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Legacy Giving Essentials: How to Build a Bequest Program
The document outlines the essentials of building a bequest program for legacy giving, emphasizing its importance in fundraising. Key topics include understanding legacy giving, the steps to create a program, identifying suitable prospects, and the necessary marketing strategies. It targets organizations new to planned giving and provides actionable steps for engaging potential legacy donors.
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Legacy Giving Essentials: How to Build a Bequest Program
- 1. LEGACY GIVING ESSENTIALS Buildinga Bequest Program Presented by Lori Kranczer Founder, Everyday Planned Giving, LLC May 2019
- 2. About Me • 19years experience in planned giving fundraising • Headed up national planned giving (legacy) programs including a $125M endowment campaign • Managed 3 cohorts of nonprofits bringing in almost $60M in legacy expectancies within 5 years • Have taught planned giving widely, including at NYU • Live in Brooklyn, NY with my husband and 2 small legacies 2
- 3. You are inthe right place if • You understand that legacy giving is an important part of a fundraising program • You want more information about how to add a bequest program to your existing program • You want to know how to find the best legacy prospects for your organization 3
- 4. You are notin the right place if • You don’t think legacy giving is an important way to increase revenue • You believe that what you are doing is just fine • You think the legacy gifts “just happen” without effort • You think that starting a legacy program will be expensive or time-consuming • You want to “set it and go” 4
- 5. What you willlearn today • What is legacy giving? • Why you should start with a bequest program • What 4 crucial steps to take when you are first creating your program • Who the best prospects are and how to ask for a gift • Formulating a strategic endowment plan using bequests 5
- 6. What is LegacyGiving? • It is part fundraising and part financial/estate planning • Value-based gift; secondarily motivated by taxes • Typically, a person’s final, or ultimate, gift to an institution • Primarily gifts from wills/estates, but can also be current gifts such as endowments and life income gifts such as charitable gift annuities 6
- 7. Gift Progression ANNUAL LEGACYENDOWMENT 7
- 8. Larger gifts Why Legacy IsImportant For Organizations Knowledge of a pipeline of significant assets Budget relief Grows the endowment Broader base of donors Financial security for the future Enhanced relationship 8
- 9. Why Legacy IsImportant For Donors Values Different Assets Family Tax and Financial Benefits Engagement Recognition 9
- 10. If you arefirst starting out - • New to planned giving • New Executive Director • New to development • Need to start planned giving • Board member that wants to start a legacy program 10
- 11. Question: Are youjust starting to plan a bequest program?
- 12. First Step: YourBoard • Start with your Board Chair • Work your way through the executive committee and the development committee oKeep going? Finance committee, investment committee, budget committee • Goal: oAn ambassador – you need at least one (good) one. o Someone to stand up at meetings, speak with prospects; solicit board members, review policies 12
- 13. Second Step: DevelopYour Marketing • Start with a strong legacy case statement oThe content you extract will go into all of your marketing oWho you are, why you need legacy • Gather all external communications oGo 2 or 3 years back oDetermine where you can add legacy language oUse what you have first • Create your legacy tagline 13
- 14. Planned Giving isa marketing driven program • As you consider marketing, think about the different messages you need to promote • Your donors (and legacy giving prospects) all have different levels of engagement, passion, giving, family involvement, etc. • You will need to adjust your marketing to your prospects 14
- 15. Your legacy donorsare your “heroes” • They want to (and will) solve your future problems • They want a goal or purpose to overcome • You will guide them through this process Recommended book: Building a Story Brand by Donald Miller 15
- 16. Marketing – AddIt Everywhere! • Website • Existing direct mail • Newsletters • Testimonials • Annual reports • Existing events (pitch) 16
- 17.
- 18. You are goingto change the culture of your organization from fundraising to philanthropy 18
- 19. Third: Your Donors •Engaged oBoard (past, current and future) oVolunteers • Aging • Women • Higher education • No children • History of long-term giving 19
- 20. How to findyour legacy prospects 1. Board 2. Other leadership 3. Planned Giving prospects 4. Major gift donors connected to particular program 5. Past capital campaign donors 6. Longevity and frequency of giving 7. Other factors – age, wealth, location, etc. 20
- 21. Question: Who is thebetter bequest giving prospect? Donor X gives $5k once or Donor Y gives $50 every year for 10 years 21
- 22. The Legacy Conversation •Understand why people make a legacy gift • Connect their passion to their gift oE.g. What does the organization do that is most important to you? • Bring up Legacy oE.g. you have devoted your time and given generously over the years. Have you considered what your legacy will be? • Yes, no, conditions, objections 22
- 23. Fourth: Systems, Policiesand Processes • Before you get ask for bequests o Policies -- Gift acceptance, endowment, investment o Materials – marketing, sample bequest language, DOI, endowment agreement o People – solicitations, research, pulling reports • During the gift cycle o Moves management o Advisors • After the gift closes o Systems – data entry, donor acknowledgement, stewardship, investment of funds 23
- 24. Maintaining your program •Marketing = donors • Engagement is key • Steward the existing donors 24
- 25. NEXT STEPS • Gather •Speak with your board chair • Run segmentation reports • Create marketing initiatives 25
- 26. QUESTIONS? Contact me! Lori Kranczer,Esq. Founder and Principal Consultant, Everyday Planned Giving, LLC [email protected] Join our closed Facebook group www.facebook.com/groups/everydaypg 26