Posts tagged ‘Charitable Bequest’

July 28, 2016

Do You Know that “Planned Giving” is Bad for #Fundraising?

That’s right. “Planned Giving” is bad for nonprofit fundraising.

For years, I’ve been writing and talking about the problems with the term “Planned Giving.” Now, new research underscores what I’ve been advising: You should stop using the term!

Sometime ago, The Stelter Company conducted a survey that I cite in my book, Donor-Centered Planned Gift Marketing. Stelter found only 37 percent of Americans over the age of 30 have a familiarity with the term “Planned Giving.” We have no way of knowing what percentage of those claiming familiarity really, in fact, know what the term truly means.

Other terms have become increasingly popular as substitutes for “Planned Giving.” However, none has yet to gain sufficient traction to overtake the use of “Planned Giving.” Consider the results from simple Google searches I conducted for this post:

  • Planned Giving — 14.8 million results
  • Philanthropic Planning — 11.1 million results
  • Gift Planning — 5.7 million results
  • Legacy Giving — 2.1 million results

What we know is that the general public has little understanding of the term “Planned Giving” although it appears to be the best term we have. Unfortunately, popular does not mean effective.

William Shatner in The Grim Reaper by Tom Simpson via FlickrWhile “Planned Giving” is a reasonable, inside-the-development-office catch-all term to describe, well, planned giving, it’s not a particularly good marketing term. That’s according to the findings of philanthropy researcher Russell James, JD, PhD, CFP.

James conducted a study to answer this vitally important marketing question: “What is the best ‘front door’ phrase to make people want to read more Planned Giving information?”

Think of it this way: Will a “Planned Giving” button at your website encourage visitors to click through to learn more or is there a more effective term?

To be a successful term, James believes two objectives must be met:

  1. Individuals have to be interested in finding out more.
  2. Individuals have to expect to see Planned Giving information (i.e., no “bait and switch”).

To find the strongest marketing term, James asked people to imagine they were viewing the website of a charity representing a cause that is important in their lives. In addition to a “Donate Now” button, the following buttons appear on the website:

  • Gift Planning
  • Planned Giving
  • Giving Now & Later
  • Other Ways to Give
  • Other Ways to Give Smarter
  • Other Ways to Give Cheaper, Easier, and Smarter

James asked participants to rate their level of interest in clicking on the button to read the corresponding information. In a follow-up, James asked study participants what kind of information they would expect to see when clicking the buttons mentioned above.

The winning term is:

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:

June 2, 2016

Avoid a Big Mistake: Stop Asking for Bequest Gifts!

Nonprofit organizations are making a big mistake. Many charities ask individuals to consider making a “Bequest Gift.” Of course, an even bigger mistake is not asking at all. However, there is a better way.

Russell James, JD, PhD, CFP, a leading philanthropy researcher based at Texas Tech University, reports that the latest research shows that asking Words that Work IIpeople to consider “Gifts in your will” generates far more interest. When asking prospects to consider a “Bequest Gift,” 18 percent responded, “I might be/am definitely interested.” By contrast, when prospects were asked to consider “Gifts in your will,” 28 percent expressed interest!

James will offer additional research-based insights in a FREE webinar, Words that Work II: The Phrases that Encourage Planned Giving, hosted by MarketSmart on Wednesday, June 8, 2016 at 2:00 PM EDT. Registration is required and space is limited so click here now.

During the webinar, you’ll get the following information:

  • How to describe bequest gifts and tax benefits in a way that will increase a person’s desire to learn more;
  • What elements of a charitable gift annuity advertisement make people want to get one;
  • What the latest data patterns say about trends in charitable estate planning;
  • The best “front door” phrase to get people to read about planned giving information;
  • Test results that showcase the responses to different charitable gift annuity advertising messages;
  • And much more of great interest and value!

In short, James’ webinar will provide you with powerful, practical insights that will help you enhance your planned giving results.

So, why is asking for a “Bequest Gift” less effective than asking for “Gifts in your will”?

April 29, 2016

How Can Nana Murphy Make You a Better #Fundraising Professional?

[Publisher’s Note: This post is part of a series kindly contributed by guest authors who attended the 2016 Association of Fundraising Professionals International Fundraising Conference. These posts share valuable insights from the Conference. This week, I thank Erica Waasdorp, President of A Direct Solution, for highlighting the seminar “From Ireland with Love: A Five-Year Case Study on Donor-Centric Fundraising for Retention, Revenue, and Results.”]


What does Nana Murphy have to do with great fundraising results?


Who is Nana Murphy?

Who is Nana Murphy?

So, who is Nana Murphy? Is she a successful fundraising professional? Is she a leading fundraising consultant? Is she a donor advisor? Is she a fundraising or nonprofit management professor? Is she a philanthropy researcher? Do you give up?

Nana Murphy is your typical donor.

You need to get to know your organization’s Nana Murphys. You need to understand why she supports your organization. You need to give her what she needs from your organization. In short, you need to be donor centered. But how?

The AFP International Fundraising Conference session “From Ireland with Love” not only stressed the need to be donor centric, the presenters shared dozens of practical tips to show you exactly how you can be more donor centered and, therefore, more successful.

The speakers know what they’re talking about; together, they increased the amount of money that one prominent Irish charity raised by 1100 percent in just five years!

Erica Waasdorp, President of A Direct Solution and author of Monthly Giving: The Sleeping Giant, attended the session and shares some of the tips she thinks you’ll find particularly valuable. At the end of the post, I provide links for you to download two free handouts from the session that are full of dozens of additional tips and real-world examples that you must checkout.

Here are the highlights Erica wants to share with you:


I attended “From Ireland with Love,” presented by Denisa Casement, CFRE, Head of Fundraising, Merchants Quay Ireland, Dublin;  Lisa Sargent, Lisa Sargent Communications, Safford Spring, CT; and Sandra Collette, S. Collette Design, Stafford Spring, CT.

Denisa is American, originally from Arizona, and she moved to Ireland in 2008. Boy, did she make an impact on this Irish homeless charity since then, taking the revenue from 250,000 Euros to 3 Million Euros just five years later.

For me, as a traditional “old school” direct-marketing fundraiser, this was a fabulous session!

It really honed in on those fundamentals we should all know and use in our fundraising every day. Especially now, where we all get so distracted by the next new electronic approach — the next new shiny thing as Tom Ahern calls it — let’s not forget that it’s not about us, it’s all about the donors.

So, the speakers presented a life size Nana Murphy, the typical average donor in your donor base. She still reads direct mail and writes checks. She needs reading glasses and she loves honesty, emotion and authenticity. So, the first thing you need to do when you think of how best to approach donors like her, is forgot about what you think and feel. Instead, consider Nana in everything you do, and you’ll be successful. I promise!

I don’t have space here to provide you with all of the tremendous practical tips and guidelines from the session (see the handout links at the end of this post), but here are 11 that stand out. If you follow these rules, you’ll absolutely be able to raise more money!

Know your metrics. So many fundraisers don’t know their own numbers: response rate, average gift, cost to raise a dollar, lifetime value, and retention rate, to name a few. Managing your fundraising program is considerably more difficult if you don’t know the key metrics.

Use the Casement Quotienttm. I love this. Denisa introduced the Quotient: Annual fundraising income divided by 52 weeks in a year divided by the number of hours in your work week. For example, in 2015, her fundraising team raised $1,627 per hour. So, if someone comes to you to ask you to do something, that’s not going to at least raise that amount of money, you probably shouldn’t be doing it! What a clever way to say no to the next “sit in a booth at a fair for a two day event and you’ll reach 100 people.” Consider finding some volunteers instead and divvy up the time. The Casement Quotienttm is a helpful tool when it comes to setting priorities.

Get rid of silos, both in how you organize your departments and your donors. It all works better if you and your colleagues know what’s going on. There’s no need to “hide” results or think that someone does not need to know about how your fundraising is doing. Remember, the objective is not for one person to do well; instead, the objective is for the organization to do well.

Mail enough! I still see so many organizations leave lots of money on the table. They simply do not ask for gifts often enough. As long as your next mailing generates more money than it costs, you can mail more. MQI mails four appeals a year and four newsletters. Absence does not make donors’ hearts grow fonder!

March 25, 2016

Do Not Overlook This Gift Opportunity

Many charities have been overlooking an increasingly important potential source of charitable contributions. Many donors have also overlooked this potential philanthropic opportunity.

It’s time to change all of that.

I’m talking about Beneficiary Designations.

While the use of Wills has declined sharply since 1998, individuals are increasingly using Beneficiary Designations to pass on assets to loved ones. Instead of a Will, individuals can use a simple Beneficiary Designation form to distribute assets from IRAs, 401ks, bank accounts, certificates of deposit, brokerage accounts, life insurance policies, and money remaining in Donor Advised Funds. In some jurisdictions, individuals can also use Beneficiary Designations to distribute property such as automobiles and real estate.

If someone does not have a Will, he cannot make a Charitable Bequest commitment. However, he can easily set up a Beneficiary Designation that directs some of his assets to a favorite charity. It’s important to note here that a Beneficiary Designation supersedes any designations made in a Will should a donor have both.

For donors, using a Beneficiary Designation can be easier and less expensive than making a Charitable Bequest commitment through a Will. Beneficiary Designations do not require a lawyer, a complicated estate planning process, or an executor. Donors can use Beneficiary Designations to take care of loved ones and/or their favorite charities. Donors can designate all or a portion of a given asset to specific beneficiaries. Beneficiary Designations also provide flexibility as individuals can easily change beneficiaries at any time.

I Spy by Flood G via FlickrTo acquire more gifts through Beneficiary Designations, nonprofit organizations need to be proactive about promoting this method of giving. As with any other planned gift vehicle, organizations need to educate prospective donors about the opportunity and how it works. Then, fundraising professionals actually need to ask for the gifts.

One way the ASPCA promoted Beneficiary Designation gifts was through an article on its website that you can read by clicking here.

The University of Florida has promoted Charitable Bequests and Beneficiary Designations using a two-page information sheet that explains the options. You can find it by clicking here.

February 10, 2016

Do You Really Know Your Donors? — Part 1

How well do you know your donors?

How well do you need to know your donors?

The first question is for you to answer. I’ll answer the second question:

You need to know your donors well enough to know how to effectively steward them in a way they will appreciate. You need to know them well enough to know to avoid doing something stupid that will alienate them. You need to know them well enough to engage them in meaningful ways.

Let me share a story that illustrates my point.

Smith PG Package 2My wife Lisa is a proud Smith College alumna. She has been a leader with the Smith College Club of Philadelphia. She has referred students to the College. She has donated to the annual fund and capital campaigns. She has volunteered as a Class Agent. Several years ago, she even included Smith in her will, becoming a member of the College’s Grécourt Society.

Over the years, Lisa has received mailings specifically for Grécourt Society members, including invitations to special member events. Recently, in advance of her landmark reunion, she received a fold-over postcard mailing that included an option to request a replacement Grécourt Society pin if she needed one. As it turns out, Lisa did need a replacement, so she happily responded.

So far, so good.

Then, Lisa received the package from the Smith College Office of Gift Planning. The package included the Grécourt Society pin, a surprise magnet, and a preprinted thank-you card that was hand-signed by Lisabeth.

Ouch! While trying to do something nice, Smith stumbled badly.

Here are the mistakes the College made:

November 24, 2015

What are Your Favorite LinkedIn Discussion Groups?

John Heywood, the 16th century English writer, once stated:

Many hands make light work.”

While Heywood might not have been the one to coin the phrase, he certainly helped preserve and popularize it. It’s a nice bit of common sense that we all need to be reminded of periodically.

For example, we can’t know everything. We can’t research an answer to every question by ourselves. We can’t read all of the professional publications to determine which items are of greatest importance or value.Spiral of Hands by lostintheredwoods via Flickr

That’s where LinkedIn Discussion Groups can help. By being part of a network of nonprofit managers and fundraising professionals, we can rely on the assistance of colleagues. In turn, we can also be of help.

Through LinkedIn, I’ve developed my professional relationships, broadened my professional network,  made new friends, accessed valuable information I never would have on my own, had some of my questions answered, and much more. I’ve engaged in provocative conversations. I’ve learned a great deal. I’ve been inspired.

While I belong to 45 professional LinkedIn Groups that are excellent, there are only some I engage with regularly. Here are just ten of my favorites:

[Note: You might need to be logged into your LinkedIn account for the above links to work. Even then, if you have any problems with the links, you can simply search on the Group names I’ve listed.]

Now, let me tell you about my absolute favorite Group.

Just days ago, I have created a new LinkedIn Discussion Group:

Blog Posts for Fundraising Pros & Nonprofit Managers

October 9, 2015

Do Not Make This Year-End #Fundraising Mistake

The fourth quarter of the calendar year is a popular time for charities to send out fundraising appeals. As a result, nonprofit organizations raise a lot of money during the fourth quarter. In addition, many nonprofit organizations host galas in the fourth quarter. Love it or hate it, #GivingTuesday is in the midst of the holiday season.

‘Tis the season to fundraise.

If you doubt that, just Google “year-end fundraising.” You’ll get over 20 million results!

Unfortunately, despite all of the terrific how-to articles, blog posts, books, webinars, and seminars, most nonprofit organizations continue to make a massive year-end fundraising mistake:

They overlook planned giving.

When developing a year-end fundraising strategy, most charities fail to include planned giving for a variety of reasons including:

  1. They don’t have a planned giving program.
  2. They think all planned gifts are deferred.
  3. They think that planned gifts are not time-of-year sensitive.

Let’s take a moment to look at the above reasons more closely.

Keep Calm - Management Center Mugs by Howard Lake via FlickrIf your charity does not have a planned giving program, it probably should, assuming you have individual donors. The effort does not need to be elaborate or fancy. The most common planned gift is the simple Charitable Bequest through the donor’s will.

While Bequests are the most common type of planned gift, not all planned gifts are deferred. Don’t over think it. Planned gifts are simply any gift that requires planning. Here are some examples of planned gifts that result in current, rather than deferred, giving:

Gifts of appreciated stock or property (i.e.: real estate, art, collectibles, etc.):

When a donor makes a gift of appreciated stock or personal property, she can avoid capital gains tax and receive a charitable gift deduction. Sadly, many fundraising professionals believe that individuals with appreciated stock or property somehow already know about the advantages of gifting such assets. However, that’s not always the case. Consider this true story from my book, Donor-Centered Planned Gift Marketing:

A member of the board of a scholarship foundation was approached at a cultivation event by a modest donor who wanted to give a $5,000 cash gift. The board member thanked the donor but asked, ‘Do you own any appreciated stock?’ The donor was a bit puzzled by the question, but replied, ‘Yes, I do. Why do you ask?’ The board member then explained that if the donor contributed appreciated stock valued at $5,000, rather than cash, she could avoid the capital gains tax, thereby resulting in a savings. The donor replied, ‘I can avoid giving my money to the government, by giving the foundation stock? That’s a great idea! And, since I really don’t need the money, why don’t I just increase my gift by the amount I’ll save in taxes?’ She did exactly that. However, her generosity did not end there. She was so moved by the work of the foundation and the good advice she had received that allowed her to avoid some capital gains tax that she consulted with her family and her advisors eventually giving over $15,000 to create a namesake scholarship fund.”

Since over half of all Americans own stock (Gallup, 2015), it’s very likely that some of your donors are in a position to donate appreciated securities to your organization. They just need to understand how they can benefit and what the mechanics are.

Gifts from a Donor Advised Fund:

September 3, 2015

Are You Smarter than a Fourth Grader?

A few weeks ago, I got to spend time with my niece Nicole and nephew Evan who were visiting Philadelphia before the start of the new school year in Florida. They’re wonderful kids, and it was great seeing them.

Evan by Michael Rosen

My nephew, Evan.

One evening when 9-year-old Evan and I were hanging out, I decided to ask him an odd question to see where it might go:

If you wanted someone to give you money, what would you do?”

Evan, who just entered the fourth grade and has no fundraising experience, replied:

I’d ask them.”

Bingo! Evan instinctively knows one of the fundamental rules of fundraising: If you want donations, you have to ask for them.

So, are you smarter than a fourth grader?

Since you’re reading this post, I’m going to assume you know the general importance of the ask in the fundraising process. However, knowing and doing are two different things. So, let me ask you a few more questions:

Do you ask for planned gifts?

While 88.7 percent of people surveyed say that it’s appropriate for a nonprofit organization to ask for a legacy gift, researchers found that only 22 percent of those over the age of 30 have been asked. In other words, there are a huge number of people who are willing to be asked for a planned gift but who are not.

Even among those charities that do ask people to make a planned gift, the ask is reserved for a very narrow group of prospects that might include major donors, board members, and people who have requested planned giving information. Those asks are most often made during face-to-face visits.

On the other hand, wise organizations also use direct mail and the telephone to reach out to a broad number of prospects to ask them to make a planned gift commitment.

One smart nonprofit organization that has successfully used direct mail to ask for legacy gifts is the Natural Resources Defense Council. They did two mailings involving a total of 50,000 pieces that generated $8.5 million in bequest commitments. You can see a sample of the mailing by clicking here.

A university in Texas targeted 7,000 alumni with a mail promotion for Charitable Gift Annuities, following up direct-mail-generated leads with phone calls that resulted in $730,000.

An orchestra in the Pacific Northwest implemented a coordinated mail/phone campaign involving 2,200 prospects in an effort that produced an estimated $2 million in bequest expectancies.

If your organization wants more planned gifts, you need to ask more people to give. While face-to-face asks will always be important, you can ask far more people by using direct mail and the phone as well, just like your organization does for the annual fund.

You can find more details about the examples I’ve cited, additional examples, and helpful tips in my award-winning book Donor-Centered Planned Gift Marketing.

Do you ask supporters to enroll in a monthly-giving program?

In 1989, I predicted that virtually every charity would have a monthly-giving program within five years. Sadly, I could not have been more wrong. I shouldn’t have been, but I was. Now, more than a quarter-century later, shockingly few charities ask supporters to give monthly.

A great way to enhance your organization’s donor-retention rate while upgrading the amount of support from donors is to ask donors to give monthly.

Some of my friends and I believe so strongly in the power of monthly giving that we participated in this short, light-hearted video on the subject:

If you’re not asking your supporters to give monthly, you’re organization is missing a great opportunity. For powerful advice on how to run a monthly-giving program, checkout Harvey McKinnon’s book Hidden Gold, and Erica Waasdorp’s book Monthly Giving: The Sleeping Giant.

Do you ask donors to upgrade their support?

June 30, 2015

Free Webinar Will Help You Get Great Results

Fundraising can certainly be challenging. Have you ever wondered:

  • How can I raise more money at little or no extra cost?
  • Is my organization ready for a planned giving program?
  • What simple planned giving vehicles should I promote?
  • What is my organization’s Bequest giving potential?
  • Who are my best planned giving prospects?
  • Do I need to be an expert to do planned giving?
  • What motivates planned giving donors?
  • How should I ask for planned gifts?

If you’ve ever asked yourself any of those questions, then I have the perfect free webinar for you.

FreeI’m presenting “Planned Giving: It’s Easier than You Think!” During my free webinar, hosted by Wild Woman Fundraising, you’ll get answers to all of the above questions and more. In short, you’ll learn how to easily launch and grow a successful planned giving program.

For many nonprofit professionals, planned giving sounds complicated, with its CRUTs, CRATs, CLUTs, and CLATs. Admittedly, gift planning can indeed be incredibly complex. However, as this free webinar will demonstrate, it does not have to be. Furthermore, a planned giving program can be enormously worthwhile for virtually any organization, even those with little or no budget for it.

For valuable tips to help you grow your planned giving results, register for my free webinar today, “Planned Giving: It’s Easier than You Think!” [July 17, 2015, 3:00-4:00 PM (EDT)]. To register, CLICK HERE.

As a webinar participant, you will receive a number of bonus handouts including:

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