Planned giving stewardship session at the 6th annual Association of Donor Relations Professionals regional conference in New York City on March 11, 2016
3. Learning Objectives
•Stewarding planned gifts
•Working with new & existing donors
•Maintaining planned gift records
•Review & discussion of case studies
#friends4lifePG
4. The Price is Right!
What percentage of charitable donations received in
2014 came from bequests?
8%
Source: Giving USA 2015
5. The Price is Right!
What percentage of Americans do not have a will?
64%
Source: Rocket Lawyer survey, 2014
6. The Price is Right!
What percentage of planned gifts are revocable?
(bequests, insurance, retirement plans)
90%
Source: CASE BriefCASE, September 2012
12. Case Study #1
A same-sex couple who has left your organization in
their estate notifies you that they plan to change their
estate and remove your organization. This is upon
learning that your organization will oppose a court
ruling on same-sex marriage.
• How would you react to the donor?
• What steps could you take to mitigate the loss of
the planned gift?
• How would you handle the media attention if the
gift is ultimately lost?
#friends4lifePG
13. Case Study #2
A member of your faculty makes sexist comments about
women and science at a conference, and the public outcry that
follows forces his resignation from the school. One of your
planned gift donors is upset and threatens to remove a
bequest to the school from his estate unless the professor is
reinstated or issued an apology.
• How would you react to the donor?
• What steps could you take to mitigate the loss of the
planned gift?
• How would you handle the media attention if the gift is
ultimately lost?
#friends4lifePG
Whose org has planned giving program? Who in room works directly with planned gifts? On the stewardship of them? With tough economic times, PG can rise (costs nothing now). Are you ready?
33% Americans will consider charitable bequest but only 37% over 30 familiar with “planned giving” http://www.thefundraisingauthority.com/planned-giving/20-facts-about-planned-giving/
Difference w PG: decades of stewardship.
How to handle when you are likely not the staff to see the gift mature? Avg age of first charitable bequest is 40-50: http://www.thefundraisingauthority.com/planned-giving/20-facts-about-planned-giving/
More than $358B received. 72% from individuals. 8% reps $28B+.
https://www.rocketlawyer.com/news/article-Make-a-Will-Month-2014.aspx
55% of Americans with kids without a will
Important to keep in mind other tools available for donors to gift assets at death, but chances are donors without wills don’t have these set either.
http://www.case.org/Publications_and_Products/September_2012/Research_and_News_of_Note/Role_of_Planned_Giving_Grows_in_Today%E2%80%99s_Economy.html?ct=9656468bd834559ac9f59c04fb45e8e12ac7e480fd462b49e80a7b9863504997f7bfe60e7213bf4fdda915bca2fbd0509d5ec4a31cd6c1f5a68b33baa8425765
Annuities and trusts have fallen out of favor, were more in vogue 20 years ago. Even more important to steward even tho article notes donors don’t see these as changeable as we do.
Many PG programs focus on acquisition metrics: Visits, notifications, amounts. But what does that matter if the gift is lost later? Quality vs. quantity and lots of patience.
A PG secured now may not be realized for 30-40 or more years.
Recommend calendar and procedure of how planned gifts will be stewarded. For example our dept has a spreadsheet for all touches, not just PG. Also a procedure for when gift is realized that includes some stewardship touch points.
What would you do to steward a newly acquired gift? Put yourself in their shoes.
Documentation-wishes for gift. Will talk more in record keeping.
Thanks-both immediate from higher up and ongoing through year
Visits-update on org, learn of changes in their lives. Russell James 2009 study: #1 reason PG dropped, became grandparents https://philanthropy.com/article/New-Research-Sheds-Light-on/162667
Communication-should be on all lists, also being responsive. Will play role in case studies.
Volunteering-especially retired donors, how can they feel relevant?
Who are your planned donors? What do you know?
Visits-fill in gaps of knowledge. Being new, allows to ask their story.
Don’t let them feel any less important-keep communicating
All strategies from last slide apply
PG LOI, endowment or gift agreements, as well as donor docs like wills
Physical and electronic storage.
Consider who has access to the files-many confidentiality issues with copies of wills etc.
Contact reports/actions, org archives all can be useful
Actually happened 2015 at University of Alabama where couple met. Sent 2 page letter, no reply. When word got out about loss of $15M gift, university issued a statement on donors’ loyalty.
http://www.thenewcivilrightsmovement.com/davidbadash/university_of_alabama_loses_15_million_donation_over_state_s_refusal_to_support_same_sex_marriage
Also actually happened in UK-University College London. Prof intended his comments as a joke.
“College cut out of donor’s $1.5 million will due to treatment of Nobel scientist Tim Hunt” Dave Huber, The College Fix, July 26, 2015 http://www.thecollegefix.com/post/23513/ (N.B. the value of the bequest was corrected to $150,000 or £100,000)