1. UWRA 1 Blueprint for Building Your TLC Donor Base and Lifetime Donor Value …thru Planned Giving and Endowment Development Techniques Great Rivers 2014 United Way Retirees Association

2. Session Objectives Provide a quick overview of Planned Giving and Endowment Review Endowment and Planned Gift opportunities which increase lifetime donor value Resources and Contact Information UWRA 2

3. Planned Giving Is… A donor service… A gift planning technique that enables donors to make gifts of assets to United Way. UWRA 3

4. Planned Giving is … A technique/process for giving assets just as payroll deduction is a technique for giving income Three types of Planned Gifts: –Outright Gifts of appreciated assets (stock gifts, real estate) –Bequests (Wills, Retirement Plans, Life Insurance) –Split Interest (Charitable Gift Annuity, Trusts) UWRA 4

5. Split Interest UWRA 5 Donor TRUST to Donor to United Way Annuity Charitable Remainder Pooled Income Fund

6. Split Interest UWRA 6 John Jones 65 Mary Jones 60 Property $200,000 Bypass of gain & Income tax deduction Trust Principal $200,000 6% Unitrust Two Lives Increased income from trust $12,000. Charity $321,687 Trust to charity.

7. What is Different? UWRA 7

8. Planned Giving involves Donors choose the timing of the gift (now or later) Planning on the part of the donor…It is a “Stop and Think” gift A team effort (donor, financial or legal advisor, gift planner) Some gifts return an income Enhanced tax benefits, lower cost of giving Increases lifetime donor value! UWRA 8

9. Ultimate Gift = Ultimate Gift =$250,000 $600,600 Lifetime Donor Value = Lifetime Donor Value = Annual Gift is $700 for 8 years = $5,600 Annual Gift is $5,000 for 7 years = $35,000 Annual Gift is $10,000 for 6 years = $60,000 25 years of endowment revenue = $250,000 Lifetime Donor Value: Tocqueville Couple UWRA 9

10. Millenials 20s and 30s Mid Career 40s Planning for Retirement 50s Retirees 60s + Planned Giving Tied to Multi Generational Donor Life Cycle Age Group PG Vehicles Life Insurance- Cost Effective Solutions Estate Planning- Bequests and Retirement Plans Cash Gifts to Endowment Donor Focus Developing Philanthropic Vision & Mindset Planning for Future Income Needs for Some Donors 10 Revocable Gifts including Retirement Plans Charitable Gift Annuities Executing Philanthropic Vision for Others Best PG Prospects

11. Tocqueville Legacy Circle Description and Recognition UWRA 11 Purpose The purpose of the Tocqueville Legacy Circle is to: Inspire and recognize Tocqueville donors who perpetuate/endow their annual Tocqueville gift ($10,000+) through a current or deferred gift to United Way’s endowment; Recognize community leaders for their current or deferred gift to the United Way endowment that will perpetuate/endow a Tocqueville-level gift of $10,000 or more; Strengthen and build deeper relationships with those who care most about the community and United Way.

12. Tocqueville Legacy Circle Description and Recognition Criteria A minimum gift of $200,000 to United Way’s endowment. It is recommended donors consider a gift that is 20 times their annual gift level.  Gift may be current or deferred  Gift may be revocable or irrevocable, but not contingent Notification in writing of the donor’s intent to endow a Tocqueville- level gift. Approved by the National Planned Giving Council 12/14/10 UWRA 12

13. Growth in TLC Programs since 2008 UWRA 13 Source: DBII (adjusted)

14. Tocqueville Legacy Circle Programs 53 Local United Ways (LUWs) had TLC programs at the end of 2012 564 TLC members nationally* $149 million in expectancies* Average TLC gift circa $264,000* 59 TLC members added in 2012 Growth significant; 380 TLC members in 2008 to 564 in 2012, representing a 48% increase in 4 years. 33 LUWs with TLC programs in 2008 to 53 in 2012, representing a 61% increase in 4 years Top TLC LUWs and Number of TLC Donors ** Birmingham 89 Cincinnati 57 Greenville 31 Philadelphia 29 Dallas 24 Albuquerque 23 Atlanta 20 Louisville 20 Boston 19 Denver 19 Madison 18 Cleveland 15 Chattanooga 16 Des Moines 15 Jacksonville 15 Miami 15 Grand Rapids 12 Baltimore 11 Ft Lauderdale 11 Sioux Falls 11 Asheville 10 Palm Beach 10 UWRA 14 Source: 2012 DBII survey (adjusted) and 2008 DBII survey plus 2013 updates *End 2012 data ** End 2012 DBII data updated by LUWs for end 2013

15. $1.5 Billion $1.27 Billion UWRA 15

16. Are They the Same? Planned Giving Endowment UWRA 16

17. UWRA 17 What is an Endowment? Principal United Way Income

18. UWRA 18 Three Ways to Hold Endowment Funds Within United Way United Way Foundation Created by United Way United Way Community Foundation 12 3

19. Community Foundations and United Ways Compete or Collaborate? One-time Grants Broad Focus Narrow and Affluent Donor Base Small Number of Decision Makers Endowment is an End On-going Grants Health/Human Service Focus Broad and Diverse Donor Base Broad and Diverse Decision Makers Endowment is a Means to an End UWRA 19

20. Planned Giving Purpose While the purpose of a planned giving program is to Increase the donor’s giving capacity to give by offering Planned Giving vehicles… UWRA 20

21. The purpose of the Endowment Fund is to diversify and expand United Way’s resources by investing planned gifts such as bequests and trust gifts Increase resources beyond what is possible through the annual campaign Stabilize the community against fluctuations in the annual campaign Provide a flexible source of funding to respond to emergencies or emerging issues UWRA 21 Endowment Fund Purpose

22. Outright Gifts to Endowment/Planned Gifts to Endowment Enables United Way to diversify and expand resources by investing planned gifts such as bequests,trust gifts, Legacy gifts, life insurance, etc. Enhances and income stream to support the mission. Is an integrated resource strategy to better meet donor needs. UWRA 22

23. Several Ways to Use Funds Endow special project or initiative Field of interest Unrestricted endowment fund Strategic operations endowment UWRA 23

24. How Can You Integrate Planned Gifts and Endowment Giving Into the Overall Resource Strategy??? UWRA 24

25. UWRA 25 What will it take to become a United Way mobilizing for community impact? A deeper focus on certain elements of the Standards of Excellence If we wish to be effective, we will need to: Executing on the Business Model Operate as an integrated and aligned organization Have the right skills, competencies & leadership Create & deepen relationships with individuals & institutions Measure, evaluate & communicate results Engage and align with the community Develop strategies and focus actions Mobilize resources Align and execute on plans and strategies

26. UWRA 26 Expressions of Commitment to United Way Mission Sense of Commitment Involvement > Distinctiveness Interest & Caring > Credibility Knowledge & Understanding > Believability Identify, Target, Interest  Testamentary Gifts  Life Income Gifts  Appreciated Assets  Payroll Deduction  Cash/Check Donor Development (Moves Management) Brand Promises

27. Millenials 20s and 30s Mid Career 40s Planning for Retirement 50s Retirees 60s + Planned Giving Tied to Multi Generational Donor Life Cycle Age Group PG Vehicles Life Insurance- Cost Effective Solutions Estate Planning- Bequests and Retirement Plans Cash Gifts to Endowment Donor Focus Developing Philanthropic Vision & Mindset Planning for Future Income Needs for Some Donors 27 Revocable Gifts including Retirement Plans Charitable Gift Annuities Executing Philanthropic Vision for Others Best PG Prospects

28. Why Is a Planned Giving Program and Endowment Development Relevant and Crucial to a United Way?????

29. UWRA 29 Corporate downsizings Flat participation Corporate charitable interests closely aligned with strategic marketing Competition for the charitable dollar E-based fundraising On average 25% of UWW campaign was designated External Influences

30. Virtually Untapped! Alternative Market Opportunities UWRA 30

31. UWRA 31 What’s In Estates?

32. Giving USA 2011 Numbers 2010 contributions = $291 B 2011 contributions = $298 B 2012 contributions = $316 B (+3.5%, +1.5% inflation adjusted) Corporation12.2% for 2012 Bequest12% for 2011, 8.8% for 2010, -7% for 2012 Major increases to arts, environmental, animals UWRA 32

33. Will 33UWRA

34. Bequest Potential 50% of population dies without a will Of those who have a will, 50% are out-of-date Only 8% of those who have a will include a charitable provision Only 20% of those who file estate taxes (<1% of the population), include a charitable provision Only 3% of Tocqueville givers made a planned giving commitment Over 60% of planned giving income is from bequests UWRA 34

35. United Way Raises in US. Additional worldwide.~$4,000,000,000~$1,250,000,000 25,000+$10,000+ donors giveannually from Leadership & Major Gift Donors $1.27 Billion 550+ members of Tocqueville Legacy Circle 572,000+ Leadership donors = $758 Million UWRA 35

36. Ultimate Gift = Ultimate Gift =$250,000 $600,600 Lifetime Donor Value = Lifetime Donor Value = Annual Gift is $700 for 8 years = $5,600 Annual Gift is $5,000 for 7 years = $35,000 Annual Gift is $10,000 for 6 years = $60,000 25 years of endowment revenue = $250,000 Lifetime Donor Value: Tocqueville Couple UWRA 36

37. Tocqueville Legacy Circle Description and Recognition Criteria A minimum gift of $200,000 to United Way’s endowment. It is recommended donors consider a gift that is 20 times their annual gift level.  Gift may be current or deferred  Gift may be revocable or irrevocable, but not contingent Notification in writing of the donor’s intent to endow a Tocqueville- level gift. Approved by the National Planned Giving Council 12/14/10 UWRA 37

38. In the Years Ahead There Will Be Two Types of United Ways Extinct Endowed UWRA 38

39. Why Planned Giving and Endowment Billions More For Services Two largest donors to endowment funds –Dow Jones –Compound Interest UWRA 39

40. Starting Your Planned Giving and Endowment Development Program

41. UWRA 41 When You Come To A Fork In The Road... Take it. Yogi Berra

42. UWRA 42 1. The Case or Vision (Feasibility Study) Building Your Planned Giving Program

43. Questions Answered by Study Why do you need it? Will the donors support the program? Will it compete with the annual campaign, partner agencies, the community foundation? How will funds be used? Where will they be invested? How much will it cost? What obstacles do we anticipate? UWRA 43

44. UWRA 44 If there is a trap out there … we find it!

45. United Way EPG Barriers No Case - - - Measured On Annual Results No Volunteer Champions Perceived Competition With: –Annual Campaign –Agencies –Community Foundations Inadequate Attention Or Resources Unrealistic Short-term Expectations Fear (too technical) Stakeholders not involved or included (including internal staff) UWRA 45

46. Elements of a Successful EPG Program Well Developed Business Case Implementation of programs such as: Community Impact Model Loyal Contributor Program Relationship development vs. transactional giving Leadership/Major Gift programs Transformation Gifts ( i.e., funding operational and strategic expenses) UWRA 46

47. Resource for Case Development United Way Retirees Association United Way Retirees Association (UWRA) Consulting Illustrates a Case Development Process oProcess – Feasibility Study oOutcome –Compelling Business Case developed by core team –Case embraced by staff, volunteers, financial professional, and partner agencies –Measurable Goals and Action Plan UWRA 47

48. From Silo to Sandbox UWRA 48 Annual Giving Planned Giving Major Gifts Annual Giving Major Gifts Planned Gifts

49. Major Gift Annual Giving Ultimate Gift Gift Planning What we want to have… UWRA 49

50. Resources UWW and UWRA

51. Help From United Way Worldwide EPG Toolkit – information, resources, sample letters, etc https://online.unitedway.org/site/soe/cafe/File.cfm?PPFID=606 https://online.unitedway.org/site/soe/cafe/File.cfm?PPFID=606 Planned Giving Webpage www.uwgift.org (put a link on your website)www.uwgift.org United Way online Planned Giving Webpage http://online.unitedway.org/site/uwaservices/teampage.cfm?AID=26 http://online.unitedway.org/site/uwaservices/teampage.cfm?AID=26 EPG Listserv Major & Planned Giving Institute Training, telephone, and E-Mail Consultation UWRA 51

52. Help From United Way of America (cont) United Way Retirees Association Interim Staff and Mentorship program United Way Planned Giving Message Guide “Turn Key” Pooled Income Fund http://online.unitedway.org/site/uwaservices/teampage.cfm?AID=610 http://online.unitedway.org/site/uwaservices/teampage.cfm?AID=610 “Turn Key” Charitable Gift Annuity Program” http://online.unitedway.org/site/uwaservices/teampage.cfm?AID=1957 http://online.unitedway.org/site/uwaservices/teampage.cfm?AID=1957 Discount Rates on Direct Mail Newsletter and Planned Giving Software (Strategies Newsletter http://online.unitedway.org/site/vopenfile.cfm?fid=2971543 http://online.unitedway.org/site/vopenfile.cfm?fid=2971543 Best Practice Materials Planned Giving Statistics for all UWs UWRA 52

53. Resource for Case Development United Way Retirees Association United Way Retirees Association (UWRA) Consulting Illustrates a Case Development Process oProcess – Feasibility Study oOutcome –Compelling Business Case developed by core team –Case embraced by staff, volunteers, financial professional, and partner agencies –Measurable Goals and Action Plan UWRA 53

54. Contacts Evelyn Morgner United Way Worldwide Tel: 703-836-7100, ext. 341 Email: evelyn.morgner@uww.unitedway.org Tricia Smith United Way Retirees Association Tel: Email: tricia.smith@uww.unitedway.org UWRA 54

55. Thank you/Questions UWRA 55 GIVEGIVE. | ADVOCATE. | VOLUNTEER. | LIVE UNITED™ADVOCATEVOLUNTEER