Archive for ‘Book’

April 9, 2018

8 Simple Tips to Boost Planned Giving Results

Planned Giving is a vital source of contributions for the nonprofit sector. Organizations that do not have a gift-planning program envy those that do. Those that do have a planned-giving program want even better results.

It’s no wonder.

Bequest giving amounted to eight percent of all charitable donations in 2016 (Giving USA). That’s just counting people who included a charity in their Will. It does not include people who gave through Beneficiary Designation, Charitable Gift Annuity, Stock, Appreciated Personal Property, or other planned-giving vehicles.

While planned giving can certainly present challenges, there are many simple things you can do to create or enhance your organization’s gift-planning efforts:

1.  Focus Your Efforts

You likely do not have the time or budget to reach-out personally to every one of your organization’s supporters to seek a planned gift. Instead, you need to focus on the highest priority prospects, those most likely to make a planned gift.

So, who are your best planned-giving prospects?

The answer to that question will depend on what type of planned gift you are seeking. For example, if you want more people to include your charity in their Will, arguably the most common form of planned giving, you’ll want to consider two key factors:

First, people who are childless are far more likely to include a charity in their Will, according to philanthropy researcher Russell James, JD, PhD, CFP®. However, just because someone is more likely to make a Charitable Bequest commitment to a charity does not mean they will be willing to commit to your charity.

Second, loyal supporters of your organization are the people most likely to make a planned gift to your specific organization, according to UK-based philanthropy researcher Claire Routley, PhD. Your loyal supporters are people who donate frequently, regardless of gift amount. Loyal supporters are also people who volunteer. People who donate cash and volunteer are nearly twice as likely to make a gift through their Will compared to individuals who do only one or the other, James’ has discovered.

When seeking other types of planned gifts, you’ll want to take into account other factors. For example, if you want people to contribute from their IRA, you’ll want to appeal to people over the age of 70.5, the age of eligibility for such giving. If you want folks to donate appreciated Stock, you’ll broaden your audience because the majority of Americans own Stock.

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March 21, 2018

15 Things You Might Not Know about Planned Giving

There’s a lot about planned giving that’s worth knowing and that can help you raise more money. Fortunately, it’s not necessarily all complicated.

Yes, vast differences exist from one planned giving program to the next. Some nonprofit organizations invest heavily in planned giving with dedicated staff and marketing. Other charities invest little and have development generalists talk with donors about gift planning from time-to-time. Despite the differences from one organization to another, there are a large number of points in common.

To help you be a more successful fundraising professional, I want to share 15 insights about planned giving:

1.  Almost everyone has the ability to make a planned gift. A common myth about planned giving is that it is just for rich people. However, that’s not the case. For example, anyone who owns a retirement account, a life insurance policy, appreciated stock, or a home can be a planned gift donor. As H. Gerry Lenfest, the mega-philanthropist, wrote in the Foreword to Donor-Centered Planned Gift Marketing,  “Planned gifts are the major gifts of the middle class.”

2.  The average age of someone who makes their first charitable bequest commitment is 40-50. Another misconception about planned giving is that it is something that old people engage in. While that’s true for certain planned gifts (e.g., gifts from an IRA, or gifts to set up a non-deferred Charitable Gift Annuity), donors of any age can create a charitable provision in their Will or set-up a Beneficiary Designation.

3.  High-income women are more likely than men to use complex gift planning tools. High-income women (those with an annual household income of $150,000 or more) are more likely than high-income men to seek expert financial advice. They are also more likely to establish Donor-Advised Funds or Charitable Remainder Trusts. So, do not ignore female prospects. Instead, be prepared to talk with high-income women about sophisticated giving options.

4.  Using a challenge grant for a planned gift appeal can create urgency leading to action. Research shows that people tend to avoid conversations or decisions involving their own demise. One way to shift the focus of the planned giving conversation from death is to use a challenge grant to encourage prospects to think about making a planned gift commitment so that the organization receives an extra benefit. A challenge grant also creates a sense of urgency that gives donors a reason to act now rather than further delay making a planned gift decision.

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January 30, 2018

Russell James: Three for the Price of FREE!

One of the nation’s leading philanthropy researchers provides us with helpful insights about the new tax code and its impact on charitable giving. He also offers valuable information about planned giving.

Russell James, JD, PhD, CFP® articles, books, and videos will benefit any fundraising professional. Here are just three that will be a big benefit to you:

1. A Donor’s Guide to the 2018 Tax Law (video)

In just nine-and-a-half minutes, James explains how key provisions of the new tax code can benefit donors. With his insights, you’ll be in a better position to inspire more donations and larger gifts to your nonprofit organization. Simple illustrations and great examples will help you easily grasp the concepts.

Do you know?: Just one of the things you’ll learn from the video is that donors can contribute appreciated stock to avoid capital gains tax. Even non-itemizers can benefit from this. While this provision of the tax code remains unaltered, what has changed is that the new code makes this provision even more valuable for donors. James explains how in the free video:

2.Visual Planned Giving: An Introduction to the Law & Taxation of Charitable Gift Planning (e-book, updated January 2018)

I’m honored that James has allowed me to offer you a free copy of his 433-page e-book Visual Planned Giving: An Introduction to the Law & Taxation of Charitable Gift Planning. James designed the newly updated book for fundraisers and financial advisors seeking to expand their knowledge about charitable gift planning. This introductory book addresses all of the major topics in planned giving law and taxation in an accessible way.

Do you know?: Wealth is not held in cash. It’s held in assets. James has found that only one percent of financial assets are held in cash! So, if you want larger donations, you need to talk with supporters about making a planned gift from non-cash assets (e.g., stocks, personal property, real estate, retirement accounts, life insurance, etc.).

If you want to learn more about planned giving or help a colleague gain a fundamental understanding, you can download your free copy of Visual Planned Giving by clicking here.

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February 10, 2017

What is the Most Important Thing a Donor Can Give You? … It’s Not What You Think It is.

What is the most important thing a donor can give you?

If I were to ask that question at an Association of Fundraising Professionals conference, I suspect most members of the audience would respond by saying, “A big check!” If I were to pose the same question at a National Association of Charitable Gift Planners convention, participants might shout out, “A Charitable Remainder Trust!”

In other words, we tend to think that the most important or valuable thing a prospect or donor can give a charitable organization is money, and preferably lots of it.

However, do we have the wrong goal in mind?

Maybe.

Amy Cuddy, a psychology professor and researcher at the Harvard Business School, says that successful professionals must first earn an individual’s trust and respect. “Psychologists refer to these dimensions as warmth and competence, respectively, and ideally you want to be perceived as having both,” according to a report in the Business Insider. The article continues:

Interestingly, Cuddy says that most people, especially in a professional context, believe that competence is the more important factor. After all, they want to prove that they are smart and talented enough to handle your business.”

However, Cuddy’s research demonstrates that earning trust is more important than proving competence. She shares her findings in her book, trust-by-dobi-via-flickrPresence: Bringing Your Boldest Self to Your Biggest Challenges. She also provides plenty of proven tips for engendering trust.

So, we see that the most important, valuable thing a prospect or donor can give you is their trust. Still not a believer? Keep reading. Cuddy’s research findings are in alignment with the studies completed by professors Adrian Sargeant and Jen Shang, of Plymouth University, who have stated:

There would appear to be a relationship between trust and a propensity to donate…. There is [also] some indication here that a relationship does exist between trust and amount donated, comparatively little increases in the former having a marked impact on the latter.”

In other words, the research demonstrates that the level of trust one has in a charity and its representatives, affects both willingness to give and the amount of giving.

Cuddy says:

If someone you’re trying to influence doesn’t trust you, you’re not going to get very far; in fact, you might even elicit suspicion because you come across as manipulative. A warm, trustworthy person who is also strong elicits admiration, but only after you’ve established trust does your strength become a gift rather than a threat.”

If you’re like most fundraising professionals, you instinctively understand the importance of establishing a trusting relationship. However, what are you doing to build and maintain them?

Here are just five helpful tips for earning and building trust with prospects and donors:

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February 7, 2017

Get a FREE Book for Nonprofits by a Noted Researcher

Do you like getting something for free? I do, especially when it can help me be more successful.

Now, thanks to Russell James, JD, PhD, CFP, the Texas Tech University professor and philanthropy researcher, you can download a free, 427 page book that will become an important reference source in your fundraising library.

Whether you call it planned giving, gift planning, legacy planning, philanthropic planning, charitable estate planning, charitable gift planning, or something else, the subject is complex. However, it does not have to be overwhelmingly confusing.

visual-planned-giving-2017-coverTo help you, James has put together the book Visual Planned Giving: Introduction to the Law & Taxation of Charitable Gift Planning, newly revised and updated for 2017. Designed for fundraisers and financial advisors seeking to expand their knowledge about charitable gift planning, this introductory book addresses all of the major topics in planned giving law and taxation.

The gift planning topics you’ll learn about include elements of a gift, documentation requirements, valuation rules, income limitations, bargain sales, charitable gift annuities, charitable remainder trusts, charitable lead trusts, life insurance, retirement assets, private foundations, and donor advised funds. Over 1,000 full-color illustrations and images will guide you through complex concepts in a visual and intuitive way. James makes planned giving accessible and pain-free for the busy professional.

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October 28, 2016

Get a Free Halloween Treat for Fundraisers

If you’re like most fundraising professionals, you’re not optimally asking donors to include your nonprofit organization in their will.

You’re probably not driving as much traffic to your planned giving webpage as you could.

You’re also probably less successful at closing Charitable Gift Annuities than you could be.

lone-ranger-and-silver-via-melocuentas-flickr

The Lone Ranger and Silver.

I know. You decided to read this post to discover how you can get a free Halloween treat. Instead, you’re probably starting to feel tricked. But, fear not! Russell James, JD, PhD, CFP, the Texas Tech University professor and philanthropy researcher, along with the good folks at MarketSmart, are riding in to save the day.

Last summer, James conducted a webinar hosted by MarketSmart. During his presentation, James unveiled his latest, powerful research findings along with research insights from others. You can learn more about the webinar and get some great tips by clicking here.

Now, for your treat, MarketSmart has distilled James’ webinar into a free, 22-page e-book that will help you raise millions of dollars more. For example, here’s just one simple, yet valuable tip:

When you want to engage people in a conversation about Charitable Gift Annuities, what is the best way to describe this giving vehicle to make folks want to learn more?

James tested five phrases. Among the 2,550 respondents, he discovered the percentage interested in learning more:

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October 3, 2016

A Powerful Lesson about #Philanthropy from 2 Celebrities

When I was a young boy, I learned a valuable idiom:

You can’t judge a book by its cover.”

My parents wanted me to appreciate that before you can know or judge something, you first need to take a closer look to develop a deeper understanding.

But, is the idiom correct? For fun, I thought I’d see if it is strictly true when it comes to fundraising. Okay, I’m admittedly a nerd. However, I identified a worthwhile lesson when I explored the issue during philanthropy conversations I had recently with Carl Hiaason, the award-winning journalist and novelist, and Alton Brown, the Food Network star and cookbook author.

Michael Rosen and Carl Hiaasen at the Free Library of Philadelphia.

Michael Rosen and Carl Hiaasen at the Free Library of Philadelphia.

With best-selling book titles including Strip Tease (made into movie), Hoot (also made into a film), Basket Case, Bad Monkey, Skinny Dip and, his latest, Razor Girl, it’s impossible to know what charitable causes interest Hiaason. However, when reading his novels, you’ll find more than quirky characters and over-the-top funny, satirical plots. You’ll also discover underlying messages that are pro-environment. In some of his books, protecting the environment is the plot.

I wondered if the passionate content of Hiaason’s novels could offer a clue to which charitable causes interest the author. So, I asked him. Hiaason responded:

I really don’t want to say that I endorse anybody… [However,] I’ll tell you that in the past I’ve supported, as a private citizen, the Earth Justice Legal Defense Fund [Earthjustice]. It’s phenomenal; they do great work; it’s basically a law firm that takes on big polluters in Florida and the rest of country.”

Hiaason also supports the Everglades Foundation, which raises funds for groups trying to clean up the Everglades.

After reading just a few of his books, it’s easy to see that environmental protection is important to Hiaason. So, I was not surprised to learn about his favorite charities.

Alton Brown and Michael Rosen at the Free Library of Philadelphia.

Alton Brown and Michael Rosen at the Free Library of Philadelphia.

With Brown, it is even easier to guess where his philanthropic passion lies. Brown has hosted top-rated Food Network shows including Good Eats, Iron Chef America, and Cutthroat Kitchen. He’s also written eight books including his latest: Alton Brown: EveryDayCook.

While clues to Hiaason’s philanthropic interest could be found in the pages of his books, I believed Brown’s could be found right on the covers. So, I asked him what his favorite charity is. Brown told me:

I support many charities, but I particularly like Heifer International.”

Heifer International is a charity seeking to end hunger and poverty around the world. Given Brown’s passion for food, it’s not at all surprising that he would support a cause related to food and hunger.

Here are some takeaways for you:

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August 31, 2016

Do You Want Some End-of-Summer Reading?

Think before you speak. Read before you think.” ― Fran Lebowitz

Lebowitz has provided some great advice. However, with so many options, what should you read? As the official end of summer draws near, I thought I’d provide some suggestions for you. In turn, I hope you’ll share your own recommendations.

Here are some suggested quick reads…my five most read blog posts so far this year:

  1. Stop Showering All of Your Donors with Love!
  2. Stop Making Stupid Email and Direct Mail Mistakes
  3. Do You Know that “Planned Giving” is Bad for Fundraising?
  4. Avoid a Big Mistake: Stop Asking for Bequest Gifts!
  5. Donors Say: Enough about You. Let’s Talk about Me!

To discover other blog sites you might want to visit, checkout the following best-of lists that I’ve been honored to be part of:

Click for Donor-Centered Planned Gift MarketingTo help bloggers and readers more easily connect, I created the LinkedIn Discussion Group “Blog Posts for Fundraising Pros & Nonprofit Managers.”  Bloggers can promote their latest posts and readers can easily find those that interest them most and engage in thoughtful conversation, all in one place. Join the Group to get updates about information you’ll find helpful. You can find the Group by clicking here.

To help you find books that will get results and inspire, I created The Nonprofit Bookstore (powered by Amazon). At the site, you’ll get Amazon’s great prices and service. You’ll also have the satisfaction of knowing that, at no cost to you, a portion of each purchase will be donated to charity. At The Nonprofit Bookstore, you can search for books or browse categories including “Readers Recommend.” Among the books you’ll find there is my own: Donor-Centered Planned Gift Marketing. You can find all of the books your peers suggest by clicking here.

Now, it’s your turn.

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June 14, 2016

Happy Days are Here Again … for Now

Charitable giving in the USA reached a record high for the second year in a row, according to the newly released Giving USA 2016: The Annual Report on Philanthropy for the Year 2015, a publication of Giving USA Foundation, researched and written by the Indiana University Lilly Family School of Philanthropy.

While the news is good, storm clouds are gathering on the horizon. You need to hear both the good and the troubling news. I’ve tried to distill the most relevant, overarching information for you and provide you with some tips to help you be more successful moving forward. While I would normally advise against sharing lots of statistics, I nevertheless think you’ll appreciate these numbers.

Source Pie Chart_June 13 2016Researchers estimate that giving totaled $373.25 billion in 2015.

That new peak in contributions represents a record level whether measured in current or inflation-adjusted dollars. In 2015, total giving grew 4.1 percent in current dollars (4.0 percent when adjusted for inflation) over 2014.

The revised inflation-adjusted estimate for total giving in 2014 was $359.04 billion, with current-dollar growth of 7.8 percent, and an inflation-adjusted increase of 6.1 percent.

Charitable contributions from all four sources — individuals, charitable bequests, corporations, foundations — went up in 2015, with those from individuals once again leading the way in terms of total dollar amount, at $264.58 billion. This follows the historical pattern seen over more than six decades.

Giving to eight of the nine nonprofit categories studied grew with only giving to foundations declining (down 3.8 percent in current dollars, down 4.0 percent adjusted for inflation).

Giving to the category of International Affairs — $15.75 billion — grew the most (up 17.5 percent in current dollars, up 17.4 percent adjusted for inflation).

Giving to the category Arts/Culture/Humanities — $17.07 billion — grew the second most (up 7.0 percent in current dollars, up 6.8 percent adjusted for inflation).

While the numbers are terrific, the story is really about more than that. Giving USA Foundation Chair W. Keith Curtis, president of the nonprofit consulting firm The Curtis Group, says:

If you look at total giving by two-year time spans, the combined growth for 2014 and 2015 hit double digits, reaching 10.1 percent when calculated using inflation-adjusted dollars. But, these findings embody more than numbers — they also are a symbol of the American spirit. It’s heartening that people really do want to make a difference, and they’re supporting the causes that matter to them. Americans are embracing philanthropy at a higher level than ever before.”

While the 2015 giving news is certainly positive, there are four points that indicate that the good news might be short lived:

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May 13, 2016

10 Reasons Your #Nonprofit Should be Using Facebook

[Publisher’s Note: From time-to-time, I invite a published book author, with valuable insights, to write a guest post. If you’d like to learn about how to be a guest blogger, click on the “Authors” tab above.]

 

Would you like to understand why your nonprofit organization should embrace Facebook? Would you like a free book that’s full of tips that will help your charity get the most from Facebook? If you would, you’ll really enjoy this post.

This week, I have invited Richard Santos, Founder of Fundlio, to share his insights. Fundlio helps nonprofit organizations collect donations online by providing a mobile-friendly, secure and free platform. Fundlio also maintains a blog where the company shares tips and how-to information on a number of topics including fundraising, thank-you letters, collecting donations online, and creating organization awareness.

Facebook for Nonprofits CoverRichard has also written the book The Ultimate Guide to Facebook Marketing for Nonprofits: How to ATTRACT SUPPORTERS & Receive More CONTRIBUTIONS for Your NONPROFIT Through FACEBOOK. While the Kindle version of the book is available for purchase on Amazon, Richard has kindly made his e-book available to the readers of Michael Rosen Says… for FREE! To download your free e-book copy, simply click here.

Richard’s book is a quick and simple-to-follow guide aimed at helping you create and develop an effective Facebook marketing strategy that will translate into attracting donors, increasing supporter engagement, and receiving more contributions for your cause. It’s based on proven tactics and strategies that will allow you to leverage the Facebook community and accomplish your nonprofit organization’s goals.

In addition to the terrific information and helpful tips Richard provides in his book, he now offers 10 important reasons your nonprofit organization should be using Facebook:

 

There are numerous online tools available for nonprofits and charities, allowing organizations like yours to use the power of the Internet and social media to its full potential. Facebook for Nonprofits is a great way of creating more awareness about your cause and eventually raising more funds to fulfill your mission.

However, I know that a nonprofit leader’s time is limited and that it’s hard to squeeze one more extra activity into your tight schedule. Whenever someone makes a suggestion on a new marketing tactic, the first question that pops into your head is: “Why should I take the time, effort, and budget to implement this?”

Let me provide you with an answer to the question in 10 straightforward points:

1.  A large percentage of your audience is on Facebook.

Facebook has almost 1.6 billion active users all over the world, which means that many of the potential donors you are targeting are using Facebook. One more interesting statistic: 31 percent of all US senior citizens use Facebook – this shows the huge impact that Facebook has on people from multiple categories. If you want to use the one channel where most of your audience is active, Facebook is the solution.

2.  You can raise awareness.

Having a compelling nonprofit story on your website is not sufficient – many potential supporters may not reach your website and you will lose donors and volunteers. On the other hand, your nonprofit is much more visible on Facebook, either through advertising or through page suggestions. Someone who’s interested in your cause just needs to hit “Like” and from that moment on, you will appear in their newsfeed. Better visibility means more awareness for your cause – your fans will develop an interest in your organization without even noticing.

3.  You can attract new supporters.

Facebook allows you to increase your visibility, aside from just communicating to your loyal audiences. Try the following features and your fans’ friends will also have contact with your page: similar page suggestions, adding the physical address so fans can check-in, and creating Facebook events. These features allow you to become visible to people who have not liked your page yet and to encourage them to become your fans.

4.  You can build a community.

Although there are many people passionate about the same idea, they rarely have time to meet in a physical location and develop relationships. On the other hand, interacting on social media is easier and helps them save time. Audiences use Facebook groups to gather around the causes they support – here they can discuss various issues, connect to other people, and organize events.

5.  Facebook allows you to engage supporters.

The secret to a successful fundraising campaign is supporter engagement. It’s recommended to implement multiple creative ideas rather than just featuring a “Donate” button on your page and just waiting for money to pop in. Some methods you can use to attract donors on Facebook are the following: running contests, setting mini-goals, using storytelling, implementing a matching gift campaign, asking supporters to give up a pleasant activity and donate the money, or inflicting silly punishments on your nonprofit organization leaders to encourage donations.

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