1. Bequest Marketing for the Small Nonprofit April 12, 2013 1

2. Lack of staff Other priorities No immediate revenue Who wants to talk to donors about death and money? Reasons Why You Don’t 2

3. Planned giving today isn't the domain solely of large nonprofits that can afford to hire financial and legal specialists Many small nonprofits with limited fundraising staff are launching successful programs or expanding their informal efforts Don’t Let Fear Stop You! 3

4. You don’t need to know that much about planned giving in order to start a bequest marketing program Surround yourself with professional advisors you can turn to for answers Attorneys, CPAs, Financial Advisors You don’t have to be an Expert 4

5. Total giving to charitable organizations was $298.42 billion in 2011 (about 2% of GDP). This is an increase of 4% from 2010. As in previous years, the majority of that giving came from individuals. Specifically, individuals gave $217.79 billion (73%) representing a 3.9% increase over 2010. Giving by bequest was $24.41 billion (up 12.2%), foundations gave $41.67 billion (up 1.8%), and corporations donated $14.55 billion (no change from 2010). Giving by individuals (which includes bequests and family foundations) is critically important as it represents nearly 9 out of every 10 dollars donated. Corporate giving accounts for just 5% of the total giving in 2011. Giving USA 2012 the Annual Report on Philanthropy How big is the sector? 5

6. With the passing of the baby boomer generation comes the largest transfer of wealth in human history. An estimated $6 trillion could be transferred between now and 2052. Why Now? 6

7. A will or bequest is an individual’s statement regarding how the he/she wishes to distribute his/her assets upon death. It identifies  the individual’s assets,  the people or organizations he/she wants to receive the assets,  how he/she wants his/her assets distributed to heirs, and  the person or institution who he/she wants to manage the distribution of those assets. Wills are in writing. Wills/Bequests 7

8. 90% of all planned gifts are bequests Annually, bequest gifts fall in the top 10 largest gifts to charity Today’s economy bequest may be easier to talk about Most US Donors (more than 90%) are happy to consider putting a charity in their wills. Yet fewer than 10% have done so Why Focus on Bequest? 8

9. For The Donor  Retaining control over one’s property during one’s lifetime.  Making a gift to a favored charity.  Receiving an estate charitable tax deduction. For The Charity  One final gift from a donor  The underlying commitment to a long-term relationship between the donor and your organization  Often unrestricted Benefits of Charitable Bequests 9

10.  Helping Others  Religious Beliefs  Giving Back to Society  Charities are more effective than government in addressing social issues  Doing Good AND Doing What Is Expected Motivation 10

11. Write a Case Statement. Describe why your organization is worthy of planned gifts. Getting Started 11

12. The region’s largest non-profit hunger relief organization, Second Harvest Food Bank has worked since 1974 to alleviate local hunger. A legacy or planned gift will help us achieve our vision of a hunger-free community where everyone who needs a meal can get one. Second Harvest’s Case Statement 12

13. You can’t thank them when they’re dead. Thank them abundantly now and make them feel special. Donor wall, annual report, website. Hold an annual luncheon. Create a Legacy Society 13

14. Commitment Form 14

15. What types of gifts will your nonprofit accept (cash is easy, but what about a piece of sculpture or closely held securities?) Under what circumstances can a gift can be accepted (should your charity pay off a mortgage in order to receive a piece of real estate?), and Through what means can a gift can be accepted (who has authority to accept a gift on behalf of your organization?). Gift Acceptance Policy 15

16. Specific Bequest  I bequeath the sum of $ _______ to (organization), (city, state, zip code) to be used or disposed of as its board of directors in its sole discretion deems appropriate. Remainder Bequest  I bequeath all the remainder of my estate to (organization), (city, state, zip code) to be used or disposed of as its board of directors in its sole discretion deems appropriate. Percentage Bequest  I bequeath ________ percent of the remainder of my estate to (organization), (city, state, zip code) to be used or disposed of as its board of directors in its sole discretion deems appropriate. Sample Bequest Language 16

17. Do the people inside your organization understand why a bequest program is important and the benefits it will bring to your organization? Board of Directors are critical for the success of your planned giving efforts. Internal Marketing 17

18. Please remember Second Harvest Food Bank in your will. This statement goes on everything! Letterhead, envelopes, website, email signature, newsletter, brochures, business cards and posters. External Marketing 18

19. Use Direct Mail as your feeder program for marketing bequests Buck Slip Bequest messaging in the P.S. of your fundraising letters Direct Mail 19

20. Direct Mail Buck Slip

21.  Create a clear, easy-to-understand message  Keep it simple and use few words  Tell stories, capture hearts  Focus on the outcome; not the technique –If you want low readership – use technical language –If you want a high response rate – use emotion Messaging 21

22. Organizational Publications 22 Probably numerous organizational publications that may be used Donor recognition pieces Loyalty giving clubs communications Annual Report Newsletter Web site Easy and appropriate to insert donor stories and testimonials

23. Honoring a Loved One 23

24. Make Dreams Happen 24

25. You already know the people most likely to make a bequest. They’re your loyal donors, the ones who give year after year. Your Prospects 25

26.  The fewer children and grandchildren the more likely  Consistent long-term giving and generally philanthropic  Size of lifetime gifts does not correlate with whether a person is a bequest donor  Ages when most likely to draft estate plans: late 40s to late 50s, and 65 to 78  College educated Bequest Donor Profile 26

27. Helen Whitlock Alley, the $100 a year donor who bequeathed $7.3 million to a diabetes group. Homeless man leaves $4 million estate. Richard Leroy Walters, did his stock trades over the phone at a senior center. Jean Preston librarian amassed an 8 million estate which she left to a library. The Millionaires Next Door 27

28.  Ask men and women equally  Show how bequest can help those with less (a sense of equity)  Emphasize that a charitable bequest is a way to meet others’ material needs  Planned Giving is about building trust between you and the prospect  Build rapport by asking about the donor’s life, family, interests  Find out if the donor has been married, has children, has grandchildren  Share your own story of making a planned gift if you have  Ask if a person has made a will  Only after building a relationship, ask if they have included your organization in their will Relationship Building 28

29. Out the Door Create a face-to-face meeting goal If you are already seeing donors this is easy to accomplish Dedicate time to cultivate relationships that result in bequest gifts Evaluate time management; Prioritize! Report your progress and success Action 29

30. www. siliconvalleycf.org www.plannedgivingcoach.com www.leavealegacy.org Resources 30

31. Planting the Seeds The best time to plant trees was 20 years ago. The next best time is now. Don’t Wait! 31