Posts tagged ‘planned giving’

September 18, 2020

Should You Forget about Planned Giving as 2020 Closes?

Garvin Maffett, EdD, a strategic consultant in the nonprofit sector, recently asked the members of the CFRE International Network on LinkedIn:

What’s on the horizon for Gift Planning during this uncertain time in our economy?”

It’s a good question, and I thank Maffett for starting a needed discussion. Some fundraising professionals have wondered whether they should rollback planned gift marketing during the pandemic, or whether they should boldly engage in more robust charitable gift planning efforts.

My simple answer is this: You should definitely NOT forget about planned giving as 2020 draws to a close. While the economic future is definitely uncertain, now is a fantastic time for charitable gift planning. Let me explain.

The stock market, while volatile, continues on an upward trajectory. Most Americans own stock. Many of those who own stock have seen appreciation this year. This means there is a great opportunity for you to secure gifts of appreciated stock for your organization.

Motivated by the coronavirus pandemic, many more people have chosen to write a Will. With more people making end-of-life plans, there is an opportunity to encourage them to include a gift to your charity in their Wills.

As the COVID-19 pandemic has people contemplating their own mortality, life insurance sales have increased. This presents you with an opportunity to encourage beneficiary designations for your nonprofit.

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July 28, 2020

You Do Not Want to Miss This

I want to let you know about a great opportunity.

Every summer, the Association of Fundraising Professionals Greater Tampa Bay Chapter and the Charitable Gift Planners of Tampa Bay join forces to host a planned giving symposium. Unfortunately, due to the COVID-19 pandemic, this year’s in-person conference on August 18 is being replaced with an online symposium. While this is disappointing for the good people of the Tampa Bay region, it’s great news for fundraisers around the world who will now be able to participate in the program.

Philanthropy researcher Dr. Russell N. James III, JD, CFP® and I are honored to be the featured presenters for the conference. Here are the details:

2020 VIRTUAL PLANNED GIVING SYMPOSIUM ~ THE ART AND SCIENCE OF PLANNED GIVING

TUESDAY, AUGUST 18, 2020

9:00 AM – 11:30 AM (EDT)

SESSION 1: Legacy Fundraising — The Best of Times or the Worst of Times?

PRESENTER: Michael J. Rosen

Pandemic. Protests. Riots, Looting. Unemployment. Recession. Those are some of the words that we can use to describe much of 2020. So, considering this chaotic environment, can you seek legacy gifts now or should you wait? Rosen, a consultant and author, will share the research-based risks and opportunities. He’ll examine a real world case of what not to do. In addition, he’ll provide useful, easy to implement tips on what you can do to help reach your planned giving objectives even during challenging times.

SESSION 2: Using Storytelling in Legacy Fundraising — New Findings, Ancient Origins and Practical Tips

PRESENTER: Russell N. James III, JD, PhD, CFP®

Connecting with the donor’s life story in the right way can be a powerful trigger for legacy giving. But, how do we do that? Professor James shows how understanding the ancient origins and the latest research findings leads to simple, effective, practical techniques that anyone can use to more effectively encourage gifts in wills.

SESSION 3: An Open Conversation with the Planned Giving Experts James and Rosen

In an informal conversation, James and Rosen will answer your questions about planned giving. This interactive session gives you the opportunity to ask the experts for insights and tips to help you enhance your gift planning efforts.

FEE: For members of AFP-GTBC or CGP-TB, the symposium fee is $10. For all others, the fee is $15.

REGISTRATION: For more information and to register, you can go to the AFP-GTBC website or the CGP-TB website.

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April 10, 2020

Legacy Fundraising: The Best of Times or the Worst of Times?

Over the past couple of weeks, social media, the blogosphere, and countless webinars have pondered the question: Is this the best or worst of times for legacy fundraising? Unfortunately, despite the high volume of opinions circulating, a view grounded in science has yet to emerge. So, philanthropy researcher Russell N. James III, JD, PhD, CFP® and I teamed up to prepare a special white paper for you that analyzes the current legacy-giving environment and reveals to you a path forward that we base on fact rather than emotional whim.

This blog post provides you with the full paper, nearly 5,000 words, with all of its insights and tips. In addition, you can download the PDF version for FREE. You may want to share the white paper PDF with your CEO, CFO, and board leadership.

Because of the unusual length of this post, I won’t offer any additional introductory comments other than to say that Russell and I are available for speaking engagements, training sessions, consultation, and interviews to address this and other relevant subjects. For more information, please contact me.

Now, here is the complete white paper:

 

Legacy Fundraising: The Best of Times or the Worst of Times?

Russell N. James III, JD, PhD, CFP® and Michael J. Rosen

The death media currently inundate us with panic-inducing news. Ubiquitous reports about the spreading coronavirus (COVID-19) pandemic. Daily death tolls. Images of people in masks or complete hazmat suits. Talk of overwhelmed hospitals. News of quarantined regions and nations.

What should a legacy fundraiser do in the midst of a societal crisis? Stop communicating altogether? Make a last-minute push to get into a donor’s Will before it’s too late? Something in between? All of the above?

To get some guidance, it helps to start with a bit of social-science theory, a look at recent financial history, and early empirical data.

Social-Science Theory

We start with social-science theory because it’s actually quite useful to first understand what we know about how people react to reminders of death.

An entire field of experimental psychology focuses on this very topic. Scientists call it Terror Management Theory. This field has produced many hundreds of experimental results. Therefore, we know quite a lot about what happens when you remind people that they are going to die.

There are many technical books and papers on the subject. Google Scholar lists 12,500 of them. Here’s a quick summary. Death is a problem. People use two solutions:  1) ignore the problem, or 2) live on after death. Allow us to explain.

The Two Defenses to Death Reminders

People respond to death reminders with two stages of defense. The first stage (proximal) defense is avoidance. Avoidance comes from a desire to suppress the reminder. This suppression can be expressed in many ways. For example, it might involve physically moving away from the reminder (e.g., avoiding strolling past a hospital or cemetery when taking a walk). It might involve denigrating a mortality reminder’s validity or personal applicability (e.g., it can’t happen to me). It might be dismissing the subject with humor (e.g., the film Death at a Funeral).

The second stage (distal) defense is pursuit of symbolic immortality or lasting social impact. When avoidance doesn’t work, then we must somehow deal with our own earthly impermanence. We deal with this by latching on to those things that will remain after we are gone. In other words, I may disappear, but some part of my identity – my family, my values, my in-group, my people, my story, my causes – will remain.

People don’t treat personal death reminders in the same way they treat other pieces of objective information. In legacy fundraising, it has always been important to understand this. These two underlying defensive responses help to explain how people will respond.

Death Just Got Way More Offensive

In experiments, personal death reminders ramp up avoidance responses. The more death reminders, the more avoidance people will exhibit. Right now, COVID-19 news engulfs our audiences in personal death reminders. For many people, this will make any death-related communications aversive.

(Interestingly, people will gladly read the latest news headlines as a means of pursuing avoidance. People hunger for details on how to avoid the death risk. They will support strong action that promises the same. Others may even pursue avoidance by putting unwarranted faith in untested treatments or unproven protocols.)

In addition to people living in an environment that stimulates greater levels of death avoidance, current conditions cause individuals to feel less of an emotional sense of wellbeing.

Dr. Jen Shang, a philanthropic psychologist and co-founder of the Institute for Sustainable Philanthropy, among other social scientists, believes that wellbeing involves three essential characteristics:

  • autonomy – a sense of control
  • connectedness – the quantity and quality of relationships
  • competence – effectiveness

The more autonomous, connected, and competent people feel, the greater sense of personal wellbeing they will feel. Conversely, when people feel those qualities eroding, they will feel a decline in wellbeing.

In addition to the physical health risks associated with the novel coronavirus pandemic, people are experiencing psychological stress. Many individuals feel that current events are overwhelming them, knocking them out of their routines, and causing them to lose control of their professional and personal lives. With the uncertainty of the near-term, it’s not surprising that people would feel they have lost a great deal of control over their lives.

As the pandemic leads government officials to suggest or order people to stay at home, practice social distancing, and limit even essential activities such as grocery shopping, people are losing their sense of connection to other people including neighbors, extended family members, friends, colleagues, and more.

During the coronavirus pandemic, people are grappling with their feeling of competency when facing new conditions. Many have set-up a home workspace for the first time. Others are learning new technologies to communicate more effectively with others.

People want to have a sense of wellbeing. The more autonomy, connectedness, and competency they feel, the better they will feel. Generally, people will seek to engage in behaviors that enhance their sense of wellbeing. Furthermore, they will appreciate individuals and organizations that help them obtain greater wellbeing.

So, what does all of this mean for legacy fundraising (i.e., a key type of planned giving)? To begin, it means the following:

  1. Legacy fundraising communications that “lead with death” need to be shelved.

Many fundraising professionals are accustomed to being direct. Being blunt. Making the ask. Making it early and often. That may be fine for some types of fundraising. While this type of approach was often less than ideal for legacy fundraising prior to the pandemic, this is even more true right now. This is not the time to lead with death. In normal times, this will create some pushback. In these times, expect it to create massive pushback.

Yes, you should absolutely communicate with your organization’s supporters. Moreover, those communications should be about delivering value to the donor. Through your outreach, you should strive to enhance each individual donor’s sense of wellbeing.

  1. Now is the time to be “top of mind.”

Most people tend to put off estate planning in normal times. For example, in the U.S., most adults over 50 have no Will or Trust documents. From what we know about avoidance, such delay is no surprise. But, from a massive longitudinal study in the U.S., we also know when those plans are made and changed. The typical triggers for planning fall into one of two camps, family structure changes or “death becomes real.” Family structure changes include marriage, divorce, birth of first child, birth of a first grandchild, and widowhood. “Death becomes real” includes diagnosis of cancer, heart disease, stroke, moving to a nursing home, or actually approaching death (measured retrospectively).

Right now, many people are living the “death becomes real” experience. Consequently, there is a major upsurge in Will document completions – particularly online. Some sites are reporting greater than 100 percent week-over-week increases in completed documents.1 The Remember a Charity website, which promotes legacy giving for the U.K. charity sector, has experienced twice as many people visiting its “Making A Will” page as would do so normally.2

As “death becomes real,” people are also increasingly expressing interest in life insurance.3 One online life insurance agency saw the most ever monthly applications and sales in March 2020 as the coronavirus pandemic gained traction. Another online life insurance agency saw an increase in applications of more than 50 percent since February.

We know from experimental research that the charitable component of an estate plan is, for many people, highly fluid. In one experiment with British solicitors (lawyers), simply asking the question, “Would you like to leave any money to charity?” more than doubled the share of people including charitable gifts in their Will documents. Even small alterations in the wording used to describe such gifts results in dramatic changes in both charitable intentions and actual document contents.

For a charity, being “top of mind” at the moment in which people are actually planning is absolutely critical. More people are planning right now than in any normal time. Clearly, this is the ideal time for your charity to be communicating about gifts in Wills and even beneficiary designations. However, the language of how you communicate is most critical.

When viewed through the social scientist’s lens of individual wellbeing, the enhanced interest in estate planning is not surprising. Drafting a Will or purchasing a life insurance policy is a way for someone to feel a sense of autonomy or control over the current situation. Through these actions, they can enhance the feeling of attachment from relationships with those they love as they make plans to take care of these people. When successfully achieving their estate planning objectives, including supporting values and causes that have been important in their lives, individuals will feel an elevated sense of competency. In other words, a major reason we now see a spike in interest in Wills and life insurance is that it gives people an enhanced sense of wellbeing.

If communications from charities also enhance a donor’s sense of wellbeing, organizations may find that their donors will have greater interest in supporting them with a commitment in a Will or through a life insurance beneficiary designation. In other words, helping a donor feel better may ultimately benefit the charity.

The Best of Times, the Worst of Times

Is this the best time or the worst time to be communicating about legacy gifts? Actually, it is both.

People are planning like never before because they seek to take care of their families, usually the first priority of those doing estate planning even in the best of times. The challenge for charities is that we need to be at the top of their minds when people are ready to make their plans. It’s definitely the best time for legacy fundraising. Furthermore, by engaging people, fundraisers have an opportunity, like never before, to perform a real service by helping donors enhance their feeling of wellbeing.

On the other hand, talking about legacy planning can be offensive like never before. People are emotionally-poised to lash out strongly against such death reminders. Take one step in that direction and the risk-averse herd animal known as your executive director will be ready to end your career. It can very-well seem like the worst time for legacy fundraising, particularly when done the wrong way.

We’re not talking about opposing camps. Instead, individual donors are experiencing both of these paradoxical orientations to one degree or another.

The Direct Route is Closed. Now What?

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December 27, 2019

Here are Some Things You Might Have Missed

As 2019 comes to a close, we have a chance to catch our breath and reflect on the previous 12 months. So, I thought I would take a bit of time to share with you some items you might have missed during your busy year. In addition, because some readers have asked about my ongoing battle with cancer, I also want to take this opportunity to update you on my personal situation.

Top 100: Charity Industry Influencers:

One news item in 2019 that might not have caught your attention was the publication of Onalytica’s list of “Top 100: Charity Industry Influencers.” The Onalytica algorithm ranked me number 16 in the world! I found that exciting and, frankly, just a bit scary. I’ll have to be even more careful about what I say. 🙂

Top Blog Posts:

Because I recognize that you can’t read everything that crosses your desk, I’ve put together a list of my top ten most-popular posts published in 2019 in case you’ve missed any of them:

I Told You So: Charitable Giving is Up!

How to Stop Offending Your Women Donors

High Fundraiser Turnover Rate Remains a Problem

Are Donors Abandoning You, Or Are You Abandoning Them?

Do You Want to Know the Latest, Greatest Fundraising Idea?

Do Not Fall for Newsweek’s Fake News!

3 Reasons Why Your Year-End Fundraising Will Fail

Who are Your Best Planned Giving Prospects?

Know When to Stop Asking for Money

Inspired by Lady Gaga: 10 Ways to be a Fundraising Genius

Here’s a list of five of my older posts that remained popular in 2019:

Here is One Word You Should Stop Using

Can You Spot a Child Molester? Discover the Warning Signs

Can a Nonprofit Return a Donor’s Gift?

5 Things Never to Do in Your Phone Fundraising Calls

Impact of Nonprofit Sector: More Than Most People Think

I invite you to read any posts that might interest you by clicking on the title above. You can also search this blog by topic using the site’s search function (either in the right column or below).

Blog Site Recognition:

Over the years, I’ve been honored to have my blog recognized by respected peers. I’m pleased that, among the thousands of nonprofit and fundraising sites, my blog continues to be ranked as a “Top 75 Fundraising Blog” – Feedspot, “Top Fundraising Blog” – Garecht Fundraising Associates, and “10 Fundraising Blogs You’ll Love” – Stelter.

To make sure you don’t miss any of my future posts, please take a moment to subscribe to this site for free in the designated spot in the column to the right (or, on mobile platforms, below). You can subscribe with peace of mind knowing that I will respect your privacy. As a special bonus for you as a new subscriber, I’ll send you a link to a free e-book from philanthropy researcher Russell James, JD, PhD, CFP®.

Articles in AFP’s Magazine, Advancing Philanthropy:

In 2019, I was pleased to have three of my articles published in Advancing Philanthropy, the official magazine of the Association of Fundraising Professionals:

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November 15, 2019

Fundraising Reality Check: 5 Things You Need to Know

A number of myths continue to persist in the fundraising world. While I can’t debunk all of them here, I can deliver a reality check for five important items that I’ve encountered recently when talking with fellow fundraising professionals:

Myth 1: Most People Do Not Own Stocks

Reality Check: The fact is that a majority of Americans own stocks in one form or another. Gallup found that 55 percent of Americans have stock market investments. The greater one’s income, the more likely they are to own stock.

While the stock markets remain volatile, they continue to set new records. In other words, many charity donors own appreciated securities. Under the current federal tax code, anyone can benefit by contributing appreciated stock to a nonprofit organization. That’s because donors of appreciated stocks can avoid paying capital gains tax even if they are non-itemizers who take the standard deduction.

If you’re not asking your prospects and donors to donate appreciated securities, you’re not serving them well and you’re missing out on donations that could be quite significant. So, be sure to let people know that your organization accepts stock gifts, what the benefit is to donors of contributing stocks, and how they can gift stocks.

Myth 2: Giving Tuesday Will Help You Raise Tons of Money

Reality Check: I’m not opposed to #GivingTuesday. My problem with it is that many charities invest an amount of staff and budget resources that will never be justified by the return. In 2018, US charities raised $380 million, reports the Nonprofit Source. For perspective, that’s just 0.089 percent of overall philanthropy for the year. Furthermore, while 63 percent of Giving Tuesday donors give only on Giving Tuesday, we really don’t know if that’s a correlation or a causality; many of those donors might have given anyway on another day.

If you’re going to implement a Giving Tuesday appeal, do it the right way:

  • Have realistic expectations and invest resources accordingly.
  • Remember that a date on the calendar is not a case for support. Don’t ask people to give to your organization just because it’s Giving Tuesday. Let them know what problem their gift will address.
  • Have a thank-you and stewardship plan in place if you want to retain and eventually upgrade Giving Tuesday donors.

Myth 3: Charities Can Ignore Donor-Advised Funds

Reality Check: Okay, charities can ignore Donor-Advised Funds. However, they should not. DAFs accounted for 12.7 percent of overall philanthropy in 2018 compared with just 4.4 percent in 2010, according to The National Philanthropic Trust’s The 2019 DAF Report. In other words, DAF grant payouts totaled $23.42 billion. Total DAF charitable assets were $121.42 billion and climbing. The number of DAF accounts in 2018 was 728.563, a 55.2 percent increase over 2017.

The simple fact is that DAFs continue to grow in significance year after year. More and more donors are creating DAFs. You need to make it easy for people to recommend grants to your charity. You need to properly steward DAF donors and those who recommend DAF grants. You need to keep track of which of your supporters has established a DAF. You need to remind people that, if they have a DAF, they can recommend your charity for a grant.

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October 25, 2019

Do You Want to Know the Latest, Greatest Fundraising Idea?

When I’m invited to speak at professional gatherings, I’m asked frequently to talk about the latest, greatest ideas that will help nonprofit organizations raise more money. I’m never surprised. For many years, I’ve talked with fundraising professionals who attend conferences, participate in webinars, and read publications in a grand quest for the new shiny idea that will result in massive fundraising growth.

Recently, I read some tweets from three fundraising experts related to the search for fundraising’s Holy Grail. While these colleagues and I all embrace innovation, we also share a common belief about what will allow fundraising professionals to be more successful immediately. Here it is:

Master the fundraising fundamentals.

Here’s what T. Clay Buck, CFRE; Andrew Olsen, CFRE; and Tom Ahern all tweeted this month:

Let me demonstrate what I mean by “master the fundamentals.” In a planned-gift marketing seminar I presented a few years ago, I shared a variety of ideas for promoting planned giving. I knew I had a diverse audience, so I provided both simple and sophisticated ideas. While my suggestions were certainly not revolutionary, some of them did push the envelope of current practice.

Following my talk, a fellow came up to me and said, “You didn’t say anything I didn’t already know.” Ouch! That’s not the feedback I like, even if it was just one person’s opinion. I always want everyone to come away from my seminars with at least one terrific idea.

After receiving the stinging feedback, I said to the man, “I’m sorry to hear that you didn’t get any fresh ideas. However, I’d love to hear about how you’ve used the phone to market bequests.”

He replied, “I haven’t implemented a phone program.”

“Ok, then tell me how your direct mail campaign has done,” I requested.

“I haven’t done a planned gift mailing,” he responded.

“Ok, then tell me about your website and how it allows you to track and rate visitor interaction,” I requested.

“Our website isn’t that sophisticated,” he said.

The conversation continued in that vein. The point is that this fellow knew what he should or could be doing, but he was not doing it! He had not fully embraced the fundamentals of planned-gift marketing yet he was searching for new ideas, a planned giving Holy Grail. If he would simply implement one of the ideas I had talked about, his planned giving results would have been much stronger.

The fundamentals matter. To be successful, fundraising professionals need to learn the basics and embrace them. Doing so could add up to billions of dollars for the nonprofit sector.

Do you want more money for the annual fund? Then tell me, do you have a monthly donor program? Do you do second-gift appeals? Do you do targeted upgrade appeals? Do you effectively steward gifts to ensure a high donor-retention rate? Do you use database analytics to help you better target asks, even in your direct mail appeals?

Do you want more planned gifts? Then tell me, do you have a sophisticated website that allows you to track individual engagement and then rate prospects based on that? Do you use direct mail to generate bequest commitments and leads? Do you use the telephone to generate planned gifts and leads? Do you use surveys to learn more about prospects while engaging them?

Do you want more corporate support? Then tell me, do you offer something of value to your corporate donors or do you simply expect them to “give back”? Do you only go after the usual suspects or do you also approach the profitable, rapidly growing small and mid-size businesses in your community? Do you just ask or do you cultivate and engage as well?

Don’t get me wrong. Once again, I’m a big fan of fresh ideas and cutting-edge research. Again, so are Buck, Olsen, and Ahern. However, learning without doing accomplishes nothing.

Everyone seeking to work as a fundraising professional should learn the fundamentals so they can effectively identify prospects, educate and cultivate them, ask for gifts, and properly steward supporters.

Implementing relatively simple, small changes can yield big results for your nonprofit organization. Virtually every charity has low-hanging fruit. But, you actually have to go and grab it!

Here are five simple steps, that I outlined several years ago, that you can take now:

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October 8, 2019

It’s All Up to You Now

It’s that time of year once again. It’s the season when most charities raise the most amount of money, perhaps because that’s when most fundraising activity happens. However, how tough will it be to raise money as the end of 2019 approaches?

You might be concerned about a recession on the horizon. You should be. We’re experiencing a record for sustained economic growth that quite simply can’t go on forever. A recession is bound to hit eventually even without factoring in trade wars, political turmoil, disruptions to the global oil supply, and the threat of foreign wars.

Among ultra-wealthy Americans, those with an average worth of $1.2 billion, 55 percent believe the US will enter a recession within the next year, according to the UBS Global Family Office Report. About 45 percent of respondents are sufficiently concerned that they are boosting their cash reserves, and 45 percent are realigning their investment strategies to mitigate risk.

While recession fears loom, a major economic downturn has yet to take shape. In other words, the economic climate is currently good from a fundraiser’s perspective. Could it be better? Sure. Always. But, it’s plenty good enough for you to anticipate a successful year-end fundraising effort. Consider some of the following six economic factors (as of Oct 4, 2019):

Gross Domestic Product. GDP is growing at a rate of 2.0 percent. Overall philanthropy historically correlates closely with GDP. So, if GDP goes up, we can anticipate that philanthropic giving will also increase.

Unemployment. The national unemployment rate is 3.5 percent, the lowest since 1969. If more people are working, more people will likely have funds with which they can donate.

Wages. Wages have increased 2.9 percent over 2018. Individual giving closely correlates to personal income. So, if personal income is rising, we can anticipate a rise in individual philanthropy.

Stock Market. The stock market, while volatile, has been performing well. This year, the Dow is up 13.92 percent, the NASDAQ is up 20.30 percent, and the S&P is up 17.76 percent. This is good for fundraising for two important reasons worth mentioning here. First, stock growth means that foundations and donor-advised funds will have more money with which to donate. Second, many individuals own stocks that have appreciated in value. When donating appreciated stocks, individual donors can avoid capital gains tax. In other words, even if someone can’t claim a charitable gift deduction under the current tax code, they can still derive a tax benefit by contributing appreciated securities.

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September 17, 2019

3 Reasons Why Your Year-End Fundraising Will Fail

Most charities raise more money during the last quarter of the calendar year than any other quarter. However, your year-end fundraising effort will fail to reach its potential unless you avoid the following three mistakes:

1. Failure to Tell Supporters What Their Previous Donations Have Achieved

Donors have choices about where they can give their money. Not surprisingly, they want to know that their giving is having a positive impact. If it’s not, or if they don’t know whether it is, they’ll take their support elsewhere. Chances are that your charity’s mission is not entirely unique. In other words, donors can fulfill their philanthropic aspirations by giving to another organization.

A few years ago, the Charities Aid Foundation conducted a survey that found that 68 percent of respondents said that they feel it is important for them to have evidence about how a charity is having an impact. Crying Man by Tom Pumford via UnsplashUnfortunately, many donors still complain that the only time they hear from charities is when they want money. Make sure your charity doesn’t make that mistake.

Make sure supporters and potential supporters know how your nonprofit organization is putting donations to work. Let them know what supporters are achieving. Share impact stories in your organization’s print and electronic newsletters, annual reports, special events, website, and special gratitude mailings.

You should even highlight donor impact in your appeals. Consider this: I tested a straightforward appeal against an appeal that highlighted donor impact before asking for a gift. The impact appeal generated 68 percent more revenue! So, make sure people know that their contribution will make a difference by showing them the positive effect past donations have had and by telling them how their donation will be put to work.

 2. Failure to Ask for Planned Gifts

As the end of the year approaches, your organization is facing fierce competition for an individual’s checkbook. Over the next few months, people will be deluged with charitable-giving requests. Furthermore, people will be spending large sums on holiday gift giving, entertaining, and vacationing.

However, a donor’s checkbook is just one potential resource. Many donors can donate appreciated stock, contribute from a Donor-Advised Fund, and give from their IRA. Virtually anyone can include your charity in their Will or designate your charity as a beneficiary.

Make sure you don’t assume that supporters automatically know all of the various ways they can give. Instead, make sure they know by promoting such giving opportunities. Tell stories of other donors who have given in those ways, and not just the mega-donors. Ask prospective donors to consider such gifts. And make it easy for your donors to engage in planned giving. Provide them with clear instructions on your website and in appeals that highlight a given planned gift opportunity.

To read what the experts, including myself, say about planned giving, checkout Jeff Jowdy’s article in Nonprofit Pro magazine.

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July 23, 2019

How to Stop Offending Your Women Donors

Just days ago, T. Clay Buck, CFRE, asked a survey question on Twitter:

An informal poll for any who identify as female and also contribute philanthropically. If you are the primary gift giver and are in a relationship, have you ever been listed secondarily or as ‘Mr. and Mrs.’ even though you made the gift?”

While far from being a scientific study, Buck’s poll found that 82 percent of the 68 respondents answered “Yes,” indicating they were recognized inappropriately. Despite not being statistically reliable, the results are sufficiently striking to indicate that the nonprofit sector has a donor-recognition problem.

I’m not surprised. This is the flip side of a problem I’ve talked about on many occasions. Charities often treat women as second-class donor prospects. Now, we see that some nonprofits also treat women as second-class donors.

These problems might be due to carelessness. Or, it could be that some fundraisers are gender biased. Regardless, the way in which some charities treat female prospects and donors is offensive. It’s also stupid. The reality is that women are more philanthropic, in many respects, than men are. Therefore, charities would be wise to immediately address the way they engage with female prospects and donors.

Although I’ve written in the past about gender differences when it comes to philanthropy, I want to highlight some insights from professionally conducted, valid research that underscore the importance of working more effectively with prospects and donors who are women.

A whitepaper from Optimy, Women in Philanthropy, reveals:

  • Women make 64% of charitable donations.
  • Women donate 3.5% of their wealth, on average, while men contribute 1.5%.
  • Women account for 45% of American millionaires.
  • Women will control 2/3 of the total American wealth by 2030.
  • Women are also playing a greater role in philanthropy because of the growth in Giving Circles. Of the 706 Giving Circles reviewed, women led 640.
  • Women made up 77% of foundation professional staff in 2015.

For more insights from Optimy about the role of women in philanthropy and a look at what motivates female donors, download the FREE report by clicking here.

When it comes to planned giving, women are critically important according to a Fidelity Charitable Gift Fund study I first cited in my book, Donor-Centered Planned Gift Marketing:

  • High-income women (those with an annual household income of $150,000 or more) demonstrate a high-level of sophistication in their giving by seeking expert advice.
  • High-income women are more likely to use innovative giving vehicles such as donor-advised funds and charitable remainder trusts. 16% of high-income women have or use a donor-advised fund, charitable remainder trust, or private foundation, versus 10% of high-income men.
  • 7% of high-income women made charitable gifts using securities, versus 3% of high-income men.

Yes, both men and women are valuable contributors to charities who we should cherish. Unfortunately, far too many charities fail to fully appreciate the vital role that women play when it comes to philanthropy. Women are often ignored as solid donor prospects deserving of attention. When women do give, they are often denied the respect and recognition they deserve as Buck’s poll suggests.

Here are some questions to consider as you review your own organization’s donor recognition procedures:

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April 29, 2019

Update: Get a Free Webinar, Magazine Article, Poll Results

I want to update you about three posts I recently published. In addition, for National Child Abuse Prevention Month, I wish to draw your attention to one of my older posts that will help you keep the children you love safe.

Free Webinar:

Did you miss it? Recently, I presented a webinar for SEI Investments Management Corporation: “Investing in Your Future: Practical Strategies for Growing Your Planned Giving Program.” If you missed the program or wish you could share it with colleagues, I have some good news for you. The webinar is now available for free download by clicking here.

In just 30 minutes, you’ll learn:

  • 8 reasons you should be a planned giving “opportunist”
  • Why you should invest more in planned giving instead of current giving
  • 5 Tips to boost your planned giving results immediately

In addition to the webinar itself, you’ll also be able to download additional resource materials including a list of 20 factoids about planned giving, a planned giving potential calculator, an executive summary of recent research findings from Dr. Russell James’ report “Cash is Not King in Fundraising,” and a digital copy of Dr. James’ book Visual Planned Giving: An Introduction to the Law & Taxation of Charitable Gift Planning.

Advancing Philanthropy Article:

Have you read my recent article published in Advancing Philanthropy, the Association of Fundraising Professionals magazine? “To Sir/Madam, With Love” shares stories from a number of fundraisers about their favorite teachers. Great teachers:

  • help us develop broad skills such as critical thinking,
  • help us develop specific skills such as how to write an effective appeal letter,
  • inspire us,
  • encourage us,
  • move us to think beyond ourselves and better understand others,
  • open our minds to lifelong learning,
  • motivate us to giveback by sharing our own knowledge.

After downloading the free article by clicking here, check-out my recent post that will give you tips that will help you find excellent teachers who can help you enhance your skills and inspire you: “Are You Really Just a Fundraising Amateur?”

Poll Results — Presidential Candidate Philanthropy:

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