by Sherry Clodman, CFRE
- Principal EH
Pearce Consultants
Sherry Clodman is the Principal
of EH Pearce Consultants, a general fundraising
consultancy that specializes in planned giving.
An accomplished author, Sherry has held several
National Development Directorships and is a
seasoned leadership professional. Well respected
for her broad-based expertise, achievement,
high standards of practice and commitment to
ethics, Sherry has worked with organizations
large and small, urban and rural, local through
national. Her books, including 2007 publication
WELL
ADVISED: A Planned Giving Reference Source for
professional advisors, are available
from Canadian FundRaiser. To order please e-mail
leanne@hilborn.com
or call (416) 345-9403.
Learn more about
Sherry...
- If you build it….they will come. Nowhere
is this truer than in the field and practice
of planned giving! So just how do you build
a winning planned giving program for your
organization? You just follow the steps I’ve
outlined below.
1. Obtain a commitment from
the Board of Directors
2. Create a Professional
Advisory Committee
3. Engage a Professional
Planned Giving Officer or alternatively, identify
a Development Professional on staff to oversee
the Program
4. Create a planned giving
case statement
5. Produce appropriate policies
and guidelines
6. Establish a system for
creating and maintaining administrative and
filing procedures
7. Produce the first year’s
budget and obtain approval from the Board
of Directors
8. Prepare an action plan
or business plan
9. Initiate a Donor Recognition
and Stewardship Program
10. Manage the ongoing Program
To provide you with an abbreviated blueprint,
let’s summarize each of these steps. (For
expanded information, sample documentation and
examples please refer to PLANNED GIVING:
Making it Happen Vol. 1 and Vol. 2.)
Step 1:
Obtain a Commitment from the Board of Directors
Your Board is ultimately responsible for the
Planned Giving Program and its funding. Their
support is extremely important, so it is critical
to get them on-side. Getting your Board to say
“Yes” to a Planned Giving Program
however, can be a bit complicated. So it is
wise to have the Board formally endorse a resolution
to develop a Planned Giving Program at your
charity.
You will need the Board to understand the Program
and be supportive; to be seen as sponsors; and
to approve certain types of gifts (such as gifts
of life insurance, real estate, securities,
gifts-in-kind, etc.) The Board will also need
to approve budget allocations; the creation
of a professional advisory committee; and they
will need to assist in marketing the Planned
Giving Program.
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Step 2:
Create an Advisory Committee
So what are the responsibilities of an Advisory
Committee? Depending on the Program, responsibilities
may include establishing policies and procedures;
making periodic (quarterly or semi-annual) reports
to the Board; and interpreting the Planned Giving
Program to members of the organization.
The Advisory Committee will assist with prospect
identification and analysis and work with the
Planned Giving Officer to make presentations.
Members may also make solicitation calls in
tandem with a senior volunteer and/or staff
person. Their role is as technical support and
“ice-breaker.” Committee composition
will include professional advisors such as lawyers,
accountants, insurance agents, tax, financial
or estate planners, stock brokers, realtors,
etc.
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Step
3: Engage a Professional Planned Giving
Officer
At a minimum, identify a staff person who will
be responsible for overseeing the Program. Remember…
in order to be effective, a development officer
must be able to spend at least 25-30% of their
time in the planned giving area, and obviously
--- 100% is desirable.
Some of the most important characteristics
of a good planned giving officer include a deep
interest in promoting the organization; knowledge
of the charity; good interpersonal skills and
an understanding personality; superior communication
skills and sales ability.
The ability to write and speak effectively;
to be persuasive without being aggressive; and
to work well with Boards and other volunteer
groups are all essential ingredients. Additional
key elements include an appearance that engenders
confidence; a personality that demonstrates
initiative and maturity; patience; and a basic
knowledge of the tax system.
When looking at high performance competencies
and skills strive for a results orientation;
a customer focus; a team player; an ability
to influence outcomes; logical problem solving
skills; personal accountability; and a keen
attention to detail.
Together, the above characteristics and skills
will poise your organization for planned giving
success.
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Step
4: Produce Policies and Guidelines
Having a written statement of policies and
procedures is crucial to the operation of a
planned giving program. An example reason why
would be the CEO saying, “You are the
planned giving officer so you look after the
day to day details.” While that is true,
just wait until the first piece of real estate
is accepted with a $5 million dollar environmental
problem! That may just get you into a bit of
hot water. It’s far better to clearly
state all responsibilities prior to initiating
your Program.
Include routine or anticipated issues that
could potentially “threaten” the
viability of the program and/or the organization.
Have development staff prepare the policies
and have the Administration and Board approve
them. Policies define the authority of the planned
giving staff and establish the parameters under
which staff operates. They also define when
Board approval is necessary. And keep in mind
that the objective should be to encourage gifts,
not to frustrate them.
PLANNED GIVING: Making it Happen, Vol.
1 recommends 10 Protocols generally included
in a Statement of Guidelines. From the extent
of Board, staff and Advisory Committee involvement
and function, authority of gift acceptance and
policy on restricted gifts, to who pays for
legal opinions, appraisals and investment advice,
this chapter is well worth the read!
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Step 5:
Create a Case Statement for Planned Gifts
It will be impossible to solicit planned gifts
if you cannot articulate the organization’s
future vision of itself. This is where the general
case statement comes in. It defines the present
situation, the past accomplishments and the
future direction of the charity.
The general case statement should create a
sense of urgency, offer a broad appeal and be
supported by financial facts. It should be both
rational and emotive. Evolving from the goals,
priorities and directions of the institution,
the general case statement should distill the
aforementioned concepts into a clear and well
developed presentation for the donor. It should
answer the questions “why us”, “why
now” and “what for”, and move
the donor towards the needs of the organization.
At a minimum, when initiating a planned giving
program, the organization’s general case
statement needs to be foresighted and address
gift planning options and opportunities. Ideally,
a case statement should be created specifically
for the planned giving program.
Showing the major impact of each arranged gift,
the planned giving general case statement should
emphasize the importance of endowment funds
and present specific giving opportunities, e.g.
$10,000 for an acquisition fund, $20,000 for
a bursary fund, or $100,000 for a research fund.
The statement should also state that planned
gifts are sought and are considered very valuable
with regards to meeting the future needs of
the organization.
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Step 6:
Establish Systems for Creating and Maintaining
Administrative and Filing Procedures
You will require an information system that
adequately supports the planned giving program
and provides several alternative ways to code
a donor/prospect/suspect including age; contact
priority; capacity to give; current point in
the process of closing the gift; the donor’s
interest; a “tickler” file for the
next contact; and staff member or volunteer
assigned to the prospect. Obviously, this is
best accomplished in a computerized system,
however if one is already in existence, it should
be expanded to include key code types.
There is a need for paper files and individualized
computer files and you will need the ability
to store these files long term. You may wish
to further segment your donor and prospect files
between confirmed planned gifts and potential
planned gifts, and your recording system will
also require adequate clerical support. Reporting
your work to the administration is essential,
so develop a reporting mechanism that fairly
reflects the progress of your work, and hence,
the progress of the planned giving program.
The two major areas that must be covered are
charting actual realized planned gift monies
as they are received and demonstrating progress
with expectancies. PLANNED GIVING: Making it
Happen, Vol. 1 expands on these needs. Remember
that your Board and CEO will be evaluating your
progress based on these reports, so it is essential
that you be judged on the appropriate criteria.
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Step 7:
Obtain Approval for First Year’s Budget
A planned giving program is “a present
investment in a future return.” With most
operating budgets already stretched to the limit,
many organizations are unwilling or unable to
fund additional support or administrative staff.
Therefore, obtaining approval for a first year’s
operating budget requires a well thought out
strategic presentation.
A typical list of accounts which must be considered
in establishing and sustaining an effective
planned giving program would include salaries,
benefits, office supplies and expenses, printing,
postage, software/upgrades and equipment, audio
visuals and photographs. Travel expenses, promotions,
volunteer training, recognition and related
costs should also be included along with marketing
costs, dues and subscriptions, conferences and
professional development, consultants, and the
ever present miscellaneous costs.
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Step 8:
Prepare an Action Plan/Business Plan
An action plan is simply an outline of your
goals and a listing of the steps that must be
taken to reach those goals. Typically it includes
the identification of a donor base; the goals,
objectives and tactics of the Program; a listing
of the number of gifts and the size of gifts
required to reach the goals; a listing of the
number of prospects that must be cultivated
to produce the goals; and a marketing plan detailing
the various activities that will be undertaken
to obtain the needed prospects. Keep uppermost
in mind that gift planning is an “art”
not a science. You are well advised to set reasonable
targets - just don’t be too optimistic.
Identifying the planned giving donor base means
asking, “Who is my constituency?”
To establish a proactive and well targeted planned
giving program where and what should you look
for? Age, family situation, past giving record
and financial ability are a good place to start.
Don’t overlook hidden wealth, aka “the
sleepers.” These are the donors who have
your organization in their will, or who are
considering including your organization in their
will, but have yet to identify themselves. Obviously
completely unknown to the institution, all charities
have these donors, so ensure that your planned
giving donor base is as “inclusive”
as possible. Finally, establish goals and objectives
for the program, and don’t get discouraged.
If you do the right thing, your planned giving
program will move forward.
You will also need a market strategy for planned
gifts. An underlying strategy of the marketing
plan is the undertaking of a number of activities
to get the suspects and/or prospects to self-identify.
It is much easier to contact individuals who
have already indicated that they are interested
or prepared to arrange a planned gift to your
organization. Accordingly, it is very important
that each activity has a response coupon or
other means to elicit a response.
A typical marketing plan will include the purchase
or production of comprehensive promotional materials;
marketing through direct mail; marketing through
a newsletter; wills clinics and estate planning
seminars; information luncheons; marketing through
existing programs and through professional advisors;
as well as an educational program.
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Step 9:
Initiate a Donor Recognition and Stewardship
Program
There are several reasons for a donor recognition
program. It is just good manners to say “thank
you” to your donors, it completes the
donor solicitation cycle, and it is the beginning
of a lifetime relationship between the organization
and the donor. There are a number of benefits
to having a recognition program such as added
assurance that donors do not change their minds;
the fact that it may lead to further or larger
gifts or outright gifts of cash; it may encourage
others to make gifts; and/or it may encourage
anonymous donors to report their arranged gift.
Donor recognition programs promote dialogue
between the organization and the donor. They
help to ensure that a gift is meaningful to
the donor and that it meets the needs of the
organization as well. Recognition programs also
encourage the donor to become more involved
with the charity and often, they are a means
to encourage gifts by family members. The recognition
program may include items such as simple “thank
you” letter, donor walls, kiosks, books,
plaques and donor lists, specific naming opportunities,
luncheons and tours, testimonial ads and donor
profiles.
On the other hand, a donor stewardship program
is simply a means to maintain the link between
the donor and the organization - it is a continuation
of the recognition the donor received when they
first indicated their arranged gift. The stewardship
program may be organized formally or informally,
and it may be included with other on-going recognition
programs. Nevertheless, it is mentioned as a
separate program because gift planners should
be conscious of the ‘ongoing need’
to keep regular contact with planned giving
donors. Your stewardship program may include
items such as Christmas, Birthday or Thanksgiving
cards, publications, newsletters, or personal
visits - each indicating your interest in the
supporter.
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Step 10:
Manage the On-going Planned Giving Program
You will need to manage the major elements
of the planned giving program. That includes
the continuous education of potential prospects
and the on-going education and cultivation of
prospects, professional advisors and past donors.
Monitoring and administration of estates in
probate is also critical. Someone needs to do
follow up with executors and lawyers to ensure
that your institution receives its share and
that costs to settle are reasonable. In the
event of a challenge or question, who will be
protecting the interests of your organization?
Together, the information, insight and practical
tip provided herein will help you to build,
manage and market your own winning Planned Giving
Program.
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About Sherry Clodman,
CFRE
Sherry received her accreditation by CFRE
International in 1993, is a founding Board
Member and past Vice Chair of the
Canadian Association of Gift Planners (CAGP),
and has received two CAGP National Awards: ‘Outstanding
Leadership and Vision’ and ‘Outstanding
Commitment and Service to the Profession’.
She is also a past Board Member of the Association
of Fundraising Professionals (AFP), has
been an active leadership volunteer for over
20 years, and has served on a myriad of local,
regional and national professional and charitable
Boards and Committees. She continues to be a
leader in the field.
Known for extensive fundraising training to
boards, staff and volunteers, and for assisting
clients to establish, strengthen or expand their
Fundraising and Planned Giving Programs, Sherry
is currently leading another Canadian
FundRaiser ‘Key To The Sector’
series of workshops centered on Planned Giving.
A welcomed keynote speaker and seminar provider,
Sherry has participated in numerous regional
and international fundraising conferences and
is available for speaking/training engagements.
Call (905) 660-9423 or e-mail: sherry@ehpearceconsultants.com.
A past Executive Editor and current Contributing
Editor to Canadian FundRaiser E-news, Gift Planning
in Canada, Charity
Village and other philanthropic publications,
Sherry provides thought provoking articles and
sector book reviews. An Adjunct Professor teaching
distance learning online at Georgian
College (Fundraising & Resource Development
Program) and Fanshawe
College (Business Management Program), she
brings a wealth of expertise to the profession
and the sector. For more information please
visit: http://www.ehpearceconsultants.com.
Sherry is the author of bestseller PLANNED
GIVING: Making it Happen! Vol. 1 - Managing
Your Planned Giving Program, and Vol.
2 - Marketing Your Planned Giving Program.
Her latest book is WELL ADVISED: A Planned
Giving Reference Source for professional advisors.
To order please call Canadian FundRaiser (416)
345-9403 or e-mail: leanne@hilborn.com
About EH Pearce Consultants
EH
Pearce Consultants is a full service general
fundraising consultancy that specializes in
the area of planned giving. Sherry Clodman,
CFRE Principal, is ably assisted by a team of
accredited practitioners, each proficient in
select aspects of fundraising and development.
The consultancy assists clients of all sizes.
With decades of leadership experience in the
non-profit arena, EH Pearce Consultants offers
tremendous depth, broad sector reach, and a
record of successful collaboration. Adhering
to high standards of practice and ethics, EH
Pearce Consultants is committed to assisting
organizations to reach their full fundraising
potential.
The company philosophy is to help clients develop
in-house capacity. Working closely and collaboratively,
the consultancy ensures that client objectives
are met. The company goal is to exceed client
expectations. EH Pearce Consultants takes pride
in being on time and on budget.
For more information please contact:
Sherry Clodman, CFRE
Principal
EH Pearce Consultants
11 Toledo Crescent
Thornhill, Ontario
L4J 8J8
Phone: (905) 660-9423
Web: http://www.ehpearceconsultants.com
E-Mail: sherry@ehpearceconsultants.com
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