Planned Giving in Small Shops

An Essential Component in NGO Fundraising

Christine KwanThe Hong Kong Council of Social Service

Planned Giving Basics

Planned giving is the cultivation of donors for the purpose of receiving major gifts, usually in the future.

The gift is made from donor’s assets, not current income.

Because of size and complexity, they require planning and often are transmitted through a legal instrument such as a will or a trust.

US Experience

Philanthropic Giving Index (June 2005) by The Centre on Philanthropy, Indiana University fundraisers rated planned giving as the 2nd

most successful solicitation technique. (especially with health & religious non-

profits)

6.9% of fundraisers report that their organization received 51-75% of their

revenue from planned gifts.

US Experience

“Leave a Legacy” campaign http://www.leavealegacy.org

a national effort to inspire people from all walks of life and all income levels to think beyond their lifespan when doing good wor

ks.

donors to remember a cause or a charity in their will or estate plan.

2006-06-27 明報 A36 國際要聞

UK Experience

Planned giving up 50% in 4 years.

2002: http://www.rememberacharity.org.uk

achieved 32% awareness of its message

in the 1st year; constitute a major proportion of non-

profits’ incomes.

To Sum Up

Planned Giving has the following advantages:

contribute towards NGO’s development programs regardless of economic downturns

cost effective

offer attractive options to donors

To Sum Up

but it also requires… organizational patience time legal and financial planning advice non-profits to establish own Gift Acceptance

Policies for its planned giving program

What about HK?

Not tax-driven, $0 estate duty with effect from Feb 11, 2006 vs. overseas: planned gifts can decrease taxes & increase inheritances to loved ones.

Culture of passing wealth to the next generation vs. overseas: charity as the primary estate beneficiary

2006-06-27 蘋果日報 A1 頭條

2006-06-29 星島日報 D02 娛樂

Ageing Population

HK ageing population

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2005 mid2013

mid2033

aged 65 orabove

12.1% 13%

27%

Ageing Population

A larger and wider spectrum of elderly population: age groups: under 75, 75-84, 85 or above different health conditions & socio-economic char

acteristics

A higher elderly dependency ratio: 2004: 164 2013: 378 mid 2033: 428

Implications

What should be done to prepare for the challenges in an anticipated aging society?

How to prioritize NGO’s fundraising strategies in the next 5 year plan (2007-2012)?

Assess Readiness

Institutional Audit Assess financial viability / stability Review, adapt mission statement

Program Audit Interview supervisors, board, key supporters to

initiate buy-in Review donor base strengths & weaknesses

Staff Audit Identify staff/ budget resources Assess educational preparation

Prerequisites

Review your audits

Select model Volunteer-driven Staff-driven Combination

Want to get started

Decide what to promote

Available Platforms

HKCSS support initiatives:

Will Power for Legacy

Life Care Movement www.lifecare.org.hk

Keep In Touch

Christine Kwan

HKCSS

T: 2876 2453

christine.kwan@hkcss.org.hk