1. CovenantCalls©2009 Gift Planning Opportunities in Turbulent Times Presented to National Capital Gift Planning Council 17th Annual Planned Giving Days Conference by Jay Steenhuysen May 14, 2009

2. CovenantCalls©2009 Donor Markets 1% of the population made up of the wealthiest families 9% of the population made up of middle- class millionaires 90% of the population made up of the rest of the population

3. CovenantCalls©2009 Financial Security & Charitable Gifts Wealth effect donors – investors feeling rich based on asset appreciation Planning donors – savers keeping their wealth in cash and near-cash instruments

4. CovenantCalls©2009 Issues We Face in 2009

5. CovenantCalls©2009 Economic Issues The change in HNW giving in this recession Stimulus package will trigger some IPOs, but most deals are dead

6. CovenantCalls©2009 Organizational Issues If staff reductions occur at your institution… –Donor qualification becomes a major issue –Strategy for the good prospects becomes more important Lapsing donors –Senior donors will stop giving sooner –They will fall off the donor list sooner Endowment problems

7. CovenantCalls©2009 Departmental Issues: 1% Donors This recession is different No sale of assets to subsidize lifestyle No dealflow means no wealth effect Gifts will require advanced planning

8. CovenantCalls©2009 Departmental Issues: 9% Donors Always required planning to make a gift Taking the brunt of this recession Cashflow crunch No longer prospects

9. CovenantCalls©2009 Departmental Issues: 90% Donors The real opportunity in this recession Maintaining their perspective Income planning like never before Gift annuities for savers

10. CovenantCalls©2009 Departmental Design Specialize in a market –Focus on a narrow market –Get good at your dealflow Outsource where you can –Gift administration –Stewardship –Qualification

11. CovenantCalls©2009 Discover Cultivate Connect Invite Acknowledge Fulfill Service Seven Essential Moves

12. CovenantCalls©2009 Gift Planning in THIS Recession Show Your Value to Your Organization

13. CovenantCalls©2009 Show Value: Current Gifts When closing deferred gifts –Part outright –Share the income stream Harvest deferred gift agreements

14. CovenantCalls©2009 Show Value: Life Income Gifts Focus on the right deferred gifts –Take advantage of the interest rate –Address immediate problems Chase past prospects Develop new gift instruments

15. CovenantCalls©2009 Show Value: Bequests More will make bequests as they cannot make current gifts Use a recent lapsed donor campaign to find bequest prospects Focus on points where a donor gets stuck –Legacy and control –Making decisions –Gathering information –Cost –Hiring a planner

16. CovenantCalls©2009 What to do for 1% Donors You can get appointments like never before Donors are in planning mode –Estate plan –Philanthropy plan Partner with major gift staff in strategy sessions and meetings

17. CovenantCalls©2009 What to do for 9% Donors Move from investor prospects to saver prospects Re-visit CRT donors –Renounce life income interest –Sell life income interest

18. CovenantCalls©2009 What to do for 90% Donors Making the bequest commitment –Re-engage past prospects –Longer bequest conversations –Getting them to reveal their commitment Offer a micro-endowment program

19. CovenantCalls©2009 Key Points Savers, not investors Show value –Current gifts –Past prospects –Bequests: lapsed donors & sticking points New offerings Outsource what you can

20. CovenantCalls©2009 Jay Steenhuysen Covenant Calls 1539 Fall River Ave., Suite 3 Seekonk, MA 02771 508-336-4544 jay@covenantcalls.com