giving industry, I cringe at the use of the word ‘ask’ as a noun, which I had never seen/heard before. So do many other writing professionals; here’s one comment made at Merriam-Webster’s site: Marianna Zhabokritsky · Court Reporter at Ministry of the Attorney General (Ontario), ‘So ‘ask’ is now being used as a noun? ….  Please tell me that it is still considered to be an improper use of the English language! Highly irritating!’

I’m not a stuffy editor and I realize fully that the language is constantly evolving, with new words joining the lexicon almost daily. I’m not even saying that ‘ask’ shouldn’t officially join the language as a noun, much like ‘tell’ has come into wide usage as a noun from poker. Maybe the words ‘request,’ ‘query,’ or ‘solicitation’ don’t quite describe the action taken by a [Planned Giving Officer].

I see that you use ‘ask’ as a noun, and I’m sure you have an opinion on the subject — and thought you might want to blog about it!”

Well, as I’ve said, I’m happy to take requests from time to time.

To help me explore the issue of “ask” as a noun, I’ve enlisted my good friend Laura Fredricks, author of the best-selling book The Ask and the new e-book Winning Words for Raising Money. Here is what Laura had to say:

It is so common that when anyone wants anything in life…they ‘ask.’ We have grown up to ask, politely, for what we want. We don’t ‘request’ we ‘ask.’

Taking this to our professional fundraising level, we have taken the ‘ASK’ to a sophisticated level. Asking for money takes organization, structure, focus and follow up. Comparing our ‘ask’ to a ‘request,’ ‘ask’ wins hands down because it has more impact and meaning. A ‘request’ is fleeting but an ‘ask’ has presence and attention. The person being asked knows that an important decision is about to be made.”

I agree with Laura. When a development or sales professional puts forth an “ask,” he or she has already done a great deal of work. The prospect has been identified, educated and cultivated. The professional has evaluated the prospect’s situation and has determined the most appropriate thing to ask for.

For their part, prospects usually understand that the “ask” will likely lead to some type of negotiation rather than a simple yes/no conclusion.

The noun “ask” implies more than just the sentence making the “ask.” It refers to the sentence and everything that has led up to it.

In development, we ask for donations. So, it seems silly to me to use a word that is different from the verb when we need a noun. When we talk about the act of asking for a donation, we are talking about the “ask” not the “request” or the “query.”

5 Tips for Giving Donors What They Really Want

Do you know what your donors want?

Do they want a clever t-shirt? A fancy certificate? A lovely lapel pin? A practical coffee mug? A recognition lunch?

Maybe. However, while some donors will appreciate receiving trinkets or invitations to recognition events, others really don’t care and still others will view such items as a waste of money.

So, what do your donors really want?

Virtually all donors want to know that their donations will have a positive impact. In other words, donors of all sizes want to know that their contributions make a difference. The younger the donor, the more true this is. In addition, they want to feel like they are partners with the organizations they support.

Renata J. Rafferty, in her book Don’t Just Give It Away, advises philanthropists, “You truly want the charity to view you as a partner in its work, and partnerships are successful only when all parties can be candid with one another.”

The way to partner with donors and let them know they are having the desired impact is through solid stewardship. You need to be transparent. You need to candidly give them the information they want.

Stewardship is defined by the AFP Fundraising Dictionary as:

a process whereby an organization seeks to be worthy of continued philanthropic support, including the acknowledgment of gifts, donor recognition, the honoring of donor intent, prudent investment of gifts, and the effective and efficient use of funds to further the mission of the organization.”

As I mention in my book, Donor-Centered Planned Gift Marketing:

Stewardship will help the donor feel good about her commitment. It will ensure that revocable gifts (i.e., bequests) remain in force and, perhaps, increase in value over time. Good stewardship can also lead to another planned gift from the donor. For example, a donor who makes a bequest commitment may be impressed by the organization and a sufficient level of trust might have been developed through the process to allow the donor to feel comfortable making a donation to establish a charitable gift annuity (CGA). A donor who establishes a CGA may feel so comfortable having done so, he may decide to establish a second. Or, a CGA donor may make a bequest commitment.”

Great stewardship can help strengthen your organization’s relationships with donors. The additional benefit is that solid stewardship of existing donors can also build relationships with prospective donors as well.

Jewish Federation of Greater Philadelphia has figured this out.

Rather than generating a bland, corporate annual report that examines the fiscal condition of the organization, Federation has produced a Community Impact Report that looks at the difference the organization is having on people’s lives.

There are a number of things worth noting about the Community Impact Report:

1. It exists. Perhaps the most noteworthy thing about the report is simply that it exists. Most nonprofit organizations thank donors for their support. However, far fewer charities report on how gifts are put to use.

Federation prepares a Community Impact Report each year. Actually, it usually prepares two reports, mid-year and end-of-year documents. Now on its fifth report, Federation uses the information to keep the community updated about its work toward mission fulfillment.

2. It focuses on outcomes. Unlike a typical annual report, the Community Impact Report is not a state-of-the-organization analysis. Instead, the report examines the impact the organization is having on its service area. It’s a report about mission fulfillment.

“Our donors really appreciate seeing the level of accountability we have achieved,” says Alex Stroker, Federation’s Chief Operating Officer. “They also like to know that we are focused on program outcomes.”

16 Tips for Crafting a Powerful Postcard Campaign

As you might imagine, I regularly receive direct mail appeals from many charities. Most of them are truly “junk mail.” After a quick glance, I quickly deposit the junk appeals into the recycling bin where they will do much more good than their intended purpose.

JFGP Postcard (click for larger image)

Occasionally, I’ll receive a mailing that captures my attention, for the right reasons. Even more rarely, I’ll find something in my mailbox that is worthy of sharing with you. Earlier this month, I found just such a piece.

The postcard mailing from the Jewish Federation of Greater Philadelphia arrived shortly before the Passover and tied into the holiday. This post contains an image of the front and back of the postcard so you can see it for yourself. Federation did a great job with the piece. So, let me take a few moments to share some tips we all can learn from it:

1. Get rid of the envelope. One of the greatest challenges with direct mail is getting people to open the envelope. They won’t get your message unless they do. If you can get your message across in a way that does not require a full mailing package, you can overcome this challenge by simply doing away with the envelope altogether. Federation’s postcard mailing has done exactly that.

2. Employ a pattern interrupt. Another challenge with direct mail involves figuring out ways to engage the recipient so they spend more than two seconds with the piece before tossing it into the trash. When most folks go through their mail, they quickly look for the fun stuff and bills. People quickly weed-out what appears to be junk.

So, how did Federation disrupt the typical mail-sorting pattern? They did it with two very different photos on the front of an odd-sized postcard. While speedily going through my mail, I noticed an old-fashioned, sepia-tone photo of an older couple on the postcard. Beside it, there was a contemporary color picture of a cute, young child eating matzo. The postcard got me to ask, “Huh, what’s this about?”

In other words, Federation caught my attention by being unusual and by presenting contrasting photographs. They knocked me out of my normal mail-sorting pattern.

3. Make it easy to read. By printing black type on a white background, Federation provides strong contrast that makes reading easier. While reverse type was used – something I normally do not approve of — it was used sparingly and with a larger serif font ensuring easy readability.

4. Keep the message brief but impactful. In about 50 words, I learned that Mr. and Mrs. Schweig had passed away long ago. However, I also learned they had contributed to Federation. Most compellingly, I discovered that their generous support would feed 1,500 community members in need during Passover.

The generosity of the Schweigs impressed me. The depth of the community need surprised me. The organization really had my attention.

5. Engage the reader. I was already engaged with the postcard when the photos caught my attention and I read the pithy message on the front of the card. However, the card engaged me further with a simple question: “What will your legacy be?” By asking the reader a question, you can get them to stop and think.

6. Provide more details. On the address-side of the postcard, the reader is told that Mr. and Mrs. Schweig made their gift through a bequest. Providing additional details and telling people where they can get even more information will satisfy all readers and their individual levels of curiosity.

7. Demonstrate impact. Donors want to make a difference. Whether they give to the annual fund or make a planned gift commitment, people want to know that their support will have a positive impact. They want to know that their donations will be used efficiently to help the organization fulfill its mission.

This postcard shows how the support of past donors is being put to good use. The implied messages are: We wisely use the support from past donors to help the community. We can help you to have a positive, high-impact as well.

9 Speaking Tips for Your Next Recognition Event & 2 Things Never to Do

When addressing a group of supporters who have gathered at a donor-recognition event, it is important to effectively manage both the message and how you deliver that message.

A colleague contacted me recently for some advice about his upcoming appreciation event:

I will be emceeing and addressing the members of our legacy society. The President and the Chair of our current capital campaign are both speaking as well, but it falls to me to open the gathering and set the tone, then close the gathering and send them on their way. Given an opportunity like this, what would you make sure you said? Do you have any words of wisdom?”

The answers to the above questions will vary somewhat based on the unique culture of the group. Determining the correct message and how to appropriately deliver it will require sensitivity to the organization’s traditions, regional culture, and national mores. With that in mind, here are nine ideas what he might consider doing followed by two things he should definitely never do:

1. Be lively. I have found that many legacy society events can be dull, even funereal. If that’s what your folks are expecting and want, then give it to them. However, if the situation allows, I encourage you to try to be a bit light and jovial. Sometimes, we can take ourselves a bit too seriously, particularly when it comes to planned giving. Giving should be a joyful, positive, uplifting experience, even for a very serious cause. Keep that in mind when addressing your supporters.

2. Show appreciation. Just because it’s a donor-recognition event, do not assume that your supporters will feel appreciated simply by being there. Make sure you tell donors that you appreciate not just their gifts but also their involvement and caring.

3. Tell stories. People also like a good story, especially if it’s amusing, has a twist, or is heart-warming. Think of what you want to say. Then, think if there’s a story you can tell that will make the same point. Stories engage people by allowing them to put themselves into the situation. Hearing a good story activates many of the same parts of the brain that would be activated if the listener were actually living the situation. For maximum impact, make sure to use real stories.

4. Tell donors how gifts have been used. It is important for donors to understand that the organization wisely uses donations to achieve its mission efficiently. Very often, we focus on how gifts will be used. That’s certainly important. In fact, that’s my next point. However, we must also show folks the impact of past support. That gives us an opportunity to provide evidence of our organization’s effectiveness.

So, if a realized bequest contribution allows a social service agency to provide 50 meals to the homeless each week, then share that story. Remember that bequest commitments are revocable. And, if treated well, your planned gift donors will be among your best prospects for another gift. Therefore, you’ll want to keep reassuring the people that made those commitments that they made the correct decision.

Sharing a story about a previous donor whose gift has been realized will do a number of important things:

• Tells people that donors continue to be remembered and appreciated even long after they’re gone.
• Reminds folks that others have made a planned gift. People like to know that they’re part of group.
• Underscores that planned gifts have a real impact.
• Implies that all donors will likely be similarly appreciated and have their gifts wisely used to achieve the organization’s mission.

5. Tell donors how gifts will be used. For planned gift commitments that might not be realized for years to come, it can be difficult to demonstrate how the realized donation will be used. However, while difficult, it is still something you have to do. It is important for you to let donors know that their gifts will work to wisely benefit those the organization serves. And, if appropriate, tell them how the broader community or society will benefit as well.