Creating a Comprehensive Dev. Plan Including Major Gifts and Planned Gifts
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The document discusses strategies for integrating major and planned giving into development plans for agencies, emphasizing the need for financial stability amid declining government support. It outlines key learning objectives, such as converting annual donors into major and planned giving supporters, and presents various fundraising campaign ideas. Additionally, it stresses the importance of effective donor management and the CEO's role in fundraising success.
Creating a Comprehensive Dev. Plan Including Major Gifts and Planned Gifts
- 1. NCE Summer Leadership Institute Integrating Major and Planned Giving Into Your Agency’s Development Plan. Michael J. David-Wilson, CFRE CEO, The Arc of Atlantic County, NJ and David Tinker, CFRE VP of Advancement, Achieva, Pittsburgh, PA
- 2. In this session… • We will learn how to diversify and sustain significant agency funding support by integrating major and planned giving into your comprehensive development plan. • We will present this material in a scalable way which agencies with small, medium and large budgets can incorporate incrementally.
- 4. The Elephant in the Room • Multiple years with no cost of care budget increases to contracts to keep up with the cost of living. • Reductions in budgets or changes in business rules which effect the same. • Growing financial burden of employee health and other insurance coverage.
- 5. To Ensure Stability & Services • Chapters must increasingly look to private funding to supplement or replace dwindling government funds to ensure financial stability and continued availability of services. • Chapters must become more entrepreneurial and will need to be able to self-fund income generating services.
- 6. Learning Objectives: • How to create a comprehensive development plan which includes major and planned gifts and a budget to support it. • How to turn your annual campaign donors into major and planned giving donors. • The benefits of integrating major and planned giving for your agency and mission.
- 7. The Pyramid of Giving
- 8. Comprehensive / Integrated Development Plan Annual Giving Major Giving Planned Giving
- 9. Factors In Selecting An Approach • Donor support in the past: Evaluate patterns and opportunities. • Specific program needs: Operating, capital improvement, physical plant, endowment growth and strategic reserve. • Program messages: Which messages resonate best with your donors? Develop strategies.
- 10. What Kind of Major Focus Is Right for Your Chapter? • Heavy Operating Costs + Few Capital Costs = A focus on Annual and Planned Giving • Large Capital Requirements = Capital Fundraising and Planned Giving
- 11. Scalable Solutions • Small Development Budget + • Small Staff + • limited or intermediate fundraising experience? • Just build major and planned giving into your annual giving program.
- 12. Kick Starting Major Giving • Develop a Targeted and Time Limited Mini- Campaign. • Solicit a challenge gift or grant as the Leadership Gift. • In order for your Chapter to earn the full challenge gift or grant you must raise the same amount from your donor base.
- 13. Kick Starting Major Giving • Get commitments from your Board, Chapter leadership and closest supporters equivalent to approximately half the challenge. • Raise the remainder of the challenge from the rest of your supporters. • If a donor cannot give as much as you request now, ask them to consider a multi-year pledge or a planned gift component.
- 14. Kick Starting Planned Giving • Establish a Legacy / Planned Giving Society. • Talk with your local Community Foundation to see if they can write Charitable Gift Annuities for your Chapter. • Give a presentation to your board so they understand how planned giving works and ask them to consider their own gifts.
- 15. Kick Starting Planned Giving • Include inspiring stories in each Chapter newsletter. • Let your supporters know you are in the business of planned giving. • Include sample language that they can add as a codicil to their current Last Will and Testament leaving a fixed amount or a percentage of their estate to your Chapter.
- 16. The Arc of the US Pilot Project • Crescendo GiftLegacy Pro Version: $3,500 per year if at least 25 chapters commit to a subscription of $3,500 per year for 3 years. • GiftLegacy Planning Giving website with customized branding. • Weekly e-Newsletters for donors and advisors. • CresManager System. • Royalty Free Marketing Materials. • Annual marketing reviews and customized marketing plans, etc…
- 17. Role of the CEO in Fundraising • The Chapter CEO is Ultimately the Chapter CDO. • The CEO must understand the role and value of fundraising and invest adequate Chapter resources to support successful fundraising. • The CEO must be available to go out on fundraising calls, make asks and develop relationships.
- 18. Common CEO Mistakes • Hold back on wealth studies and prospect research expenses. • Hold back on feasibility studies in preparation for a major campaign. • Not investing in good donor management & Gift Processing software.
- 19. CEO Mistakes Continued…. • Promoting an internal candidate with no experience in fundraising instead of hiring a qualified and experienced fundraising professional with documented success. • Not committing the financial resources to support a salary that will both attract and retain them. Remember this is a profit center.
- 20. Executive Transition • If your agency is planning an executive transition in the near future, make sure you select candidates with a strong background in Fundraising. • If possible, hire a Certified Fund Raising Executive (CFRE) or someone who has had experience in capital or endowment campaigns.
- 22. Understanding Your Donor Base • Invest in a wealth screening of donors in your data base. • You need to be confident you can ask the right people for the right amount at the right time and for the right purpose. • The Arc of the US has recently negotiated a price of $1,000 per year for Chapter Subscriptions to Wealth Engine.
- 23. What Did Arc Atlantic Find Out? • 160 Families are capable of making gifts of $5,000 to $25,000. • 90 individuals are capable of making gifts of >$25,000 to $800,000. • 500 people are qualified planned giving prospects (65 years of age and capable of making a $100,000 gift).
- 24. What Did Arc Atlantic Find Out? •7 of our Thrift Shop Donors are multi-millionaires!!! •The largest gift the one worth 50 million gave us was $250!!!
- 25. Other Lessons Learned • More than 90% of those listed on the previous slide have never given a gift of more than $100. • Out of 10,000 names in the donor data base, 2,500 names had either insufficient information to make contact or expired addresses and bad phone numbers.
- 26. Donor / Gift Management • If you do not already have Donor / Gift Management Software or have outdated software, plan to replace it now with something that is intuitive. • Data base conversion from one solution to another is fairly easy to do internally. You may need to pay extra to do an initial conversion from other kinds of incompatible data bases. • More sophisticated solutions may require additional on-site or off-site classroom training at additional cost. More intuitive solutions tend to have web based training, often free of charge.
- 27. Preparation For The Development Retreat • Analyze the last 3 to 5 years of fundraising data. • Develop a list of proposed appeals, events, campaigns. • Understand any Chapter strategic plan objectives for the short-term or long-term and their funding requirements.
- 28. FY-14 Fundraising Plan Timeline and Benchmarks CODE ANNUAL CAMPAIGN APPEALS TOTAL GOAL 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr MC-1. Mini-Campaign - Major Gifts (Large 5 figure) $ 240,000.00 80,000 80,000 80,000 MC-2. Mini-Campaign - Leadership Gift (Large 6 figure) $ 100,000.00 100,000 MC-3. Mini-Campaign - Planned / Deferred Gifts-See Below MC-4. Mini Campaign - Grants UR (Large) 10K+ $ 70,000.00 10,000 20,000 20,000 20,000 MC-5. Mini-Campaign Major UR Annual Gifts ($10K +) $ 40,000.00 2,500 12,500 12,500 12,500 AC-1. Arc Membership Appeal UR $ 5,000.00 5,000 AC-2. Board UR Annual Appeal $ 10,000.00 10,000 AC-3. Community & Staff UR Annual Appeal $ 10,000.00 4,000 3,000 3,000 AC-4. Annual All Staff Day $ 3,000.00 1,500 1,500 AC-5. Annual Donor Recognition & Stewardship $ 5,000.00 5,000 AC-6. Memorial / Honor UR Gifts $ 10,000.00 2,500 2,500 2,500 2,500 AC-7. Newsletter Appeal UR $ 7,500.00 2,500 2,500 2,500 TR-1. Grants TR (Small) <10K $ 50,000.00 10,000 10,000 15,000 15,000 TR.2. Summer Camp Appeal TR $ 7,000.00 7,000 TR-3. Holiday Partners TR $ 2,500.00 2,500 EV-1. Event - Tribute $ 60,000.00 15,000 30,000 15,000 EV-2. Event - Step Up $ 30,000.00 15,000 15,000 EV-3 Event - I. Rice Golf Benefit Event $ 50,000.00 45,000 10,000 RBI-1. Related Business Income - Thrift Shop - Ventnor $ 50,000.00 12,500 12,500 12,500 12,500 RBI-2. Related Business Income - Northfield - Northfield $ 50,000.00 12,500 12,500 12,500 12,500 TOTAL ANNUAL FUNDRAISING GOAL $ 800,000.00 $ 110,000.00 $ 300,500.00 $ 207,000.00 $ 187,500.00 13.66% 37.33% 25.71% 23.29% 6 Month Fundraising Goal-% 51% 49% Mini-Campaign Deferred Income / Planned Gifts MC-3 Legacy Society Campaign 200,000 200,000 - - - - Fundraising Total 1,000,000 110,000 300,500 207,000 187,500
- 29. Classifying Fundraising Income ANNUAL CAMPAIGN APPEALS TOTAL GOAL UNRESTRICTED PASS THROUGH DEVELOPMENT UNKNOWN GRANTS / GIFTS GRANTS / GIFTS TR TR Mini-Campaign - Planned / Deferred Gifts 200,000.00$ 200,000.00$ Mini-Campaign - Major Gifts (Large 5 figure) 240,000.00$ 240,000.00$ Mini-Campaign - Leadership Gift (Large 6 figure) 100,000.00$ 100,000.00$ Grants UR (Large) 10K+ 70,000.00$ 70,000.00$ Grants TR (Small) <10K 50,000.00$ 50,000.00$ Major UR Annual Gifts ($10K +) 40,000.00$ 40,000.00$ Board UR Annual Appeal 10,000.00$ 10,000.00$ Community & Staff UR Annual Appeal 10,000.00$ 10,000.00$ Memorial / Honor UR Gifts 10,000.00$ 10,000.00$ Holiday Partners TR 2,500.00$ 2,500.00$ Arc Membership Appeal UR 5,000.00$ 5,000.00$ Summer Camp Appeal TR 7,000.00$ 7,000.00$ Newsletter Appeal UR 7,500.00$ 7,500.00$ Event - Tribute 60,000.00$ 60,000.00$ Event - Step Up 30,000.00$ 30,000.00$ Event - I. Rice Golf Benefit Event 50,000.00$ 50,000.00$ Event - All Staff Day 3,000.00$ 3,000.00$ Event - Donor Recognition & Stewardship 5,000.00$ 5,000.00$ Related Business Income - Thrift Shop - Ventnor 50,000.00$ 50,000.00$ Related Business Income - Northfield - Northfield 50,000.00$ 50,000.00$ TOTAL ANNUAL FUNDRAISING GOAL 1,000,000.00$ 325,500.00$ 134500 340000 200000
- 30. Preparing Development Budgets • Carefully determine what resources are needed and will really be used. • Be realistic and anticipate actual expenses will be higher then initially expected. • Develop a detailed budget narrative with the basis of your calculations in notes.
- 31. Begin Your Own Success Story! • Stable cash flow and financial flexibility. • Ability to fund more competitive salaries and recruit and retain quality staff. • A strategic reserve or Board Designated Fund to take advantage of special opportunities. • A stronger Chapter means better and more consistent services.
- 32. Expect the Unexpected •Expect staff and board push back. •Expect staff turnover. Hire the staff you need. •Major and planned gift cultivation takes time and closing these gifts might need to be on the donors timeline; not yours’.
- 34. Questions? Michael J. David-Wilson, CFRE Chief Executive Officer The Arc of Atlantic County 6550 Delilah Rd., Suite 101 Egg Harbor Township, NJ 08234 609-485-0800 X140 mdavidwilson@arcatlantic.org www.arcatlantic.org
Editor's Notes
- #3: How many of you are: professional fundraisers? Have a comprehensive development plan? Have an annual giving program? Have special events? Have membership appeals? Have a grant writer who writes government grants and corporate and foundation grants? Have major gifts program? Have a planned gift program? Those of you who have an annual giving and events program and raise major and planned gifts either have a comprehensive development plan or have the essential elements of one.
- #4: Arc Chapters throughout the United States have historically been able to count on government support to advance our missions. We now find ourselves carrying a financial burden of 5% or more of our budgets just to make ends meet…
- #6: Whether a chapter is large, medium or small, they must increasingly look for private funding to supplement dwindling government funding to ensure financial stability and continued availability of services to people with IDD. The alternative is to shrink and cannibalize your agency’s finances or become more entrepreneurial and find alternative sources of funds. Even our consumers need to support their cost of case with greater percentages of their budgets.
- #8: The Pyramid of Giving is a logic model that illustrates the relationship between Annual Giving, Major Giving and Planned giving. It develops kind of like romantic love… The annual giving stage is about getting to know one another. The major giving phase is where the donor feels passionate and connected to your mission and programs. Planned Giving is kind of like parents thinking about the welfare of the children they have created and looking out for their long term future.
- #9: In many ways I’m in the same situation most of you are. Arc Atlantic’s annual fundraising efforts consisted of our annual Tribute Dinner, Step-Up Walkathon and annual appeal and a membership drive. This is the foundation upon which a CDP can be built. Not all organizations can support all three elements right away, but they are something to plan to integrate as you build capacity.
- #11: The mix will depend upon the organization’s current needs and its age. Without a strong base of support a major and planned gifts program cannot be sustained.
- #12: Yes, it would be great if we could afford to hire a planned giving officer and a major gifts officer, but most of us do not have that luxury.
- #13: Renovate Chapter HQ. Grow your building fund. Create a strategic reserve fund. $1,000,000 Goal; $500,000 leadership gift(s) and $500,000 raised from your leaders and your base.
- #14: Raise $250,000 from your Board, Executive Team and Insiders. Raise the balance of $250,000 from your base and your employees.
- #16: Oftentimes, people do not want to have to incur the costs of creating new legal documents. They don’t have to if they simply add a codicil to their Will.
- #17: The Crescendo GiftLegacy Website will be designed to look like a seamless part of your own website. Those with an interest in planned giving can enter the site directly or through your own site. They can also navigate seamlessly to your site from the Crescendo GiftLegacy Site. CresManager allows you to see interest and activity on your GiftLegacy site. You’ll know who is coming to your site and what areas of planned giving are of interest to them. You can print and use the materials they have developed to support planned giving as part of the deal. Arc Atlantic is part of this national pilot project.
- #18: If the CEO is not working with Development staff to reach the fundraising goal and they fail, you’ve failed!
- #19: You need to analyze and understanding your donors and prospects. Don’t be penny wise and pound foolish! (Give example of not doing a wealth study before the campaign.) Using access, excel, Quickbooks, Maximizer, etc. are the wrong solutions for gift management. You must be able to demonstrate accurate gift reporting and gift stewardship. Donors must believe you are capable of stewarding a very large gift.
- #20: A group home manager, a DSP or even a good operations director is going to have a long learning curve. Fundraising today is a sophisticated profession… You will get what you pay for.
- #21: If you have aspirations to become an Arc leader or CEO of a larger Arc Chapter, take the initiative and educate yourself and become proficient in fundraising. Join AFP and take The First Course in Fundraising. Raise money. The CEO needs to be part of major gift asks… At least some aspect of them.
- #22: Does anyone remember the Mel Brook’s movie “Young Frankenstein?” Dr. Frederick – and that’s pronounced Fronkensteen –is persuaded to visit Baron Von Frankenstein’s old castle. On his first night there, mysterious violin music leads him to the private library of his grandfather where Frederick discovers a neatly bound account – “How I Did It” – of the Baron’s work… You’ll each be able to download a tool kit of documents and templates to help you in developing a comprehensive development plan and creating realistic development budgets to support the plan. Feel free to use or adapt anything I’ve provided to help get you started on your journey of fundraising success.
- #23: We had about 10,000 names that had somehow gotten onto our mailing list; but only about 1,500 had ever made a cash or in-kind gift. Our development staff recommended to me that we should purchase some mailing lists of wealthy people and people who played golf to expand the base of support… I asked if they had ever done this before. They said they had; but not even one dollar was raised. I asked how they solicited that group? They said they were added to the annual appeal list and sent the same request everyone else received... I reminded them that we already had almost 10,000 names to work with and asked if we had conducted a wealth study for the recent capital campaign… I was told the CEO thought it would be a waste of money… The first thing I did was to get a subscription to Wealth Engine.
- #25: How many of your Chapters operate Thrift Shops? How many of you receive gifts of high end furniture? We Do… We also found out through our wealth study that our Thrift Shop donors were our wealthiest donors.
- #26: Most of these people had given a largest gift of $100… Why do you think that was??? We asked them for $100. People give because they are asked. At the lower levels of giving people frequently give the amount that was requested. It was time to raise giving expectations. This is a cultural change that can be slow, painful and meet lots of resistance.
- #27: I purchased intuitive donor management software named Gift Works. I won’t bother telling you which product we converted from. This product allowed us to do gift tracking, manage pledges, track volunteer hours, make solicitor notes, see all past giving, connections, social networks, etc… They even had online tutorials for learning each function. No external training was needed.
- #28: I showed staff how with small changes in strategy, larger goals were possible. The process was instructive and helped staff see that by breaking out a goal into smaller pieces, a larger goal seemed doable. How do you eat a whale? One bite at a time! At the end of the day we decided on a $1 million goal instead of the previous year’s annual campaign goal of $155,000 net.
- #31: The first time you do this will be time consuming and tedious; however, once you go through this process it is simple to modify the plan, the timeline, the tables and the budget for future years. The Comprehensive Development Plan should be seen as a living document, a work in progress. Each year as you update it becomes an even better plan.
- #33: We had a complete turnover in our Development Department within 6 months of approval of our plan. Sometimes this is necessary to move past the established comfort zone. Furthermore I lost two months out of work to get a total knee replacement and have a 30 pound tumor removed from my abdomen. It was my vision and without me part of it could not be implemented. We had a $540,000 total raised at year end. This is nearly 250% more than the previous year! We also formed our Legacy Society and received $80,000 in new gift intentions!