the evolution of a planned giving program
DESCRIPTION
Many organizations are struggling with the decision to start a plan giving program. Many are actively engaged in various forms of fund raising and plan giving never seems to get on top of the "pile" of things to do. This interactive session will present an overview of various forms of planned giving programs that can be run with volunteers, part-time staff, and/or full-time staff. Things you need to know, structures you need to build, donated property you can readily accept, timelines to be expected, and controls you need to put in place will all be discussed. Most importantly, your questions will be answered. So bring them on May 14! About DeWayne Osborn: Lawton Partners’ General Manager, Chief Compliance Officer and in-house expert on charitable and planned giving, DeWayne is one of Canada’s leading authorities on planned giving. DeWayne's professional knowledge as a Certified Financial Planner (CFP) and Certified General Accountant (CGA), has made DeWayne a highly sought-after public speaker and consultant on the financial complexities and philanthropic benefits that can be achieved by applying tax-effective strategies for gifting real property, cash, securities and life insurance products.TRANSCRIPT
The
Evolution of
a Planned
Giving
Program
DeWayne Osborn from Lawton Partners
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The Evolution of a Planned Giving Program
DeWayne Osborn CGA, CFP Lawton Partners Financial Planning Services Limited
Presented to Canadahelps.org
May 2014
Overview:
What is planned giving
Types of programs
Key components of any program
Policies and procedures to consider
Structural considerations
Timelines to consider
The Evolution of a Planned Giving
Program
What is planned giving? A gift of such significance that it
requires careful consideration by donor, family, and financial advisors.
Significance is defined by the donor
May be known or unknown
Can be today or deferred to a later date, or both
80+% are by bequest
Often be in conjunction with other gifts
Method of choice for $trillions in the next 20 years.
The Evolution of a Planned Giving
Program
Examples of property Cash
RRSP, RRIF, TFSA
Listed securities
Insurance policies
Real Estate
Interests in trusts
All of the above in combination!
The Evolution of a Planned Giving
Program
Simple
Oh Boy!!!!
Need Policies and Procedures to deal with the types of gifts
your organization will accept
The Evolution of a Planned Giving
Program
• Refer to hand out: Suggested Timelines for Planned
Giving
• Outright gifts can occur anytime
• Shows the optimal time to market certain property or
concepts
• Sweet Spot for maximum opportunities is 55 to 75
years old
Timelines for common planned gift
strategies
Types of Programs Volunteer driven
Part-time
Full-time
The Evolution of a Planned Giving
Program
Younger organizations
Events based organizations
Organizations with lots of skilled volunteers
Local, community centered
Very simple gifts
Simple systems
Great starting point!
Little or no marketing
Financial payback is very fast
The Evolution of a Planned Giving
Program
Volunteer driven program
Part-time program
The Evolution of a Planned Giving
Program
• Vast majority of programs
• Larger organizations with <10 staff
• Corner of desk operation
• ¼ - 1/2 time development staff person
• Slightly complicated gifts (listed securities)
• Volunteer advisors (Committees)
• Co-op or integrated marketing
• Minimal investment
• Payback 3-5 years
• A maturing volunteer program
Full time program Rare in Canada
Dedicated staff
Dedicated systems and software
Very large organizations
Very established organizations
All gift complexities (turn key)
Planned gift specific marketing
In house advisors
Payback >5 years
Mature part-time program
The Evolution of a Planned Giving
Program
Key components of any program
The Evolution of a Planned Giving
Program
• Cause, cause, cause and more
cause!!!
• History of great work
• High awareness in the community
• Certainty of organizational stability
and survivability
• History of donations
• Existing major gifts programs
• Dedicated volunteers with vision
• Larger number of donors (>10,000)
• Modern donor software and systems
Must have
Nice to have
Exceptions can occur, you just never know!!
Policies and procedures to consider
The Evolution of a Planned Giving
Program
• Name a board champion/lead gift
• Determine the type of program
• Establish budget (min 3 yrs)
• Determine your planned gifts “box”
• Establish P&P for each gift (see attached)
• Deeds of gift (see attached)
• Establish a Gift Acceptance Committee (GAC)
• Name responsible person/staff
• Establish quantifiable criteria to assess
program
• Get to it!
• One way track, no turning back!!
Measurement/assessment considerations
The Evolution of a Planned Giving
Program
• Do not used $$ raised
• # of “Touches”
• Monitor financial inputs
• # of Opportunities identified
• # of events held/attended
• Successful volunteer
recruitment
• Meeting marketing objectives
(# of articles)
• Understand the time value of
money!!
Structural considerations
The Evolution of a Planned Giving
Program
• Patience is critical
• Discard fund raising preconceptions or
experience
• Internal communication (E.g. who will answer the
phone)
• Financial investment required
• Ducks in a row!
• Policy and program flexibility
• Know/find the age of your donors!
• Know donation frequency history
• Need tax/legal resources and advisors
• Systems to spot opportunities
Do not be fooled: bequests are not simple!
Timelines to consider
The Evolution of a Planned Giving
Program
• Fundraising metrics do not
apply
• Bequest received = 1 in 4
• Part-time program 3 to 5 years
breakeven
• Full-time >5 years = breakeven
• One donor meeting = 2-3
hours
• Planned gift donors expect
calls on time!
• Years to close gift
• Insurance = 30+ years
monitoring • Stewardship is the hard part!
Questions?
The Evolution of a Planned Giving
Program
MyCharityConnects.org
Educational and training opportunities
through MyCharityConnects
www.mycharityconnects.org
UPCOMING WEBINARS
www.mycharityconnects.org/webinars
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by guest speaker Holly Wagg
Date: Wednesday, May 28, 2014
Time: 2:00-3:00PM Eastern Time
Instagram 101: Tell Your Story and Engage
your Donors with this Popular App
by guest speaker Alex Zanfir
Date: Wednesday, June 11, 2014
Time: 2:00-3:00PM Eastern Time
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