1. Building a Donor - Centered Start- Up Gift Planning a Program Brian M. Sagrestano, JC, CFRE

2. Program Agenda Introduction and Overview Introduction and Overview Questionnaire Questionnaire Overview of Legacy Gifts Overview of Legacy Gifts Challenges and Obstacles Challenges and Obstacles Legacy Giving Building Blocks Legacy Giving Building Blocks Discussion Discussion GIFT PLANNING DEVELOPMENT

3. Overview of Legacy Gifts Constructed in the present, with the intended purpose of future (and sometimes current) support for the charity or charities named as beneficiary Constructed in the present, with the intended purpose of future (and sometimes current) support for the charity or charities named as beneficiary Types Types –Outright Endowment Gifts –Bequests and Testamentary Gifts –Life Income Gifts GIFT PLANNING DEVELOPMENT

4. Bequests and Testamentary Gifts A form of philanthropy in which donors articulate their future philanthropic intentions through a written instrument that can be changed or modified at a later date A form of philanthropy in which donors articulate their future philanthropic intentions through a written instrument that can be changed or modified at a later date –Will –Trust –Life insurance policy –Payable on death designation for checking/savings accounts –Retirement accounts GIFT PLANNING DEVELOPMENT

5. Bequests and Testamentary Gifts Simple to create and understand Simple to create and understand –How funds are to be used Unrestricted or General Use Unrestricted or General Use Specific Purpose to Spend Immediately Specific Purpose to Spend Immediately Perpetual Endowment Perpetual Endowment –Which funds are to be used Specific /Residuary/Contingent Bequest Specific /Residuary/Contingent Bequest Retirement Plan Designations / IRD Assets Retirement Plan Designations / IRD Assets –Sample Language and Sample Introduction GIFT PLANNING DEVELOPMENT

6. Life-Income Gifts An irrevocable charitable arrangement through which a donor makes a gift and retains the right to payments for life or a term of years An irrevocable charitable arrangement through which a donor makes a gift and retains the right to payments for life or a term of years –Upon the death of the last payment beneficiary, or at the end of a term of years, the remaining value is distributed to a charity or charities Charitable Gift Annuities Charitable Gift Annuities Pooled Income Funds Pooled Income Funds Charitable Remainder Trusts Charitable Remainder Trusts GIFT PLANNING DEVELOPMENT

7. Benefits of Life-Income Gifts Life-income gifts are irrevocable but offer potential tax and financial benefits, including: Life-income gifts are irrevocable but offer potential tax and financial benefits, including: –Avoidance of capital gains taxes –Increased income –Income tax charitable deduction –Probate/estate expense reduction –Professional financial management –Satisfaction derived from making a significant gift to charity GIFT PLANNING DEVELOPMENT

8. Challenges and Obstacles Common challenges and obstacles to building or strengthening a legacy giving program Common challenges and obstacles to building or strengthening a legacy giving program Sampling of your answers Sampling of your answers GIFT PLANNING DEVELOPMENT

9. Legacy Giving Building Blocks Successful legacy giving, like other forms of resource development, requires a commitment to fundamentals: Successful legacy giving, like other forms of resource development, requires a commitment to fundamentals: – Belief in the importance of long-term resource management – Articulated vision of long-term resource needs and desired outcomes – Volunteers and staff who will engage and offer leadership – Focus on relationships first, not gift vehicles or techno-babble – Saying thank you to donors, and providing information on an ongoing basis – Promote legacy giving through clear and compelling communications GIFT PLANNING DEVELOPMENT

10. Legacy Giving and Mission Why Should Your Organization Promote Legacy Gifts? Why Should Your Organization Promote Legacy Gifts? –Belief in the outcomes of your mission and work –Commitment to creating long-term support –Promotes a culture of donor-centered philanthropic stewardship –Contrary to popular belief, almost everyone is a legacy gift prospect –The largest gift most people can make is a Legacy Gift –Legacy gifts typically have the lowest cost of fundraising –Legacy donors make larger annual gifts AND –Staggering transfer of U.S. wealth over the next fifty years GIFT PLANNING DEVELOPMENT

11. Legacy Giving and Mission - Readiness? Does your organization have, or are you ready to create… Does your organization have, or are you ready to create… –Vision, direction and plans for your use of legacy giving revenue –Engaged volunteer and staff leadership and donor loyalty –Patience – and desire to create long-term return for your mission –Modest and consistent time and resource budget for legacy giving –Commitment to donor centered communication GIFT PLANNING DEVELOPMENT

12. The Case Creating a written document clearly articulating why legacy giving is important to your donors and your organization: Creating a written document clearly articulating why legacy giving is important to your donors and your organization: – How should you create a case statement for legacy giving? –When should you develop a case? –What elements should you include in a case statement? –Sampling of your answers GIFT PLANNING DEVELOPMENT

13. Engaging Leadership When should you engage Volunteer and Staff leadership? When should you engage Volunteer and Staff leadership? –How can the Board/staff help launch your legacy giving program? –Do you want the Board/staff to make legacy gifts? –Sampling of your answers GIFT PLANNING DEVELOPMENT

14. Legacy Giving Prospects How should you identify and approach legacy giving prospects? How should you identify and approach legacy giving prospects? –What are some criteria to consider? –How do you prioritize groups of prospects? –How do you gauge their interest in legacy giving? –Sampling of your answers GIFT PLANNING DEVELOPMENT

15. Stewardship How do you acknowledge, foster and support relationships with your legacy giving supporters? How do you acknowledge, foster and support relationships with your legacy giving supporters? –Should you set up a legacy society? –What information/actions should be required to qualify for membership in the legacy society? –What do you name the legacy society? –What will be the benefits of membership in your legacy society? –Sampling of your answers GIFT PLANNING DEVELOPMENT

16. Communications and Marketing How do you share your story and promote consistent, donor-centered opportunities? How do you share your story and promote consistent, donor-centered opportunities? –Have you taken a communications media inventory? –What outcomes based themes can you highlight? –Why do you want broad-based and targeted communications? –Sampling of your answers GIFT PLANNING DEVELOPMENT

17. Discussion What have been your legacy giving efforts so far? What have been your legacy giving efforts so far? What has worked? Not worked? What has worked? Not worked? Where do you most need help in getting started? Where do you most need help in getting started? How much time a month could you commit to building a legacy giving program? How much time a month could you commit to building a legacy giving program? Would volunteer/staff leaders at your organization support your interest in building a legacy giving program? Would volunteer/staff leaders at your organization support your interest in building a legacy giving program? Would a step by step handbook of sample materials, policies and guidelines help you build your program? Would a step by step handbook of sample materials, policies and guidelines help you build your program? Would a consultant/mentor help you move through the required steps to build your program? Would a consultant/mentor help you move through the required steps to build your program? GIFT PLANNING DEVELOPMENT

18. What Should Be Your Focus? Legacy Giving Building Blocks Legacy Giving Building Blocks Building and stewarding relationships with your friends and supporters Building and stewarding relationships with your friends and supporters Articulating mission-based goals and outcomes for legacy gifts Articulating mission-based goals and outcomes for legacy gifts Developing capacity to responsibly accept and manage legacy gifts Developing capacity to responsibly accept and manage legacy gifts Thank You and Good luck in forging your future! GIFT PLANNING DEVELOPMENT