Presentation Transcript

1. Planned Giving:Trends, Tips and Tools

   The Ohio Association for Healthcare Philanthropy October 19, 2012 Michael O’Sullivan OhioHealth Foundation
2. A Framework for UnderstandingPlanned Giving Timing Structure Assets
3. Broad View of Planned Giving “A planned gift can be defined as a voluntary gift of any kind, in any amount, given for any purpose – operations, capital expansion, or endowment – either current or deferred, when the assistance of a qualified volunteer, professional staff person, or the giver’s own advisor(s) is needed to help complete the gift.” (R. F. Sharpe, Sr.)
4. Key Factors in Understanding Any Planned Gift
5. Common Planned Gifts – Timing & Structure
6. Typical Assets Used to Fund Planned Gifts
7. Profile of the Planned Giving Donor History of connection to and interest in the organization Generally at least fifty years of age Successful children or childless Business owner/entrepreneur Holds assets with a very low cost basis “PAW” – a Prodigious Accumulator of Wealth (Danko & Stanley)
8. A Framework for UnderstandingPlanned Giving From the donor’s point of view: What am I accomplishing? When should I do this? What benefits do I want? What am I giving?
9. What do I want to accomplish with my gift? Help care for those who are disadvantaged Build or renovate facilities Provide educational programs for nurses, staff, and the community at large Provide state-of-the-art medical equipment Honor or remember a loved one Discover more effective treatments for critical health concerns Build a fund that will provide income permanently to the hospital
10. When do I want to establish the gift and when do I want the hospital to have my gift? Give now Make a pledge commitment and give over a number of years Plan the gift now and give sometime in the future, beyond the next few years
11. How will I make the gift in a way that has benefits for me and the hospital? Give now and keep the right to receive income from my gift or continue to use the gift Give and also benefit other members of my family Give in a way that saves on capital gains, estate, income or gift taxes Give in a way that saves taxes on my IRA or retirement plan Give through a family foundation or donor advised fund
12. Which of my assets will I transfer to make my gift? Cash, via check or credit card Corporate stock, bonds, mutual funds or other securities A personal residence or farm, land, or commercial property Savings bonds Insurance policies or annuities Precious metals, collectables, antiques or works of art Retirement plan assets
13. Trends in Planned Giving A world of uncertainty and continual change….
14. Trends Affecting Planned Giving What happened to the $41 trillion dollar transfer of wealth? Low capital gains tax rate has diminished incentives for CRT’s, CGA’s Low interest rate environment create opportunities for Lead Trusts – but…. Difficult to explain Generally have to be very wealthy Tax consequences of gift made during life are hard to swallow for some donors Uncertainty of the economy and the election is creating donor concern
15. Trends Affecting Planned Giving The “fiscal cliff” Many CDO’s worried about hitting goals and predicting lower results Not enough gifts “in the pipeline” – how to fill? Shift to outpatient care = less of a connection to organization Grateful patient - how to sort through patients to find the best prospects? Fate of the charitable deduction Impact of higher taxes on “the 2%”
16. Trends Affecting Planned Giving Hospitals are under extreme pressure to reduce costs – do more with less Uncertainty of health care reform Transition from a “volume” model to a “value” model - we have one foot in each bucket Hospital mergers, even system mergers, are a daily topic of conversation Donors fear loss of identity, local control….will my gift stay in my community?
17. And the hits just keep on coming… Hospitals increasingly look to the development function for support For larger hospitals, fundraising success is part of the bond rating process At the same time, many CEO’s are unwilling or unable to add staff or budget
18. The Biggest Question….Allocation of Scarce Resources How to implement planned giving when time and money are limited?

19. Planned GivingTrends, Tips and Tools

    Tips and Tools Questions and Answers
20. Implementing a Planned Giving Program with Limited Time and Money What kinds of marketing programs are we using? How are we identifying prospects? Findings from the Philanthropy Leadership Council – The Advisory Board Company
21. A Familiar Approach to Prospecting: Recency, Frequency, and Means How recent was the last gift? How many times have they given? What was their largest gift?
22. A more ambitious method of prospecting: Analyzing Healthcare Utilization Include all patients, inpatient and outpatient Must have had a patient contact five or more times in the past year Must live within 30 miles of the health system Must meet wealth screening threshold Must accept invitation to participate in a survey – conducted by personal visit During interview, must express interest in the health system
23. Characteristics of a Successful Planned Giving Program Leadership understanding of planned giving and what it entails Agreement on the size of the program – must be sustainable Adoption of program policies and guidelines Consistent and comprehensive marketing program – must be sustainable Program must be donor-focused Program must be regularly evaluated and revised Adapted from PG Calc White Paper: 7 Characteristics of a Successful Planned Giving Program