Major Gifts to charities and non profit organizations

The Permanent Fund Building our Future Through Major Gifts US Contributions 2004 $ 249 Billion $12.00 5% $19.80 8% $28.80 12% $187.92 76% Individuals Corporations Bequests Foundations Source: Giving USA General Principles of Major Gifts • Involves matching donor’s interest with the needs of the organization • Involves donating assets rather than discretionary income • Requires a relationship developed over an extended period of time Importance to Donors • Fulfills personal philanthropic goals • May provide other benefits such as  recognition  naming opportunities  tax deductions Importance to Rotary Foundation • Validates our mission • Inspires others to make such gifts • Achieves fundraising goals much more effectively than smaller gifts alone Typical Donor Pyramid Major Gifts 60% of total money raised Special Gifts 20% of total Annual Gifts 20% of total Our Donor Profile 2004-05 Total Gifts: $130.3 Million $13.9 10% Major Gifts Other Gifts $116.4 90% Major Gifts by Fund 2004-05 Gift to Number Amount Permanent Fund Annual Programs Polio Plus 153 153 29 $ 7,700,000 $ 2,400,000 $ 1,600,000 Matching Grants Other Total 23 40 398 $ 400,000 $ 1,800,000 $ 13,900,000 Major Gifts by Country 2004-05 Gifts from United States Taiwan Japan Korea India Number 220 45 33 33 23 Amount $ 8,400,000 $ 1,600,000 $ 1,300,000 $ 1,000,000 $ 800,000 Other Total 44 398 $ 800,000 $ 13,900,000 The Power of One Big Gift Paul and Jean Elder Other D. 7300 Contributions 37% $4.4 million 63% 7.6 million Paul G. and Jean Elder Total contributions from D-7300 since 1917: $12.0 million The Power of a Few Big Gifts District 3520 33% $285,000 20 Major Gifts Other D. 3520 Contributions 67% $567,200 Total contributions : $ 852,200 (1 July 2004 – 30 June 2005) Endowments of Others Service Organizations: Kiwanis International Foundation Lions Clubs International Foundation Rotary Foundation Permanent Fund Shriners Hospitals for Children $ 4 million $ 1.6 million $ 157.8 million $ 7 billion University and College Endowments: Harvard University University of Oxford Yale University $ 22.1 billion $ 666 million $ 12.7 billion Current Permanent Fund Values 500 450 400 350 300 250 200 150 100 50 0 453.7 US$ millions 157.8 Expectancies Permanent Fund Market Value 95- 96- 97- 98- 99- 00- 01- 02- 03- 0496 97 98 99 00 01 02 03 04 05 Rotary Year Securing Major Gifts: Four Steps • Identification • Cultivation • Solicitation • Stewardship Securing Major Gifts: Four Steps Step #1: Identification • Gifts of $25,000 or more to other charities • Sources for finding major gift prospects • What are some of the indicators the donor may have the financial capacity? Securing Major Gifts: Four Steps Step #1 - Prioritize Your Prospects Prospects of higher priority may be: • Prospects who are ready to contribute • Prospects who are ranked high in gift potential • Prospects whose personal circumstances may require early attention (revising wills, retiring, selling a business, selling real estate, Securing Major Gifts: Four Steps Step #2: Cultivation • Learning more about the prospect • Establishing gift objectives • Develop cultivation plan • Conversation, involvement, articles • Listen to what the prospect is telling you Securing Major Gifts: Four Steps Step #2 – Cultivation/Develop a District Plan Will prospects be identified from all clubs simultaneously? Can the process be more effectively managed if identification of prospects is done within only a few clubs at a time? Can the potential for leadership gifts be enhanced by targeting one or two key clubs first? Securing Major Gifts: Four Steps Step #2 – Establish a Program of District Cultivation Events Major Donor recognition events can inspire a prospect as well as thank a donor Fireside Chats Breakfasts or luncheons used as information seminars All training venues: TRF Seminar, District Assembly, etc. Then establish a plan for each individual donor Securing Major Gifts: Four Steps Step #2: Cultivation: Recognizing a Naming Opportunity • $25,000 – Named Fund • $50,000 – Specific TRF program • $150,000 – Program tied to a district • $600,000 – Rotary World Peace Fellow Securing Major Gifts: Four Steps Step #3: Solicitation • Prepare for the Ask • How to ask – State a specific amount and specific purpose – Be an active listener • Prepare for different responses Securing Major Gifts: Four Steps Step #4: Stewardship • Appropriate recognition • Special thank you calls and letters • Continuous updates on Foundation • Build relationship with the donor Securing Major Gifts Discussion • How can we encourage major gifts? • What does a successful district’s major gift activity look like? • Who are the 3-5 major gift prospects you will identify, cultivate and solicit in 2005-06? Securing Major Gifts Available Help • Volunteer Rotarians – District Permanent Fund Chairs and committees – District Governor – Major Gift Advisors – Annual Programs Fund Strategic Advisors – RRFC • Foundation Staff – Major Gifts Officer Jackie McGuire Major Gifts – Ways of Giving • Cash • Securities – Stocks and Bonds • Real Estate • Life Insurance • Bequests • Retirement Plans • Life Income Agreements (US only) • Donor Advised Fund (US only) Major Gifts Leadership