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YWCA Endowment Funds: Securing Our Future

Join the YWCA USA Fundraising Training Series to learn about planned giving and how to build your organization's fund development capacity. Topics include Fundraising 101, Developing Your Annual Fundraising Plan, Major Gifts, Fundraising Events, Capital Campaigns, and Planned Giving/Endowment.

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YWCA Endowment Funds: Securing Our Future

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  1. YWCA Endowment Funds Securing Our Future November 22, 2013

  2. YWCA USA Fund Raising Training Series A series of 6 webinars designed to help local YWCAs build their fund development capacity: • Fund Raising 101 (June 28) • Developing Your Annual Fund Raising Plan (July 25) • Major Gifts (Aug. 22) • Fund Raising Events (Sept. 19) • Capital Campaigns (Oct. 24) • Planned Giving/Endowment (Today) With Rita Ryder and Beth McCaw

  3. Key Definitions • Planned Gifts: A variety of charitable giving techniques • by which donors can achieve philanthropic, financial • and estate planning goals. A planned gift may be • directed to: • An endowment fund • An annual fund (usually for a special purpose) • A capital campaign or special major project • Endowment Fund: Assets held by a charity for charitable • purposes, which, under the terms of the donor’s gift instrument, • can’t be spent in their entirety on a current basis. The principal • of the fund remains intact; income is appropriated for • annual operations. Endowment gifts are special: made from wealth built over a lifetime

  4. More Important Definitions True Endowment: consists of funds designated to the endowment by the donor. Funds remain in the endowment “in perpetuity”. Quasi-Endowment: funds are restricted by the Board (not the donor) to function as endowment. Some Boards: • Restrict all gifts made through bequests to endowment (unless otherwise restricted by the donor) • Restrict unusually large gifts that aren’t likely to recur in upcoming budget years to endowment (unless otherwise restricted by the donor) Both of these Quasi-Endowment practices are prudent, and build the YWCAs endowment fund

  5. YWCA Endowments Why So Important? They serve a critical purpose: • Create a reliable revenue stream • Legacy-making: • Plant an acorn • Create a pipeline Make it part of your YWCA’s Fundraising DNA: • Integrate into your ongoing fundraising plan • You can begin small….limited time and resources • Doesn’t compete with (can enhance) your annual fund

  6. Endowments: How Are Local YWCAs Doing? • 162 (71%) have endowment funds (or Board-restricted funds operating as endowment) • Size of endowment funds: • Under $100,000: 17% • $100,000 and above: 83% ______________________ • Over $1 million: 28% • $10 million +: 2%

  7. YWCA Qualities That Support Endowment Gifts • Strong legacy • Effective performance • Prudent financial management • Leadership continuity and strength • Credible process for investing funds • Donor accountability and stewardship YWCA Assets

  8. Endowment Tools • Direct Gifts (current) • Bequests (deferred) • Life Insurance (beneficiary upon death) • Retirement Plan Assets (401k, 403b, IRA, Keogh) • Charitable Gift Annuity • Charitable Remainder Trust • Charitable Lead Trust • Remainder Interest in a Residence

  9. Getting Ourselves Organized Legal Resource Asset Management Agent sset Management Agent Planned Giving Committee Lead Staff • Emeritus Board • Board Rep • Allied Professionals • Community • Foundation • YWCA Investment Committee • Bank or Trust Firm • A combo • CEO • Dev. Staff Resource list of advisors to assist donors with specific tools Training for Board and Staff: Endowment “Case”, Messages, Prospects, Cultivation

  10. Our Planned Giving Case

  11. Our Endowment High Priority Prospects • YWCA Board Members • Board Alumnae….especially “Emeritus” • Donors who give consistently, • regardless gift size • Major Donors • Long term staff alumni (and current senior staff) • YWCA committee members and volunteers • Other variables, e.g.: age, family composition, resources, years of engagement, number of philanthropic interests

  12. Where There’s a Will, There’s the YWCA!Promoting Your YWCA Endowment • Board Campaign: 100% participation • Add-on to Annual Fund Drives: “Everyone can leave a legacy” • Add-on to Capital Campaigns: “Protect your investment in new facilities” • Include Endowment messages in all communications: newsletters, website, social media • Create materials e.g. “Guide to YWCA Planned Giving” • Conduct special Endowment receptions/tours for: • Board Alumni, special donors • Allied Professionals

  13. Planned Giving Notification FormA Priority!! • Why the “Notification Form” needed: plan, recognize, steward • It’s a 1-Pager, and includes: • Contact info, including spouse/partner’s name • Planned Giving “vehicle” to be used • Recognition preferences • Gift intentions (e.g. purposes) • YWCA information: Tax ID number, contact person • Donor’s signature/date; legal/estate advisor (if appropriate) • Doesn’t need to include gift amount; is a “non-binding”document

  14. Sample Bequest Language Specific Bequest: I give to the YWCA (full legal name) the sum of $__ (or __%) of my estate to forward its mission in the community Residual Bequest: I give to the YWCA (full legal name) all, (or __%) of the rest, residue and remainder of my estate to forward its mission in the community Designated Gift: If donor restricts gift to a specific program, need, or issue, make the language as broad as possible e.g. “to meet basic needs”, and add: “the YWCAs Board may redirect my gift to an area consistent with my intent if community needs or circumstances call for it”. Contingent Bequest: If (insert name) is not living at the time of my demise, I give the YWCA (full legal name) the sum of $ (or __%) to be used…..

  15. Recognition and Stewardship • Recognition is important to retain the gift, possibly “grow” the gift, benefit from the donor’s engagement. • Create a Planned Giving Legacy Group e.g. • “YWCA Council for the Future” • Honor on plaques, legacy wall, etc. • Special designation at YWCA events e.g. on nametag • Hold an annual gathering: update, input, volunteer opportunity • Recognize in YWCA newsletters, annual report

  16. Board Stewardship of YWCA Endowment Funds • Board Policies e.g.: • Gift acceptance • Investment goals, methods • Asset allocation • Distribution rate e.g. 4-5% annually • UPMIFA Requirements (Uniform, Prudent Management of Institutional Funds Act) • Annual vote on transfer of funds to operating budget (4-5% annually) • Regular reports to the Board on status/performance • BOARD NEVER INVADES THE ENDOWMENT FUND PRINCIPAL

  17. Phasing In Your Endowment Program

  18. Resources/Tools We’ll Send You • The PowerPoint from this webinar • Definition/features of Endowment/Planned Giving “Tools” • Example of a Planned Giving/Endowment CASE • Example of a Planned Gift Notification Form • More detailed UPMIFA information (link to) • Sample letter for Board Endowment Campaign Send your questions or comments to Rita Ryder: Rryder@ywca.org

  19. Q & A

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