Author: Viken Mikaelian

According to Forbes Magazine, here are the top five New Year’s resolutions for 2024: Get fit, lose weight, and three more. This article will surprise you!

Is Your Nonprofit Accepting One of the Most Powerful Gift Types? If you’re not accepting gifts of real estate, you’re missing out on a very large untapped donation market. Consider this: While most nonprofits focus on cash gifts, that cash comprises less than 10% of America’s wealth. Meanwhile, about 43% of the nation’s wealth is held in real estate … yet only 3% of that goes toward charity. That means if the Great Wealth Transfer hits its projected $60 trillion+ mark over the next 20 years, about $25 trillion of that will be wealth held in real estate. Trillion. With a “T.” That’s a literal fortune in untapped potential. A Powerful Philanthropic Tool We always say that planned giving is philanthropy for the rest of us. That’s because it allows almost anyone to make a significant gift without affecting their day-to-day cash flow. Gifts of real estate are a perfect example of this, because for the majority of people, their most valuable asset is their home. But residential homes are just one type of real estate that can be donated. Your supporters can also donate land, and a wide variety of other types of real estate, including: Farmland Vacation homes Rental properties Commercial buildings Industrial property Vacant lots Historic structures Apartments Condominiums Acreage Multi-family homes Even better, most real estate can be donated in such a way that the owner, or someone they designate, can continue to use the property for an agreed-upon period of time—in some cases, for life! The property does not even need to be mortgage-free.  And in many cases, the property does not even need to be in prime condition, or even debt-free. Depending on the nonprofit’s policies, you may be able to donate land; donate a fixer-upper, or even a property that has a lien on it. Yet donating property to a nonprofit is often overlooked when it comes to philanthropy. That’s usually because: Donors and nonprofits alike focus on cash gifts Supporters don’t know they can give real estate and donate land Those who do know think it’s too complicated Nonprofits fear the technical details, but are hesitant to outsource to experts Benefits of Donating Real Estate Donating real estate to charity carries a number of substantial benefits for the donor. Donors can deduct the property’s value from taxable income, usually up to 30% of their adjusted gross income. Donors can eliminate capital gains tax if the property has grown in value, meaning a larger portion of a property’s value goes to charity than if the donor were to sell the property before donating the proceeds. Donating real estate removes it from your estate plan, meaning your heirs will face less of a tax burden. A gift of real estate can give many donors the satisfaction of making a much bigger impact than if they’d donated cash or other assets. The donor can structure the gift so that they continue to live in or use the property for life through a Retained Life Estate. How Does a Real Estate Donation Work? A supporter can donate real estate in several ways: As an outright donation As the donation of a fractional interest in the property As the asset to fund a gift plan that will pay them  income, such as a charitable unitrust By donating their home, while at the same time reserving the right to continue living there for their lifetime or for the lifetime of someone else, such as a spouse or sibling (a retained life estate). Remember that the nonprofit must review real estate donations to evaluate the condition and marketability of the proposed gift to determine whether it is risk free and appropriate for all parties. The IRS also requires that a qualified, independent appraiser must first appraise the gift of real estate. Accepting gifts of real estate can make an incredible, transformative impact for your nonprofit. There are only two questions to answer: What are you waiting for?  How do you begin? There’s no excuse for #1. We can help with #2. How and Where Do You Begin? Smaller nonprofits (actually, most nonprofits) often ignore gifts of real estate due to the potential risks involved. We work with Chase Magnuson, who facilitates such gifts and has the complete infrastructure to carry them through from beginning to end. It is all done virtually risk-free to charity. We have known Chase for 18 years. He has served small to larger organizations. Current and immediate past clients include AARP Foundation, UNICEFUSA, California State University San Jose and Dominguez Hills, and United Way San Diego. just to name a few. Contact us today to see why our process is risk-free, and what it takes to begin. We’ll even handle the marketing for you.

How do you want to be remembered? Someone who left chaos or left a legacy? 

I’ll never forget the first time my wife and I met with our lawyer to create our estate plans. When do you pull the plug if a partner is terminally ill? What happens if we both die in an accident at the same time? Who do we trust to be an executor? It was, in many ways, a grim task, and I could see why so many people put it off.

Online will makers are everywhere you look these days. From FreeWill, Rocket Lawyer, Trust & Will and GivingDocs to the comprehensive LegacyPlanner, it feels like everyone is offering their own version. And sometimes it seems like they all just appeared overnight, too. But the truth is, the industry has been around for decades — both US Legal Wills and LegalZoom had online versions more than 20 years ago.

There’s something that some fundraisers don’t get that good marketers know instinctively: You’re not selling a product, gift plan, or naming rights. To paraphrase Steve Jobs, “You’re selling a dream.”   It doesn’t matter if you’re buying a Ferrari or Ford, a Rolex or a Timex, diamond earrings or cubic zirconia, a villa on a lake or a weekend at an Airbnb: You’re buying a dream of something bigger, better, shinier, or easier.  The same goes for donors. Your donors are buying a painting visualized in their minds. They’re not “buying” your mission. They’re buying a dream of lasting legacies; philanthropic hopes; and transformative outcomes. Objects are a commodity. Whether it’s a Ferrari Testarossa or a Ford Focus, it’s just a car. But a dream is something different. It’s a very personal thing, and you — the fundraiser or “salesperson” — cannot put a price tag on it. That’s for the dreamer to do. Selling the Sizzle This concept of selling a dream fits neatly with our mantra of, “Sell the sizzle, not the steak.” Think about it: If you’re craving a steak, you’re not dreaming about the method in which the cow was raised. “Mmmm. Grass-fed, all organic, free-range, ethically raised beef.”     You’re dreaming about the taste, and your expectations for the experience. “Mmmm. Sixteen ounces of still-sizzling, flame-grilled tender beef served au jus with a loaded baked potato on the side.” Likewise, donors don’t dream about the mechanics of how a charitable gift annuity or donor-advised fund works. “I’ve always wanted to make a gift of cash that is set aside in a reserve account and invested for the betterment of a nonprofit!” Instead, they dream about all the good they can do by making a gift.  “I’ve always wanted to help orphaned children find loving homes!” Big difference, no? Donor-Centric Isn’t Just a Catchphrase “Selling the dream” is why we use donor-centric language. It takes the focus off the product (your nonprofit and its mission) and puts it on the donor instead. It’s also why we avoid using death language in our donor communications and gift descriptions. After all, saying “Mr. Jones, we’re looking forward to your death so we can use your money for our mission!” isn’t likely to inspire a gift — or put you in anyone’s good graces.   But too many think a donor-centric approach simply means inserting variations of the word “you” as often as possible in donor communications. They think “selling” planned gifts requires extensive knowledge of tax laws and gift details. And they believe a one-size-fits-all approach is the best way to reach their audience and capture donor interest. Since you’re likely one of our clients already, I don’t have to tell you they’re wrong. You know that donor-centric messaging requires you to consider your donors’ interests, motivations, and yes, dreams. You understand that it requires building a culture of philanthropy and focusing on stewardship. You realize it requires being a good listener, so you can learn what’s important to your prospects. And you recognize that it means helping your prospects clearly see their vision, their dream, so that you can help them to bring it to life. Conclusion Smart fundraisers know that raising money isn’t about selling donors on a particular gift vehicle, or even on a mission. It’s about selling them their dreams, and finding a way to facilitate those dreams in a manner that benefits both the donor and the nonprofit. It takes good stewardship, active listening, and a focus on donor-centric fundraising. Stop trying to sell your nonprofit’s mission. Sell your prospects their dreams of philanthropy instead. In fact, maybe it’s time to stop calling yourself a fundraiser, or even a friendraiser, and start calling yourself a dreamraiser instead.

Planned giving can present a unique challenge for marketing, because the unspoken message is that a death must occur for a gift to be fully realized. Here are two ways to alleviate the macabre undertone.

Establishing a major donor strategy is arguably one of the most effective ways to establish a significant, long-term funding source for your nonprofit. Ideally, major donors and nonprofits enjoy a long, mutually-beneficial relationship where the donor uses their resources to make big things happen at an organization they cherish. But how do you begin to build this strategy? How do you discover the giving potential of those in your community? Below are three top tools to help complete donor prospect research.

Corporations and businesses continue to adopt philanthropic strategies as consumers attempt to make more ethical purchasing choices. This makes corporate sponsorships a wonderful major gift partnership between businesses near you and your nonprofit. Whether your organization resides near some corporate headquarters in a major city or a rural area with family-owned businesses, corporate sponsorships can provide a helpful fundraising boost and open up possibilities for mutually beneficial partnerships.