1. Marketing Bequests – and Beyond
Partnership for Philanthropic Planning
Rhode Island
June 21, 2018
Mike Valoris
Senior Consultant
PG Calc
(617)
© 2018 PG Calc
Marketing Bequests – and Beyond

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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,
Brochures
Telemarketing
Planned Giving Seminars
© 2018 PG Calc
Marketing Bequests – and Beyond

13. 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

14. 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

15. 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

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

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

18. 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

19. 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

20. 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

21. 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

22. 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 days
Try for partial distributions
© 2018 PG Calc
Marketing Bequests – and Beyond

23. 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

24. 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

25. Marketing Bequests – and Beyond s?
Questions?
Comments?
Discussion?
Debate?
Mike Valoris
Senior Consultant
PG Calc
(617)
© 2018 PG Calc
Marketing Bequests – and Beyond