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January 5th, 2010 | Dialogues: Ideas, Experiences & Reviews
January 5, 2010
Powerful Gift Planning…On A Shoe-String Budget..?
“You can achieve significant gift planning results, spending 2-3 hours per month- with no money!” If you are an experienced fundraiser or gift planner- you’d have been skeptical too. But to hear Brian Clontz, a nationally prominent gift planning presenter and recognized authority on gift annuities, life insurance gifts appraisal and non-cash gifts, it actually makes sense. At a recent gathering in southwest Florida, he began his high-energy presentation with what he calls “my soapbox”: “By the year 2020, perhaps 2025, if your charity is not receiving 25% of your revenues from endowment earnings…your charity will die.”
His thesis was simple: with 220 new non-profits being approved by the IRS every day, adding to the existing universe of 1.8 million charities, there simply will not be enough donors and current dollars to sustain them all. He continued to build his case. Citing one of the landmark wealth transfer studies (Havens and Schervish report), Clontz reported that of the $41 trillion to $136 trillion expected to change hands by 2052, an estimated $6 to 25 trillion will be in the form of charitable bequests. The trend has already begun: more than five years ago, charitable bequests overtook corporate giving as a source of philanthropic dollars (and is approaching the level of all foundation gifts). In 2008, 8 of 10 of the largest gifts to philanthropy were bequests.He concluded much as he began:
• Everyone can leave a portion of their assets, even a percentage of group life insurance or their 401(k)/403(b), to charity. They have to be encouraged, and educated, to do so.
• Consistently remind all donors to “Please remember us in your will”, and make it easy for them to indicate that they have done so.
• Don’t be discouraged if, after beginning such an effort, only a handful of people indicate they have left you in their will. “For every person who says you are being remembered, four or five people don’t want to be on your radar but also have done so.” Clontz suggested multiplying your known “expectancies” by 4 or 5 for a good idea of the number of estate gifts currently expected over time.
• Pay particular attention to founders and past/current leaders of organizations, both volunteer and professional, and those consistent donors (“loyals”) who, though their gifts may be modest, have given faithfully.
• Establish a planned giving committee, with a small hourly commitment, meet by telephone a few times per year, and establish formal policies and procedures
• Target just 2-3 likely prospects per quarter- it will pay enormous dividends
Even for those with experience in the field, Clontz provided a powerful reminder that sometimes doing what is important- though seemingly not urgent- is what ultimately produces great results.
Don Stahl
Senior Consultant
D’Alessandro Inc.
Sarasota, FL
Email: don@dalessandroinc.com
December 21, 2009
Helping Volunteers Focus On Top Campaign Prospects
As I’ve been working on a gift table for a large campaign, I recalled discussions over the years about “raising sights,” “working the top of the table,” “holding the line,” “get the Top 10,” and so forth. Industry standards suggest that the top gift be in the 10 to 20 percent range of goal and that the best 20-30 donors yield 50 percent or more of the goal. But we all know that rather than sticking to the top of the table, our human entropy slides us toward the bottom of the chart.In outlining a campaign plan several years ago, we provided a table of gift ranges which listed “Direct Mail” at the bottom as a means to allow all constituent members to participate. As we explained the campaign process to board and campaign leadership, we focused on the top half of the table, pointing out how many prospects we needed to get those 20-30 gifts and the need to work the top before moving down the table. After some fruitful discussion, the board chair said, “When are we going to do the mailing…blah, blah, blah?” We were incredulous…well, we had predicted that keeping attention at the top would be difficult, but it was surprising the speed with which leadership went to the mail at the bottom.Whether the table is for a capital campaign or a major-donor based annual fund, the question is: How do we keep sights on the biggest prizes? In a recent campaign, the prospect rating process was in the consultant’s hands. He conducted several sessions to determine the top two levels of prospects and came back to the next meeting with only the names of those prospects for further work on determining interest and linkage. The remaining names were nowhere to be found. The threshold to get on the list was $100,000. Since there were no other names, the steering committee was forced to focus only on the top tiers—no lower levels to drag the eye, or the impetus, to lower levels.
Similarly, a table could be cut off after the top several levels were created to cover, say, 60-75 percent of goal, and the remainder listed as “Other.” The conversations then would concern the best prospects. (Try out a sample Gift table, courtesy of Blackbaud, at http://www.blackbaud.com/company/resources/giftrange/giftcalc.aspx)
Does this make sense to you? Would you do something different?
D.C Dreger, ACFRE
Vice President
D’Alessandro Inc.
Duluth, GA
Email: dcd@dalessandroinc.com December 10, 2000
Disappearing Estate Tax
Needs Positive Senate Vote
It’s good to know that the U.S. House of Representatives has approved a bill that would make permanent the current estate tax rate for individual estates. The bill goes to the Senate where members are likely to agree on a one-year extension to the law which would put off the ultimate decision while it wrangles with health care. Or the Senate may come up with its own plan, but it’s unlikely that will happen with so few days left in the year and so much to tackle.At issue if Congress does not act by December 31 of this year, the tax would reappear magically in 2011 at the rate that existed before 2001–55 percent on estates of $1 million or more. The government certainly would gain much-needed revenue if the rate reverted. Right now the estate tax rate of 45 percent kicks in at $3.5 million for individuals or $7 million for married couples.What’s good for the government isn’t necessarily good for us in the non-government or charitable sector. With so many more millionaires these days, it stands to reason that without the lock-down on dollars, there would be more available for charities. If you think having more money available for the non-government sector is a good thing, then you might want to contact your senators and let them know how you feel. Even if they delay the decision, it’s not too soon to make your voice heard. You can find a directory of the Senate at http://www.congress.org/
D.C Dreger, ACFRE
Vice President
D’Alessandro Inc.
Duluth, GA
Email: dcd@dalessandroinc.com
posted 5 January 2010 @ 13:02 by Paul D'Alessandro » Comments Locked
June 5th, 2009 | Capital Campaign Case and President Obama
On May 17, 2009, the University of Notre Dame was forever changed. Regardless of where you stand on whether a Pro-Choice President should or should not receive an honorary degree from the University; who gives and why they give will have an even greater impact on the future of the school. Notre Dame is steeped in the Catholic tradition and people support it not only because of its academic excellence, and yes, its football lore, but also because it is Catholic. Donors of all types, give for very specific reasons. As a former fundraiser for the University, I know that the school’s Catholicity has a lot to do with donor motivation. Arguably, not every one who is an alumnus will take issue with the University and will continue to support it. In fact, I would surmize that the Unversity will attract a new type a donor — perhaps it will be the Pro-Choice Catholic who is not in agreement with the Church on abortion. They may even attract the secularist who now does not see the University as a potential polarizing institution on moral issues that are close to the church. And it may attract a different kind of student than it has in the past, who will also in time become a donor. By the University’s decision, they may have lost the conservative Catholic student and his/her future contributions to the school and society as well. As I said, the University is forever changed. So what happens when you deviate from Case in a Capital Campaign. The University has posted this on its web regarding its Case for Support –”the Spirit of Notre Dame campaign aims to position the University more prominently among the nation’s leading research institutions, while strengthening and affirming our core values: chief among them, a profound commitment to the Catholic intellectual life and Catholic social teachings, a superlative undergraduate education, and thriving residential communities”. There are a lot of smart people who can reconcile the decision, but when it comes down to sitting in front of a donor , and I have done that over 3,000 times, they will ask the hard questions. Persuading the donor that the decision to honor a Pro-Choice President doesn’t reconcile too well with the Case Statement. It can create another excuse but great fundraisers know the importance of the donor conversation. Good thing Notre Dame is well into its campaign. I tell my clients that we problem solve our way to a goal. Things happen that cause an adjustment to the game plan. Sometimes it can be caused by a major drop in the stock market, sometimes it can be caused by a change in leadership, and sometimes it is caused by just making a decision without fully understanding its impact. I would imagine the President of Notre Dame didn’t include University Relations (Development) when he was thinking about who to invite to campus, but then again, he doesn’t spend every day wondering how to raise millions of dollars for the school. If he did, maybe he would have waited a year to honor President Obama and started the dialogue on campus beforehand.
Paul D’Alessandro, JD, CFRE
President
D’Alessandro, Inc.
E-mail paul@dalessandroinc.com
posted 5 June 2009 @ 11:49 by oldcityweb » 0 Comments
October 3rd, 2007 | Preparing for a Capital Campaign: Five Essential Elements (PDF)
A more thorough approach: five questions to ask before embarking on a capital campaign.
Click here to download this article PDF.
posted 3 October 2007 @ 18:21 by Paul D'Alessandro » 0 Comments
October 3rd, 2007 | News to Come
This space is reserved for general news, including company news and announcements.
posted 3 October 2007 @ 18:21 by Paul D'Alessandro » 0 Comments
