How many times a day are you picking up the phone to call a loyal donor who is not expecting your call to generate a new planned giving conversation? More and more nonprofits are relying on marketing and online will writing platforms to generate those conversations. These tools are important and should be used to supplement personal outreach, not replace it.
Despite all the advancements in technology, software and AI, the old fashion telephone remains one of the strongest tools we as fundraisers own but fewer people are using it to its full potential. It’s easy to get sucked into the daily work that can keep us from making the time to call donors on a consistent basis. And yes, it is getting more difficult to get people to answer the phone. However, our donors most likely to answer their phones are the people most likely to make a planned gift. The baby boomers.
When you create and stick to a process for picking up the phone on a consistent basis, you will reach more people than you think.
Developing your process
Over the last 10 years I have developed, tested and refined, a process to guarantee that I pick up the phone on a daily basis to generate new gift conversations. The process is comprised of 3 steps:
MINDSET
The right mindset keeps you smiling and dialing no matter how people respond to your outreach.
The right mindset is comprised of:
Having fun making the calls. Make a game out of it. “How many calls can I make today? It’s 5:00 on a Friday. Let me make one more call and see if I can have an amazing donor conversation”.
Remembering the good conversations you had the last time you made your calls.
Remind yourself that’s it’s not about us. It’s about the donor, the people we serve and our staff who deliver our mission.
The classic book, The Four Agreements teaches us that when we take things personally, we are being selfish because we are making it all about us. Decades ago I was taught a great mantra that I use and teach on a weekly basis:
SW4
Some Will
Some Won’t
So What
SOMEONE’S WAITING
Someone’s waiting. Someone out there is going to be open to my outreach. This will keep you smiling and dialing.
BEHAVIOR
To maintain consistent outreach, you must develop and track goals for how many times a day or week you will pick up the phone to call someone, not expecting your call. I fully recognize that everyone is understaffed and overworked. At the same time we often spend our time doing things we really don’t need to do. Check out the book Essentialism by Greg McKeown. Greg teaches it’s not about getting more things done, it’s about getting the right things done.
All we can control is our mindset and our behavior. We cannot control if someone answers the phone or welcomes our outreach. We can control how often we pick up the phone. My goal is to pick up the phone and make 50 calls per week. Your number may be much lower. The point is having a number and sticking to it. Do whatever you have to do to reach or exceed that number every week.
Ideas to do this:
Write a list of the Donors you want to call each week. Include their phone number and any pertinent information you want if you get them on the phone. Carry that list with you everywhere. Early for an appointment? Make a couple of quick calls from your car. Sitting in an airport with a flight delay (very common these days)? Get your list out and make some calls.
Schedule your calls. Example, “Tuesday from 9:00am to 11:00am I am making my calls. I’ll close my door, put my do not disturb on my phone and make my calls”.
TECHNIQUE
Getting results on our calls requires that we continually refine and develop our skillsets to have more and better conversations. Here is a list of key areas you should focus on:
Outcome goal-before you pick up the phone, determine what outcome you would like from the call. Setting up an online or in person Zoom? Checking in to say thank you and pre-qualify someone before taking the time to go see them? If your goal is to visit with them, you must give them a compelling reason to do so.
Make it about them not you. Example: “Donors I meet with tell me they really benefit from a conversation about the impact of their gifts and how they can have an even bigger impact”.
Don’t sound like a robo caller. This is our biggest competition. We must show donors immediately that we are professional fundraisers. How do we do this? Speak slowly. Pause a lot, allow for open space. Start by asking your donor if you caught them in the middle of something urgent? Most people are not doing something urgent and will respond with a “no”.
Ask them why they have been so loyal to your organization.
Ask if there is anything you can do to better serve them as a donor. Asking this question separates you from most other fundraisers you are competing with.
Things to say to get the Visit
Assuming the conversation is going well, you can ask them this powerful question “If I/we could give you a compelling reason to do more, how would you feel about a conversation around that”? Can I buy you a cup of coffee (lunch, etc.) to discuss that?
Some donors tell me they would like to have a bigger impact on the people we serve but are not sure how to do that and still accomplish their retirement goals and provide for their children/grandchildren. There are ways you can do that, and I can share them with you when we meet.
I really enjoy speaking with you. I am going to be out visiting other donors next week, can we get together for 30 minutes?
The more of the right activity you do the more, good things happen. What kind of results can you expect with consistent smiling and dialing? I use the 20% rule. It has held up over the years and other consultants I speak with tell me the same.
I’ll connect with 20% of the people I call.
20% if the people I speak with will be open to a meaningful conversation
20% of those people are likely to do more outright or deferred.
As a baby boomer and planned giving donor myself, I speak on behalf of all my peers. Pick up the phone, call us. Make it about us and how we will benefit from a conversation with you. You will be amazed at the conversations you will have.
The fundraising landscape for non-profit organizations is perpetually evolving, and one of the innovative trends changing the game is ‘Fractional Fundraising.’ This approach has emerged as a beacon of efficiency and effectiveness—ideal for organizations with big dreams but limited resources.
Fractional Fundraising refers to the strategic use of part-time professionals by nonprofits, allowing them access to vital skills without the full-time price tag. It’s a sharing-economy model applied to the fundraising sector, where the expertise is fractional, but the benefits are comprehensive. If you’re part of a nonprofit and looking to harness every drop of potential, here’s why you should consider Fractional Fundraising.
A Cost-Effective Strategy for Growth
Fundraising is an indispensable activity for any nonprofit, but hiring a full-time fundraiser or development team can be prohibitively expensive, especially for smaller organizations. With Fractional Fundraising, you hire experts on a part-time or project basis. This flexibility allows you to control costs while still tapping into the knowledge and networks of seasoned fundraising professionals.
Access to a Wide Range of Skills
The fractional approach doesn’t mean you only get a fraction of the skills. In fact, it can provide access to a pool of professionals each specialized in different areas, from grant writing to capital campaigns, major donor cultivation to online fundraising strategies. Leveraging diverse skills can significantly improve a campaign’s success without the commitment of a permanent employment contract.
Focus on Your Core Mission
Nonprofit leaders and staff are often pulled in many directions. By employing fractional professionals, your core team can stay focused on what they do best—serving the organization’s mission—while trusted experts handle the complexities of fundraising.
Scalability and Flexibility
Nonprofits have seasonal peaks and valleys in their fundraising efforts. Fractional Fundraising aligns with this cycle perfectly, providing more help when you need it during busy times and scaling back during slower periods. This agility helps maintain a balanced budget and keeps the organization lean and effective.
Ensuring Fresh Perspectives
Bringing in external professionals can infuse your organization with new ideas and strategies that challenge the status quo. Fractional professionals, with their wide range of experiences, provide a constant stream of fresh perspectives which could be the key to breakthrough in your fundraising efforts.
How to Implement Fractional Fundraising
To make the most of Fractional Fundraising, start by assessing your organization’s needs. Pinpoint the areas where you lack expertise or where additional skills could enhance your efforts. Then, seek out professionals with a track record in these areas who offer fractional services.
Build clear communication channels and discuss expectations up front. This ensures all parties know the targets and goals of any campaign. Respect the part-time nature of the arrangement, understanding that the professionals may work with multiple clients.
Finally, measure your results and analysis the ROI. Always keep your organization’s mission at the forefront, and ensure that Fractional Fundraising aligns with your values and contributes positively to your efforts.
Conclusion
Fractional Fundraising opens the door to expertise that might otherwise be out of reach for many non-profits. By judiciously leveraging these on-demand resources, even small organizations can dream big and maximize their impact. It’s smart, scalable, and can inject just the right expertise at the right time. If you’re ready to take your non-profit’s fundraising to the next level, it might be time to go fractional.
Whether you’re starting from scratch or looking to bolster your current fundraising processes, Fractional Fundraising is a flexible solution to consider. It’s a testament to the power of innovation within the nonprofit sector, proving once again that when it comes to making a difference, the right approach can make all the difference in the world.
When it comes to planned giving, there’s a plethora of options available for donors who wish to combine philanthropic efforts with financial planning. Among these, one unique and highly beneficial device stands out — the Charitable Lead Trust (CLT), often dubbed the ‘Unicorn of Planned Giving’ for its distinctive advantages and relatively scarce use.
A Charitable Lead Trust is essentially a trust that provides a fixed amount or a percentage of the trust’s assets to a charity for a set number of years. After this period, the remaining assets are transferred to non-charitable beneficiaries, such as family members. The appeal of a CLT lies in its potential tax benefits and the opportunity to leave a legacy for both the charity and the donor’s heirs.
What Makes a Charitable Lead Trust Unique?
The “unicorn” status of the CLT is due to its unique structure that offers a juxtaposition of charitable giving and wealth transfer within a single vehicle. It starts with the trust making annual payments to one or more charitable beneficiaries for a term defined by the donor, providing immediate support to those causes. Subsequently, the assets are passed on to the donor’s heirs, often with significant tax savings.
Tax Efficiency
From a tax perspective, the immediate benefit is the charitable deduction the donor receives when the trust is established. Not only that, but the assets placed in the trust are removed from the donor’s taxable estate, which can add up to substantial estate tax savings, especially for those with larger estates.
Furthermore, if the trust is funded with appreciating assets, any growth in the trust is free from both gift and estate taxes when it passes to the remainder beneficiaries. This can effectively allow a donor to freeze the value of the taxable gift at the time the trust is created, circumventing taxes on any appreciation.
A Legacy of Giving and Wealth
The CLT allows donors to instill the values of charitable giving in their heirs. The extended duration of donations to chosen charities keeps the family name associated with meaningful causes over a prolonged period. This occurs while still ensuring that significant assets are preserved and later passed on to the beneficiaries.
Crafting Your Charitable Lead Trust
Setting up a CLT requires thoughtful planning and should be tailored to each individual’s estate planning goals and philanthropic desires. An estate attorney or a planned giving specialist can provide guidance on the duration of the trust term, selection of the charitable recipients, choice of assets to fund the trust, and projection of the eventual benefits to non-charitable beneficiaries.
The choice between a Charitable Lead Annuity Trust (CLAT), which pays a fixed amount to the charity, and a Charitable Lead Unitrust (CLUT), which pays a variable amount based on the trust’s value, further allows customization to donor preferences and financial situations.
Overcoming the Rarity
While the Charitable Lead Trust offers evident benefits, its rarity stems from its complexity and the fact that it may be more advantageous in certain economic conditions — particularly when interest rates are low. That said, with expert assistance, a CLT can be a powerful tool for estate planning and philanthropy.
For content creators and individuals who are interested in exploring advanced giving methods, a deeper understanding of the Charitable Lead Trust is crucial. By effectively leveraging the benefits of this planned giving mechanism, philanthropically-inclined donors can achieve superior results for their financial legacy and charitable interests alike.
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In summary, the Charitable Lead Trust represents a harmonious blend of altruism and fiscal prudence, standing as a symbol of strategic generosity. Whether you are a seasoned philanthropist or considering your first major charitable endeavor, the CLT offers a route that could lead to significant tax savings, along with the fulfillment of supporting the causes dear to your heart. It’s time that this unicorn takes its deserved place in the realm of planned giving.
Remember, successful estate planning and charitable giving require careful consideration. Always consult with financial advisors and legal experts to ensure that any planned giving strategy aligns with your overall financial and philanthropic goals. The unicorn that is the Charitable Lead Trust just might be the magical creature you need to complete your fiscal fairytale.
When it comes to charitable giving, one pathway that offers both flexibility and control is donating through a trust. Whether you’re an experienced philanthropist or a first-time donor, understanding how to utilize trusts for charitable intentions can amplify the impact of your contributions. In this post, we’ll explore the basics of trusts, benefits of donating through them, and ways to align your philanthropic goals with your financial planning.
What is a Trust?
A trust is a legal arrangement where one party, known as the trustee, holds and manages assets on behalf of another party, the beneficiary. Trusts are used for a variety of purposes, including estate planning, tax management, and, as we’ll discuss here, charitable giving.
Why Consider a Trust for Charitable Donations?
Control Over Contributions
One of the main advantages of using a trust for charitable donations is the level of control it offers. You can specify when donations will be made, which charities will benefit, and for what purposes your funds will be used. This is particularly useful if you wish to allocate your gifts over an extended period or have specific conditions for their use.
Tax Benefits
Donating through a trust can also provide tax advantages. Depending on the type of trust you choose, you can potentially reduce income taxes, lower or eliminate estate taxes, and receive a tax deduction for the fair market value of your contributions.
Maintaining Your Legacy
Trusts allow you to leave a lasting legacy. By setting up a charitable trust, you can ensure that your philanthropic work continues well into the future, possibly beyond your lifetime, supporting causes you care deeply about for generations to come.
Types of Charitable Trusts
Charitable Remainder Trusts (CRTs)
A CRT pays a percentage of the trust’s value to named beneficiaries for a certain period of time, after which the remainder is donated to selected charities. This is beneficial if you’re looking to receive income during your lifetime before supporting a charitable cause.
Charitable Lead Trusts (CLTs)
Conversely, a CLT provides fixed payments to a charity for a set period, with the remaining assets eventually going to non-charitable beneficiaries, such as family members. This type of trust can help in passing wealth to heirs while reducing estate taxes.
How to Get Started with Charitable Trusts
Consult with Legal and Financial Advisors
Crafting a trust for charitable purposes should be done with the help of experienced legal and financial advisors. They will guide you in choosing the right type of trust based on your personal circumstances and philanthropic objectives.
Determine Your Goals
Clearly define what you want to achieve with your charitable giving. Consider the causes you wish to support and what kind of impact you hope to make.
Select Your Trust Vehicle
After consulting with your advisors and honing in on your charitable ambitions, choose between a CRT, CLT, or another trust structure that aligns with your goals.
Manage the Trust Effectively
Working with your trustee, ensure you uphold the terms of the trust and manage funds faithfully. Regular reviews may help adapt to legal changes or shifts in personal goals.
The Impact of Your Trust-Based Donations
The beauty of charitable donations through a trust is that they can provide meaningful support to non-profit organizations while fitting within a broader financial strategy. Whether you’re aiding educational initiatives, furthering medical research, or contributing to disaster relief, the benefits of this mode of donation are clear and impactful.
By thoughtfully integrating charitable giving into your financial plans, you’re able to make a significant difference in the world while reaping the rewards of savvy financial and estate planning.
Remember, the path to philanthropy through a trust is a powerful way to share your wealth and values. Navigated with care and consideration, it’s a path that leads to both personal fulfillment and profound societal benefit.
Fundraisers know that every gift counts, whether it is big or small, monetary or in-kind. And while monetary gifts are always welcome, non-cash donations, such as real estate, can bring about significant benefits as well. Real estate can be a powerful fundraising tool, offering a range of benefits to both the donor and the charitable organization. In this blog post, we will explore the possibilities of using real estate gifts for fundraising, discuss the advantages that real estate donations can bring, and offer some tips and best practices for making the most of these gifts.
Benefit #1: Enhanced Giving
The first and most obvious benefit of real estate gifts for fundraising is the increase in giving potential. Unlike cash donations, real estate donations usually involve high-value assets that can generously contribute to a fundraising campaign. In fact, real estate gifts can sometimes be worth more than the seller would gain through a traditional sale, as they can receive a charitable tax deduction for the full fair market value of the gift. This can give donors the incentive to give more and charitable organizations the resources they need to continue their work.
Benefit #2: Diverse Gift Mix
Another benefit of real estate gifts is their diversity in the gift mix, which can help organizations avoid dependence on any one area of giving. For example, a charity that primarily relies on cash contributions may have difficulty sustaining its fundraising over time; a diverse mix of gifts, including real estate, can support all aspects of its operations and mission.
Benefit #3: Positive Community Impact
Real estate gifts also offer the opportunity for positive community impact. Whether it is a building, vacant land, or a farm, real estate is tangible and is seen as a powerful tool that can be used to support the local community. A prime example is the donation of a property to be used as a community center or a shelter. Not only would the donation assist in the company’s fundraising campaign, but it could also have a tremendous impact on the community and become a lasting legacy for the donor and the charitable organization.
Benefit #4: Unique Giving Experience
Finally, real estate donations offer donors a unique giving experience. Unlike cash donations, real estate donations can be a personal and emotional experience for the donor, and can be linked back to their passions or interests. Donors can see their philanthropy in action, from the moment of the gift to the completion of the project or for as long as the center or charity is operational. This donor experience is meaningful and tangible, and can sometimes lead to long-term support and commitment to philanthropy.
In conclusion, real estate can be a powerful tool for fundraising that charities often overlook when seeking donations for their organizations. The benefits of real estate gifts are clear and their advantages can be an important part of any fundraising strategy. For fundraisers, it becomes increasingly essential to take a more strategic approach to philanthropy management, including understanding how to cultivate and engage donors with diverse backgrounds and interests and of course, this includes real estate gifts. By offering donors a range of giving options, from cash to real estate and all forms in between, charities can develop long-lasting, mission-focused partnerships that support their organizations and mission for many years to come.
Should Your Charity Accept Gifts of Crypto Currency? -Joseph Tumolo CAP®
With the rise of digital currencies, the world of philanthropy has evolved significantly in recent years. Traditional modes of donations, such as cash, cheques, and bank transfers, are gradually being replaced by digital currencies like Bitcoin, Ethereum, and Dogecoin. If you’re a fundraiser, you might be wondering if it’s a good idea to accept gifts of crypto currencies. In this blog post, we aim to present you with a comprehensive analysis of the benefits and challenges of accepting crypto donations. Keep reading to find out more!
Advantages of Accepting Crypto Donations The first and foremost advantage of accepting donations in the form of crypto is the ease and convenience it offers. Unlike traditional modes of payment, crypto currency donations can be made instantly from anywhere in the world. Moreover, it eliminates the dependency on third-party intermediaries, reducing the transaction costs and speeding up the transfer process. Another benefit of accepting crypto donations is that it allows charities to tap into the burgeoning crypto community. People who hold digital currencies are generally tech-savvy and are more likely to donate than the average person. This could be a significant source of revenue for your charity if you attract this demographic group.
Risks of Accepting Crypto Donations The crypto currency market is highly volatile and unregulated. The value of digital currencies can fluctuate wildly in a short period, posing a significant risk to your charity’s financial stability. Moreover, digital currencies are susceptible to market manipulations, cyber-attacks, and frauds. Therefore, it is critical to set up proper security measures, such as multi-factor authentication, to safeguard your charity’s crypto wallet. Another risk of accepting crypto currency donations is the difficulty in converting digital currencies into fiat currencies. Although more and more merchants are beginning to accept digital currencies, most are still hesitant to do so, and it may take longer to convert them into cash. This could pose a challenge to charities that rely on immediate, liquid cash to fund their programs.
Check your legal compliance. Before accepting crypto donations, charities should ensure that they comply with the legal regulations of their respective countries. In most jurisdictions, digital currencies are still not recognized as legal tender, and thus their tax treatment is often ambiguous. Therefore, it is essential to seek legal advice from professionals to ensure that you comply with relevant tax and financial regulations.
Be transparent about acceptance and usage Transparency is critical when accepting any donations, including digital currencies. Charities should clearly state on their website and social media channels that they accept crypto donations. It is also essential to inform donors about how their gifts will be utilized and provide regular updates on the financial status of the organization. Moreover, charities should consider implementing a system to segregate donations made through crypto currencies. This will help to track and manage the inflow of donations, ensuring that they are not misappropriated.
In conclusion, accepting crypto currency donations can be a double-edged sword for charities. On the one hand, it offers several benefits, such as ease of transactions and access to the crypto market. On the other hand, it poses significant risks, such as market volatility and legal compliance issues. Therefore, charities must carefully weigh the pros and cons before deciding to accept crypto donations. If they decide to accept them, it is crucial to establish proper security measures, comply with legal regulations, and maintain transparency about their use. By following these guidelines, charities can leverage the potential of crypto currencies to further their mission and achieve their fundraising goals.
