Tag Archives: philanthropy

Avoid Planned Giving Schemes

Avoid courtesy of Thomas Hawk on Flickr.
This is related to my post two weeks ago, “It’s Planned Giving, Not Product Giving.” I said some financial product salespeople don’t have your program’s best interests at heart when they offer to “help.”

Occasionally, those offering specious help come bearing innovative, cutting-edge programs. Most of the ones I’ve seen have life insurance at their core.

Their hallmark is a paper or slide with a score of arrows connecting six or eight boxes. There’s a box for the donor and one each for your charity, the life insurance policy, the trust that owns the policy, the trustees of the trust and the AAA-rated company selling the policy. Arrows are shooting in and out of boxes and around corners.

They’re always convoluted. I ask three times how the programs work, and I can’t regurgitate the explanations 30 minutes later.

A lot of times the plans’ advocates aren’t salespeople, but well-meaning board members or committed donors.

I’ve been in Planned Giving since 1997, as a program director and consultant. I’ve never passed on one of these as something to offer donors. They might be appropriate for huge charities with highly mature programs, though I’m skeptical.

How do you protect your charity and your donors–without sounding ungracious–when offered what I’m describing? Ask two questions.

  1. What other nonprofits are executing the program?
  2. Is there a private letter ruling from the IRS?

I confidently predict the answers you’ll hear.

  1. A and B are looking at it.” – That’s meaningless. You’re looking at it too. In their next pitch meeting, you’ll be “C.”
  2. No” – Without IRS’s imprimatur, I recommend you pass on the ground-breaking innovation.

I don’t feel like a curmudgeon, though you may think I sound like one. In 15 years I’ve seen a lot of bad practices seeking refuge under the Planned Giving umbrella.

Protect your charity from dubious ideas that don’t add value for donors.

My Three Month Prediction

Wilmington Trust quoted me in its Quarterly Trends Update about the state of Planned Giving fundraising. You can find it in the, “Planned Giving is Still an Important Fundraising Option” section on page two.

I’m comfortable making three month predictions. Come August, a wiser and more august prognosticator will take my place and readers will have forgotten my forecast. That feels safe.

Nonprofit Radio, May 4, 2012: Survey Savvy & Content Marketing

Big Nonprofit Ideas for the Other 95%

Listen live or archive:

My Guests:

Paul Gearan
Paul Gearan: Survey Savvy

Paul Gearan, a partner at Professional Survey Group, explains how surveys are cultivation tools for your donors. You can increase awareness of your work; gauge willingness to support; heighten sensitivity to challenges; and get feedback on how you’re doing. But you have to do it right if you want reliable results.

Please take a moment to take the survey for this week’s discussion with Paul. You’ll find it here at the end of the guest and segment descriptions. Thank you! If you could also share it with other nonprofit professionals, I would appreciate it.

Scott Koegler
Scott Koegler: Content Marketing

Scott Koegler is our long-standing technology contributor and the editor of Nonprofit Technology News. This month he encourages you to give away high quality, interesting content through your blog. You are blogging, right?

 
 
 
 


Create your free online surveys with SurveyMonkey, the world’s leading questionnaire tool.

Here is a link to the survey: http://www.surveymonkey.com/s/CXHJPHR


Top Trends. Sound Advice. Lively Conversation.

You’re on the air and on target as I delve into the big issues facing your nonprofit—and your career.

If you have big dreams but a small budget, tune in to Tony Martignetti Nonprofit Radio.

I interview the best in the business on every topic from board relations, fundraising, social media and compliance, to technology, accounting, volunteer management, finance, marketing and beyond. Always with you in mind.

Sign-up for show alerts!

“Like” the show’s Facebook page, and join us on LinkedIn too.

Make sure to tune in at 1pm ET on Friday and you can share your observations on Twitter by using the #NonprofitRadio hashtag on Twitter.

Here is the link to the audio podcast: 090: Survey Savvy & Content Marketing.
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It’s Planned Giving, Not Product Giving

Warning courtesy of Martin Deutsch on Flickr
Planned Giving practitioners and theorists stress donor-centered fundraising. But some with an interest in Planned Giving are out to push products, irrespective of whether they’re right for your donors. Don’t let your charity, your program–and your donors–be compromised by these folks.

This has been bothering me for nearly four years, when I started to see it trending upward. The “it” is people who sell financial products calling themselves “planned giving consultants” or something similar.

In fact, they aren’t consultants at all. They’re salespeople. Typically their products are life insurance or commercial annuities, but the menu may vary. Some sell multiple products.

What offends me most about this community of salespeople is that “donor-centered” to them means “Your donors all need the financial product I sell.” It’s just amazing how a seminar led by a life insurance specialist of this ilk will conclude that everyone in the audience needs more life insurance. I’ve been in such programs.

Amazing too that in meetings with a charity’s leadership, life insurance forms the basis of the “planned giving” program these “consultants” pitch. I’ve been in such meetings, screening for self interest to protect my clients from those offering to help the Planned Giving programs I’ve created. This kind of help my clients don’t need.

What I’m describing does not impugn all financial product brokers. Most are ethical and don’t purport to be any type of fundraising consultant. I regularly include a life insurance broker in panel programs I manage for clients.

Life insurance and other commercial financial products certainly have their place in the discussion of estate and retirement plan charitable gifts.

Here’s my point: those who sell the products are not Planned Giving consultants.

Protect your charity’s reputation. Protect your program’s integrity. Protect your donors’ plans. Give a gracious “No thank you” to specious offers of help from people whose real interest is selling financial products.

Nonprofit Radio, April 20, 2012: The Law Of Attraction & Doyenne Of The Day

Big Nonprofit Ideas for the Other 95%

Listen live or archive:

My Guests:

Melanie Schnoll Begun

Melanie Schnoll Begun: The Law Of Attraction

To attract major gift prospects and potential board members, you have to put your best foot forward to get what you’re seeking. Melanie Schnoll Begun is managing director at Morgan Stanley private wealth management. She helps her ultra high net worth clients make charitable gifts and get on boards, but she has practical and valuable advice that applies to any charity soliciting a major gift or recruiting a board member.


Melanie West: Doyenne Of The Day

Melanie West writes the Donor of the Day feature for the Wall Street Journal and covers philanthropy. She’ll explain how she likes to be pitched story ideas, giving you the best chance of getting major coverage for your donors. Also, what she sees trending.


Top Trends. Sound Advice. Lively Conversation.

You’re on the air and on target as I delve into the big issues facing your nonprofit—and your career.

If you have big dreams but a small budget, tune in to Tony Martignetti Nonprofit Radio.

I interview the best in the business on every topic from board relations, fundraising, social media and compliance, to technology, accounting, volunteer management, finance, marketing and beyond. Always with you in mind.

Sign-up for show alerts!

“Like” the show’s Facebook page, and join us on LinkedIn too.

Make sure to tune in at 1pm ET on Friday and you can share your observations on Twitter by using the #NonprofitRadio hashtag on Twitter.

Here is the link to the audio podcast: 088: The Law of Attraction & Doyenne of the Day.
View Full Transcript