what do we mean by blended gifts? · what do we mean by blended gifts? 1 a blended gift is one that...
TRANSCRIPT
MPGC ANNUAL CONFERENCE November 5, 2014 Elaine Eberhart, Mayo Clinic Mark Ladendorf, Kaspick & Company
PURSUING BLENDED GIFTS
What Do We Mean by Blended Gifts? 1
A blended gift is one that has both current and deferred components.
Current Giving Annual Gift Major Gift Pledge Lead Trust
Deferred Giving Bequest IRA Designation CRT CGA
Campaign Goals 2
Scholarships $300 MM
Faculty $400 MM
Athletics $100 MM
Buildings $200 MM
$1 Billion
Where Will Your Gifts Come From? 3
Affinity for the Institution
Cap
acity
to G
ive
Wealth in the U.S. Net Worth and Number of Individuals
4
Source: Credit Suisse, Global Wealth Databook 2013
14,500 >$100MM
$10–100MM 614,000
$5–10MM 1,161,000
$1–5 MM 11,427,000
Where Will Your Gifts Come From? 5
Affinity for the Institution
Cap
acity
to G
ive
Donors Institution
6
Retirement worries
Family concerns
Skeptical
Less loyal
More data
More choices
Aggressive goals
Decrease in government funding
Short-term focus
“We need cash”
Transactional approach
7
How can your institution be more successful at getting larger gifts from your donors ?
Knowing Your Donor 8
Philanthropic
Personal and Family
Financial Planning
It Starts With Careful Listening 9
A
P
A
P
Think “PAPPA”
Advisors
Plans
Assets
People
P Passions
*PAPPA acronym credited to the Gift Planning Department at Washington State University Foundation
Why do some large proposals
fail?
Training
Silos
Cash Now
Metrics No Flexibility
10
Securing Larger Gifts
Assets and Gift Options
Flexible Policies
One Team
Better Staff
Training
Appropriate Metrics
Discussions
About Passion
11
The Power of Combined Skill Sets
Gift Planners
12
Major Gift Officers
Can build effective relationships with advisors
Build close relationships with donors
The Power of Combined Skill Sets
Gift Planners
13
Major Gift Officers
Understand how various assets can be used to fund gifts
Help donors uncover and express their philanthropic passions
The Power of Combined Skill Sets
Gift Planners
14
Major Gift Officers
Possess a deep knowledge of charitable giving techniques
Make the case for giving
15
Case #1 Annual Giving: $5000
Ask amount: $100,000
CGA CRT
So, why aren’t they giving more?
Turns out, they don’t need the income
Where Are These Donors on the Fundraiser’s Matrix?
17
Affinity for the Institution
Cap
acity
to G
ive
How do we solve this mystery?
18
A
P
A
P
P
P People
19
$150,000 gift
$50,000 CGA
$50,000 CGA
$20,000 Outright
$20,000 Outright
$10,000 Outright
20
I’m going to ask Mr. Dunn for $100,000..
Case #2
21
“If I ask for the bequest, the donor will be done giving!”
22
Working together led to a $1.1 million gift for the charity.
23
24
Can I afford a $10MM Gift?
25
$3MM to name a smaller space
5-year pledge
Backed up by a bequest
26
The donor still wants to give $10MM in her estate… ?
$10MM bequest
Donor’s children will choose the space
Blended Gifts Add Complexity 28
NEED BASED SCHOLARSHIP
FACILITIES PROGRAM SUPPORT
ENDOWMENT
ENDOWED PROFESSOR-
SHIP
Outright gift (up to 5 year pledge)
Yes Yes Yes Yes
Blended Gift (outright and planned gifts)
Yes By Exception: Case by case basis
By Exception: Case by case basis
By Exception: Case by case basis
Real Estate By Exception: Based on qualified appraisal
By Exception: Based on qualified appraisal
By Exception: Based on qualified appraisal
By Exception: Based on qualified appraisal
Documented estate gift Yes Must meet minimum at time gift realized
No Yes By Exception: Must meet minimum at time gift realized
Charitable Remainder Trust (Institution as Trustee)
Yes If payment meets minimum required
No Yes Must meet minimum at time gift realized
By Exception: Must meet minimum at time gift realized
Naming by Gift Type
Joint pipeline meetings
Structure planned giving with an eye towards integration
Rethink metrics for PGOs and MGOs
Encourage collaboration on ALL proposals for donors over a certain age
Train around the negotiation of blended gifts
30 How to Begin