How, when and why to secure planned gifts that bring real returns. Components and relative benefits of bequests in wills, annuities, a variety of trusts, retirement accounts and other planned gifts to nonprofits are described. Why nonprofit board trustees, senior managers, advancement professionals, every staff member and stakeholders can help stimulate the easiest gifts to make – planned gifts that secure an institution’s future! Roles of planned giving newsletters, seminars, financial and legal advisors, board trustees and individual visits.

1. Best Practices to Advance Planned Giving
Rod Miller
October 19, 2011
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5. Best Practices to Advance Planned Giving
Rod Miller, CEO
Executive Institutional Advancement Exchange
www.ExecIAE.com

6. What is a Planned Gift?
1. Made during an individual’s life
2. Benefits nonprofit (NPO) in future
3. After death of the individual and/or beneficiary
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7. Advancement Best Practices on LinkedIn
Why, when and how to plan and execute best practices for
institutional advancement - share insights, ideas and creative
ways to transform advancement efforts.
For board trustees, CEOs and leaders with vision and
commitment to best practices for growing revenue,
philanthropy and marketing impact.
http://www.linkedin.com/groups?gid=3874810
© Executive Institutional Advancement Exchange LLC 2011
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8. What are Best Practices?
A best practice is a method, process, activity, incentive,
or reward that is believed to be more effective at
delivering a particular outcome than any other
technique, method, process, etc. when applied to a
particular condition or circumstance…
... en.wikipedia.org/wiki/Best practices
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9. Advancement Best Practice Steps
1. Assess values, case, needs, goals and resources.
2. Review advancement strategy, process and behavior on-site.
3. Benchmark internally.
4. Engage new, key stakeholders.
5. Select and empower right leaders.
6. Sign-onto ROI performance: outputs, process and behaviors.
7. Establish pertinent, high-speed follow-through.
8. Reference benchmarks of world’s best practice.
9. Review trajectory and reward improvement.
10. Reassess stakeholder engagement.
© Executive Institutional Advancement Exchange LLC 2011
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10. Best Practices to Propel Giving
1. Discover new key stakeholders.
2. Recruit right leaders (volunteer and staff).
3. Empower communications (pertinent and quick).
4. Grow the annual fund and mega-gifts (including
planned gifts).
5. Assure follow through (3600 collaboration).
© Executive Institutional Advancement Exchange LLC 2011
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11. Common Planned Gifts
• Outright gift in future (even to annual fund)
– Stocks/bonds
– Real estate, antique or other property
– Retirement fund
• Trust instrument or bequest in Will
– Irrevocable
– Revocable
• Annuity or variable asset
• Life insurance
© Executive Institutional Advancement Exchange LLC 2011
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12. Bequest in Will
• Make and review
– Seek % of estate
– Restricted/unrestricted
– Beware narrow terms of application
• Change with Codicil
– Have wording readily available
(obtain legal advice)
© Executive Institutional Advancement Exchange LLC 2011
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13. Planned Giving Priorities
• Plan energetic engagement.
• Understand planned gift principles.
• Respect individual’s family/financial needs.
• Avoid specific advice or influence.
• Communicate creatively and frequently.
© Executive Institutional Advancement Exchange LLC 2011
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14. 1. Discover Planned Gift Potential
“Easiest gift to make…”
• Engage planned gifts task force at board-level
• Gather information from members of institution
• Mine institution’s database
• Showcase benefits from planned gifts
• Frequent news items/newsletters/updates
• Information seminars on planned giving
• Inform financial/legal professionals
© Executive Institutional Advancement Exchange LLC 2011
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www.ExecIAE.com

15. NPO Stakeholders
Board
•Network
NPO Family Previously
• Management Involved
• Staff • Board
• Clients • Staff etc
• Patients • Clients
• Students • Contacts
• Parents • Professions
Community Affiliates
• On/Near Site
• Any who value services
© Executive Institutional Advancement Exchange LLC 2011
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www.ExecIAE.com

16. Why Emphasize Planned Giving
Estimated 50% to 66% people die without a Will
USA (66% of African-American/75% of Hispanic populations)
Canada, Australia, Great Britain…
Rapidly growing assets of ageing baby boomers
© Executive Institutional Advancement Exchange LLC 2011
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17. www.ExecIAE.com 13

18. 2. Recruit Right Leaders – Task Force
Purpose: identify and help engage new potential donors
– understood limited term > “thanks” > new blood
Good leadership – succession, mix board trustees and peers
– Diversity of background, sex, occupation, geography, etc (“right”
people)
Action meetings/agenda/minutes
– Strong staff support
– Invited, informed, involved and thanked
– Interesting meetings
(pre-planning with chair, solicitation materials)
© Executive Institutional Advancement Exchange LLC 2011
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19. Build Relationship for Change
Discover
who
cares
Partner Engage
for
remedy CEO
Share
Suggest
interests
options
& values
Listen
© Executive Institutional Advancement Exchange LLC 2011
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20. Empower Planned Giving Officer
• Make/coordinate minimum 5 visits per week, in year-1
• By year-3, some closures on planned gift instruments
• Within 5-7 years, planned gifts may provide income
• Some estimate planned gifts at 10 times what’s notified
© Executive Institutional Advancement Exchange LLC 2011
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21. Align Expectations and Efforts
• 100-day plan to
execution
• Personal engagement
(board trustees, CEO,
advancement)
• Initial 5 to 7 year
commitment
© Executive Institutional Advancement Exchange LLC 2011
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22. 3. Empower Communication
“Good advice for gift planners: stop talking about tax savings and
the technical aspects of gifts.
Instead, combine the emotional appeal of your mission with the
impact the donor’s gift can make, and you will have a winning
formula.”
- Phyllis Freedman, “Planned Giving Blogger”
July 20, 2010
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23. Focus Future
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24. Focus Future
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25. Focus Future
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26. Focus Future
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27. Value of Planned Gift to Donors
• Opportunity to make a larger gift.
• Avoid capital-gains tax.
• Retain individual income.
• Convert a highly appreciated asset.
• Set value of assets for tax purposes.
• Cut taxes on transfer of owned business.
• Pass assets to heirs and/or NPO.
© Executive Institutional Advancement Exchange LLC 2011
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28. Types of Givers
• Impulsive
• Habitual
• Careful
• Thoughtful
© Executive Institutional Advancement Exchange LLC 2011
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29. Most Effective Communication
Personal visits by
1. board-level peer
2. CEO
3. advancement professional
Additional visits by board member/CEO/professional
Each followed by a personal
1. letter (with visit/telephone follow-up)
2. phone call, with brief follow-up letter
© Executive Institutional Advancement Exchange LLC 2011
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30. Integrate Marketing Support
1. Brochure/web
– How to make planned gift to NPO
2. Word-of-mouth, viral
– Launch and repetition: “NPO accepts planned gifts/how”
3. NPO web/publications/mailings
– Advertise: “Photo + 50-150 word stories on who benefits”
4. Community affiliates/community news
– For information: “Photo + 250 word story on who benefits”
5. Estate, wealth management sessions
– Specialist information offered by NPO
6. NPO planned giving newsletter
7. Media-worthy stories
© Executive Institutional Advancement Exchange LLC 2011
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31. Overview Planned Gift Vehicles*
Planned Gift Charitable Deferred Charitable Grantor Lead Retained Life
Gift Charitable Remainder Annuity Estate
Elements Gift Annuity Trust Trust
Annuity
Income No more than No more than One or more NPO None
Beneficiary 2 individuals 2 individuals individuals
Holds Remainder NPO NPO NPO Donor NPO
Rate of Return Funct. Age/# Funct. Age/# Min. of 5% Variable Not Applicable
beneficiaries beneficiaries market value
Payments to Fixed amount Fixed, deferred Fixed Fixed amount None
Beneficiary payment percentage
Term Life income Life income Life inc. ben… Life/spec. term Life of spouses
Federal Taxation Portion Portion Inc. tax-free… May be... Appraise value
State/City Tax Varies Varies Varies Varies Varies
Rec. Min. Gift $10,000 $10,000 $100,000 Open Personal Res…
Accepted Assets Cash/stock Cash/stock Cash/stock… Cash/other… Real Estate
Rec. Min. Age of 65 35 60 No minimum To set
Beneficiary
• For Example Only: obtain advice from qualified
27
lawyers on all details

32. Comparison of Options
Computer simulations available
to project examples, based on
variables of age, asset base,
percentage returns (where applicable)…etc.
© Executive Institutional Advancement Exchange LLC 2011
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www.ExecIAE.com

33. Inform Legal/Finance Professionals
Keep interaction based on “information-only”
• Lunch/breakfast briefing about NPO (on-site)
– Tour examples of how bring benefit
– NPO planned giving materials
Presented by CEO
• Visits/mailings: NPO planned giving materials
© Executive Institutional Advancement Exchange LLC 2011
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www.ExecIAE.com

34. Estate/Tax Planning Update
• Seminar on ways to
– Reduce taxes on income, capital gains and estates
– Use a trust to control assets and pass assets to heirs
– Plan a financially secure retirement
– Bypass capital gains taxes on stocks, real estate etc.
– Plan gift arrangements to maximize your estate and family
inheritance
Presented by qualified (institutional) lawyer… free
… no solicitation
© Executive Institutional Advancement Exchange LLC 2011
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www.ExecIAE.com

35. 4. Grow Mega-planned Gifts
Older people
Assets
% of estate
© Executive Institutional Advancement Exchange LLC 2011
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www.ExecIAE.com

36. Family Wealth Management
• (Live-in) Workshop(s) on ways to
– Sustain philanthropic intent of parents/grandparents
– Use various trusts to save income, gift and estate taxes
– Provide for children’s or grandchildren’s education/future
– Obtain valuable tax and other financial benefits from gifts
– Plan for IRA distributions and beneficiary arrangements
– Establish or maintain family foundation
Conducted by NPOs professionals, with qualified
(institutional) lawyers/financial planners… free
… no solicitation
© Executive Institutional Advancement Exchange LLC 2011
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www.ExecIAE.com

37. 5. Ensure Follow-through
One well-briefed
NPO point-of-contact
for
Planned Giving inquiries
© Executive Institutional Advancement Exchange LLC 2011
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www.ExecIAE.com

38. 100-day Plan to Execution
1. Expect R.O.I.
2. Planned gift task force
3. Gift acceptance policy
4. Agree team actions
5. Identify high potential
6. Schedule visits
7. Follow-through benchmarked
to best practice
…Secure initial results
© Executive Institutional Advancement Exchange LLC 2011
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www.ExecIAE.com

39. Measure R.O.I. Benchmarks
1. Strategy
How well matched: stakeholder
values/mission
2. Operations
What pace: discovery, engagement, asking
3. Behavior
What priority: on big opportunities
Goal
Build capacity of each Planned Giving Officer
© Executive Institutional Advancement Exchange LLC 2011
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www.ExecIAE.com

40. Suggested Resources
Gerard M. Condon, Esq and Jeffrey L. Condon, Esq, Beyond the Grave: the right way and the wrong
way of leaving money to your children (and others), New York, Harper, 2001
Rod Miller, “Beyond Benchmarking Institutional Advancement” in Excellence in Communicating
Organizational Strategy, Albany, NY: State University of New York Press, 2001 (sample@ GOOGLE)
……………... Best Practices for Fundraising, The CEO Hour, WSRadio.com, 3 interview segments
http://tunein.com/program/?SegmentId=35465519&ProgramId=268692
……………... Major Gift Strategies that Work
http://www.slideshare.net/NonprofitWebinars/major-gift-strategies-that-work-7616568
……………... Why When and How the Big Gift Campaigns Work
http://www.slideshare.net/NonprofitWebinars/why-when-and-how-the-big-gift-campaigns-work-
7285907
……………... Advancement Best Practices that Work
http://www.slideshare.net/NonprofitWebinars/advancement-best-practices
© Executive Institutional Advancement Exchange LLC 2011
www.ExecIAE.com
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