Planned Giving for the Small Shop

Yavapai College FoundationPrescott, AZ

Steve WalkerVice President of Advancement, Yavapai CollegeExecutive Director, Yavapai College Foundation

Paul KirchgraberDirector of DevelopmentYavapai College Foundation

There are two rules forsuccess….

1. Never reveal everything you know

2. See rule #1

Sorry…these things will not be covered here today.

• Charitable Bequest• Non-Cash Asset• Charitable Gift

Annuity• Charitable Remainder

Trust

• Charitable Lead Trusts• Split Interest Gifts• Cost Basis• Payable on Death

(POD)

10 Reasons You Need a Planned Giving Program

1. If you’re not asking your prospects for planned

gifts, someone else is.

2. Eventually that “someone else” will steal your

cash gifts, too.

3. Cash-starved times are best times for planned

giving.

4. Organizations who even dabble in planned giving eventually earn 50% to 100% more than those who don’t.

5. A typical planned gift is 200 to 300 times the size of a donor’s largest annual gift.

6. Planned gifts do not affect prospects’ cash flow.

10 Reasons You Need a Planned Giving Program

7. Prospects are eager to make a planned gift, but simply don’t know how.

8. Prospects making gifts through their wills typically increase their annual support.

9. Anyone can make a planned gift.

10.It’s easy and it works.

10 Reasons You Need a Planned Giving Program

An ambitious endowment building campaign kick-started the

Yavapai College planned giving program.

Establish Program Goals

In Ten Years (by 2020)

1. Grow the endowment to $16 million2. Contribute $640,000 annually to Yavapai College

-Assume a 4% spending policy on endowed funds-Endowment goal driven largely by planned gifts and endowed scholarships

Marketing and Outreach

- Create a planned giving & endowment marketing plan. (Received training via the Arizona Endowment Initiative)

- Develop marketing materials

Getting Your Board on Board

Ensure long-term support of planned giving by your board leadership

Transformational GivingMassie Life Insurance Gift & Scholarship Plus Program

Developing your Infrastructure

Need to Establish: -Policies -Procedures -Guidelines in support of your planned giving program

So…how are we doing?

Sorry…But You Do Have to Learn the Basics

About Planned Giving Vehicles

Remember these from the start of today’s session?

• Charitable Bequest• Non-Cash Asset• Charitable Gift

Annuity• Charitable Remainder

Trust

• Charitable Lead Trusts• Split Interest Gifts• Cost Basis• Payable on Death

(POD)

Who is your target market for bequests?

True or False?The BEST indicator that a person is likely to leave a bequest is their WEALTH

Source: Samuel D. Caldwell, President, The Planned Giving Company. "The Old Gray Mare Ain't What She Used to Be: The Revolution in Planned Giving Marketing." 2007, 2008

FALSE: The best predictor is LOYALTY

78% of planned giving donors give 15 or more gifts

to the nonprofits they named in their will during their lifetimes.

According to a survey conducted by Lawyers.com and the Counsel for Aid to Education (CAE) Voluntary Support of Education (VSE)

Who is your target market for bequests?

2007 – Indiana University study determined who is most likely to consider making a bequest:

1. Between the ages of 40 and 602. Bachelors degree3. Yearly income between $50,000 and $75,0004. Motivated by a desire to do good & to do what’s

expected of them

Who is your target market for bequests?

2012 – American Charitable Bequest Demographics study determined who actually has a bequest in their will.

1. Single2. 40 – 70+3. Bachelor’s degree4. Income $100,000+5. Frequently attends religious services6. No children

80% Never Notify the Charity

More than 60% of Americans don’t have a valid will in place. That’s also our audience.

SOURCE: Russell James, Inside the Mind of the Bequest Donor, © 2013

SOURCE: Russell James, Inside the Mind of the Bequest Donor, © 2013

When do estate plans change?

Factors predicting when charitable plans are ADDED

When do estate plans change?Factors predicting when charitable plans are ADDED

1. Approaching death (final pre- death survey)

2. Becoming a widow/widower

3. Diagnosed with cancer

4. Decline in self- reported health

5. DivorceSOURCE: Russell James, Inside the Mind of the Bequest Donor, © 2013

When do plans change?Factors predicting when charitable plans are ADDED

6. Diagnosed with heart problems

7. Diagnosed with a stroke

8. First grandchild

9. Increasing assets

10. Increasing charitable giving SOURCE: Russell James, Inside the Mind of the Bequest Donor, © 2013

Identify Prospects and

“Work the List”

Identify Prospects

(Hint…many are already your donors)

Qualify Prospects

Get out and meet your donors (…who we know now, are our

best planned giving prospects)

7. Prospects are eager to make a planned gift, but simply don’t know how.

Build Your Donor Relationships

Start a Planned Giving Stewardship Society (Legacy League)

This is Eleanor

Legacy League Growth

Prior to 2008 43 members

As of 2015 164 members

“Your last will and testament is your final teaching.

What do you want it to say?”

~Rabbi Mordechai Leibling

Discussion.