Tag Archives: bequests

Skip Wealth Screening For Planned Giving

Torn window screen

photo credit: quinn.anya via photopin cc

I consistently preach this to clients and audiences: small-and mid-size nonprofits need not spend money on wealth screening to find potential Planned Giving donors. You have all the data you need in your fundraising or CRM database.

Query your data for age and giving consistency and you’ll find your best Planned Giving prospects.

If you don’t have age info, consistency alone will work if you’ve been around for many years. Lots of my clients go back many decades, sometimes into the late 1800’s. But 20th century roots will be fine for you to rely on giving consistency as a proxy for age.

If a donor has been giving for 30 years, for instance, they’re probably in the age range you’re after.

If you don’t have giving data going back far enough to extrapolate age, then before you pay for an age overlay from a screening service consider this. Can you survey your donors with a reply card in your next mailing? If you don’t want to ask for date of birth, ask for age. It’s worth considering before you make the plunge into age screening.

An important word about giving consistency. Ignore gift size.

I literally mean if a donor has given you just $5 a year, and they’ve done it for 18 years out of the past 20, or 25 years out of the past 30, then they are an outstanding prospect for a charitable bequest, which is a gift to you in their will. (I said a lot about starting your PG program with bequests in this series for GuideStar.)

The students at Fairleigh Dickinson University’s Center for Excellence heard me say this just last week.

Age and giving consistency. That’s all you need to get started in Planned Giving.

Large shops will want to move beyond bequests, so they may wisely invest in wealth screening further down the road. But it’s not needed at the outset.

Small- and mid-size nonprofits can have very respectable PG programs that start and stop with gifts by will.

To launch any program–big or small–you can skip wealth screening.

“Planned Giving Saved Our Ass”

 

Image courtesy of Myxi, Creative Commons license
Image courtesy of Myxi, Creative Commons license

“Planned Giving Saved Our Ass.”

That’s what a client reminded me last week. I’ve been helping the college capture planned gifts since 2004, and Planned Giving saved them four times in the last six years.

Saved them from what? Shortages in unrestricted cash. Lots of planned gifts are unrestricted—especially bequests.

We’ve been promoting long-term planned gifts together for nine years. After several years the long-term arrives, and it comes in the form of immediate-term cash.

You see, people die irrespective of recession, unemployment and stock market values. When your charity is part of hundreds or thousands of estates, some of those donors will die each year. I guarantee it.

That’s the double-edged sword of Planned Giving. We don’t want our donors to die, but when they do there’s a gift for our important work.

How many will die in a year and how much cash will result, that’s uncertain. After you’ve got unrestricted Planned Giving income for three to four years, you can look to that history for your average and median, which isn’t skewed by very large gifts. Those numbers will give you an estimate of what you can look forward to each year.

Caveat: It’s enormously unwise—reckless even—to budget for planned gift revenue, unless you’ve got many years of history and fancy finance and actuarial pros looking over your data. It’s too speculative.

All you have is a rough estimate, which is some comfort. Not for accounting, but there are other forms of comfort than spreadsheets.

I’m only talking about unrestricted planned gift income. There’s restricted money too.

If you’re not promoting planned gifts, get started. The sooner you start, the sooner your long-term will arrive.

You Don’t Need The Fancy Stuff For Your Planned Giving

Fancy Schmancy courtesy of Brian Teutsch on Flickr
Small- and mid-size nonprofits take note: you need not get fancy and sophisticated to have a very respectable Planned Giving program. To force a metaphor because I’m quite pleased with myself for thinking of it while brushing my teeth: you don’t need the cool electric gadget when a toothbrush will do the job very well.*

Bequests (gifts in your donors’ wills) are the place to start every Planned Giving program, irrespective of your budget, mission and size. Everyone needs a will and the charitable bequest is simple to understand and execute. In every program, this will be the most popular alternative, so expect 75 to 80% of your gifts to be by will.

I’d like to see this become popular wisdom: bequests can be the place to stop your planned gift program.

If you don’t have a big fundraising budget, access to expertise and comfort talking about fancier possibilities with your prospects and donors, then stand proud with a bequest marketing program as your sole Planned Giving offering. That is a perfectly respectable and appropriate program for smaller shops. And bigger shops that have a smaller budget.

There are scores of ways to affordably promote bequests: newsletter sidebars; newsletter articles; mentions in one-on-one meetings; mentions in large events; event table tents; event invitations; website or blog pages; Facebook pages; envelope flaps; direct mail PS’s; direct mail inserts; gift reply devices; gift acknowledgement letters and annual reports.

If I’ve piqued your interest, you may find helpful five articles I wrote for GuideStar that are no less timely two years later: Make 2010 The Year YOU Start Planned Giving. Clicking will lead you to the fifth in the six article series, and you’ll find links there to the first four. (The sixth is about gifts beyond bequests that don’t require expertise to promote.)

Charitable trusts, life insurance, gift annuities, closely-held stock, real estate and all the rest are terrific gifts. But they’re not necessary for success in Planned Giving.

Bequests–standing alone–can be a terrific Planned Giving program for your nonprofit.

* My dentist reports identical outcomes in his practice. I’ve returned to the manual method.

Nonprofit Radio for Nov. 19, 2010: Bountiful Bequests & Thrift Shops Ops

Big Nonprofit Ideas for the Other 95%

Compliance. Board relations. Fundraising. Technology. Volunteer management. Accounting. Finance. Marketing. Social media. Investments.

Every nonprofit faces these issues and big nonprofits have experts in each. Small and medium size nonprofits have Tony Martignetti Nonprofit Radio. Trusted experts throughout the country join Tony to take on the tough issues facing your organization.

Episode 17 of Tony Martignetti Nonprofit Radio for November 19, 2010

Tony’s Guests:

Susan DameGreene, President of BIPS. BIPS is an easy-to-use program that proactively manages the entire process of planned giving from stewarding and projecting future Planned Gifts to collecting realized Planned Gifts.

Topic: Bountiful Bequests: Why you should start a Planned Giving program with bequests–and how to do it.

Shevawn Weber, Manager, of Aspire.

Topic: Thrift Shops Ops: Should your nonprofit have a thrift shop as a source of revenue? How do you get started?
 

Here is the link to the podcast: 019: Bountiful Bequests & Thrift Shop Ops

When and where: Talking Alternative Radio, Friday, 1-2pm Eastern.

You can subscribe on iTunes and listen anytime, anyplace on the device of your choosing.

Sign-up for show alerts!

“Like” the show’s Facebook page.
View Full Transcript

Fundraisers Should Not Piss Off Women

Women outlive men. Unmarried women give more generously than unmarried men. These two facts have big implications for nonprofit fundraisers.

Before looking at the implications, I should substantiate the facts. I think it’s well known that women live longer than men, but the gap is considerably narrower than it was a hundred years ago. This charming 1912 New York Times article put the gap at 20 years. About.com puts it between 3 and 4 years today.

Earlier this month, The Chronicle of Philanthropy reported unmarried women, irrespective of why they’re unmarried, give more to charity than similarly situated men.

Interesting to me, the article quotes the director of the Women’s Philanthropy Institute to say, “The conventional wisdom is that women do not give a lot of money.” I must be uninformed, because I’ve never heard that and don’t believe it’s true. The director continues, saying the conventional wisdom is wrong. Sometimes it pays to be uninformed. I save myself a lot of back-and-forth.

The implication for fundraisers: don’t piss off women. If that colloquialism offends your sensibilities, and you prefer my admonition more genteelly, don’t evoke the ire of women. Especially if you do planned gift fundraising.

Where the principal relationship to your charity is with the male, and there’s a female he’s close to, involve her. Send invitations to the couple, if appropriate. Do the same with gift acknowledgements. You are snubbing someone important when the gift is from a married, or partnered, couple and you address your thank-you letter to the man. You’ll probably never hear the objection. It has been quietly noted by the one who will likely live longer.

Angry Young Woman

At events, do you engage the wife or female significant other? Are you introducing her to your CEO, or asking for a moment of her man’s time while you pull him away?

Making (off color) inside jokes that marginalize women is a sure way to shoot your long-term fundraising in the foot. (You’ll hurt yourself in other ways, too, but I’m sticking to fundraising.)

Wives outliving their husbands, on average, means significant wealth will transfer to wives from their husbands’ estates. If you’re in Planned Giving, you’d like the best shot at having the wife remember you in her estate plan. So be good to her while her husband is living.

Where the husband is the primary donor to a nonprofit, I’ve always thought it a mistake to presume, upon his death, the widow has no interest in continuing the relationship. She may very well have her own charitable interests that don’t coincide with her husband’s, but nothing is lost in inquiring by polite letter–after many months have passed since the death–whether she would like to be kept on the mailing list. If you get no response, or a negative one, you know where you stand.

You have the best chance of maintaining a relationship with a woman–including a widow–if you treat her courteously at all times, according her the same respect, professionalism and friendship you show a man, whether she’s attached to one or not.