Advancement Fundamentals Track Sponsored by: Transformational Transactions: Why Engaging Affluent Prospects is the Holy Grail of Fundraising

Session evaluations will be emailed. Don’t forget to attend CASE After Hours this evening to further network with attendees.

“High Net Worth Philanthropy” Key Findings from the 2016 U.S. Trust ® Study

U.S. Trust 2016 Study Examines giving patterns, priorities and attitudes of America’s wealthiest households in 2015 Comprehensive data analysis of survey completed by 1,435 high net worth donors Average net worth of represented households was $16.8 million U.S. households with a net worth of $1 million or more and/or an annual income of $200,000 or more.

Question: What percentage of these HNW Households gave to charity Question: What percentage of these HNW Households gave to charity? What causes did they give to?

Overall Giving Percentage of High Net Worth Households that Give to Charity and Distribution by Category Ross: 91% of high net worth households gave to charity in 2015. For the first time in the study series, in 2015, religious organizations received the highest share of high net worth charitable dollars (36.1 percent). Sholtis: A decline of 7% in 7 years… we have some ground to make up  From the Higher Ed perspective - If you look at the difference between Higher Ed and Religious we certainly have some opportunity! But, if you consider that most of our institutions help or have causes related to international, environment, animals K-12 education Arts/Culture… well, you get the point. There is tremendous opportunity. Also, as I look at this slide I ask myself “What is most likely more compelling about the impact in giving to religious and/or basic needs I could learn from and incorporated in my impact statements I make to donors at the macro and micro level”

Question: How important is volunteering to these HNW households?

Volunteering and Giving Number of Organizations High Net Worth Individuals Volunteered with in 2015 Ross: Sholtis: This speaks to me in a profound way in my seat, serving a large public university. My ability to coach and encourage my field officers – from Executive Directors to our newest Advancement officers – to embrace as many opportunities for engagement for their principal gift donors is critical to their success personally and our success collectively. Having served two private universities more of my career, this slide is no surprise… and it’s why private universities, who have been developing very sophisticated ways for volunteering to strategically dovetail with philanthropic priorities, have a distinct advantage in their ability to engaged high net worth individuals. There are things those private universities don’t have so all is not lost  but that is for another presentation.

Question: Does volunteering impact their giving?

Volunteering and Giving Percentages of High Net Worth Individuals Who Give to the Organization with Which They Volunteer* On average, high net worth individuals who volunteered gave 55.9% more. Ross: In 2015, those high net worth donors who volunteered gave a higher average gift amount ($6,850) than those who did not volunteer ($4,395). On average, high net worth individuals who volunteered gave 55.9% more than high net worth individuals who did not volunteer. Sholtis: No surprise… My first question – I wonder how many of these high net worth individuals are baby boomers or of the country club generations. If they are predominantly from these groups this makes sense. I suspect this will change with Gen X and Gen Y and Millenials. As we look to build sustainable programs over the next decade and beyond we really need to understand what volunteerism looks like, the investment we need to make now, etc. *The percentages in this figure are calculated only among those individuals who volunteered in 2015.

Volunteering and Giving Volunteer Activities Performed by High Net Worth Individuals in 2015 50% of high net worth individuals reported volunteering in 2015 Most popular volunteer activities included serving on a board, distributing food/clothing or basic needs related items and volunteer for a religious organization/usher. Sholtis: Board involvement is still very strong. 23% of these folks became part of the fundraising community, helping to move the institutions and organizations they care about forward. Interesting. Most of these types of activities are very active.

Small Group Discussion: What does this information on Volunteering and Giving tell us and how might we best use it?

More Key Findings

Giving Strategies What Drives High Net Worth Donors Giving Decisions and/or Strategies 48.2% of high net worth donors reported having a strategy for their philanthropy 45.5% have a budget Sholtis: Ah! What we say, how we frame opportunities for investment in our organizations does matter! 60% of this group of high net worth donors say WE drive their decision. People. Contact with them. We can’t be passive. We must be proactive. Almost half of these donors have a strategy for their philanthropy before we speak to them…

Use of Giving Vehicles Percentage of high net worth donors who currently have or plan to establish a giving vehicle Sholtis: An investment in training around gift planning vehicles, investing in gift planning professionals or hiring a consultant for a small shop is imperative as we work with these individuals.

Decision-Making in Giving Percentage of high net worth donors who currently have or plan to establish a giving vehicle 23.1% relied on advice from at least one outside advisor in 2015 Most likely to receive advice from accountant, private wealth advisor, or non-profit personnel In 50.5% of households, gift was joint decision between spouses Sholtis: We’re in the game. These philanthropists look to us for advice and counsel. Having existing relationships with financial advisors and accountants to be in step with other advice our donors are hearing could be to our advantage.

Motivations for Giving Reported reasons donors gave in 2015 by percentage Communicating Impact is more critical than ever before. Sholtis: Does anyone see “Naming Opportunity” on this list? When you look at the categories that comprise 50% or more of the reasons for decision making you might say they are these: Need, Reputation, People, Issue… If you frame your 1:1 work from this point of reference it can drive your conversations in ways that become more productive. You can ask leading questions that tease out all for of these areas. We could talk about each one of these areas in depth to determine strategies from the macro to the micro narrative… We need to pay attention to this and allow it to frame our work.

Discussion

Questions

Thank You