afp hudson-mohawk chapter & gift planning group of northeastern new york national philanthropy...
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Gift Planning’s Future
AFP Hudson-Mohawk Chapter & Gift Planning Group of Northeastern New York
National Philanthropy DayNovember 15, 2013
A Contemporary History ofToday’s Gift Planning
Practice
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Before 1988 gift planning knowledge existed at local chapters
In 1988 the National Committee for Planned Giving was created to serve the local councils◦ National leadership◦ Educational excellence
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Into the 1980s
NCPG grew at a pace of 1000 members each year
Planned Giving became a unique department within development
Planned Giving became a prized career path for fundraisers
Planned Giving’s growth was fueled by broad asset appreciation
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During the 1990s
The tech bubble burst… Once asset appreciation ended, so did gift
planning’s rise. NCPG’s membership declined NCPG commissioned a study of the practice
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In the 2000s
NCPG Strategic Directions Taskforce
Study Findings
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More fundraisers than ever are practicing gift planning – just not fulltime
Increasing emphasis on current dollars has shifted budget money away from gift planning investment
Tax law changes contributed to the decline of gift planning – lower taxes
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The Practice of Gift Planning
Planned giving information is everywhere Gift planning officers can no longer control
the process A majority of charities do not have
specialized gift planning staff For most charities, planned giving is no
longer a separate specialty
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Gift Planning Officers
Blended gifts are on the rise among principal/mega gifts
Lack of knowledge by major gift/principal gift officers has lead to missed gift opportunities
The gift planning officer is not brought into the planning for the largest gift solicitations
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Principal Gift/Major Gift Officers
Better collaboration between planned gift officers and professional advisors, yet an element of distrust remains
Professional advisors ◦ Provide holistic planning◦ Are directing more donor planned gift decisions◦ Structure gifts without any charity involvement ◦ Can defer immediate gifts into deferred gifts with
assets under management
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Professional Advisors & Gift Planning
Do professional advisors and gift planning officers create the same value?
Advisors conserve financial resources thru tax planning, legal structures or asset replacement
Gift planning officers/fundraisers create satisfaction
Charitable giving at its core is an emotional act
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Professional Advisors & Gift Planning Officers
Broaden the definition of a gift planner to include part-time practitioners
Expand the practice of gift planning beyond how and when to include purpose and motivation
Change the name of NCPG to Partnership for Philanthropic Planning
Then the bottom fell out of the market…
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Result of the Study
AFP – Why the gift should be made◦ Mission◦ Motivation◦ Recipient
PPP – How the gift will be structured◦ Comprised of what?◦ When should the gift be made?
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AFP & PPP Members Then
Convergence in practice between AFP members and PPP members
AFP & PPP are coming to the same practice: Philanthropy
We are focusing on the meaning giving creates
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AFP & PPP Members Now
Gift planning’s future is the same as all other
fundraisers
Creating meaning through a process of philanthropy
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Demographics of U.S. Wealth
Population Percent
Share of Wealth
Their Issues Motivation
Ninety Third Passion Mission
Nine Third Taxes Tax Mitigation
One Third Control Family/Legacy
Those that express luck, blessing, right-place right-time, etc about wealth creation
They do not have the illusion that their wealth occurred entirely under their own power
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Who will give?
The last half of the last century was about bringing to the masses the tools of the rich◦ Car phone◦ Pager◦ Credit ◦ Philanthropy
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UHNW Services to the Masses
Philanthropic platforms Donor or philanthropist Eight unspoken motivations A philanthropic planning process
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One & Nine Percent Donors
Private foundation Operating foundation Donor advised fund account
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Philanthropic Platforms
The difference has nothing to do with financial capacity.
Donors are reactive; philanthropists are proactive
Exploring Intentionality
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Donor or Philanthropist?
Donors◦ Don’t need structure◦ No structure, no engagement◦ Doesn’t require vision
Philanthropists◦ Find structure useful◦ Will engage in a process◦ Will engage assistance
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Why the Difference Matters To You
Measuring Intentionality Key Activity Philanthropist Donor
Collect proposals
Seeks Receives
Evaluate requests
Values Feelings
Award Grants Systematic Random
Charitable Mission
Thoughtful Reactive
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Ask the prospect to share several significant gift stories
Use the prospect’s gift stories to determine if (s)he is a donor or a philanthropist
Probe the stories for additional detail Rate donor activity in each skill area
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Evaluate the Prospect
Identify three gift stories.◦ Need enough information to perform sufficient
analysis.◦ By having several stories, you have places to go if
you get stuck on a particular story. “Tell me about a gift you made in the last
two years that …◦ Gave you a feeling of satisfaction.”◦ Made a difference.”◦ Gave you a feeling of excitement.”
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Sample Starter Questions
How did you find that charity/program?
Tips Reactive if responding to mail, calls or visits Proactive if reaching out to the charity
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Collect Proposals: Probe and Tips
What was the basis for your decision to make that gift?
Tips Reactive if based on a feeling or a desire to
“own the story” Proactive if the project/program represented
a value in action
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Evaluate Requests: Probe and Tips
How did that gift fit into your overall pattern of giving?
Tips Reactive if no connectivity to other gifts Proactive if gift is part of a similar series
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Award Grants: Probe and Tips
What is your criteria for making a gift?
Tips Reactive if reasons are general or emotional Proactive if reasons are specific and
detailed
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Charitable Mission: Probe and Tips
1. Open topic with the lead question.2. Gain a general understanding of the
situation.3. Probe for detail on the key activity.4. Always push for the pronoun “I”.
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Probe Process
Exploring MotivationsWhat REALLY Motivates a Philanthropist?
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The myth of donor fatigue What prospect/philanthropists really want
◦ Unspoken expectations◦ More than a feeling
Eight expectations and what to do about it
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Motivating Expectations
Supporting an organization or place you care about
Helping that organization ◦ Volunteer leadership◦ Endowment gifts
Critical Issue: Be careful to document your charitable intent.
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Charitable Intent
Getting people to believe what you believe Perpetuating your worldview
◦ Find an organization that shares your belief◦ A strategy to persuade others
Critical Issue: Finding an organization that successfully measures how many people actually changed.
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Values
Cause change through charitable gifts Getting results:
◦ Determine what organization to work with ◦ Decide how to cause change
structural change new programs
Critical Issue: Clarity in understanding how the organization you work with agrees on the change you seek to create.
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Leverage
Influencing others to give Looking for other funders
◦ “Buying a table at the gala” ◦ Persuade others to consider the organization◦ Personally ask others to give◦ Challenge grants
Critical Issue: Choose your mechanism for modeling to ensure you actually achieve your outcome.
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Role Model
Philanthropy as a communication tool◦ Bring family into your practice of philanthropy◦ Communicate your values◦ Build a common purpose in multiple generations◦ Build skills with family members
Have a meaningful structure
Critical Issue: Determine if it is about the family or your philanthropy.
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Family
Becoming an expert in the cause you care about
Get smarter about your passion◦ Use philanthropy to gain access to expertise◦ Gifts as tuition
Critical Issue: Make sure the money gets you access to the smart people and be cautious of umbrella organizations.
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Expert
Milestones of a life that has had impact Naming things:
◦ Scholarships◦ Buildings◦ Departments◦ Endowments
Foundations can be used as legacies
Critical Issue: Consider future issues when naming things.
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Legacy
Internal milestones in the use of time, talent and treasure
Moving from success to significance◦ Identify what is significant ◦ Determine how to measure it◦ Plan to transition from success activities to
significant activities
Critical Issue: Getting the process right: Treasure, then Talent, and finally Time.
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Significance
Where will donors get the advice they desire?
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Perception of wealth loss Advisors 15% Clients 90%
What does this mean for Philanthropy?
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Registered Rep/Prince Associates
Registered Rep & Prince Associates ©2005
Perceptions: planned giftAdvisor 45%Client 27.8%
What does this mean for Philanthropy?
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Registered Rep/Prince Associates
Registered Rep & Prince Associates ©2005
Perceptions: meaningful giftAdvisor 1.8%Client34.8%
What does this mean for you?
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Registered Rep/Prince Associates
Registered Rep & Prince Associates ©2005
The Big Question?
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Who will seize the incoming philanthropic initiative in the
gold rush?
Among fundraising colleagues With your donor Alongside your donor’s professional
advisors
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Role of the Charitable Gift Expert
Charitable giving creates a disproportionate experience of satisfaction for the donor.
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Among fundraising colleagues With the donor Alongside the donor’s professional advisors
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A Charitable Gift Expert
Your “dealflow” with charitable giving makes you an expert in philanthropy.
You create tremendous value. You create satisfaction. Never again be apologetic, timid or cowed
because of what you do. You are changing the world.
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You as a Charitable Gift Expert
Questions?Jay Steenhuysen
Steenhuysen Associates1539 Fall River Ave., Suite 3
Seekonk, MA 02771508-336-4544