Presentation Transcript

1. Community Foundation Basics For Board Members Unit 4Asset Building
2. Asset Development
3. Gift Acceptance Policy Defines type of assets that are acceptable (cash, stocks, bonds, land, etc.) Establishes criteria and instructions for gift forms that are acceptable in fulfilling the mission of the foundation Defines foundation’s responsibilities in gift administration Approved by the board Reviewed annually
4. Types of Gifts Cash– including checks, wire transfers, and debit or credit cards Stocks and bonds – in kind transfer of publicly traded stocks and bonds Closely held stocks – in kind transfer of privately held stocks Agricultural products – in kind transfer of grain, livestock, etc. Real estate – in kind transfers of land, buildings, Personal Property – in kind transfers of artwork, jewelry, etc.
5. Types of Planned Gifts Retirement Plan Assets – IRA, 401k, 403b; best assets to leave to charity Life Insurance Designation – low cost, major gift Charitable remainder trust – money in trust pays someone until death of last beneficiary Charitable lead trust – money to charity for defined period; then back to family Charitable gift annuity – income for lifetime of beneficiary; attractive payout rates; remainder to charity to fulfill donors’ legacy Wills and Bequests – written instructions for disposition of assets – may be changed CRT CLT CGA
6. Transfer Of Wealth America is in the midst of a remarkable time Wealth from one of our most prosperous periods in history is passing from one generation to the next The economic boom of the 1990s spurred primary household estate wealth, including investments and insurance Two-out-of-three boomers should get something, and research predicts an inter-generational transfer of wealth totaling $11.6 trillion
7. Indiana’s Transfer Of Wealth 2010 Indiana current net worth - $298 billion Estimated $104 billion will be available to transfer between generations over the next 10 years in Indiana households Estimates are available for each county
8. Asset Development Why do we need board members in Asset Development? Because of the breadth and depth that a community foundation provides in the local community, board members are agents for awareness and creators of connections. Board members are ideally positioned to build relationships, visibility and creditability for the community foundation.
9. Key Resources for Effective Fundraising Board and Executive Director The leadership, vision, and skill of the executive director An engaged, committed, and high-functioning board A strong working partnership between the board and the executive Chronicle of Philanthropy. Development Directors Are Not Miracle Workers, Rick Moyers.
10. Successful Development Directors Are valued as another effective asset in the development strategy Have a clear job description with realistic performance expectations Have a high level of trust and engagement with the executive director Provide input on budgets and fundraising goals Work in organizations willing to invest in systems and infrastructure Work in a CF that integrates asset development into all aspects of its work
11. Donor Lifecycle Prospect Identification/Qualification Cultivation Board member referral Professional advisor referral Giving history Event guest Relationship to CF Wealth screening Early PR Peer to Peer Events Committees Advanced Relationship Visits Passions Linkage Capacity Propensity Build, maintain and enhance relationships! Stewardship Timely thank you and IRS-proof receipt! Annual reports Planned ‘touches’ Unplanned opps Next gift opportunity? Solicitation Natural partner Proposal Gift agreement
12. Asset Development Why Do board members avoid asset development? I am not comfortable asking people for money I don’t know what to say Too complicated and technical I don’t know the difference between a CRT and CGA I can’t explain what a payout is I don’t know about the investments I don’t want to make a contribution I don’t want to put friends on the spot Other?
13. Challenges to Successful Asset Building Absence of an agreed upon plan for board and staff with a clear understanding of their respective roles Asset development not integrated into the culture of the organization Lack of board honing development skills at board meetings Distractions due to lack of focus Foundation invited to be involved in everything in the community Board distracted due to fear of “asking for money” Staff trying to do everything
14. Asset Development It’s about friend ‘raising’ with a purpose Make friends for the cause Identify the community foundation's VIP friends Open the door for visits to advisors and prospects Invite friends and colleagues for small social gatherings Be an Ambassador where you work, live and socialize Friendraisingis a form of fundraising that involves befriending an organization or individual for the purpose of helping support the financial aspect of a charity, nonprofit, group or other community benefit organization. From Wikipedia, the free encyclopedia
15. Asset Development It’s about the STORY! Learn two grant stories Learn two donor stories Most effective if you are a donor Learn about how the community foundation assisted a local agency or nonprofit in a special project
16. Asset Development It’s about stewardship! 76% of the gifts to Indiana community foundations in 2011 were to existing funds Engagement with the foundation is primary predictor of more gifts Recognize loyal supporters The largest gifts to community foundations are usually estate gifts Engage fund founders in discussions about estate gifts to their funds
17. Donor Relationships are Key to Success Discuss what you currently do for donors – stop guessing and start measuring efforts Evaluate and manage your donor base Segment your donor lists Start with the most likely Identify small groups of donors with similar interests Engage key donors in focus groups and “Sounding Boards” Create and monitor a foundation donor relationship management plan
18. Board Members’ Roles Speak publicly about CF – Be an Ambassador and Advocate! Make an annual gift Consider adding CF to estate plan Identify prospects Contact 3-4 prospects – visits, letters, ‘open doors’ Introduce your professional advisors to CF staff Thank you calls for donor gifts Recruit committee and board members Host volunteer recognition events Host small group events Contact lapsed donors Why did you leave us; will you come back?
19. “Avoiding the Highly Contagious Special Events Bug” Gift Acceptance Policy Sample Charitable Gift Chart Asset Development Continuum The Triple ‘A’ Board Gift Planning Quick Guide
20. Does each board member know a story about a grant or donor? If so, have each member tell their story. Does each one of your board members make a monetary contribution to the foundation? How does your board participate in other activities related to asset development? Have you discussed the number and value of estate gifts your foundation has received? Have you compared this to the total gift amount?