NCE Summer Leadership Institute

Integrating Major and Planned Giving Into Your

Agency’s Development Plan.Michael J. David-Wilson, CFRE

CEO, The Arc of Atlantic County, NJ

and

David Tinker, CFRE

VP of Advancement, Achieva, Pittsburgh, PA

In this session…

• We will learn how to diversify and sustain significant agency funding support by integrating major and planned giving into your comprehensive development plan.

• We will present this material in a

scalable way which agencies with small, medium and large budgets can incorporate incrementally.

Let’s Talk About…

The Elephant in the Room

• Multiple years with no cost of care budget increases to contracts to keep up with the cost of living.

• Reductions in budgets or changes in business rules which effect the same.

• Growing financial burden of employee health and other insurance coverage.

To Ensure Stability & Services

• Chapters must increasingly look to private funding to supplement or replace dwindling government funds to ensure financial stability and continued availability of services.

• Chapters must become more entrepreneurial and will need to be able to self-fund income generating services.

Learning Objectives:

• How to create a comprehensive development plan which includes major and planned gifts and a budget to support it.

• How to turn your annual campaign donors into major and planned giving donors.

• The benefits of integrating major and planned giving for your agency and mission.

The Pyramid of Giving

Comprehensive / Integrated Development Plan

AnnualGiving

MajorGiving

Planned Giving

Factors In Selecting An Approach

• Donor support in the past: Evaluate patterns and opportunities.

• Specific program needs: Operating, capital improvement, physical plant, endowment growth and strategic reserve.

• Program messages: Which messages resonate best with your donors? Develop strategies.

What Kind of Major Focus Is Right for Your Chapter?

• Heavy Operating Costs + Few Capital Costs =

A focus on Annual and Planned Giving

• Large Capital Requirements = Capital Fundraising and Planned Giving

Scalable Solutions

• Small Development Budget +

• Small Staff +

• limited or intermediate fundraising experience?

• Just build major and planned giving into your annual giving program.

Kick Starting Major Giving

• Develop a Targeted and Time Limited Mini-Campaign.

• Solicit a challenge gift or grant as the Leadership Gift.

• In order for your Chapter to earn the full challenge gift or grant you must raise the same amount from your donor base.

Kick Starting Major Giving

• Get commitments from your Board, Chapter leadership and closest supporters equivalent to approximately half the challenge.

• Raise the remainder of the challenge from the rest of your supporters.

• If a donor cannot give as much as you request now, ask them to consider a multi-year pledge or a planned gift component.

Kick Starting Planned Giving

• Establish a Legacy / Planned Giving Society.

• Talk with your local Community Foundation to see if they can write Charitable Gift Annuities for your Chapter.

• Give a presentation to your board so they understand how planned giving works and ask them to consider their own gifts.

Kick Starting Planned Giving

• Include inspiring stories in each Chapter newsletter.

• Let your supporters know you are in the business of planned giving.

• Include sample language that they can add as a codicil to their current Last Will and Testament leaving a fixed amount or a percentage of their estate to your Chapter.

The Arc of the US Pilot Project

• Crescendo GiftLegacy Pro Version: $3,500 per year if at least 25 chapters commit to a subscription of $3,500 per year for 3 years.

• GiftLegacy Planning Giving website with customized branding.

• Weekly e-Newsletters for donors and advisors.

• CresManager System.

• Royalty Free Marketing Materials.

• Annual marketing reviews and customized marketing plans, etc…

Role of the CEO in Fundraising

• The Chapter CEO is Ultimately the Chapter CDO.

• The CEO must understand the role and value of fundraising and invest adequate Chapter resources to support successful fundraising.

• The CEO must be available to go out on fundraising calls, make asks and develop relationships.

Common CEO Mistakes

• Hold back on wealth studies and prospect research expenses.

• Hold back on feasibility studies in preparation for a major campaign.

• Not investing in good donor management & Gift Processing software.

CEO Mistakes Continued….

• Promoting an internal candidate with no experience in fundraising instead of hiring a qualified and experienced fundraising professional with documented success.

• Not committing the financial resources to support a salary that will both attract and retain them. Remember this is a profit center.

Executive Transition

• If your agency is planning an executive transition in the near future, make sure you select candidates with a strong background in Fundraising.

• If possible, hire a Certified Fund Raising Executive (CFRE) or someone who has had experience in capital or endowment campaigns.

How I

Did It!

ByBaronVon

Frankenstein

Understanding Your Donor Base

• Invest in a wealth screening of donors in your data base.

• You need to be confident you can ask the right people for the right amount at the right time and for the right purpose.

• The Arc of the US has recently negotiated a price of $1,000 per year for Chapter Subscriptions to Wealth Engine.

What Did Arc Atlantic Find Out?

• 160 Families are capable of making gifts of $5,000 to $25,000.

• 90 individuals are capable of making gifts of >$25,000 to $800,000.

• 500 people are qualified planned giving prospects (65 years of age and capable of making a $100,000 gift).

What Did Arc Atlantic Find Out?

•7 of our Thrift Shop Donors are multi-millionaires!!!

•The largest gift the one worth 50 million gave us was $250!!!

Other Lessons Learned

• More than 90% of those listed on the previous slide have never given a gift of more than $100.

• Out of 10,000 names in the donor data base, 2,500 names had either insufficient information to make contact or expired addresses and bad phone numbers.

Donor / Gift Management

• If you do not already have Donor / Gift Management Software or have outdated software, plan to replace it now with something that is intuitive.

• Data base conversion from one solution to another is fairly easy to do internally. You may need to pay extra to do an initial conversion from other kinds of incompatible data bases.

• More sophisticated solutions may require additional on-site or off-site classroom training at additional cost. More intuitive solutions tend to have web based training, often free of charge.

Preparation For The Development Retreat

• Analyze the last 3 to 5 years of fundraising data.

• Develop a list of proposed appeals, events, campaigns.

• Understand any Chapter strategic plan objectives for the short-term or long-term and their funding requirements.

FY-14 Fundraising Plan Timeline and Benchmarks     

CODE ANNUAL CAMPAIGN APPEALS TOTAL GOAL 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

         

MC-1. Mini-Campaign - Major Gifts (Large 5 figure) $ 240,000.00            80,000            80,000          80,000 

MC-2. Mini-Campaign - Leadership Gift (Large 6 figure) $ 100,000.00          100,000     

MC-3. Mini-Campaign - Planned / Deferred Gifts-See Below

MC-4. Mini Campaign - Grants UR (Large) 10K+ $ 70,000.00         10,000           20,000            20,000          20,000 

MC-5. Mini-Campaign Major UR Annual Gifts ($10K +) $ 40,000.00           2,500           12,500            12,500          12,500 

AC-1. Arc Membership Appeal UR $ 5,000.00                 5,000 

AC-2. Board UR Annual Appeal $ 10,000.00               10,000   

AC-3. Community & Staff UR Annual Appeal $ 10,000.00   4,000 3,000           3,000 

AC-4. Annual All Staff Day $ 3,000.00              1,500              1,500   

AC-5. Annual Donor Recognition & Stewardship $ 5,000.00                 5,000   

AC-6. Memorial / Honor UR Gifts $ 10,000.00           2,500             2,500              2,500            2,500 

AC-7. Newsletter Appeal UR $ 7,500.00              2,500              2,500            2,500 

TR-1. Grants TR (Small) <10K $ 50,000.00         10,000           10,000            15,000          15,000 

TR.2. Summer Camp Appeal TR $ 7,000.00                 7,000 

TR-3. Holiday Partners TR $ 2,500.00              2,500     

EV-1. Event - Tribute $ 60,000.00            15,000            30,000          15,000 

EV-2. Event - Step Up $ 30,000.00         15,000           15,000     

EV-3 Event - I. Rice Golf Benefit Event $ 50,000.00         45,000           10,000     

RBI-1. Related Business Income - Thrift Shop - Ventnor $ 50,000.00         12,500           12,500            12,500          12,500 

RBI-2. Related Business Income - Northfield - Northfield $ 50,000.00         12,500           12,500            12,500          12,500 

  TOTAL ANNUAL FUNDRAISING GOAL $ 800,000.00 $ 110,000.00  $  300,500.00   $    207,000.00   $  187,500.00 

    13.66% 37.33% 25.71% 23.29%

  6 Month Fundraising Goal-% 51% 49%

  Mini-Campaign Deferred Income / Planned Gifts

MC-3 Legacy Society Campaign           200,000             200,000 - - - -

  Fundraising Total 1,000,000 110,000 300,500 207,000 187,500

Classifying Fundraising Income

ANNUAL CAMPAIGN APPEALS TOTAL GOAL UNRESTRICTED PASS THROUGH DEVELOPMENT UNKNOWNGRANTS / GIFTS GRANTS / GIFTS

TR TRMini-Campaign - Planned / Deferred Gifts 200,000.00$ 200,000.00$ Mini-Campaign - Major Gifts (Large 5 figure) 240,000.00$ 240,000.00$ Mini-Campaign - Leadership Gift (Large 6 figure) 100,000.00$ 100,000.00$ Grants UR (Large) 10K+ 70,000.00$ 70,000.00$ Grants TR (Small) <10K 50,000.00$ 50,000.00$ Major UR Annual Gifts ($10K +) 40,000.00$ 40,000.00$ Board UR Annual Appeal 10,000.00$ 10,000.00$ Community & Staff UR Annual Appeal 10,000.00$ 10,000.00$ Memorial / Honor UR Gifts 10,000.00$ 10,000.00$ Holiday Partners TR 2,500.00$ 2,500.00$ Arc Membership Appeal UR 5,000.00$ 5,000.00$ Summer Camp Appeal TR 7,000.00$ 7,000.00$ Newsletter Appeal UR 7,500.00$ 7,500.00$ Event - Tribute 60,000.00$ 60,000.00$ Event - Step Up 30,000.00$ 30,000.00$ Event - I. Rice Golf Benefit Event 50,000.00$ 50,000.00$ Event - All Staff Day 3,000.00$ 3,000.00$ Event - Donor Recognition & Stewardship 5,000.00$ 5,000.00$ Related Business Income - Thrift Shop - Ventnor 50,000.00$ 50,000.00$ Related Business Income - Northfield - Northfield 50,000.00$ 50,000.00$

TOTAL ANNUAL FUNDRAISING GOAL 1,000,000.00$ 325,500.00$ 134500 340000 200000

Preparing Development Budgets

• Carefully determine what resources are needed and will really be used.

• Be realistic and anticipate actual expenses will be higher then initially expected.

• Develop a detailed budget narrative with the basis of your calculations in notes.

Begin Your Own Success Story!

• Stable cash flow and financial flexibility.

• Ability to fund more competitive salaries and recruit and retain quality staff.

• A strategic reserve or Board Designated Fund to take advantage of special opportunities.

• A stronger Chapter means better and more consistent services.

Expect the Unexpected

•Expect staff and board push back.

•Expect staff turnover. Hire the staff you need.

•Major and planned gift cultivation takes time and closing these gifts might need to be on the donors timeline; not yours’.

Be Optimistic Because….

Questions?

Michael J. David-Wilson, CFRE

Chief Executive Officer

The Arc of Atlantic County

6550 Delilah Rd., Suite 101

Egg Harbor Township, NJ 08234

609-485-0800 X140

mdavidwilson@arcatlantic.org

www.arcatlantic.org