Diane Thornton, CFP® Senior Director of Gift Planning University of St. Thomas PGCH 25 th Anniversary Conference April 25, 2013

What is Planned Giving? Gift Planning? Definition: a planned gift is any major gift, made in a lifetime or at death as part of a donor’s overall financial and/or estate planning. By contrast, gifts to the annual fund or for membership dues are made from a donor’s discretionary income, and while they may be budgeted for, they are not planned.

Who—are Target benefactors? What—Impact do Planned Gifts have? Where—Does it fit in a capital campaign or fundraising goals? When—Do I have time to do it? Why—Are benefactors interested? How—Can I be successful if I am not well versed in financial and legal expertise?

WHO to Target? Individuals with10+ years of giving to your organization. Benefactors who want to maximize their gift plan. Individuals between age 40-49; highest % of new wills (28%). 50% of individuals with no offspring have charitable plans. 9% of individuals with grandchildren have charitable estate provisions. Donors of all ages.

Capital Campaign Gifts generally times the largest gift a donor has ever given. Planned Gifts can be 200 times the largest gift ever given by an individual. The national average for bequests is $78,000. Known bequests are about 20% of what is committed to a charity. 4 out of 5 are unknown. Blended Gifts can help stretch the Ask.

Center for Philanthropy “Million Dollar List” study

Rule of Thumb: Approximately 20% of Capital Campaign fundraising comes from Planned Giving. The 10/40/40/10 Rule: 10% of expectancies—within 5 yrs. 40% of expectancies: 5-10 yrs. 40% of expectancies: yrs. 10% of expectancies: more than 15 yrs.

What gets measured, gets done. Start with a Legacy Society Goal: Count the number of commitments; new legacy members Count Donor Visits and Donor Calls 20 minute Mondays Planned Giving will never be urgent.

Insure Program Success Don’t give Planned Giving an annual Financial $ Goal for Fundraising. Don’t look for instant results. PG programs take about 7 years to show impact. Don’t forget that Bequests are 80% of Planned Gifts. Keep it simple.

Helping People Crystalize Plans Lack of Cash Fact: 5%/95% Privilege of knowing their story Recognition and Stewardship Directing the Gift—Important conversations and documentation Planned Giving is a valued career skillset few take time to learn. Report Results—Track and measure.

Learning the Language: Testamentary—given, bequeathed, done, or appointed by will. Beneficiary—the person named to receive proceeds or benefits (occurring at death) Death is not an “If you die…” it’s “WHEN you die” 97% of Bequest provisions will remain. Most individuals do not remove charities after they put them in their will.

Gifts Made by the Million Dollar List

Individuals and families account for 88% of total giving when gifts and bequests combined. Religion 32%; Education 13%; International 8% Environmental and Animal orgs giving is up Arts giving is up 81 ultra wealthy individuals signed the Giving Pledge--$200 billion expected to transfer in the future.

Greatest Generation Born (Age 88+) Wealthiest batch of seniors in U.S. history; control > 60% of invested assets in America. Post depression influence and frugality. Those over age 65 today have 40% likelihood in a nursing home and 75% likelihood of home health care expenses. Bequests to charity with few strings attached Baby Boomers Born (Age 49-68) Big spenders Longer life expectancies. Unlikely to see significant inheritance from their parents. Concerned about outliving their retirement assets. Interested in gifts that provide income, or gifts at death. Strong interest in greater control of the gift once they are gone.

Incorporate your new ideas into your plan Who, What, Where, When, Why & How Build Relationships and Listen to their Story Visits: 25% Talk; 75% Listen Success Statistics: 75% Effectiveness in Person; 25% Effectiveness in Marketing Asking is Essential

The Complete Guide to Planned Giving by Debra Ashton Planned Giving Today publication Robert F. Sharpe’s free newsletter “Give & Take” “The Resource Library” tab (Gift Acceptance) website has the Planned Giving Cheat Sheet UST Interactive web page using Crescendo

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The Indiana University, Center for Philanthropy “Million Dollar List” study on $1,000,000 plus donors. PPP website Resource Centerwww.pppnet.org Giving USA 2012 study

You can’t reach the summit until you’ve left the camp. Mountain climbing is hard. It’s supposed to be hard, and it will take time. Others have climbed this same mountain. If possible, climb with a friend. Embrace the Mountain. Enjoy. The summit is worth the climb.

In the first place, I advise you to apply to all those who you know will give something; next to those of whom you are uncertain whether they will give anything or not, and show them the list of those who have given; and lastly, do not neglect those who you are sure will give nothing; for in some of them you may be mistaken. - Benjamin Franklin