1. Tocqueville Legacy Circle September Call “Sizing the Ask” Ned Montgomery Honorary Chair, Endowment Campaign United Way of Greater Philadelphia & Southern New Jersey September 24, 2014 “Creating Lifetime Donor Value”

2. Key Questions – Relative to your Community and to United Way  What is the largest gift your United Way has received?  What is the largest size gift ever received in your community? What is the largest gift in your community to your local university, your local hospital, orchestra or museum? This helps you size the realistic dollar value of your ask.  What is the cost of endowing a professorship at your local college? Or a chair of your local orchestra?  How important is United Way to the donor’s philanthropic vision? Is the donor’s gift one of their top 1 to 3 charities, or just an average gift?  How engaged is the donor in United Way’s work? Has the donor been cultivated by United Way? How much cultivation have you done prior to making the principal gift ask? 2

3. Key Questions – Relevant to your United Way  Who influences the gift decision – donor, spouse, lawyer, financial advisor or other person? For significant gifts, it is key to involve the spouse.  What is the amount needed to support the programs you want the donor to fund, and to support the ask? Make sure all costs are included, and add 1/3 again for unexpected costs. Do you need annual support for multiple years, or an endowed gift? Be bold – United Ways have been too timid in their asks  Is this a transformational gift, or a gift of general support? (A transformational gift will tend to be significantly larger.) This plays into the donor’s philanthropic aspirations, and their ego. 3

4. Key Questions (continued)  Who is the best person to make a strong ask? (Chair of your Board, CEO, or an influential volunteer?) The person making the ask has to be comfortable doing so, and will know the donor and their capacity. Volunteer must agree on the amount of the ask but will often have to be pushed to be more bold. Rehearsing the ask with the CEO or the volunteer is extremely useful.  Metrics – usually a 10-20 times the annual gift is a benchmark in a capital campaign, unless the donor is engaged in our work, and considering a transformational gift.  How compelling is the case for support?  How will the gift be funded – cash, multi-year pledge (no more than 5 years), planned gift (ensure it is an irrevocable gift)? If a future/planned gift, ask the donor to make annual gifts of 5% of the total value gift on an annual basis so that the program can begin or be supported now. 4

5. Engaging a Donor from full designation to meaningful current annual support and endowed gift On the following pages is a summary of a program developed for a donor to become engaged and support an initiative on a meaningful basis now, endow his gift and use the program to excite and energize his friends and contacts to join him in his philanthropy. 5

6. DONOR STORY -- REMARKABLE INDIVIDUAL DONOR AND HIS GIFTS TO UNITED WAY From Designation to Full Engagement/Current Support and Future Irrevocable Endowment Gift The United Way of Greater Philadelphia and Southern New Jersey had a donor who designated 100% of his annual gift to external agencies. After conversations with United Way, the donor agreed to have $25,000 of his annual gift undesignated. After further conversations with United Way, the donor’s passions were engaged and he agreed to donated $200,000 per year to United Way to a program that was designed to meet his passions. The donor’s passions were focused on giving a boost to lower income individuals, providing them access to housing and continuing education. The individual must save $1000, the donor matches the individual’s contribution, and then through a Federal program, the individual’s and the donor’s funds are matched. The program involves the collaboration of United Way with several external agencies to deliver this program. The donor began the program, continues to support the program with annual gifts, and now hosts events at his home in Philadelphia to inform and excite his peers about the impact of this successful program. To ensure that this program will continue to be supported beyond the donor’s lifetime, the United Way convinced this donor to establish a legally binding irrevocable bequest of $4 million which is to be invested as an endowment to generate 5% in perpetuity to ensure this program continues. To recognize and honor this donor, the program was named in his honor, and the naming opportunity has magnified both the impact of his commitment and the recognition in the community. From full designation of his gifts, this donor’s passions were engaged, and his annual gifts are now substantial, plus he has made a legacy commitment to United Way of Greater Philadelphia and Southern New Jersey. Engaging the donor’s passions was key to securing these lifetime and legacy gifts. 6

7. Our thanks to Ned Montgomery Honorary Chair, Endowment Campaign United Way of Greater Philadelphia & Southern New Jersey 1709 Benjamin Franklin Parkway Philadelphia, PA 19103-1234

8. Attachments Ned furnished these materials which illustrate both donor proposals and the ultimate result – a fully funded program Donor Proposal “Powerless Children Need Powerful Friends” Summary Donor Funded Program Lubert Scholars/IDA Program Donor Proposal Financial Projection 8