PLAIN ENGLISH PLANNED GIVING

(EASY PLANNED GIVING FOR MAJOR GIFT OFFICERS, NON-PLANNED GIVING DEVELOPMENT STAFF, BEGINNERS, OTHER NONPROFIT STAFF—EVEN PLANNED GIVING OFFICERS WHO WANT A REFRESHER)

There’s a big difference between planned giving and planned gifts.  Do you know what it is?

Which do you want for your organization?  We will cover the what, the why and the how.  You have to cover the “When”!

Your organization can succeed even without a “Planned Gift Officer”, or a “Gift Planning Officer”.

Let me show you how!  These webinar classes are short and to the point.  Here’s the Overview.

Overview and Titles—Eight Integrated Courses in Planned Giving:

COURSE NO. 1.—FEAR FACTOR? PLUNGE CONFIDENTLY INTO PLANNED GIVING    

A.I.M. (Am I Mortified) to do Planned Giving? Overcome the fear factor and dive into Planned Giving—even if you know nothing about Planned Giving at all.  Everything you need to know you already have bits and pieces of.  Let’s put the puzzle together.

COURSE NO. 2.—PLANNED GIVING:  THE CATALYST TO LARGER GIFTS FROM THE SAME DONOR YOU KNOW

Discover how Planned Giving really fits as part of every aspect of the overall fundraising program and why anyone in the fundraising office can participate and suceed.

COURSE NO. 3.—PLANNED GIVING: IT’S NOT ROCKET SCIENCE—THE ABC BASICS

Grasp the basics of Planned Giving without any tax or legal expertise—how to spot valuable leads that turn into asset-based gifts.  Surprise!  It’s really easy once you know a few little tricks.

COURSE NO. 4.—ACTION PLAN: INTEGRATE PLANNED GIVING INTO EVERY FUNDRAISING ACTIVITY    

Developing a simple, but powerful business and marketing plan for planned gifts to complement your focus, whether major gifts, annual gifts, and even special events.  It’s all a matter of “chat cultivation” put to work.

COURSE NO. 5.—DON’T ASK; DON’T TELL:  STEP INTO THE SHOES OF YOUR DONOR         

Learn the secrets of the donor’s planning process and how knowing this process leads to closing asset gifts without an ask.  The donor will ask you, ”Where do I sign?”

COURSE NO. 6.—CLOSE THE DEAL?  THE DEAL WILL CLOSE ITSELF    

Master the “one-on-one” with donors:  problem solving, proposals, and persuasion to close asset-based gifts.  Tips and techniques to overcome any obstacles or objections and convert them into objectives and opportunities.

COURSE NO. 7.—MAKE EVERY DONOR DOLLAR COUNT: YOUR DONOR IS YOUR STAKEHOLDER     

Manage planned gifts after the gift is closed—even if you don’t know how.  Your job is donor relations. Finance, gift administration or business office relations have a job, too.  Let them do the heavy lifting but you both keep the relationships going.

COURSE NO. 8.—LOOK INTO THE CRYSTAL BALL AT THE CROSSROADS OF THE FUTURE: BE THE VICTOR NOT THE VANQUISHED  

Where is all of this going?  Can you predict the future of fundraising and planned giving?  Maybe not, but you can affect its course at your institution.  Romance future planned gifts with the Four R’s—Recognize, Reinforce, Reward, and Record-keeping excellence.

MODULE 1

FEAR FACTOR? PLUNGE CONFIDENTLY INTO PLANNED GIVING

Session number: 

1. Believe it or not, you already know a whole lot of what you need to know to do planned giving profitably—for you and your organization. I say kiddingly: “Everything you need to know about planned giving your mother already taught you”
2. Conquering the Fear of Driving the Gift Vehicles!

From bike (gift annuity) to limo (lead trust), a look at planned gifts a different way.

3. Why Boards might not want to work with you.

Inner thoughts-I don’t want to make a gift, I don’t want to have to ask for a gift, I don’t understand Planned Giving, I don’t want to understand or learn PG (Nonprofits often bludgeon their board members about a very sensitive topic-- making gifts to start the program or asking others for planned gifts), and then clashes with the development professional may occur, or they are too busy with things they shouldn’t be involved in.

4. Overcoming CEO/CFO concerns   

Current versus deferred revenue--4 solid, no nonsense ways to get current funds from deferred gifts in trust or annuity form.  And I don’t mean the marketing term “blended gifts”!

            Avoiding double deferred gifts

            No staff to manage the gifts in the business office and how to get around that

5. Success with planned gifts: goals, tasks, timelines, analytics—how to get there from here

Setting revenue goals, closed gifts versus matured gifts, counting, measuring success of money spent in any activity designed to get prospects face to face—or what I call “Make Management Happy”

Creating tasks for top ten PG goals to achieve

What is the measure of success in early years versus money flow in later years, and how   to judge if staff person is doing adequate job

6. PG is really “nothing” at all! (so I say)—Simply form imposed on the substance of a major gift

Where PG fits in major gifts, examples of people with same amount of funds, but different needs and different assets, and how each gift may be structured with or without PG vehicles—simple, non technical, real-life examples

7. How to make PG everyone’s job

Getting everyone to spot great gifts by talking, talking to everyone around them

How to train them to talk and ask questions without asking for money or “selling”

How to function without a PG officer until you have enough funding

8. The WIFM factor—“What’s In It For Me”

What’s in it for you to make this succeed

•  WIFM and your career vs.WIFM and your organization
• Healthy organization, happy organization
• Have a healthy and happy career!
• Good balance in life—is this really for you?
• The three equities in your life and how to maximize them

MODULE 2

PLANNED GIVING:  THE CATALYST TO LARGER GIFTS FROM THE SAME DONOR YOU KNOW

Session number:

1. Before you market, be sure you have a program that runs smoothly by integrating these new gifts into what you already have in place. Assessing the organizational readiness by:

Examining the internal staffing and working structure of the development office

Tracing the gift history and donor records

Analyzing honestly the internal and external capabilities and/or weaknesses of the organization.

2. Understanding the “program” you want to put into place

Planned Giving (as opposed to planned Gifts) is more than the sum of gift vehicles—we define what constitutes a program, the consistent effort that continues when the key person leaves.

Scope of the program-how to determine it

Possible cause of tensions and concerns in the startup process.

3. Coordination with other fundraising drives without causing friction points, double asks, etc.
4. Four ways to coordinate PG gift with annual or current giving
5. How to integrate PG with a new or ongoing campaign
6. Willingness of the various support offices to learn; identifying training opportunities
7. Top down commitment and atmosphere conducive to achieving planned gifts, and willingness to be flexible in the gift structuring process.
8. Developing the ability to manage the Planned Giving function.

MODULE 3

PLANNED GIVING: IT’S NOT ROCKET SCIENCE—THE ABC BASICS

Session number:

1. Getting there through marketing and one on one relationships
2. How to spot the crucial issues in a donor’s life that lead to a planned gift
3. Matching issues with solutions and never having to “hard ask” for a gift
4. Planned Giving is merely a contractual relationship to make both parties feel good

Wills, contracts and trusts are really the only three types of gift vehicles that exist

The rest we make up as we go—us or Congress—and once you know this, the secret has been let out and life becomes very easy

5. The concept of the fruit and the tree is the very basic tenet of planned giving

Dividing every item donor owns into the fruit (income or usage) and the tree (the underlying asset) makes PG very easy once the donor’s needs are known

Timing is important, too, as to donor’s needs and those of family members

6. Deductions made really simple—income and estate tax
7. My IDEAL gift plan is IDEAL for every planned gift donor—

            I= Income

            D= deductions

            E=escape estate tax, where applicable

            A=avoid capital gains tax, where applicable

            L= the government largely tax finances your gift

8. Integrating the donor’s solution into his/her/their overall estate or family need planning

• Getting advisors on board
• Working with lack of information
• Comforting the kids versus Confronting the kids
• Time for learning/teaching

MODULE 4

ACTION PLAN: INTEGRATE PLANNED GIVING INTO EVERY FUNDRAISING ACTIVITY YOU DO

Session number:

1. Strategic PlanðMaster development planðBusiness plan for PGðMarketing plan
2. Simple Business Model for Planned Gifts
3. How to write a convincing, simple business plan you can follow

Projections of revenue, history, similarly situated organizations, pending gifts, closed gifts, matured gifts, leap of faith revenue projections

4. How write a convincing expense projection you can live with

• Budget process, control or lack of control of it
• Necessary items
• Desirable items
• Only in your dreams items

Net projected revenue with yield on investment and cross over pint when security (closed gifts) is achieved, and then when revenue (matured gifts) is achieved

5. Marketing plan basics with Lynda’s written 6-step marketing plan for major and planned gifts
6. Identifying your market (prospect ID and segmentation)
7. Understanding their wants and needs, and your USP (unique selling position—basis for your “case” for planned giving)
8. Dynamic outreach online and offline, finding the right person and closing the gift without asking

MODULE 5

DON’T ASK; DON’T TELL:  STEP INTO THE SHOES OF YOUR DONOR   

Session number:

1. The secrets of effective estate planning from the donor’s point of view—how to get philanthropy in there
2. Transactional planning versus overall planning; development of core family values, specified inheritances, financial, emotional and philanthropic inheritances in the transfer of wealth
3. Five steps in the planning process: Motivation, planning and design, drafting, asset transfers, administration of the plan
4. The five most common things that get in the way of their doing planning
5. Matching the donor’s wants and needs with the available tools
6. Nature of the donor’s assets and the effect on the process: type, valuation, income production, liquidity, debt, fractional interests, etc
7. Control issues and how to deal with the donor’s loss of control of assets
8. How to move the process along with a prospect/donor; how to “read their minds”

MODULE 6

CLOSE THE DEAL?  THE DEAL WILL CLOSE ITSELF         

Session number:

1. Following up with the 6-step marketing plan (one on one process begins here)—response mechanism received from donor as a result of step 5 (outreach, offline or online) of that plan. This opens a new cycle with one on one contact.  How you start to talk to the prospect—things you already know from good marketing makes the job easy.  You will never be at a loss for topics or words.
2. Chat cultivation to tailor the “generic prospect” (step 2 of the marketing plan) and the “generic product” (step 3 of the marketing plan) to this particular person’s needs. Finding the “Voilà” moment in identifying his/her “problem” you intend to solve with a planned gift.
3. Oral presentations and “getting to yes” in the request for writing up a proposal—trial closes and making the prospect feel comfortable, making you credible.
4. Writing the proposal: the sandwich approach, level of sophistication by donor traits, expressing wants and needs of donor, expressing connection to donee, outlining any restricted uses.
5. Financial presentations: projections, promises or what maybe perceived as promises, computer generated versus simple numbers
6. The elements of persuasion

More than 40 years ago, McGraw-Hill first published a classic ad depicting a grumpy customer sitting in a banker's chair with these classic lines:

I don't know who you are.
I don't know your company.
I don't know your company's products.
I don't know your company's customers.
I don't know your company's record.
I don't know your company's reputation.
I don't know what your company stands for.
Now…What was it that you wanted to sell me?

This advertisement was developed to promote the importance of advertising in McGraw-Hill's stable of magazines to prospective advertisers and to reinforce the power of advertising to current advertisers.

The message rings true not only in the case of magazine advertising but also for any of the many methods a business can use to get a message to prospective or existing customers. If you are not out there telling your story, how do potential customers know you exist?

7. Matching objections with objectives
8. Closing a gift, thanking, restating benefits to avoid recriminations, rewarding

MODULE 7

MAKE EVERY DONOR DOLLAR COUNT: YOUR DONOR IS YOUR STAKEHOLDER

Session number:

1. Manage the intake process and organize the office so you know nothing falls through the cracks—or risk losing your donor for life.
2. Counting and Accounting—two very different things, and even more so if the planned gift is a deferred gift vehicle.
3. Policies for soliciting and accepting gifts. Not someone else’s policies!
4. Working with restrictions on gifts. Legal restrictions, accounting definition of restrictions.
5. Working with endowment funds – brief overview of UPMIFA. If you don’t have your own endowment policies, the State has one for you.
6. Investment policy and strategy; spending policy, spending rate, fees assessed against your donor’s gift
7. When things go wrong—penalties, taxes, media liability, legal liability
8. Substantiation, qualified appraisals, tattletale forms, thanking and recognition

MODULE 8

LOOK INTO THE CRYSTAL BALL AT THE CROSSROADS OF THE FUTURE: BE THE VICTOR NOT THE VANQUISHED  

Session number:

1. Changes, changes and more changes. How do they affect your program in the future?

Nonprofits are changing, markets are changing, technology is changing, what isn’t? And Congress, the IRS and the public seem to have lost confidence in the nonprofit sector’s ability to manage itself. 

Best practices are being legislated and boards are being forced to be professional and business-like.  Endowments are being taxed. We may not have the same income tax system in the future and, even more likely, we may not have the same estate tax system.  Will the economy continue to be robust?  What to do to continue gifts in a down economy and amid cyclic market changes.  Let’s look at long-term legacies—endowments and donor advised funds.

2. Is there really a big wealth shift? What happens to your gift intake if not, and if so, what happens when it’s over?

Will the very meaning of philanthropy change, too, as the generations are about to experience an earthquake-like shift as post WWII retirees become Boomer retirees become Millennial retirees?Will the “big wealth shift” talked about in the last 10-15 years be counterbalanced by these other aspects?  Will Boomer/Milennial retirees be as generous as the prior generation or will they be as selfish as they are vain?  Will the next generation behind the Boomers step up to the plate to be the working philanthropists we need or have they struggled too long, not having had the luxury life of the Boomers?  Are the 20-somethings philanthropic? 

And most importantly, in the next several sessions, how can we make an impact to keep planned gifts alive and appealing well into the future?

3. Romance future planned gifts: don’t lose momentum once you have started.  As time goes on, more and more of your “older” prospects for planned gifts are thoroughly assimilated into the digital world.  What changes and assumptions will you need to make?
4. Recognition for planned and deferred gifts. How and why this should differ from outright major gifts.  You are taking care of someone or someone they care about very much, not only the charitable interest received by the organization.
5. Reinforcement versus recriminations. When a donor makes a gift through an asset-based plan, does this cause feelings of recriminations like most large purchases do?  How to counteract that potential feeling.
6. Reward the donor for the gift by means other than recognition or naming. Be creative.  Rewards you might consider to keep your donor involved.
7. Record-keeping excellence, and what happens when it isn’t so excellent. Stories from real life.
8. You are very important to the future of planned and other asset-based gifts. What are you doing personally to keep up with the times?  What future education will you need to stay current and vibrant in your field?