Post on 16-Dec-2015
UWRA 1
Blueprint for Building Your TLC Donor Base and Lifetime Donor
Value
…thru Planned Giving andEndowment Development Techniques
Great Rivers 2014United Way Retirees Association
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
Planned Giving Is…
A donor service…
A gift planning technique
that enables donors to
make gifts of assets to United Way.
UWRA 3
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
Split Interest
UWRA 5
Donor TRUST
to
Donor
to
United Way
AnnuityCharitable RemainderPooled Income Fund
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.
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
UWRA 18
Three Ways to Hold Endowment Funds
WithinUnitedWay
UnitedWay
FoundationCreated byUnited Way
UnitedWay
CommunityFoundation
1 2
3
Community Foundations and United WaysCompete 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
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
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
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
Several Ways to Use Funds
• Endow special project or initiative
• Field of interest
• Unrestricted endowment fund
• Strategic operations endowment
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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
UWRA 31
Noncorporate Business Assets
4%
Cash12%
Bonds18%
Mortgages & Notes
3%
Life Insurance 3%
Real Estate19%
Stock31%
Other10%
What’s In Estates?
Giving USA 2011 Numbers
2010 contributions = $291 B
2011 contributions = $298 B
2012 contributions = $316 B (+3.5%, +1.5% inflation adjusted)
Corporation 12.2% for 2012
Bequest 12% for 2011, 8.8% for 2010, -7% for 2012
Major increases to arts, environmental, animals
UWRA 32
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
Ultimate Gift Ultimate Gift = =
$250,00$250,0000
$600,60$600,6000
Lifetime Donor Lifetime Donor Value = Value =
Annual Gift is $700 for 8 Annual Gift is $700 for 8 years = years =
$5,600$5,600
Annual Gift is $5,000 for 7 years Annual Gift is $5,000 for 7 years = =
$35,00$35,0000
Annual Gift is $10,000 for 6 years Annual Gift is $10,000 for 6 years = =
$60,00$60,0000
25 years of endowment 25 years of endowment revenue = revenue =
$250,00$250,0000
Lifetime Donor Value: Lifetime Donor Value: Tocqueville CoupleTocqueville Couple
UWRA 36
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
Why Planned Giving and Endowment
• Billions More For Services
• Two largest donors to endowment funds
– Dow Jones
– Compound Interest
UWRA 39
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
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
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
Resource for Case DevelopmentUnited Way Retirees Association
• United Way Retirees Association (UWRA) Consulting Illustrates a Case Development Process
o Process – Feasibility Study
o Outcome
–Compelling Business Case developed by core team
–Case embraced by staff, volunteers, financial professional, and partner agencies
–Measurable Goals and Action Plan
UWRA 47
Help From United Way Worldwide
• EPG Toolkit – information, resources, sample letters, etc https://online.unitedway.org/site/soe/cafe/File.cfm?PPFID=606
• Planned Giving Webpage www.uwgift.org (put a link on your website)
• United Way online Planned Giving Webpage http://online.unitedway.org/site/uwaservices/teampage.cfm?AID=26
• EPG Listserv
• Major & Planned Giving Institute
• Training, telephone, and E-Mail Consultation
UWRA 51
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
• “Turn Key” Charitable Gift Annuity Program” 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
• Best Practice Materials
• Planned Giving Statistics for all UWs
UWRA 52
Resource for Case DevelopmentUnited Way Retirees Association
• United Way Retirees Association (UWRA) Consulting Illustrates a Case Development Process
o Process – Feasibility Study
o Outcome
–Compelling Business Case developed by core team
–Case embraced by staff, volunteers, financial professional, and partner agencies
–Measurable Goals and Action Plan
UWRA 53
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
Thank you/Questions
UWRA 55
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