The End is Near. Again.
None of us is supposed to be here by now. In 1968, Stanford’s Paul Ehrlich predicted that “In the 70s the world will undergo famines… hundreds of millions of people (including Americans) will starve to death.” (The Population Bomb, 1968) A year later, Dr. Ehrlich wagered, “I would take even money that England will not exist in the year 2000.” (The doctor lost his bet, but earned enough royalties to secure his retirement).
Does any of this remind you of the commonly accepted “wisdom” you’re hearing today? Oil prices will skyrocket relentlessly, unchecked and indefinitely. The mortgage crunch will push housing down to 80s levels. Investment portfolios and IRAs will lose value forever. Martians will abduct major gift prospects…
Well now—what’s a fundraiser to do? Hmm…
- Cut out mailings because of high postage rates;
- Don’t visit donors because of high gas prices;
- Stop marketing gifts of appreciated securities, gifts of real estate and IRAs because the value of those assets in donors’ hands may have declined;
- Delay launch of an endowment campaign because prospects are too nervous to give assets away.
- Convince Obama and McCain to join AFP.
Or, you can stop standing by the dry water hole, fine-tune your marketing and move forward.
Remember—the worst marketing sin (I’ve identified 13) is to start marketing, lose heart, then stop. Such binge marketing makes your prospects lose confidence and it becomes harder to get them to take you seriously.
Take a deep breath and stop following the herd. Planned giving is situated to take the long view even if the economy falters. Prospects will continue to age (and more so than ever before, as Baby Boomers turn 60 every 7 seconds), contemplate how to dispose of their property, and reward the institutions that have made a difference in their lives. Individuals will continue to seek out creative ways — especially charitable gifts — to reduce tax bills. Collectors will keep on giving art, entrepreneurs will set up lead trusts, farmers will donate conservation easements, eccentric old ladies will give their Barbie Doll collections…
(And here’s the wild card: what happens to planned giving if capital gains goes back up to 28% in 2009?)
Here are some practical ways to shift the emphasis of your marketing to take into account changing economic conditions:
- Prospects worried that the value of a stock they own will soon decline can give it to you in return for a gift annuity. Their annuity payments will be based on the value of the stock at the time they made the gift. So even if the price of the stock does later decline, their income will be unaffected (or, given relatively high CGA payout rates, may increase). And even remind them they will live a longer life because of a CGA!
- In uncertain real estate markets, a retained life estate may benefit your organization more than an outright gift of property or a charitable bargain sale.
- You have prospects who are still earning high salaries, even if the value of their investments has declined. Remind them that if they donate cash, they can deduct up to 50 percent of their adjusted gross income, while their charitable deductions are limited to 30 percent of AGI for gifts of appreciated property.
Think Bigger Especially
When Others Are Thinking Small!
Bottom line? Don’t surrender to doom and gloom, and don’t stew in an “Oh, what’s the use?” funk. Unless, of course, your marketing plan was written by Paul Ehrlich. In 1971, Dr. Ehrlich told an interviewer, “When you reach a point when you realize further efforts will be futile, you may as well look after yourself and your friends and enjoy what little time you have left. That point for me is 1972.” (Look, 1971)
Aren’t we glad Ehrlich wasn’t a fundraiser? He opined, “Actually, the problem in the world is that there are too many rich people.” (AP, 1990)
Write a Reply