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2 II.Contrast traditional fundraising and modern planned giving I.Introduction Table of Contents III. Two perspectives of a gift IV. The current atmosphere V. Planned Giving community’s reaction

3 Introduction  How did we get here?  What did we expect?  How did things change?  What have we accomplished?

4 Traditional fundraising contrasted with modern planned giving Typical reasons that nonprofits avoided planned giving:  Required more resources  Required specialists  Too technical/difficult  Not mainstream or popular for smaller charities  No demand from donors  Other fundraising avenues were available  Fear that it would negatively impact immediate gifts

5 Traditional fundraising contrasted with modern planned giving Planned Giving techniques often include:  Non-cash “assets”  More complexity  More risk  Deferred gifts  Donor-centric strategies  Solution-based methods  Flexible giving that engages donors  Unlimited gifting opportunities  Long-term relationships

6 Two perspectives of a gift  Benefactor (Donor)  Beneficiary (Charity) – Moving a “benefit” from one to the other

7 Donor’s perspective  Many hats  Many responsibilities  Many passions  Standard of living  Fear  Information overload  Trust issues  Prioritizing Two perspectives of a gift

8 Charity’s Perspective Finance  Ensuring organization has enough resources  Accountable to multiple stakeholders  Outright gifts give us maximum flexibility, simplicity and immediacy Development  Charged with finding additional revenue  Accountable to multiple stakeholders  Planned gifts give us more to discuss with donors, deepen the relationship and promote longevity Two perspectives of a gift

9 Current atmosphere  Philanthropic resilience  Magnitude of market impact on giving  Fundamental change in donor responses to economic headwinds

10  Market  Economy  Political environment  Demographic changes  Global community Current atmosphere

11 The market Volatility + fear = cash on the sidelines Five-year cycle: ? Deleveraging Corporations / Individuals / Government “Uncertainty creates paralysis. Certainty creates actions.” Current atmosphere

12 The economy The Fiscal Cliff  What is it?  What are the possible outcomes?  What does it mean for you and your donors? Current atmosphere

13 The political environment Current atmosphere Issue2013 Taxes (absent legislation) Obama ProposalRomney Proposal Dividends and Capital Gains Taxes Top Rate 39.6% + 3.8% Medicare Tax Top Rate 20% + 3.8% Medicare Tax Top Rate 15% Income Taxes15%, 28%, 31%, 36%, 39.6% 10%, 15%, 25%, 28%, 36%, 39.6% 8%, 12%, 20%, 22.4%, 26.4%, 28% DeductionsPhase out rules that eliminate personal and dependent exemption deductions and many other itemized deductions Reduce the value of itemized deductions and other tax breaks for families with income of $250k + Plans to “broaden the base” – specifics are not available. Most likely reducing or eliminating many deductions and credits Transfer Taxes$1 million deduction, 55% top rate $3.5 million deduction, 45% top rate Repeal Estate Tax Source: CBO, SmartMoney, Thompson Reuters Research Institute of America, 2012

14 Demographic changes  Greatest Generation ( )  Silent Generation ( )  Baby Boomers ( )  Gen X ( )  Millennials ( ) Current atmosphere

15 The global community  Heightened awareness  Increased competition for philanthropic dollars – International foundations – “Friends of” organizations Current atmosphere

16 Planned Giving community’s reaction What are the options given what we know today?  Recoil  Business as usual  Adapt and push forward

17 Recoil  Slash or freeze planned giving budget  Emphasize traditional means of giving  Limit donor options Potential implications  Not equipped to compete  Donors feel misunderstood  Less money Planned Giving community’s reaction

18 Business as usual  Continue with status quo  Keep your head in the sand  Wait and See Potential implications  Not positioned for growth  Missed opportunities  Lose your place at the table Planned Giving community’s reaction

19 Adapt and push forward  Recognize possibilities for growth  Position yourself for a new breed of donors  Enhance existing relationships Potential outcome  Seize the opportunity  Rebrand and Ensure Longevity  More Money Planned Giving community’s reaction

20 Closing thoughts Does Planned Giving make sense in 2012 and beyond? “You must be on top of change, or change will be on top of you.” ~Mark Victor Hansen “If not planned giving, what else can be done to meet your current and future fundraising objectives and ensure the perpetuity of advancing your mission?” ~Audrey Johnson Planned Giving community’s reaction

21 Thank you Audrey Johnson Vice President Planned Giving Advisor Phone