Marketing Bequests – and Beyond Partnership for Philanthropic Planning Rhode Island June 21, 2018 Mike Valoris Senior Consultant PG Calc (617) 497-4992 mike@pgcalc.com © 2018 PG Calc Marketing Bequests – and Beyond

The bequest from nowhere $300,000 © 2018 PG Calc Marketing Bequests – and Beyond

Our discussion this morning Basics about bequests Why charities like bequest gifts Why donors like bequest gifts Marketing strategies to generate prospects Moving Suspects to Prospects to Closing the intention Engaging your Legacy Society members Administering the realized bequest © 2018 PG Calc Marketing Bequests – and Beyond

Why bequest intentions matter 80%+ of all planned gifts Giving USA 2017: Bequests were $30.36 Billion (8% of all charitable giving in 2016) Bequests often exceed total lifetime giving Any donor can do a bequest intention The role of bequests in blended gifts © 2018 PG Calc Marketing Bequests – and Beyond

Let’s dispel the myth right now! Realized bequests don’t just happen Requires strategy – convert suspects to prospects to closed bequest intentions to realized bequests Consistent awareness marketing lays the foundation Requires basic knowledge and comfort by gift officers to discuss the topic Patience, persistence, follow-up, being proactive © 2018 PG Calc Marketing Bequests – and Beyond

Why charities like bequests Minimal cost to administer – highest ROI of all planned gifts Create a bequest income pipeline (if a bequest program exists) Potential for large gifts Every non-profit can have a bequest program – but many fail to move forward Every donor is a candidate, but……… © 2018 PG Calc Marketing Bequests – and Beyond

Why donors like bequests Easy to arrange Revocable Retain control of the assets Flexible (i.e.-if my spouse predeceases me) Reduce estate taxes (applies to fewer donors under the new tax law) © 2018 PG Calc Marketing Bequests – and Beyond

Ways to make a bequest gift Wills (pecuniary, specific, residuary gifts) Revocable Living Trusts Income in Respect of a Decedent (IRD) [IRA, 401(k), 403(b)] Life insurance POD and TOD Donor-Advised Funds (DAF) © 2018 PG Calc Marketing Bequests – and Beyond

Marketing Bequests – and Beyond The Marketing Funnel Not everyone will make a bequest intention – most will not! The Marketing Funnel – 3 stages Suspects – the broadest category Prospects – self-identify from marketing or visits Closing Prospects to make a bequest intention © 2018 PG Calc Marketing Bequests – and Beyond

Who are your best suspects? Childless Members of monthly giving program Consistent long-time donors Board of Trustee members Major gift donors/Endowed fund donors Donors with Donor-Advised Funds Volunteers Donor surveys © 2018 PG Calc Marketing Bequests – and Beyond

Objectives and messaging for marketing Spreading awareness Your organization welcomes bequest gifts Mission! Mission! Mission! Testimonials – but choose wisely Lead generation Have a marketing plan © 2018 PG Calc Marketing Bequests – and Beyond

Marketing Bequests – and Beyond Marketing channels Inserts with mailers (i.e. gift receipts) Tag lines on print communications Organization publications- alumni magazine Direct mail - newsletters, postcards Electronic – web, email Brochures Telemarketing Planned Giving Seminars © 2018 PG Calc Marketing Bequests – and Beyond

Marketing Bequests – and Beyond From prospect to……… Be comfortable with the topic of bequests Know estate and gift tax basics – new tax laws You don’t have to know it all Entering the discussion Advancing the discussion Have a printed brochure to leave behind Patience, persistence, and follow-up Watch for red flags © 2018 PG Calc Marketing Bequests – and Beyond

Effective use of your database Rating and screening your database Capture prospect information in your database Give thought to your PG prospect coding system Use codes that gift officers understand © 2018 PG Calc Marketing Bequests – and Beyond

Legacies societies – pay attention! Have one! Be inclusive What do you know about these intentions? Have you asked questions? Do the gifts meet your current programmatic priorities? © 2018 PG Calc Marketing Bequests – and Beyond

Legacy Society Form – Part 1 © 2018 PG Calc Marketing Bequests – and Beyond

Legacy Society Form – Part 2 © 2018 PG Calc Marketing Bequests – and Beyond

Knowing about your bequest intentions Gift negotiation: From “bad to better” From “good” to great” Salvaging the challenging bequest intention A gift for a prize An endowment gift $1.5M short of the needed amount A gift for a non-priority © 2018 PG Calc Marketing Bequests – and Beyond

Bequest administration Have procedures Use a system to track documents and progress Probate vs. Non-probate assets Don’t be shy!!! © 2018 PG Calc Marketing Bequests – and Beyond

Bequest administration - Documents Documents you want: Copy of the will or trust – why? Copy of appointment of executor Letter from authorized representative or attorney Copy of the inventory Copy of appraisal if real estate, art, or collectibles Final accounting (if a residuary bequest) Review fees charged (if a residuary bequest) © 2018 PG Calc Marketing Bequests – and Beyond

Bequest administration - Process Receive notice of estate Send Estate letter #1-request documents and information Send Estate letter #2 in 30 days if no response to Letter #1 Send Estate letter #3 in another 30 days if no response to Letter #2 Send a Family Acknowledgment Form Track documents requested and received Track funds received and still due – and when expected Provide information requested by executor (i.e. tax ID#) © 2018 PG Calc Marketing Bequests – and Beyond

Bequest administration – Follow-up The simplest estate can take a minimum of 6-9 months Look at the assets in the estate – CDs vs. real estate Periodically follow-up – ie. Every 60-90 days Try for partial distributions © 2018 PG Calc Marketing Bequests – and Beyond

Bequest administration - Issues Restrictions Program no longer exists Program that is already overfunded Gift does not meet your gift acceptance policy (i.e. named endowed fund for less than minimum) Uncooperative executors Getting funds from retirement accounts © 2018 PG Calc Marketing Bequests – and Beyond

Marketing Bequests – and Beyond In conclusion Marketing lays the foundation for bequest intentions – lead generation Funnel Suspects to Prospects to Closed Commitments Have a Legacy Society and “work it” Engage with donors about their commitments Have procedures for administering realized bequests © 2018 PG Calc Marketing Bequests – and Beyond

Marketing Bequests – and Beyond s? Questions? Comments? Discussion? Debate? Mike Valoris Senior Consultant PG Calc (617) 497-4992 mike@pgcalc.com © 2018 PG Calc Marketing Bequests – and Beyond