What is a Planned Gift - MyPrevention.org

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					“Elements of Successful Fundraising”

      YMCA of Middle Tennessee
         Development Team


              Presentation By:
                Suzanne Iler
                 Jan Berry
        Holland Youngblood-Hensley



            September 23, 2008
What Motivates Giving?
(from Fundraising for Dummies by John Mutz & Katherine Murray)



•   Emotional response                       • To set an example
•   Belief in the cause                      • Pass on a legacy
•   Image                                    • Spiritual reasons
•   Marketing                                • Empathy
•   Sense of belonging                       • To make a difference
•   Giving back to a cause                   • Tax deductions
•   Peer influence                           • Good seats at a sporting
•   Enjoyment                                  event
•   Personal experience                      • Because the right person
•   In memory/honor of                         asked!
    someone
Why Donors Don’t Give?
(from Fundraising for Dummies by J. Mutz & K. Murray & The Artful Journey by B. Sturtevant)


•   They weren’t asked                         •   They are insecure about the
•   They are unhappy with the                      organization as a whole
    organization’s financial integrity         •   The organization doesn’t have
•   Their interests and priorities have            long-term plans
    changed                                    •   They weren’t asked for the right
•   Mismatch of interest                           amount
•   No sense of urgency                        •   There was not a request for a
•   Nobody said “Thank You” the last               specific amount
    time                                       •   The spouse was not included in
•   They no longer have the                        the request
    resources to give                          •   The ask was fundraiser driven
•   They didn’t like the manner in             •   They aren’t motivated by the
    which they were approached                     cause
•   They don’t have confidence in the          •   They are not a part of a culture of
    leadership of the organization                 giving
                                               •   They have compassion fatigue
Maximizing Your Results
(Effective Practices Listed Most Effective to Least Effective)


•    Personal visit by team of two volunteers
•    One-on-one personal visit
•    Personal letter followed by a phone call
•    Personal phone call to someone you know
•    Personal letter without follow-up phone call
•    Phone call to someone you don’t know
•    Form letter
•    Brochure sent as a direct mail piece
•    Article in institution newsletter or magazine
•    News carried in mass media
•    Advertising in newspaper, radio, TV, magazine
•    Other forms of communication (posters, billboards, etc.)
Cultivation Cycle
•   Identification   – Identify prospective donors.

•   Information      – Present your case, set your goals, gather materials to present
                                to the prospect.

•   Awareness        – Communicate and be articulate in describing your case.


•   Understanding    – Answer any questions the prospective donor
                               may have, be honest.


•   Caring           – Find the donor’s passion (share with you are doing and you can see
                                in their eyes what excites them about your case).

•   Involvement      – Invite them to invest.


•   Commitment       – Ask them for their pledge.
Annual Campaign 101
• What does the annual campaign support?
  The YMCA annual giving campaign raises funds
  needed to keep the YMCA and its services available to
  all, regardless of income or ability to pay.
• Where does the money go?
                                            YMCA’s life
  All money raised is used to support the YMCA’s life
  changing programs for children, youth, adults, seniors
  and families in our communities.
• Why is the campaign even necessary?
  The need for financial assistance is increasing every
  year and YMCA membership dues only cover the day-
  to-day operational expenses of our facilities.
Prospect Research
Moves Management


• Top 20 Relationships

• Philanthropic Minded

• Passion for/Connected to Your Organization

• Means to Make a Major Gift
Are These Moves?


• Taking a Donor on a Golf Outing?

• Form Letter?

• Organization Newsletter?

• Impromptu/Unplanned Meeting?
Good Examples of Moves

• Secure an Awareness Tour of Your Program

• Set a Meeting for a Prospect to Hear a
  Testimonial from a Program Participant

• Send a News Article on Statistics Related to
  Your Program and a Personal Note on the
  Work Your Organization is doing in this Area
Prospect Clearance
                                   YMCA of Middle Tennessee
                                    Prospect Clearance Form
   The YMCA of Middle Tennessee strives to provide our donors the best possible giving experience. We also seek to
          maximize opportunities for contributed dollars to further the mission and good work of the YMCA.

   Center:                                                   Staff Contact:

         Prospect’s Name (not
                                               Address                           Connection to the YMCA
         organizational contact)
Awareness Tours
(A Key part of the cultivation process...)


•    Volunteer Involvement
•    Staff Organization
•    Formal Timeframe/Scripting
•    Attention to detail, go the extra mile
•    Welcome
•    Tour by key staff
•    Program presentations
•    Testimonials
•    Q&A (Vital!)
•    Departure/Closing
•    Follow-up
The Ask…

•   Always ask for a specific amount
•   If at all possible, ask in person
•   Make sure it is the correct project
•   Make sure the correct person is asking
•   Ask for the gift and then LET THE DONOR
    TALK!
 Anatomy of a Solicitation
 (By Bill Sturtevant as presented in “Seize the Opportunity”)


                            **Redundancy is your friend!**

   The solicitation should take no more than 15 minutes (11 min. or less is ideal)
                           You must have the “3 Rights”…
                                  1.   Right Case
                                 2.   Right Timing
                                  3.   Right Caller
I.    Preliminaries
II.   Opening/Introduction (1.5 minutes or 10% of your time)

       CAUTION: BE CAREFUL NOT TO LOSE THE DONOR DURING THE
        PRESENTATION SECTION – IT’S EASY BECAUSE YOU’RE THE ONE
                           DOING THE TALKING.

III.   Presentation (6 minutes or 40% of your time)
IV.    Negotiation (6 minutes or 40% of your time)
V.     Closing (1.5 minutes or 10% of your time)
There Are Four Types of “No”
(According to Bill Sturtevant)




                 A Permanent “No”
     No, not now. – Yes during the right time
 No, not that project. – Yes to a different project
 No, that’s a bit much. – Yes to a smaller amount
Prerequisites for a Successful
Capital Campaign
•   Strong Board
•   Strong CEO/Executive
•   Strong Image
•   Strong Programs
•   Strong Strategic Plan
•   Strong Financial Position
•   Strong Current Support Campaign
•   Strong Case for Support
Key Components for a Successful
Capital Campaign
•   Marketing Study
•   Feasibility Study
•   Key Campaign Leadership
•   Lead Gift
•   Silent Phase
•   Community Phase
•   Groundbreaking
•   Dedication/Ribbon Cutting
    Importance of YMCA Foundation


•   History
•   Supplements annual revenue stream
•   Programs it Supports
•   Benefits
Examples of Gifts to Foundation

Endowment Gift of $13,000 allows 10
 kids to participate in youth sports at
    Scottsville YMCA each year.
Examples of Gifts to Foundation

    An Endowment Gift of $28,500
    enables 10 kids to participate in
  Summer Specialty Camp at Maddox
              each year.
Endowment Gifts Perpetuate Your
       Annual Giving

 Endowment Gift of $14,000 generates revenue
     to perpetuate your $500 annual gift.
 Endowment Gift of $28,600 generates revenue
    to perpetuate your $1,000 annual gift.
Endowment Gifts Perpetuate Your
Annual Giving


     Endowment Gift of $71,500
   generates revenue to perpetuate
       your $2,500 annual gift.
     What is a Planned Gift?

A planned gift is something other than an
outright gift. It takes a bit more planning
and thus is often thought of as complex
(but it isn’t always).
Another name for a planned gift is a
“deferred gift” because the charity
typically receives the gift years after the
planning has taken place.
     Planned Giving Vehicles

Most Popular   1)Bequest in a will
Vehicles       2)Designate YMCA as
               Beneficiary of Retirement Plan
               3)Designate YMCA as
               Beneficiary of Life Insurance
               Policy
Income         1)Charitable Remainder Trust
Producing      2)Charitable Gift Annuity
Vehicles       3)Charitable Lead Trust
                   Goals
• Short term – Vision 2020
     Expectancies = $15,000,000

• Long Term – Assets + Expectancies =
  Operating Budget by 2020 (currently
  $90,000,000)
     YMCA Foundation of Middle Tennessee
     Endowment Progress



                                                                       45
                                                              $19,755,1
$20,000,000
$18,000,000
                                                        06
$16,000,000                                    $15,930,3
$14,000,000
                                         48
$12,000,000                     $11,708,3
$10,000,000
                           4
 $8,000,000
                  $7,482,92
 $6,000,000
 $4,000,000
 $2,000,000
        $0
                 2004          2005           2006           2007

              Assets    Expectancies    Assets & Expectancies
Planned Giving Fun Facts


    Average age of one’s first will:


    Average age of first bequest:


  % of bequest donors who also made cash gifts to
 the charity:
MORE FUN FACTS



% of Bequest Donors who leave gifts to more than
one charity:



  % of Bequest Donors who don’t notify the charity of
 their bequest:
          Prospect Identification




Center   Assoc. Bd    Age      Given 5    Given 10      Past        Gifts     Top 100
Board    Non-P.G.    Over 60   of 7 Yrs   of 12 Yrs   Volunteer   $10,000 +   Donors
  X                               X                                   X
            X                     X          X            X           X
  X         X           X         X          X
  X                     X         X          X            X           X         X
 Estate Tax is only Voluntary Tax


• It’s perfectly OK to arrange your estate so as to avoid
  estate taxes. That’s why this is considered a “voluntary
  tax”.

• If you don’t take steps to leave your money to your
  family, your church, and/or your charities, the
  government will gladly take it.
                     How can you help?


Assist   with Prospect Identification
Ideal   Prospects
          Long Term Involvement
          Passion for Y’s Mission
Share    Prospect Names with Development
          Director
Vision 2020
Mission:
A worldwide charitable fellowship united by a common loyalty to Jesus Christ for the
purpose of helping persons grow in spirit, mind and body.
Commitment:
We build strong kids, strong families and strong communities.
Values:
Caring, Honesty, Respect and Responsibility
Vision:
To be a source of strength to our community by providing an environment where people of
all ages, faiths, races, backgrounds and abilities work toward achieving their God-given
fullest potential, building friendships and experiencing the joy of helping others. We will fulfill
this vision by:
     •Increasing Availability to All
     •Developing Youth and Teens. Inspiring Healthier Lifestyles
     •Deepening Member and Community Involvement
     •Ensuring Our Legacy

Serving Nashville and Middle Tennessee since 1875
                              Vision 2020 Campaign Project Outline
Project               Capital              Current Giving         Planned Giving     We Build People            Total Fundraising
                      Fundraising          Endowment              Goal               Annual Giving              Goal
                      Goal

Joe C. Davis YMCA     $12.15 million       $1.35 million                                                        $13.5 million in gift
Outdoor Center                                                                                                  support

Downtown YMCA         $8 million capital   $1 million endowment   $1 million                                    $10 million
                                                                  Planned Gift for
                                                                  Capital

Youth Development                          $500,000                                  $4.5 million in specific   $5 million
and Outreach                                                                         gift requests for Vision
                                                                                     2020

Margaret Maddox       $1.5 million         $500,000                                  $500,000                   $2.5 million
Family YMCA           Teen Center                                                    Teen Center operational
                                                                                     support

Northwest Family      $2 million           $500,000                                  $500,000 Learn to Swim     $3 million
YMCA                  Aquatic Center

Irrevocable Planned                                               $1.5 million                                  $1.5 million
Gifts

Revocable Planned                                                 $12.5 million                                 $12.5 million
Gifts

Other Centers We                                                                     $13.64 million             $13.64 million
Build People

Bellevue              $4.5 million                                                                              $4.5 million

N. Rutherford         $5.5 million                                                                              $5.5 million

Putman Co.            $660,000                                                                                  $660,000

Leadership Center     $2-4 million                                                                              $2-4 million

Total                 $37.01 million       $3.85 million          $15 million        $19.14 million             $75 million
Vision 2020

• Initial Goal Range: $51 million to $58 million
  (October 2004)

• Updated Goal Range: $75 million

• Begin process of evaluating Phase II Vision 2020
  Campaign projects
Volunteer Structure
                                                   Campaign Co-Chairs




                   Board Chair             Secretary                 Treasurer          Past Board Chair




                                                       Cabinet Members




    Camp Vice-            Downtown      Maddox Vice-Chairs       Northwest Vice-
      Chairs              Vice-Chairs                                              Youth Development       Planned Giving
                                                                     Chairs
                                                                                      Vice-Chairs            Vice-Chairs




                                                                                        Youth
                          Downtown                                                   Development           Planned Giving
                           Steering                                                    Steering               Steering
                          Committee                                Northwest          Committee              Committee
   Camp Steering                         Maddox Steering
                                                                    Steering
    Committee                              Committee
                                                                   Committee
Effective Acknowledgement System




          1. Be Prompt
          2. Be Personable
          3. Be Perfect
10 Ways to Say Thank You
1.  Conduct a Thank-a-Thon
2.  Mark birthdays, anniversaries or other special occasions
3.  Make note of hobbies and interests
4.  Send updates with photos particular to the project that the donor
    supported
5. Involve the donor by giving him/her the opportunity to volunteer,
    serve on a committee or on the board
6. Ask for the donor’s advice
7. Invite the donors back for a tour
8. Make note of any media coverage
9. Send the donor cards from kids or program participants
10. Send news releases on your volunteer leadership (board,
    campaign, etc.) to the local media
Secrets for Success
• It’s all about the donors
• It’s also about communicating with those donors
• Stewardship is king
• Spread the responsibilities
• Never, never quit building
• Integrity
• Listening the Gift
Doug Lawson

“Philanthropy is the mystical mingling of a
 joyful giver, an artful asker, and a grateful
 recipient, in which all three – the joyful
 giver, the artful asker and the grateful
 recipient – benefit from the experience”
                       - Doug Lawson
                     Contact Information
         Suzanne S. Iler                       Jan Berry
Vice President of Planned Giving   Sr. Regional Development Director
   YMCA of Middle Tennessee         Rutherford County Family YMCA
        900 Church Street               205 North Thompson Ln.
      Nashville, TN 37203               Murfreesboro, TN 37129
          615-259-9622                        615-895-5995
      siler@ymcamidtn.org                jberry@ymcamidtn.org


                  Holland Youngblood-Hensley
                  Development Services Director
                   YMCA of Middle Tennessee
                        900 Church Street
                       Nashville, TN 37203
                          615-259-9622
               hyoungblood-hensley@ymcamidtn.org
Q&A
Thank ou!

				
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