In 2007, charitable bequests rose to $23.15 billion, and foundation giving also rose to $38.52 billion, a 10.3% increase. Campbell & Company President Peter Fissinger says this information from the Giving USA 2008 study may indicate that the generational transfer of wealth is beginning. With this increase in bequests and foundation giving, charitable organizations need to have knowledgeable staff ready to discuss planned giving and major giving strategies with clients. In doing so, charities may be less affected by the sluggish economy.
Mike Poston, vice president for advancement at Guilford College, says that while a slow economy may decrease an organization’s annual fund program, major and planned gift programs are less likely to be affected. Because of the current economic situation, Guildford College is concentrating on major donors who generally do not feel the same tension as lower-level donors. Also, the College is strengthening its planned giving program since long-term commitments are usually not as affected by the economy.
Campbell & Company sponsored research has shown that effective planned giving programs begin connect with their donors earlier, when the donors are still in their 50s and 60s, because this is when individuals begin to think about their estate plans. Marcia Mintz, chief development officer for Valley of the Sun United Way points out that, “Some of the folks who we waited on who are in their early 70s, their plans are really locked already.”
Charities should remember to build relationships with the whole family, not just individuals. “Because women tend to live longer than their husbands, they are the ones who are ultimately going to have control of the assets,” says Val Broadie, Campbell & Company’s senior consultant. Because of this fact, Broadie has organized female-focused financial planning seminars where female staff, donors, and women’s auxiliary members discuss financial matters.
Finally, charitable organizations must have planned giving training for their staff in order to have a successful program. Learn the basics of estate planning options and stay informed because laws and regulations change frequently. Poston says, “I want everybody to really embrace the idea that you can’t spend enough money on planned giving education for your staff.”
As the economy continues to slow down and as the older generation begins to make estate plans, it will become vital for charities to understand major gifts and planned giving.
Information taken from: “Bolster Major Gifts with Bequests and Family Foundations.” Campbell & Company. www.campbellcompany.com.
--Ashley High is a Research Assistant at Christian Foundation Grants (www.christianfoundationgrants.com) which is subscription database of foundations that provide grants to faith based organizations. iDonate.com is a website (www.iDonate.com) that allows ministries to receive non cash gifts online.