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suggest that you visit withan estate planning attorneyto discuss succession of yourbusiness. If you would likesome ideas on how to bephilanthropic, I would bepleased to work with you andyour attorney."
"1 don't care what happensto the farm after 1am gone. 1just want to farm until 1die."POMible responae. "Farmingis an admirable occupation.However, just as you havecultivated your land, you likelyenjoyed reaping the benefitsat harvest time. In the sameway, doing some planningnow can ensure your land cancontinue to be farmed or notas you desire. It would be ashame to let your lifetime ofwork possibly be undone in afew months because of taxes orlack of a successor or successionplan."
"My accountant says that 1can't use the deduction, 1make too much money."POMibLe response: "What is yourmotivation for giving? If youcan't stand the thought oflosingthe deduction (but L.lJ. any givenyear you likely "lose" the abilityto deduct some of your giftsanyway due to the AlternativeMinimum Tax and otherdeductions), you can wait untilnex..t year to complete your giftis that is best for you."
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We understand the Balance of Fundraising. At the forefront of successfulgift planning since 1995, Legacy Leaders has consistently achieved superiormarketing results for our clients.
To learn how our innovative, donor ..centered mail! phone approach canhelp you to exceed your goals, contact us today.
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LEG A C Y LEA D E R S, E X P'E C T THE M 0 S T
525 South Fourth Sr., Suite 585, Philadelphia, PA 19147"1581
Tel (2I5) 3)I )I80 1877 674 3453
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"Whatother charitable organizations do you support?
We know that our donors are likely to have multiplecharitable interests. It is important to understand whichinterests they are willing to support financially, andwhy. Are there other charities with which the donorhas had a relationship in the past, but where they nolonger are willing to provide support? For example, adonor may support her graduate alma mater, but not herundergraduate alma mater, due to additional attention,financial support, perceived need, lasting friendships orprofessional opportunities.
If you have researchers on your staff, they canoften glean giving information, particularly if the donorhas an existing private foundation or by reviewing thepublished annual reports of other charities. Just becausea prospect has one or two favorite charities doesn't meanthat the prospect won't give to your organization. Oftena donor gives to an organization because he or she feelsan obligation to the organization, or to an individualassociated with the organization. If your prospect isphilanthropic, your job of convincing him or her oftheneed to give is probably easier than with someone whonever gave to charity before. If you uncover their passions,you are likely to secure larger transformational gifts.
There are planned giving options that enable a donorto give to multiple charitable organizations, including:bequests, charitable remainder trusts, charitable leadtrusts, life insurance policies and retirement plans.Charitable gift annuities and pooled income funds aregift options used to give to one particular organization,but the donor could fund one of these planned gifts atmultiple organizations since the minimum amounts areoften much lower. Many prospective donors struggle withthe choice of charities, unaware that they can provide forall of their charitable interests.
The prospect may share volunteer group participationand other ways she spends her time. I occasionally askwhat sort of solicitations the prospect receives and gaugethe response. You could check the web sites of thoseorganizations for a published annual report and verify
48 Journal of Gift Planning
IV you uncover their oassions,you are likely to oecure larger
tranouormatLonai gitto.whether the prospect is listed as a donor and at what levelof giving.
Some cues and clues relating to the donor's support ofother charities include:
"I give to my graduate alma mater because my graduatedegree is relevant to my current field of practice."POMibLe response. "That's great-you understand howimportant it is to give. Can you tell me more about yourwork/your career?"
"I give to my undergraduate institution becauseit is a state school and state schools provide moreopportunities for needy students to get an education."POMibLe responae. "State-funded schools are in need offunds-we all read about this in the major newspapers.But you have made a few gifts to our organization in thepast, and I would like to share how your gifts have beenused at our organization and express our appreciation,again, for your gifts."
"I would love to create a trust with you, but the hospitaland the church want me to do the same thing for them.1don't have the resources to satisfy everyone."POMibLe re6pome: "It's fabulous to hear that you are sophilanthropic! You may be surprised to know that youmight be able to achieve all of your philanthropic goals.There are several gift options you could consider. Abequest to each organization under your will is a commontechnique for giving to multiple organizations. A charitableremainder trust enables you to designate more than onecharitable beneficiary, after you receive an income streamfor your life and a tax deduction."
Too outen donoroand developmentouuicero oeparate the
idea 00 the 'major'
and 'planned' Siot,
when in reality oneotter: oerveo ao themotivation and
natural comoiementto the other.
Have you ever explored the idea ofa "planned gift?"
Too often donors and development officers separatethe idea of the "major" (i.e., current) and "planned" (i.e.,deferred) gift, when in reality one often serves as themotivation and natural complement to the other. Theinstitutional goal is to leverage the largest possible gift-agift that will be valuable to the institution and 'willhelp thedonor to achieve his or her personal objectives. A satisfieddonor is likely to make additional gifts.
Sophisticated programs often pursue a three-partask: an annual unrestricted gift to continue the donor'spattern of giving and provide much needed unrestrictedfunds; a pledge of a major gift such as an endowedfund or campaign commitment; and a planned gift toenhance lifetime giving. The lifetime gift offers greater
opportunities to steward the future gift. The futuregift-both its existence and its uncertainty-offersopportunities to contact the donor and possibly pursueanother current gift. When we understand how anindividual wishes to be remembered, we are betterpositioned to suggest opportunities for lifetime gifts.
When you are working on three-part gifts, it isimportant to understand just how much the donor knowsabout planned giving, and how he has learned whathe knows. Whether you discover that your donor is anovice or a more experienced philanthropist, it is alwaysgood to summarize in follow-up correspondence the giftideas you have discussed and the reasons that the ideashave been rejected or are still being considered. Peopleabsorb information in different ways. A personalized giftillustration of the concepts can be very helpful as well. And
Journal of Gifr Planning 49
iII
I!,
,,.it is wise to define terms that seem obvious. If an outrightgift can be pledged over a term of years, say so.
Some cues and clues relating to whether discussion of aplanned gift is appropriate include:
"Iwish I could give, but I worry I will run out of moneylike my mother did."POMibLe response. "Did you know that you could give assetsother than cash, and retain an income stream for life?"[charitable gift annuities, charitable remainder trusts,pooled income funds] "Did you know that you couldinclude a bequest in your will to [charity] so that youdon't deprive yourself of assets during your lifetime?"
"I don't trust the stock market; I prefer "safe"investments like CDs that provide me with a fixedincome."P066ibLe responee. "Can I tell you about a gift option thatwould provide you with a fixed income, part of which istax-free?" [charitable gift annuities]
"[ Charity] is in my will. 'What more can I do now?"P066ibLe re6pO'Me: "There are other options that couldprovide you with an income stream and save you taxesduring your lifetime." [charitable remainder trusts,charitable gift annuities, pooled income fund, gift ofappreciate stock]
"I should do something about this large block of stockthat I own."P066ibLe responees. "Did you know that you could donatestock instead of cash to make your annual gift?" "Didyou know that you could turn that stock into an incomestream?" [charitable remainder trusts, charitable giftannuities]
"I am frustrated by the low dividends on my stock."P066ible re6pO'Me: "Did you know that you could lockin a good rate and receive an income stream for life?"[charitable gift annuities, charitable remainder trusts]
50 Journal of Gift Planning
Il'
J
"I don't have liquid assets. My investments are mostlyin real estate."P066ible reeponse. "Did you know that we accept gifts ofreal estate?" [outright gifts, gifts to fund a charitableremainder trust, gifts of remainder interests]
"I don't have the energy to take care of my vacationhome and none of my children want to inherit or useit."P066ibLe responee. "Did you know that we accept gifts ofreal estate?" [outright gifts, gifts to fund a charitableremainder trust, gifts of remainder interests]
"I need more income in my retirement as mypension is small."P066ibLe re6pO'Me: "Did you know that there are giftoptions that would provide you with an income streamin your retirement?" [charitable gift annuities, charitableremainder trusts, pooled income funds]
"I don't mind paying taxes, but I think I pay more thanmy share."
POMlble reeponse. "Charitable contributions are taxdeductible. You can't eliminate taxes completely, but youcould use a charitable deduction to offset up to half ofyour adjusted gross income. Would you like to hear aboutsome possible ways to gain a tax deduction?"
Do you have a will?
Bequests are the lifeblood of any planned givingprogram. According to recent surveys of charities, theaverage age when a will which contains a charitablebequest is signed is 80; the average age at the last giftis 82; and the average age at death is 85.1 Charitablebequests accounted for 7.6 percent ofthe total gifts in2007, or $23.15 billion dollars." Would your organizationlike to share in this largesse?
Whether or not a prospect has a will determines tosome extent his sophistication and planning efforts, aswell as his readiness to move to the next level of plannedgiving discussion. The answer to this question can alsodirectly lead to the next question if answered in theaffirmative: "Did you include any charities-includingour organization-as a beneficiary?" Use this opportunityto encourage the donor to share specifics on the bequestwith the charity to ensure that his purposes can beaccomplished. Be sure to provide information on yourlegacy society if you have one.
\7i[ehave found that many of our major gift colleaguesavoid asking a donor or a prospect whether he or she hasa will. Some prefer to ask, "When did you last updateyour will?" More frustrating are those major gift officersthat fear talking to donors who have already shared thefact that they have included the organization in theirestate plans. We suggest that major gift officers alwaysask, "Have you done your estate planning, and would youconsider including our organization as a beneficiary?"
Our colleagues should appreciate the usefulness ofthis question, particularly when a prospect has responded"no" to a major gift ask with the stated reasons of lackof available or liquid funds, or fear about future healthcare costs. Unfortunately, these prospects are oftendowngraded because oflack of current gift intent, when
they may be quite amenable to a bequest or other plannedgift. And, if they have already included your organizationin their estate plans, the discussion should center oninsuring that the donor's intent can be realized. The donorhas opened the door to an in-depth discussion of passionsand interests that will make it so much easier to talk withthem about lifetime support.
If a donor responds that she has included yourorganization in her will, you should consider doing any orall of the following:
Immediately thank the donor, tell her about yourlegacy society (if you have one-see below), and lether know she will receive an invitation.
Request a copy of the relevant documentation foryour files.Discuss the allocation of the proceeds, if any.(Occasionally the donor cannot recall, so thisis another reason why you should request thedocumentation. )Follow-up after the meeting with a second "thanks"for the planned gift, and then be sure the donorreceives a legacy society invitation.
Often legacy society membership 'willput the donorin an enhanced mail/contact category, and the donorwill begin to receive more news about your organization,and hopefully feel more connected. Remember that mostbequests are revocable; the donor's ability to change his orher mind (and in our experience there are a few who dothis) means you now have the responsibility of keeping thedonor informed and happy.
If your organization does not yet have a legacy society,you should lobby for one to be created for the stewardshipopportunities. Once you have a society, you need tomarket it. This applies to both new and more well-established legacy societies. Your web site should have aspecial section devoted to the legacy society, membershipand qualifications for membership. Marketing your legacysociety is marketing planned gifts, and vice versa.
Journal of Gift Planning 51
Some cues and clues regarding your prospect having a willcontaining a charitable bequest include:
"I have already taken care of [charity] in my own way."POMible re6pome: "Thanks! Would you care to define thisfor my benefit? Have you included our organization inyour estate plans already?"
"Is there specific language that I need to use to include[charity] in my will?"POMible response. "Yes, there is, thanks for asking. I willsend the information to you, and you can also access ourwebsite for some additional information about ourlegacy society."
Can we get together again to continue our discussion?
Donor cultivation is a process, not a single act-amarathon, not a sprint. Your initial visit should be thestart of a beautiful relationship. That relationship is withyour organization, not with you. You are representing theinstitution. The relationship should be deep and needsto have many touch points. You should consider how toinvolve others-president or CEO and other executivemanagement, board members, and colleagues in aparticular college or unit.
While it might be counter-intuitive, you probablyshouldn't try to address every possible aspect of yourorganization in your first meeting, or even have a readyanswer to every question a prospect asks. You shouldalways end the meeting and leave them wanting more.Some in the charitable arena go so far as to suggest neverleaving the meeting without scheduling another one! Youshould always have a reason (other than thanking themfor their time) to write or call, so that you can continue therelationship. If you have asked the necessary questions andhave listened attentively, there will generally be plenty ofopportunities for follow-up. One example is an article thataddresses a donor's interests-even an interest unrelatedto your organization. The New YOTk Times looks like Swisscheese in our houses on Sunday mornings, and we aren'tdipping coupons! The challenge will be finding a means to
52 Journal of Gift Planning
Donor cultivation to a process. not a
oingle act-a marathon, not a oprint.your initial »ist: 6hould be the start015a beautiuul reunionstu».
track these interests.Perhaps your database lists key interests: art, travel,
sports interests, or the lack thereof As you really beginto know your prospects, your job becomes easier, andyou will be surprised how easy conversation will come.Always remember, however, that the objective is tobuild a relationship that leads to a gift for your charity.Set an agenda for each meeting. What do you want toaccomplish? It really has to be about more than lunch.
Develop a strategy for each prospect. Set tasks or nextsteps as well as immediate and long-term goals. Listenwhen the donor suggests a time frame.
Some cues and clues to determine your time frame forsolicitation include:
"I have three kids in college and can't consider a majorgift at this time."POMible response. "I understand. I myselfhave a childin college now and I know the expense-as well as theworries. I hope that you can continue making an annualcontribution in whatever amount your means allow, andI look forward to keeping in touch with you over thecoming years. Today's students continue to have needs foradditional funds, and we appreciate your support at anylevel."
"I am hoping to retire by 60, and I worry aboutincome."POMible re6pome: "I wish you the best in reaching your goal.If you don't mind, how old are youjhow many years do youhave to work before turning 60? Would you be interestedin hearing about ways to combine philanthropy andretirement planning so that you can create an additional
income stream for your retirement years?"
"I need to rewrite my will now that myhusband is gone."POMibLe re6p011.6e: "I am so very sorry foryour loss, and I appreciate your willingnessto meet with me. Some of the people "lithwhom I meet are interested in hearing aboutways to honor and memorialize their lovedones. Would you like to hear more about thisoption?"
"I have just been diagnosed with cancerand will begin chemotherapy soon."POMibLe re6p011.6e: 'Wow, I can't even pretendto understand what you are going through.(Note: if you are a cancer survivor or sharethe donor's illness and wish to share thispersonal bit of information, you may finda unique connection to the donor.) If itwon't be a burden, I would like to check inwith you from time to time to see how youare doing. Perhaps when your therapy isfinished, we can celebrate over lunch."
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The questions we have suggested are just that-suggestions. Your personality and individual style willdictate how these questions are asked and answered. Youwon't be completing a surveyor reading from a script.Except for noting a date of birth or updated biographicalinformation, you likely won't be taking notes. At the end ofyour first face-to-face meeting, you should be able to makean initial assessment. Is this someone that has the capacityto make a gift, and the affinity to your organization thatyou could cultivate toward a major and/or planned gift?Record not only the facts that you have learned and theinformation that was gathered, but also your assessment.Don't forget to input a next step or strategy if you are goingto cultivate this prospect.
There is no ''bright line" that defines when you movefrom assessment to cultivation, and in reality the donor
~Visitour webs'i1;e atwww.ncpg_.org
for more information
continuum has no end point. You begin with identification,then assessment (usually one or two meetings, although youmight assess the prospect at different times for differentreasons), then cultivation (usually the longest stage and thestage where you discover the most information about theprospect), then pre-solicitation (where you determine, oftenwith the prospect, what the prospect is going to fund, forhow much, when, and with which assets), then solicitation(this is "the ask"-the essence of being a fundraiser), thenstewardship (an often overlooked phase, and one that canbe synonymous with cultivation if done properly).
Listening continues to be of primary importancein every stage. In the words of one of our colleagues:''You have two eyes, two ears and one mouth-use themproportionately!"
If you have assessed this prospect as having plannedgiving potential, but you haven't really steered theconversation to the topic, you will need to direct theconversation to explore these possibilities. While still openended, your questions 'willbe more probing and oftenleading. .
Journal of Gift Planning 53
Some additional examples ofleading questions include:
Would you like to learn of some ways that you can support(charity) while also taking care of yourself and your family?Are you concerned about providing for your family or heirsafter you are gone?Would opportunities for more income or lower taxes on yourincome be of interest to you?Has it been difficult to save for retirement?How has the stock market treated you?Have you thought about the legacy that you want to leave?Are you comfortable with the advice that you have been gettingfrom your own advisors as it relates to securing your ownfuture?Has your advisor ever asked about your charitable intentions?Have you considered including a provision for (charity) inyour will?If you could give your home to (charity) now and receive anincome tax deduction but continue living in it, would youconsider this a viable gift option?
Finally, we encourage you to maintain your sense of humor,and have fun! Your feelings toward your organization will becometransparent to prospects and donors as you spend more time withthem. And in the words of an unknown author, in our plannedgiving cultivation calls we should, all strive to be more like the 'WiseOld Owl" in a children's nursery rhyme:
The Wise Old Owl sat on an oak.
The more he saw, the less he spoke.
The less he spoke, the more he heard.Why can't we all be like that wise old bird?
Endnotes1 'Where Do We Go from Here?" Give & Take. November 2008. p. 2 www.sharpenet.com!gt!pdfS!2008!nov08.pdf (viewed December 1, 2008)
2 "Giving by Bequest." Giving USA 2008. Giving USA Foundation.
Alexandra P.Brooeq,JD, is senior directorof gift planning at North Shore LIJ HealthSystem Foundation in Great Neck, NewYork. Previously, she was senior director ofgift planning at Stony Brook University inStony Brook, New York, where she manageda comprehensive gift planning program,served as a senior gift strategist, and promotedplanned and major gifts for campus-wideconstituencies including the Stony BrookUniversity Medical Center, as well as fourcolleges and nine schools across threecampuses. She has worked in the gift planningand major gift areas for the past 10years,holding progressively senior gift planningpositions at Penn State University, PaceUniversity and Stony Brook University. She isa member of the Long Island Planned GivingCouncil.
PatriciaL. Roenigk,Esq., is the director ofindividual gift planning at the PennsylvaniaState University in University Park,Pennsylvania. She is a 1980 graduate of PennState and a 1984 graduate of Temple School ofLaw. She has more than 25 years of experiencein gift planning, including as a partner inthe law firm that serves as legal counsel toThe Pennsylvania State University and othercharities. She is also a past director of plannedgiving and endowments. Roenigk is a memberof the Pittsburgh Planned Giving Council.
Journal of Gift Planning 55
