Ho How to Implem emen ent a a Legac acy y Chal Challenge a - PowerPoint PPT Presentation

Ho How to Implem emen ent a a Legac acy y Chal Challenge a at Your ur In Institution Courtney Tsai, Director of Development, Planned Giving, George Washington University Sara Eigenberg, Deputy Director, Planned Giving & Endowments, U.S. Holocaust Memorial Museum

OUR SHAR ARED ED GO GOAL… AL… • To raise A LOT of $$ in an EFFICIENT and COST EFFECTIVE way! • To build further LOYALTY within our donor base • TO BUILD LEADERSHIP

Gen ener eral D Definition on o of a Legacy Chal allenge The definition can/will be different for each organization, but in general a Legacy Challenge is :  A matching gift program; that  Focuses on raising planned gifts.

GW’ W’s Legacy C y Chal allen enge e DEF EFINED ED • A MATCHING GIFT PROGRAM :  That utilizes a matching pool of unrestricted CASH  to entice planned giving donors to document new planned gifts (Challenge focused exclusively on planned gifts)  The planned giving donors are able to DIRECT THEIR MATCHING DOLLARS

USHMM’S L ’S Legacy cy Cha Challenges D DEFINED • A MATCHING GIFT PROGRAM focused on: o Raising NEW planned gifts for the Endowment o Raising NEW outright gifts for the Endowment o Identifying EXISTING planned gifts directed towards the Endowment o Identifying EXISTING, undirected planned gifts that we then had directed towards the Endowment

So Sounds G s Good, B But First, So Some “Insi side Baseball”… ”…

THE WI WIND-UP P . ... • Crunch some numbers focusing on ROI • Review and compile some information regarding what your program has already done • Sketch out what additional target audiences you want to reach • Create a short list of your ideal challenge donor(s) Get all your ducks in a row….make sure you have built the case before the…

PITC TCH…!! PRESENT YOUR CASE AND GET INTERNAL APPROVALS • Development Leadership • Treasurer/CFO buy-in; CEO buy-in; Board Approval?!

AND…. ….

You Go Got t t the O e OK… K… Now t to De Determine t the Ru e Rules

Th The Ru Rules Sh s Should Answer K r Key y Questions • What types of gifts will count for the program? Just planned gifts? Outright gifts directed towards an endowment? Both? • What matching % will be applied/what “cap” will be placed on the amount of matching funds allocated to a gift? • Will documented bequests and other planned gifts count at face value or discounted value for purposes of the match? • Can matching funds be directed to create new, named scholarships or other named funds? • What documentation will be sufficient for matching purposes? • How can the matching donor fulfill the match?

The G e GW L Legac acy C y Chal allen enge e Rules es • Match of 10% of the value of each new planned gift commitment, up to $10,000 per gift. The total matching funds available, to start, were $250,000. • Donors were able to direct the cash match to their area of interest at GW. Reason for Our Rules • Incentivize donors to provide us with details regarding their planned gifts; • Enable planned giving donors to make an immediate impact within their “area of passion” at GW even though funds from their own planned gift won’t be received for years; and • Allow many donors to participate.

Direct Funds t to Several P Purpos oses: MATCH $

USHMM L Legacy Cha Challenge R Rul ules • Match of 10% of each new or newly quantified outright or planned gift to a Museum Endowment fund (general or restricted), with a maximum match of $25,000 per gift. The total matching funds available were $1,000,000. • To qualify, donors had to direct their gifts to a Museum Endowment (general or restricted) and the match money was automatically to be designated for the Museum’s General Endowment Fund. Reason for Our Rules • Incentivize donors to provide us with details regarding their planned gifts; • Build our General Endowment as that was (and is) a main focus of our ongoing campaign. Having the matching funds go directly to our General Endowment also made tracking much easier. • Enable planned giving donors to feel as though their gift was leveraging further support for the Museum; and • Allow many donors to participate.

A Match % % and M Match Cap are N e Nec eces essar ary KEEP IN MIND: A one-one match for a Legacy Challenge will not work unless you have millions of dollars in your match pool GW and USHMM both used a 10% match • HOW IT WORKED…GW had a $10,000 cap SO: • A $10,000 planned gift qualifies for a $1,000 cash match • A $100,000 planned gift qualifies for a $10,000 cash match • A $1,000,000 planned gift also qualifies for a $10,000 cash match • HOW IT WORKED…USHMM had a $25,000 cap SO: A $10,000 planned gift qualifies for a $1,000 match • • A $250,000 planned gift qualifies for a $25,000 match • A $1,000,000 planned gift also qualifies for a $25,000 match 15

Finding t g the R Right M Match Donor or(s)…. “If your actions inspire others to dream more, learn more, do more, and become more, you are a leader.” –John Quincy Adams (Yes, this is John Quincy Adams…the internet is amazing….)

Ideal LE l LEADERS/Prospects for or Y You our Lea Lead M Match • Donor(s) who love public recognition • Donor(s) who “want their gift to have a big impact” • Donor(s) who haven’t yet made their big outright or planned gift • Donor(s) who have proven “easy” to work with • Donor(s) who have connections in the community (e.g. alumni group, their hometown, or beyond). Donors who can serve as LEADERS!!

Reac aching t g the C e Chal allenge e Goal oal

Mark arketi ting P Plan an an and P Piece ces It is KEY to come up with attractive collateral material for your legacy challenge such as: A Legacy Challenge “One-Pager” describing the program • Buckslips describing the Challenge that can be placed out at events or in outgoing mail • • USHMM included buckslips in thank-yous to our Membership & Collections donors • Different types of ads that can be used in your organizational magazines, newsletters, e- newsletters, blogs, Facebook pages... • Please reference sample pieces included with your handouts *Endeavor to make use of any and all EXISTING institutional pieces to advertise the Legacy Challenge*

Legacy Challe lenge G Gift C Con onfirmatio ion Fo Form USHMM • Created our “Confirmation of Deferred Commitment Form” to serve our Endowment Campaign efforts • Form allows donors to both QUANTIFY their planned gifts and DIRECT those gifts to our General Endowment. GW • Created a special Gift Confirmation form to serve their Legacy Challenge. • Form allows donors to QUANTIFY and EXPRESS DONOR DIRECTION and INTENT , but is not Endowment specific. KEYS POINTS TO REMEMBER • These forms are NOT binding; donors can of course still change their estate plans at any time • These forms should be SIMPLE and EASY TO UNDERSTAND

Targeted Letter to to P Pros ospec ects • This can help you reach out to your donor base • Can also enable you to reach out more broadly • Does your match donor have networks you could contact? • Will they write a letter/sign a letter on your behalf to their friends? Other Marketing Ideas • Would your match donor host an event? • Can your match donor speak at events already being held?

SO… O….HOW’ W’D W WE DO? O?!

GW L Leg egac acy C y Challen allenge R e Return on L Lead ead D Donor Inves estmen ent 12000000 10000000 8000000 6000000 4000000 2000000 0 Matching Funds Min. Raised to Actual Amount use all matching Raised funds $336,094 $3,360,940 $12,395,068

GW L Leg egacy cy C Challenge S Sur urvey R Resu esults ts • ALL respondents said they learned of the Legacy Challenge via their Development Contact and/or the personal letter • 70% said they learned of the Legacy Challenge via their Development Contact • 30% said they learned of the Legacy Challenge via the personal letter • 60% said the Legacy Challenge influenced their decision to document their planned gift a “great deal” or “somewhat” • 3 respondents said they would be somewhat interested in participating as a lead donor for matching funds for a future Legacy Challenge

USHM HMM L Legacy C y Challen enge R Results FIRST LEGACY CHALLENGE RESULTS (April 30, 2012--April 30, 2013) • 102 qualifying gifts totaling $26,633,673 • Donors from 25 states represented • Gift vehicles included bequests, CGAs, Retirement Plan designations, life insurance policies, CRTs... • Smallest gift was $1,000 and the largest qualifying gift was $13,000,000 SECOND LEGACY CHALLENGE RESULTS (April 30, 2014—April 30, 2015) • 106 qualifying gifts totaling $65,347,674 • Donors from 26 states represented • Gift vehicles included bequests, CGAs, Retirement Plan designations, life insurance policies, CRTs... • Smallest gift was $1,000 and the largest qualifying gift was $22,000,000 MOST RECENT CHALLENGE RESULTS (February 15, 2017--February 15, 2018) • 139 qualifying gifts totaling $37,415,505 • Donors from 23 states represented • Gift vehicles included bequests, CGAs, Retirement Plan designations, life insurance policies, CRTs... • Smallest gift was $1,000 and the largest qualifying gift was $20,000,000