Fundraising Day @ OLA 2012

1. Fundraising Day @ OLA2012 Rob Lavery CFRE, SOLS Gerard Seguin, Ottawa PL Foundation

2. Will Power orPlanned Giving for your Library

3. Outcomes for Today • Understand what planned giving is and how your library can benefit from the program • Provide samples and tools to get started on creating a PG program for your library • Develop marketing materials and create a marketing plan to support your program

4. Planned Giving What is Planned Giving? • gift planning is “the process of designing charitable gifts so that the donor realizes philanthropic objectives while maximizing tax and other financial benefits” • deferred gifts > planned giving > gift planning  - estate gifts and structured gifts

5. Planned Giving • the ultimate gift - the largest gift a donor will ever give • every donor has the capacity to make a bequest - wealth is not a pre-requisite, major gifts from the middle-class • result of relationship building, long term • individual giving remains the most significant source of private funding

7. Is planned giving for every charity? • small charities or charities that don’t have mature fundraising programs can be successful too • building a base of knowledge • don’t offer every vehicle - in Canada, 90%+ through bequests • know how and when to get help • keep the program donor-centred • plant the seeds now

8. A Good Fit for Libraries • prospective donors are looking for a trusted institution, one that will out-live them • donors make an investment for the future, leave a legacy in the community • organizational stability • libraries are widely recognized • good fit between target demographic and prime user group (female, seniors)

9. The Elephant Most planned giving is about the donor’s death. This profoundly affects the dialogue between the library and donor. How do you react when you’re reminded of your mortality? “I’ll deal with it later.”

10. Library Challenges • starting fundraising from scratch • current needs • building endowed funds vs. operating accounts vs. reserve funds • dealing with the municipality • Community Foundations and parallel foundations • What to do with the donations?

11. Discussion What would your library do with a $25,000 bequest?

12. Planned Giving • Competition for Donor Dollars • charities getting better at planned gifts, becoming proactive • more expertise in more complex gift structures • estate planning - a huge market to cultivate • younger people paying more attention to retirement plans - pensions and RRSPs

13. Where to focus? The vast majority of planned gifts are simple bequests, upwards of 90% Second highest source are gifts of life insurance.

14. The Challenge • Fewer than 50% of Canadians have a will • Fewer than 7% of Canadians have included a charitable bequest in their wills • Only one in ten is planning to leave money to a charity as part of his or her estate

15. Types of Bequests • specific - a specific amount of money, or piece of property - paid out first, but tends to be smaller gift • residual - the residue or percentage of residue of the estate after all specific bequests are satisfied - estate costs are paid out of residue, but charitable gifts tend to be larger because people don’t know the value of their estates • contingency - conditional on the occurrence of a future uncertain event • a codicil - an addition or amendment to an existing will

16. Typical Bequests • cash • property (appraisals discussion) • securities • real estate

17. Some considerations • Unrestricted vs. restricted use • endowment or 10-year gifts - a permanently restricted net asset, the principal of which is protected and the income from which may be spent, and is controlled by either the donor’s restriction of the organization’s governing board • giving direction – donor-directed funds or donor-advised funds • the power to vary provision

18. One Library Example • The K’LeighCundall Children’s Library Endowment Fund • The K’LeighCundall Children’s Library Endowment Fund was set up by the Cundall family in memory of their daughter, K’Leigh. K’Leigh had a great love of books and of libraries, and she always wanted a library of her own. This endowment is an extension of K’Leigh’s love of books and of libraries and of children. Every year the interest from this endowment comes to Barrie Public Library to be used for Children’s Services.

19. Getting Started • Assumptions: • longevity • established donor base • clearly articulated mission statement • clearly articulated need (success with fundraising) • policies on how to use the money, investment policy if applicable

20. Organizational Commitment • Requires a long-term investment of resources, when ROI might not be for 7 or more years, develop a budget • Stewardship activities for expectancies are ongoing - tours, invitations, communications, relationship building, involving donors in the life of the library • Reality check: most won’t give advance notice

21. Reasons the donor won’t notify • It’s the donor’s own business, and no one else needs to know: 80 percent. • The donor might have a change of heart, so it’s better not to say anything: 34 percent. • Worries about being pestered with mailings and phone calls if the nonprofit knew about the bequest: 26 percent. • A sense of the nonprofit looming like a vulture waiting for the money: 26 percent. • A fear of getting special treatment, which would make the donor feel uncomfortable: 24 percent. • Fear the organization would sell/give the information to other nonprofits that would also approach the donor: 19 percent. The Stelter Company 2010

22. Staff Role • designate one person to be the “expert” and invest in their knowledge and training, someone who: • likes seniors • relates to allied professionals • understands the law, finances and tax benefits • knows methods of giving

23. Volunteer Roles • planned giving advisory committee • Allied Professionals

24. Planned Giving Committee Reporting relationship and accountability Terms of reference Policies and procedures Create a plan

25. Planned Giving Committee • know your boundaries - disclaimer, using professionals • measures of success - long and short term goals, evaluating • manual - gift acceptance policy and procedure - constant updating • recognition, how will you recognize deferred gifts? • focus on a few vehicles first - only accept bequests and life insurance to start • use of volunteers, will they make calls? • data management • continuity • accuracy of recording • confidentiality

26. Be Ready! Information sheet for wills and bequests Wording for lawyers

27. Lawyers’ Calls • make active contact with lawyer • send legal name information • ask if specific or residual • offer recognition during lifetime • send thank you note and annual report • work with donor through lawyer

28. Keeping Track • Expectancy Files • tracking lawyer calls • record and report • follow up • confidentiality

29. Stewardship • saying thank you • keeping in touch • ensuring donor satisfaction • encourage link to library • consistency and timeliness • knowing next of kin • satisfy heirs, family, donor’s professionals • make sure that you’re not always asking for money • be interested in the people

30. Recognition • when to recognize • when to receipt • donor clubs • naming opportunities

31. Refusing a Gift • doesn’t meet your needs • violates policy • appears to be a tax dodge

32. Marketing Planned Gifts Know who you are Make your case for planned gifts Know who you’re talking to

33. Ideal Prospect • a giving attitude, philanthropic - but not always! • commitment to the library • current donor or former donor • retirement age or older (55+) • widow, widower or single • no children or children with independent wealth • appreciated disposable assets or extra revenue • open to tax advantages • desire for less responsibility for money management • they feel they have control of their finances

34. Ideal Propsect – Part II Recent studies have uncovered new target groups: • 66% of people over 40 write their first will before they are 50 • 41% have a will before age 40, 84% for incomes over $100,000 • 92% with children under age 18 have a will before 50 • Older people report creating wills at an older age • Once a charity is in the will, there it stays

35. The Ramifications • The staying power of charitable bequests – very few have ever changed a bequest • Very few – about 36% - have alerted charities that they are in the will • Viable prospects fall into lower income groups – study refutes minimum income levels that were commonly considered a guideline for potential planned gift donors, such as $100,000 HHI

36. Build your Marketing Plan • create your key messages – Case statement for planned giving • your target market – prospect profile • a passive, inexpensive program keeping it out there, repeat messages • keep your program donor focused - their needs, not the library’s • tailor requests for information to meet prospect’s needs

37. Elements of a Basic Program • Information for Wills and Bequests • Gift Acceptance Policy (what types of gifts and how they will be recognized) • Know where the money is going • Allied Professionals • Key Staff contact

38. Marketing 201 • Develop materials – print and web • Distribution – know where the material is going, quantities • Donate Now – CanadaHelps.org • Promote with community partners (Leave a Legacy, Planning Giving Council) • Piggy-back marketing material (article in newsletter, web page)

40. Aspire to • Prospect identification & cultivation • Stewardship visits, tours, seminars, events • Celebrate the gifts • Expand list of gifts accepted • Provide taxation information, can be a good hook for structured gifts beyond bequests • Educate your donors and prospects - promote educational opportunities - wealth management, financial planning, role and responsibilities of executors, powers of attorney

41. Remember! Bequest marketing is not about the transaction. It’s about deepening a relationship with an existing donor. It’s not a tactic for paying the bills this year. It’s a strategy for ensuring your organization’s sustainability into the long-sighted future. - Tom Ahern

42. Talking to Donors Plannedgifts have often been thought of as the private purview of credentialed development, legal, and financial professionals…it’s no wonder why many of us feel this way and hesitate to enter into discussions about planned gifts. …(T)alks with donors, however, remind us that the tax benefits of making planned gifts are not the primary reason they are made. Donors want to make a difference in the world they live in, both now and in the future. Successful planned giving programs start with simple messaging and evolve into life-long relationships with constituents. Start your planned giving program today…and learn to talk with donors about their dreams and wishes for your organization! How to Talk with Donors about Planned Gifts Target Analytics

43. Any questions or final thoughts?

44. Thanks Gerard Séguin Chief Development Officer Ottawa Public Library Foundation gerard.seguin@BiblioOttawaLibrary.ca 613-580-2424 x 41306 Rob Lavery CFRE Resource Development Consultant Southern Ontario Library Service rlavery@sols.org 416-961-1669 x5137