Workshop 5 – May 20, 2013 Looking Back and Looking Forward Gearing up for the Summer Heat of CJL Presented by: Bryan Clontz, CFP®, President Charitable Solutions, LLC

Agenda The Critical Role of Building Endowment Prospecting for Endowment Gifts Asking for Endowment Gifts Recognizing and Stewarding Endowment Gifts

Why is Endowment So Critical? Capture Transfer of Wealth Charitable Competition Lowest Cost of Raising $ Long-Term Sustainability Donor Service Resources to Respond to Opportunities or Threats

How is Endowment/Planned Giving/Bequest Fundraising Different Than Annual/Capital Appeals? Building endowment is a proactive – not reactive process. To be successful, you must create a strong infrastructure, understand the donor’s perspective, and engage in conversations. Long term relationship vs. short term transaction Gift of assets vs. income Only 1 in 3 or 4 will ever tell you

Jewish Bequest Data  Results of the NJPS (National Jewish Population Survey) 85% of those surveyed have wills Only 5% have designated gifts to the Jewish Community  Potential in bequests: Only 9% of Jewish gifts of $1 million or more support Jewish causes; only 5% of gifts over $10 million If 20 individuals each asked 5 donors and received an average gift of $50K, they would generate $5M

Three-Pronged Approach to Bequest Prospecting Level One – Current/Past Board/Close Friends/Staff 1. Encourage/Strive 100% Participation 2. Provide Easy Solutions Level Two – Long-Term Donors 1. Develop Lists of Consistent Donors (Narrow to – Achievable Goal) 2. Couple “ask” with other fundraising efforts, thank yous, etc. Level Three – General Donor Community 1. Include Two Boxes on Pledge Cards 2. Include Testimonial Article in Every Newsletter/Magazine 3. Other CJL community marketing

Key Bequest Marketing Goals Donors Must Know You are in the Bequest “Business” Build “Shelf-Space” Develop Momentum from the Top Down: “Lead by Example” “Join Me” “Follow Me” Articulate Critical Importance of Bequests as the Primary Endowment Funding Vehicle Perpetuate A Cultural Shift to Bequest Giving: Bequest language on all materials

Traits of the Successful Asker Believes in legacy giving Inspires others Has committed to their own CJL gift: “Join Me” Knowledgeable about CJL: But knows when to say “I don’t know, but I’ll get the answer.” Prospect’s peer or friend Listens (70%) more than talks (30%) and is respectful of the prospect Uses Stories/Testimonials to make key points Goes with a partner when it makes sense Is Opportunistic: Ears Always Up 8

Your role as the asker Stick with it! This can take several visits, conversations or years! Make the “big picture ask”--- What do you want your legacy to be? Follow up and make connection with prospects and a gift planning professional so that gift is actualized. Follow up and steward- Show the love!

Making the Appointment Call Ask today-don’t delay – “Just Do It!” Fears and Challenges The worst that can happen is they say “no” Remember this is a social exchange with a friend about a cause you care about Dial and smile: your attitude is contagious Energize, Excite, Inspire Believe in the cause A positive and enthusiastic tone will inspire 10

The Appointment Conversation The conversation has to be in your own words. Your personality, what you feel comfortable with. Key Point: Do not go into detail on the phone – focus only on securing the appointment. Suggested conversation: Hello (prospect name) Engage in personal chit chat I’d like an opportunity to get together with you for (lunch, coffee) to tell you all about this exciting Create a Jewish Legacy program I’m involved with.. Suggest date, day, time Plan the meeting: Meet where prospect feels comfortable. In their home or for a nosh Enthusiastically thank them for their time and support and follow up with a personal note to confirm the visit. If possible, tell prospect that you would like to bring someone with you…(professional at organization or Foundation) 11

Overcoming Objections Listen to their concerns respectfully-do not debate. Possible objections and answers: “I read about CJL in the paper, I already know about it.” “That’s great. Then let’s get together so I can hear what you think of what we’re doing. I would love to get your input.” “I need to talk it over with my spouse.” “By all means, I would love for him/her to join us.” 12

Know the Prospect Develop as much information about the prospect’s background, family, community involvement, and personal interests as possible. Try to gauge how much they know about CJL and be ready to tailor your conversation accordingly-don’t assume they know about CJL Caution-Don’t let the research delay you in having the conversation. Leadership and Professionals- please talk ahead of time to share information about prospect 13

Prepare for The Conversation Have a Plan: Develop an Agenda, Reinforce Theme/Takeaways, Try to Infect Prospect with Your Passion, Invite them to “Join You” Understand the vision of our community and put the CJL community vision in a context that relates to the interests the prospect has described Ensure that Jewish causes have the resources to meet whatever challenges tomorrow may hold Be prepared with CJL materials, brochure, case statements, etc. Be ready to listen for “buying signals” Remember the “if and when” scenario If and when you are ready to sell your property in the Berkshires, sell your business, sell your art, etc.…give me a call. That can be turned into a legacy gift. 14

The Face to Face Conversation Smile and Relax. Thank the Prospect. Ask the right questions, LISTEN and ask more questions: Rule of Thumb: Asker speaks 30%, Prospect speaks 70% –“How did you first become involved in the Jewish community?” –“What are your interests?” –“What Jewish causes do you support annually?” –“Why do you give?” –“Can you identify the most important program the community provides or a need not currently met by our organizations?” –“How do you see our community in the next 100 years?” 15

The Face to Face Conversation Ask the right questions, LISTEN and ask more questions: –“What do you want your legacy to be?”… “We are here to help you with that.” –“What do you want the future of the Jewish community to look like?” –“How would you like to be remembered?” –“What type of legacy would you like to leave future generations?” –“May we talk to you about ways to endow your annual support?” –“What we are doing here at x organization(s) is so important. We want to be here forever and hope that you share that vision. We can help you ensure that the institutions you support during your life time are here after you are gone.” 16

The Face to Face Conversation Ask the right questions, LISTEN and ask more questions: –Would you like to ensure the vibrancy and financial security of the community for the next generation? –Have Jewish causes been included in your will? –Why or why not? –What would you like your legacy to be? How can we help you to achieve your legacy? 17

Overcoming Objections If the donor says “no”, probe for reasons and be prepared to respectfully discuss objections, do not engage in debate. Be honest; if you don’t have an answer, say so and get back to the prospect with an answer as soon as possible. 18

Overcoming Objections Possible Objections and Answers: “The economy is so bad, I can’t even think about this.” The economy is a real issue and I understand. It’s actually why I am committed to this project. I feel that by leaving a legacy/bequest to the community, I have helped ensure that the next time the economy is in a downturn, there will be money there to help our organizations. “I’m leaving it all to my kids.” It’s important to take care of our children. I hope you’ll consider that our community is like one of your children, it has depended on your support for many years, and continues to need you. Would you consider a percentage, like 5% of your estate without significantly affecting what your children receive? 19

Overcoming Objections Possible Objections and Answers: “I’m not a wealthy person, I can’t do this.” That’s actually the beauty of this initiative, because a legacy gift comes from the assets in your estate, rather than current income, it allows everyone to be a philanthropist in ways they might not be able today. “I’m giving now, I don’t see a need to give later.” The gifts you give now are so integral to what the community is doing and I would like to thank you. The reason we would like you to think about a legacy gift is that endowment monies help ensure that our Jewish organizations will have the financial stability to not only exist but thrive in the future. 20

Overcoming Objections Remember, “no” may not be a final answer. Legacy giving can sometimes be a lengthy process. In many cases we are simply creating “shelf space” for future legacy consideration. Persistence often yields results. Objections may be buying signals. No may mean “tell me more”, “I need to think about it”, or “I need to know how I can do this” 21

Follow Up: What’s Next? When the prospect says “yes”, talk about follow through. Present the declaration of intent if appropriate. Direct questions about the ins and outs of making the gift with the help of professionals, whether that is an estate attorney, financial advisor or Foundation staff. Thank the prospect no matter the outcome of the visit. Key Point: Remember, appropriate thanks for a gift is the best way to solidify the gift and is the start of the next gift! Send any appropriate giving materials with a short, handwritten note and keep in touch with news about shared Jewish interests. (See worksheet in packet- Turning a “Dec” into a “Doc”) 22

Overcoming Objections Make notes immediately following the meeting while the information is still fresh. Contact your CJL Professional at your organization who will utilize “Turning a Dec to a Doc” worksheet and will keep in contact with the CJL Program Director. Good record keeping now will ensure good stewardship later and enable the celebration of your successes. 23

The Secrets Make Your Own Commitment Be Positive Know Your Cause Call Your Best Prospects First Research Your Prospects Carefully Listen to the Prospect: Try Asking Questions 30% of the Time allowing the Prospect to Speak 70% of the Time Ask for the Commitment By Inviting Them to Join You No…is only the first answer Always Thank the Prospect…especially when turned down. Good Record Keeping Is Key 24

Bequest Recognition Ideas They Don’t Want “Stuff” Be Sensitive About Anonymity/Privacy Create Bequest Society (with Charter Membership) both Internally and Communally Book of Life – Create a Jewish Legacy List in Annual Report/Newsletter Creative, Inexpensive Ideas: Testimonial for Newsletter, Ribbon for Events, Etc.

CJL Summer Camp (Summer Homework) Continue Homework from Prior Training Sessions: Continue to follow up with board if they haven’t ALL signed a Declaration of Intent Talk to your donors from your list that are in town Continue to work on your Legacy Society Plan Make sure that each donor that has signed a DOI has been followed up with New Homework: Send out community update about your CJL activities Read and Use the Checklist for Success packet in your materials