Philanthropic Planning Companion

BRIAN M. SAGRESTANO, JD, CFRE, is the President and CEO of Gift Planning Development, LLC, a gift planning consulting firm. Previously, he ran gift planning programs for the University of Pennsylvania and Middlebury College and practiced law as a trust and estates attorney. He has been published in Planned Giving Tomorrow and Planned Giving Mentor and cited in numerous publications, including the Chronicle of Philanthropy. Brian is a regular presenter at national conferences and a past board member for several organizations, including the Partnership for Philanthropic Planning.ROBERT E. WAHLERS, MS, CFRE, is the Senior Director of Development and Gift Planning for Meridian Health. After working as a financial and estate planner, he has spent more than twenty years in the nonprofit sector with organizations like the Boy Scouts of America and American Cancer Society. He has been published in Planned Giving Mentor and has been cited in the Nonprofit Times and Advancing Philanthropy. Robert is a national board member with the Partnership for Philanthropic Planning and serves on the faculty at Columbia University for the Master of Science in Fundraising Management program.

• Foreword xviiPreface xixThe Role of Philanthropic Planning xxOur Approach xxUsing the Companion xxiiAcknowledgments xxvFrom Brian M. Sagrestano xxvFrom Robert E. Wahlers xxviiiPart I The Emergence of Philanthropic Planning 1Chapter 1 The Changing Fundraising Marketplace 3The Evolution from Deferred Giving to Philanthropic Planning 4In Summary 8Chapter 2 The New Philanthropists 9Defining Generations 10Traditionalists (Born Pre-1946) 11Depression Cohort (1912 to 1921) 11World War II Cohort (1922 to 1927) 13Post-War Cohort (1928 to 1945) 15Transitioning 16The New Philanthropists (Born 1946 to Present) 17Older Boomers/Leading Boomers Cohort (1946 to 1954) 17Younger Boomers/Trailing Boomers Cohort (1955 to 1964) 21Generation X/Baby Busters Cohort (1965 to 1976) 24Millennials/Generation Y/Generation Next/Echo Boomers Cohort (1977 to 1984?) 27Emergence of the ‘‘Great Recession’’ Generation? 32In Summary 33Chapter 3 Identifying Prospects for Philanthropic Planning 35Prospect Motivation 35Identifying a List of Prospects 36In Summary 40Chapter 4 Creating a Fundraising Environment for Philanthropic Planning 41Laying the Foundation for Philanthropic Planning 41The Internal Case for Philanthropic Planning 43The Role of an Integrated Advancement Program 48Annual Giving in the Philanthropic Planning Context 48Gift Planning In the Philanthropic Planning Context 50Infrastructure 50Donor Interaction 51Communication and Marketing 51The Role of Your Board and Volunteers in Gift Planning 52The Role of the Board and Volunteers in Philanthropic Planning 57In Summary 60Chapter 5 The Role of Professional Advisors 61Roles of Professional Advisors in the Philanthropic Planning Process 61Dispelling the Myths: Competing or Completing 63How Professional Advisors Can Promote Philanthropic Planning 64Would Advisors Benefit from Specialized Training in Charitable Planning? 66Methods for Fundraisers to Engage and Partner with Professional Advisors 67Does an Advanced Degree or Certification Create Credibility with Advisors? 68Engage Professional Advisors 69Support Professional Advisors in Their Work 71Steps for Fundraisers to Enhance Collaboration with Advisors 72Create a Professional Advisors Network 74The Role of the Professional Advisors Network 77Measure the Success of Your Partnerships with Professional Advisors 79Follow the Model Standards of Practice 80In Summary 81Part II Working with Philanthropists 83Chapter 6 Integrated Solutions for Principal Gift (Tier One) Philanthropists 85Who Are the Principal Gift Philanthropists? 85Unique Characteristics of High-Net-Worth Donors/Clients 86Motivation for Giving 88Perceptions of Philanthropy 90Tax Considerations 92Decisions and Distributions 92Giving by Entrepreneurs 93The Role of Professional Advisors 93Utilization of Philanthropic Tools 95Volunteering 95Children and Values 95Interpreting the Data 98Building a Philanthropic Planning Model 98Philanthropic Planning Models for Charities 99Philanthropic Planning Models for Professional Advisors 103Core Elements Common to All Philanthropic Planning Models 106Defining Values 107Assets and Exploring the Meaning of Wealth 108Limiting Financial Inheritance 108The Business of Being a Family 109Communication—Family Meetings 110Philanthropy 111Creating a Plan 111Collaboration among Professional Advisors, Charities, and the Family 111The Art of Listening 114Concierge Stewardship 115In Summary 116Chapter 7 Working with Major (Tier Two) Donors 119Introduction to Moves Management 119Identification/Education 120Qualifying Prospects 121Qualifying Visits 121Obtaining Qualifying Visits 123Planning for Qualifying Visits 131Conducting Qualifying Visits 131Following Up Qualifying Visits 132Cultivating Prospects 133Sharing the Charity’s Mission 133Introducing Others into the Conversation 134Cultivation Visits 134Understanding the Donor 136Traditionalists (Born Pre-1946) 136Older Boomers (Born 1946 to 1954) 136Younger Boomers (Born 1955 to 1964) 137Generation X (Born 1965 to 1976) 138Millennials (Born 1977 to 1984?) 139Soliciting Prospects 140How the Philanthropic Planning Approach is Different from Other ‘‘Asks’’ 140Preparing for the Solicitation Visit 142The Pre-Solicitation Visit 142Who Should Participate in the Solicitation Visit? 142Scripting and Rehearsing the Solicitation 143Asking for the Gift 144Negotiating the Gift 144Stewarding the Donor 145Introduction to the Seven Touches Philosophy 146Seven Touches 146Perspectives of Different Generational Cohorts 148Traditionalists 148Older Boomers 148Younger Boomers 148Generation X 149Millennials 149Other Segments 149The Role of Professional Advisors 150Complex Asset Gifts 150Bequests and Living Trusts 150Retirement Plan Designations 151Life Insurance 152Charitable Remainder Trusts 152Charitable Gift Annuities 152In Summary 153Part III Marketing to Prospects and Those Interested in the Mission 155Chapter 8 Marketing on a Moves Management Platform 157Marketing Is Not Gift Planning 159Using Moves Management 160Multichannel Marketing 161Creating a Brand 166Tracking Marketing Efforts/Measures of Success 166Managing Costs 169In Summary 170Chapter 9 Qualifying and Educating Everyone Else 173Make Donor-Centered Gift Planning InformationBroadly Available Through Existing Outreach 173Existing Publications and E-Publications 174Creating Meaningful Ads 175Ad Topics 179Response Mechanisms 181Web Site 182Properties of an Effective Gift Planning Web Site 182Setting Up a Gift Planning Web Site 183Design the Web Site for the Four Tiers of the Gift Planning Audience 184Key Components to a Gift Planning Web Site 185Driving Traffic to the Gift Planning Web Site 187Social Media and Networking Sites 188Multimedia 189Webinars, Simulcasts, and Podcasts 189Videos and Public Service Announcements 190In Summary 190Chapter 10 Cultivating Loyals and Everyone Else 191Brochure Program 192General Brochure 193Personal Planning Brochures 194Newsletter 198Cultivation Tools to Encourage Prospects to ‘‘Raise their Hands’’ 198Survey and Wills Kit 198Using Volunteers 201In Summary 201Chapter 11 Soliciting Loyals 203Postcards 204E-mail Follow Up 207Fulfillment Packages 208Bequest Buck Slips 208Use of Other Messages 210Gift Annuity Addition Program 210Phone Calling Program 211In Summary 215Chapter 12 Thanking, Recognizing, and Stewarding Legacy Donors 217Annual Donors 217Thanking Annual Donors 218‘‘We Don’t Value Your Gift’’ 218Retention and Lapsed Donors 220Investing In an Acknowledgement System 221Recognizing Annual Donors 221Stewarding Annual Donors 224Annual Fund Buckets 225Legacy Donors 226Thanking Legacy Donors 227Recognizing Legacy Donors 227The Role of the Recognition Society 227Stewarding Legacy Donors 232Stewardship Events 232Additional Materials—Multi Channel Approach 235Volunteer Opportunities 238Stewarding Philanthropists 239In Summary 240Part IV Program Infrastructure 243Chapter 13 Creating and Tracking Your Success 245Create a Plan 245Individual Performance Goals and Measuring Success 247Measuring Performance 247Individual Activity Goals 248Philanthropic Planning Officers 248Fundraisers 250Gift Planning Specialists 250Gift and Commitment Reports 251In Summary 251Chapter 14 Policies, Procedures, and Agreements 253Gift Acceptance 253Policies 254Drafting a Gift Acceptance Policy 254Procedures 259Identify Areas That Need Procedures 259Use Checklists 260Define Responsibilities 260Gift Counting and Reporting 260PPP and CASE Standards 260Generating Reports 261Gift Crediting/Recognition 262Gifts from Couples 263Matching Gifts 263Gift Valuation 263Gift Agreements 266When Is a Gift Agreement Necessary? 266Binding or Non-Binding? 266Types of Gift Agreements 269Anatomy of the Gift Agreement 269Partnering with Finance and Legal Counsel 270Enforcing Gift Agreement Terms 270Misuse of Restricted Funds 271Repurposing a Restricted Fund 271In Summary 271Chapter 15 Registration 273Registration to Solicit 273Registration Requirements 274Charitable Gift Annuity Registration 275Registration to Do Business 277Due Diligence by Advisors 277In Summary 278Epilogue 279What Do I Do Next? 280Start Today! 284Rewards of Philanthropic Planning 284It Is Up to You 285Appendix A Sample Internal Case for Gift Planning—Le Moyne College 289Appendix B Sample Internal Case for Donor-Centered Philanthropic Planning 295Appendix C Typical Objections to Qualifying Visits 299Appendix D Sample Qualification Visit Preparation Worksheet 305Appendix E Qualification Visit Questions/Conversation Starters 307Appendix F Philanthropic Planning Conversation Starters 309Appendix G Sample Donor-Centered Gift Planning Marketing Plan 311Appendix H Sample General Brochure—University of the Sciences 333Appendix I 52 Ways to Steward Legacy Donors 343Appendix J Sample Society Brochure—University of the Sciences 345Appendix K Sample Society Reply Card—University of the Sciences 351Appendix L Sample Plan Timeline 353Appendix M Activities Measures Reports 361Appendix N Sample Gift Acceptance Policy XYZ Charity 363Appendix O Gift Counting and Reporting Policy Summary 373Appendix P Gift Reports By Tender Type 385Appendix Q Gift Reports By Gift Structure 391Appendix R Sample Gift Agreement 397Bibliography 401Notes 407About the Authors 417Index 421