Gift Planning Opportunities in Turbulent Times

1. Gift Planning Opportunities in Turbulent Times Presented to National Capital Gift Planning Council 17th Annual Planned Giving Days Conference by Jay Steenhuysen May 14, 2009

2. Donor Markets • 1% of the population made up of the wealthiest families • 9% of the population made up of middle-class millionaires • 90% of the population made up of the rest of the population

3. Financial Security & Charitable Gifts • Wealth effect donors – investors feeling rich based on asset appreciation • Planning donors – savers keeping their wealth in cash and near-cash instruments

4. Issues We Face in 2009

5. Economic Issues • The change in HNW giving in this recession • Stimulus package will trigger some IPOs, but most deals are dead

6. Organizational Issues • If staff reductions occur at your institution… • Donor qualification becomes a major issue • Strategy for the good prospects becomes more important • Lapsing donors • Senior donors will stop giving sooner • They will fall off the donor list sooner • Endowment problems

7. Departmental Issues: 1% Donors • This recession is different • No sale of assets to subsidize lifestyle • No dealflow means no wealth effect • Gifts will require advanced planning

8. Departmental Issues: 9% Donors • Always required planning to make a gift • Taking the brunt of this recession • Cashflow crunch • No longer prospects

9. Departmental Issues: 90% Donors • The real opportunity in this recession • Maintaining their perspective • Income planning like never before • Gift annuities for savers

10. Departmental Design • Specialize in a market • Focus on a narrow market • Get good at your dealflow • Outsource where you can • Gift administration • Stewardship • Qualification

11. Discover Service Cultivate Seven Essential Moves Fulfill Connect Invite Acknowledge

12. Gift Planning in THIS Recession Show Your Value to Your Organization

13. Show Value: Current Gifts • When closing deferred gifts • Part outright • Share the income stream • Harvest deferred gift agreements

14. Show Value: Life Income Gifts • Focus on the right deferred gifts • Take advantage of the interest rate • Address immediate problems • Chase past prospects • Develop new gift instruments

15. Show Value: Bequests • More will make bequests as they cannot make current gifts • Use a recent lapsed donor campaign to find bequest prospects • Focus on points where a donor gets stuck • Legacy and control • Making decisions • Gathering information • Cost • Hiring a planner

16. What to do for 1% Donors • You can get appointments like never before • Donors are in planning mode • Estate plan • Philanthropy plan • Partner with major gift staff in strategy sessions and meetings

17. What to do for 9% Donors • Move from investor prospects to saver prospects • Re-visit CRT donors • Renounce life income interest • Sell life income interest

18. What to do for 90% Donors • Making the bequest commitment • Re-engage past prospects • Longer bequest conversations • Getting them to reveal their commitment • Offer a micro-endowment program

19. Key Points • Savers, not investors • Show value • Current gifts • Past prospects • Bequests: lapsed donors & sticking points • New offerings • Outsource what you can

20. Jay Steenhuysen Covenant Calls 1539 Fall River Ave., Suite 3 Seekonk, MA 02771 508-336-4544 jay@covenantcalls.com