Posts tagged ‘gift planning’

November 15, 2016

Will the Election be Good or Bad for #Fundraising?

[Publisher’s Note: This is not a political or partisan post. Instead, this post will explore the affects the recent presidential election is likely to have on fundraising and philanthropy in the short-term and beyond. As always, civil and on-topic comments are encouraged, whether or not you agree with the points covered in the post. However, overtly political or partisan comments will not be published nor will the rants of internet trolls.]

 

Donald J. Trump appears to have secured enough electoral votes to become the USA’s 45th president. His election will become official when the Electoral College votes on Dec. 19, 2016.

After a bruising, though not unprecedented, election cycle, the nation remains deeply divided and emotionally raw. What does this mean for fundraising and philanthropy?

Impact of Election Donations on Charitable Giving:

At the 2016 Association of Fundraising Professionals International Fundraising Conference, research from Blackbaud was presented that looked at the impact of political giving on charitable donations in the 2012 election cycle.

Chuck Longfield, Senior Vice President and Chief Scientist at Blackbaud, observes:

Fundraisers have long debated whether or not political fundraising affects charitable giving and, for decades, important fundraising decisions in election years have been based largely on the conventional belief of a fixed giving pie. The study’s overall assertion is that political giving during the 2012 election did not, in fact, suppress charitable giving. Donors to political campaigns continued their support of charitable causes.”

According to the study, donors who gave to federal political campaigns in 2012 gave 0.9 percent more to charitable organizations in 2012 compared to 2011. By contrast, donors who did not give to political campaigns reduced their giving to charities in 2012 by 2.1 percent. These data findings held true across all sub-sectors as well as the demographic segments of age range, household income, and head of household gender.

The research only provides us with a snapshot. It is not predictive. More research will need to be done to identify whether or not the results will be consistent over multiple election cycles. However, based on the analysis of the 2012 campaign cycle, we certainly have room to be cautiously optimistic about 2016.

Year-End Giving:

If history is an indicator, the 2016 election will have little or no impact on overall year-end philanthropy, according to Patrick Rooney, Ph.D., Associate Dean for Academic Affairs and Research at the Indiana University Lilly Family School of Philanthropy.

voting-by-becky-mccray-via-flickrAt times, elections have had an effect on the giving of some individuals. For example, in 2008 when Barack Obama was elected, some major donors feared that he would secure a 28 percent cap on tax deductions.

Out of fear that the cost of giving would, in effect, be going up in 2009, some of these individuals front-loaded their 2009 philanthropic support to 2008 year-end. Nevertheless, the impact on overall giving was modest.

While Trump has promised major tax reform, it’s doubtful that donors will expect significant changes to the tax code to be enacted and go into effect in 2017. Therefore, it’s equally doubtful that major donors will shift 2017 giving into 2016.

Given that the 2016 election was unusual in many ways, it is certainly possible that year-end giving will deviate from the historical norm. For example, the stock market reached a record level following the election. If stock values continue to grow, we could see an increase in year-end gifts of appreciated securities. However, regarding overall philanthropy, I think the smart bet is on history.

Giving to Individual Charities:

It is very likely that certain individual charities will see an uptick in donations as a result of the election outcome.

Many years ago, Richard Viguerie, a pioneer of conservative direct response fundraising and Chairman of ConservativeHQ.com, said that people would rather fight against something than for something. We’ve seen it before; we’re seeing it now.

For example, when Obama was elected, the National Rifle Association received significantly more contributions as some feared that the new president would impose more stringent gun control measures.

Now, Kari Paul, of MarketWatch, reports:

November 8, 2016

Are You Forgetting Something as Year-End Approaches?

It’s that time of year once again. #GivingTuesday and December 31 are fast approaching. All charities are looking for year-end donations. However, are you forgetting something important?

If you want to maximize year-end giving, you must seek planned gifts. Remember, not all planned gifts are deferred gifts; many are current contributions. Here are some types of planned gifts you should be asking for, even if you don’t have a formal planned giving program:

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

By making a donation using appreciated stock or personal property, a donor can avoid capital gains tax and receive a charitable gift deduction. Because over half of Americans own stock (Gallup) and because the stock markets are at or near record highs, now is a great time for donors to contribute appreciated securities. Likewise, real estate values have generally seen significant rebounds since the Great Recession, meaning real estate gifts are an excellent option for some donors.

Gifts from a Donor Advised Fund:

Many donors have established a Donor Advised Fund. In 2014, there were over 238,000 Donor Advised Funds (National Philanthropic Trust, Donor Advised Fund Market Report 2015). DAFs “account for more than three percent of all charitable giving in the United States.”

pot-of-goldIf you’d like to learn more about how DAFs work, you can download the free FAQ sheet from DAF Direct by clicking here.

If you know that a donor has established a DAF, ask him to designate your charity for a grant. In your newsletter, include a story about a supporter who has given through her DAF. On your website, include a Donor Advised Fund widget to make it easy for your donors to designate a gift to your charity.

To see how International Planned Parenthood Federation / Western Hemisphere uses the DAF Direct widget, click here. To see how the UNICEF United States Fund has deployed the widget, click here. For information about how to get the Donor Advised Fund widget for your organization’s website, click here.

Gifts from an IRA Rollover:

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:

August 5, 2016

The #Fundraising Secret for Success You Need to Know

What’s the secret to fundraising success?

Ice cream!

That’s right. Ice cream can help you achieve greater fundraising results. Really. I’m not just saying that because it’s August, and we’re setting new records for summer heat in Philadelphia. I know ice cream can help you because I saw first-hand what it has achieved for Smith College.

Let me explain.

This past Spring, my wife and I attended her class reunion at Smith. I enjoyed being with Lisa, and exploring the beautiful campus and the fun town of Northampton, Massachusetts. One of the highlights for me was seeing the College’s Gift Planning staff in action. Yes, I’m a bon-a-fide fundraising nerd, but you probably knew that already.

Sam Samuels, Christine Carr Hill, and Jeanette Wintjen staff the Smith College ice-cream stand during Reunion Weekend.

Sam Samuels, Christine Carr Hill, and Jeanette Wintjen staff the Smith College ice-cream stand during Reunion Weekend.

I’m not talking about seeing the staff in action at the mildly stuffy, but well presented, Grécourt Society reception for legacy donors. Instead, I’m referring to the ice-cream stand that the Gift Planning staff operated in the Smith College Campus Center one warm mid-day. As the staff served up the free tasty treats, they had a chance to interact with alumnae. When appropriate, the staff, wearing aprons and serving up the ice cream themselves, was able to casually explain what The Grécourt Society is, why legacy giving is important to Smith, and how alumnae can support the College with a planned gift. At the ice-cream stand, there was also a table of gift planning promotional material.

This was a great way to showcase gift planning in a friendly, pressure-free, guilt-free, fun environment. Sam Samuels, Director of Gift Planning, told me that the ice-cream stand not only allowed the staff to educate, cultivate, and thank people, it actually led to a number of planned-gift commitments during the reunion weekend.

Now, I’m not suggesting you go out and set up an ice-cream stand. However, if we examine why the ice-cream stand worked, there are some things you can learn that will help you reach your fundraising goals.

Here are five things you need to know:

1. KISS. In 1960, the US Navy noted the design principle “Keep it simple, Stupid!” That’s what we see with the ice-cream stand. The Smith staff did not over think it; however, they certainly did the planning necessary to make it work. But, the concept itself was simple. It wasn’t a fancy dinner or a posh reception to educate and cultivate prospects, though such events have their place. And Smith did some of those as well. However, this simple activity allowed the staff to reach a broader audience in a low-key fashion.

2. Lifestyle Enabling. The Smith staff put themselves in the shoes of their prospects and donors. In other words, they were donor centered when thinking about how to attract the attention of potential planned gift donors. Instead of trying to get donors to attend an estate-planning seminar (yawn), the staff thought about how to meet the needs and desires of the alumnae. Most folks like ice cream. So, the staff chose to do something that would meet alumnae where they were (in or near the Campus Center), and give them something they would likely want (a cool lunchtime treat on a warm day). The ice cream stand also harkened back to the days when, as students, they would meet up with friends for ice cream at the student center. In short, Smith helped the alumnae live the life they want. That’s what drew in the alumnae.

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”?

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.

March 22, 2016

There’s Something Important You Need to Do Before You Can Raise More Money

Do you want to acquire more new donors?

Do you want to retain more existing donors?

Do you want to upgrade the support from more of your donors?

Do you want to get more planned gift commitments?

To achieve any of those goals, there’s something essential you must first do. You need to build trust. Trust is the cornerstone of all fundraising success.

Consider what noted philanthropy researchers Dr. Adrian Sargeant and Dr. Jen Shang have written on the subject:

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 affects both willingness to give and the amount of giving.

TrustIf you’re like most fundraising professionals, you instinctively understand the importance of establishing trust. However, what are you actually doing to build and maintain it?

Sadly, many nonprofit professionals think that trust is automatic. If your organization has existed for a reasonable period of time and if it has had some demonstrable success at fulfilling its mission, fundraisers may be lulled into the belief that trust already exists. Therefore, organizations spend little effort building trust and, instead, focus their energies and resources on making funding appeals. Unfortunately, the result is usually underperformance and occasionally disaster.

As I mentioned in a recent post, a cancer charity in Scotland was involved in a major scandal several years ago. Unfortunately, the fallout from that scandal negatively affected many unrelated charities throughout Scotland as public trust in the charity sector suffered greatly. As a result, some charities reported a 30 percent downturn in contributions in the months following the controversy. To restore the public trust, Scotland’s charities and the Institute of Fundraising joined forces to get people meaningful information and provide them with assurance about the trustworthiness of the charity sector. It took several months to rebuild trust. As trust was restored, giving began to return to normal.

By investing in efforts to establish and grow trust, nonprofit organizations will yield far greater fundraising results and protect themselves from an unforeseen public relations challenge.

So, recognizing that building and growing trust is essential for success, and fragile once established, what can charities do to develop trust?

Fortunately, building trust does not have to be complicated or expensive. Sales guru Tom Hopkins identifies three simple steps:

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:

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