Gifts of Appreciated Stuff Are Much Appreciated
Don’t Keep Them Bottled Up! Some of you who never read Forbes Magazine might think it’s just a stuffy business periodical, but how stuffy can a magazine really be when it runs an article celebrating “investment-grade” Scotch whiskey, as Forbes recently did? Sounds whimsical, but it’s for real. And with dollar values per fifth reaching five and six figures, what nonprofit wouldn’t appreciate a gift of such a very special bottle of booze? When canny marketers seek to pull the cork on high-end snob appeal, the sky’s the limit – but not for me. My personal Scotch budget is $45 a bottle. But the players in this new savory game usually tack on a few more zeroes to so miniscule an amount. Padlock Your Wetbar How’s this for value-added? The $2,750 entry-level price you pay to purchase a bottle from the Annie Liebovitz Scotch Collection, for example (yes, it’s that Annie Liebovitz), also includes a limited edition Liebovitz print to hang on the wall – right next to your flashing neon Miller sign. Other stratospheric examples: Macallan 1926 Fine and Rare: $75,000 Dalmore ‘64 Trinitas: $160,100 Glenfiddich 1937: $71,700 2012 traffic in such tasty trifles was up 550% over 2008, and Whiskey Highland founder Andy Simpson says an index fund of the top 250 bottles shows they delivered 206% appreciation from Q3 2008 to Q3 2012. Interested? To get closer to this action you might choose to join New York’s “1494” whiskey club (collector’s membership: $25,000). Forbes seems bullish on investment-grade Scotch: “And if the rare-whiskey market should collapse? Just drink your losses. Try that with social media stock.” A Toast to Fundraising Relevance Gifts of personal property – appreciated “stuff” – are a great way donors can make a difference for your nonprofit. And who wouldn’t appreciate a bottle of that Glenfiddich ’37? But let’s also imagine other, perhaps less exotic possibilities: How about a 1955 Corvette? A piece of original artwork? The world’s second-largest collection of porcelain frogs? A vintage sailboat? I asked Brian Sagrestano to give us his rundown on the benefits and requirements of such gifts: “Any asset can be donated. The question is whether it can be deducted. But I work on gifts of highly appreciated collectibles all the time. Say the donor has an asset, like a bottle of wine, which is highly appreciated. The donor has it appraised and then donates it. The deduction is based on a qualified appraisal unless the charity cannot use the asset for a purpose related to its charitable mission (this is called the “related use rule”). But in positive-speak, if the charity can use it for a purpose related to its mission, deduction is based on the appraisal. If the charity cannot, deduction is limited to the donor’s cost basis (what donor paid for it).” Whether it’s a whiskey, a classic car, artwork, whatever – this kind of giving represents a significant opportunity for donors, nonprofits and for you. Category: Planned Giving Marketing
Year-End Giving 2012
With the presidential election behind us and the status quo retained, what does this mean for charitable giving as we approach year-end? Over the last three months, this was the number one question on people’s minds – “What happens if after the election, we have the same parties in control of the House, Senate and Presidency? After all, there were lots of tax reform proposals out there during the campaign and we are about to go over the ‘Fiscal Cliff.’” While we don’t have a crystal ball, we are certain about three things which should shape how you approach year-end 2012 and the start of 2013.
Comfort Zone Treadmill
Are You Sure You’re Ready to Excel? If you continue to do things in the same manner you have always done them, your results are not going to change. Continuing to do things the same old way basically puts you on a treadmill where continuous, ineffective effort and lackluster results flow in a endless loop. It is time to re-examine your belief system. This article offers some ideas guaranteed to get you off that treadmill, to put money in your organization’s pocket, and help you become the consummate professional you want to be. As 2011 came to an end, you promised yourself that 2012 would be better. It would be a year of accomplishment; a year of achievement both for you and your organization. However, as you now review 2012 to date, are you finding your results mirror those of 2011? Let’s start with some brutal facts:
SEX. Would you do it to get the gift?
If you’re sitting on a bar stool in a big city hotel, stirring your Mojito, you might expect the person next to you to strike up a conversation. If the repartee is entertaining, it wouldn’t be at all surprising if the person next to you extended an offer to move the party to a room upstairs. At that point, you have a decision to make. If you are on that bar stool in the first place, this scenario is not unexpected or surprising. But what if it happens when you’re at work? A prospective donor for a major gift asked a fund raiser to visit him. He sent his limousine to pick her up and bring her to his penthouse. Dinner and champagne awaited. As the evening progressed, out came a pair of diamond earrings. The expected outcome was obvious. Here we pause to consider the options. Seemingly on the table (or in the bedroom) is the potential of a substantial gift for the fund raiser’s organization. Let’s say that it was a large enough gift to be a “game changer” for the organization, an amount that would allow the nonprofit to take its program to the next level, serving more people, solving more problems, achieving more good. Does any of this matter in the fund raiser’s decision making process? What really happened? She politely refused and left. The gift never happened. What would have happened if she did sleep with him? Would the gift have been made? It’s an interesting question, but beside the point. Gifts with ulterior motives usually go sour. A donor decides to establish a trust and skews the numbers in order to beat the IRS. And you, as the gift officer, know about it. What is your responsibility to your institution? This time it’s not just an ethics question, but one with legal ramifications. Although sex is not involved, this gift falls into the same category. Gifts with ulterior motives without the charity’s well-being in mind can go wrong in so many ways. Even when there doesn’t seem to be an ulterior motive, fund raisers need clear direction on how to handle potential situations when the lines of appropriate ethical behavior may not be as clear as not having sex with a donor. Early in her career, Chicago-based nonprofit consultant Lisa M. Dietlin was playing golf with a major donor at a country club. She commented on some pretty roses, so he bought her one. Innocuous enough, right? During a break in the pro shop, she admired what turned out to be quite an expensive sweater. He picked it up and moved towards the cashier. Despite her protestations that she would prefer to buy it herself, he bought it. She felt very uncomfortable and didn’t know how to refuse the gift without offending him. She even tried to “forget” the sweater in the golf cart, but he saw it and returned it to her. It wasn’t diamond earrings, or an expectation of sexual favors, it was just a sweater. So what’s the big deal? It’s that any time it appears that there is a quid pro quo in exchange for a charitable donation, organizations risk running afoul of the IRS and you run the risk of losing your job. As soon as the golf outing was over, Dietlin immediately called her boss who had her document what happened in writing and put it in the donor file. “The incident caused us to set a policy that gift officers couldn’t accept anything that had a value greater than $25,” Dietlin said. The policy included meals. She continued, “If the donor chose a really expensive restaurant, the organization was prepared to pay the price of picking up the tab in order to keep the lines of ethics clear.” Today, Dietlin recommends that nonprofits address these types of situations before they arise by including clear guidance in gift acceptance and personnel policies. This is an important tool for gift officers to have to be able to respond professionally to potentially sticky situations. Have a policy in place before the diamond earrings are offered. Valerie Ingram is the Development Director at SITE Santa Fe and also consults with nonprofits on applying best business practices to their organizations.By va If you’re sitting on a bar stool in a big city hotel, stirring your Mojito, you might expect the person next to you to strike up a conversation. If the repartee is entertaining, it wouldn’t be at all surprising if the person next to you extended an offer to move the party to a room upstairs. At that point, you have a decision to make. If you are on that bar stool in the first place, this scenario is not unexpected or surprising. But what if it happens when you’re at work?
There Is Money Out There
But did you hear about the doggy hotel your nonprofit is competing with? $175 per night. Your pooch can enjoy a poolside room with a view ($50 extra), an evening backrub ($25 extra), and even a bedtime story ($20 extra).
Nonprofits Are Not Special
That’s right. Being a charity doesn’t magically change business, economic, or marketing realities. So think like a business. Not like a nonprofit. Because the biggest problem among nonprofits is the “non.” There are quite a few people in the nonprofit world who do not want to hear this. In fact, our least popular webinar has consistently been the one that Jeff Comfort and I presented titled, “The IRS Considers You a Business. Act Like One.” We focused very much on finances, P&L (profit and loss) statements, setting goals, and accountability. Apparently, no one wants to think like a business. I cannot emphasize this enough: If you truly want your nonprofit to succeed, you need to think like a for-profit. Focus on these first: Advertising Marketing Sales Personal Relationships Too many nonprofits drive their prospects away before they’ve even had a chance to get started. Here’s what I recently saw on a nonprofit’s pledge card: “We need the funds now to maintain our property today.” Talk about giving off a bad impression. What does the donor hear? “Give us some bucks now to take us out of our misery.” Can you imagine if a business used that same tactic in its advertising? “We need you to shop our electronics sale today, because we need to repair our leaky roof and still have enough left over to pay our employees.” How can you say it better? “We’re working on securing our future, so we can continue doing what we do today even better tomorrow.” This presents a much better image of your nonprofit to the public — and it simply builds trust and respect. According to Stanford Business, “When nonprofits act like businesses, transparency improves … a 12-year study reveals that charities that adopt modern strategies are more likely to share and collaborate.” A survey found that nonprofits that were early adopters of managerial practices have been able to adapt quickly to become more transparent and collaborative. And of course, become more sustainable. Finally, in critical times mission positioning is important. So is tact and prudence as words carry emotion. This blog post may carry too many topics, but it’s all interrelated and critical for your organization, and personal success. Categories: Planned Giving Marketing, Relationships
The Cocktail Party Test: Is Your Enthusiasm Contagious?
Fundraisers can make “civilians” a little nervous when they’re around. What comments do you get when you tell folks what you do? “Ugh, I could never ask strangers for money!” “Well, I hope you didn’t bring your begging bowl with you tonight – this is a friendly party.”
Are Fundraisers Missing Out on Gifts of Real Estate?
Ignoring gifts of real estate? You are definitely missing out.
Should Planned Giving be Denied Access to Annual Giving Donors?
We were recently asked: Is there any “benchmark,” or industry standard regarding the mechanics of “handing off” a loyal direct mail donor to the Planned Giving Department? Without airing too much “dirty laundry,” our in-house Direct Marketing Department refuses to give the Planned Giving Department access to the donor database out of fear that planned giving marketing activities with loyal donors will depress annual giving income from those donors. So basically the Planned Giving Department is being denied access to the best prospects, because of fear that planned giving will undermine annual giving. How do other organizations handle this?
Myths (& Facts) on Planned Giving
Get your board on board and let them see the value of planned giving with these Myths and Facts. You can also purchase the expanded professional version of this post in PowerPoint. Perfect for your next board meeting or legacy society event. You can also evaluate your board’s readiness here. Engaging a board is critical for long term sustainability. The board of directors plays a critical role in the growth of your organization. And since many are “community players” they themselves can influence gifts. Want to make your job easier and be more successful? Engage with your board, and engage with advisors. Myth: Planned gifts compete with major gifts. Fact: Most planned giving donors are not prospects for large major gifts. Myth: We are not ready for planned giving. Fact: If you are a non-profit, you already are in the planned giving business. Myth: All planned gifts are deferred. Fact: Many planned gifts come in sooner than you think. And the fact is, the more you put off planned giving the more deferred they become. Myth: All planned giving donors are old. Fact: Younger donors will determine the future of your organization. Besides, age is in the eyes of the beholder and it’s a matter of mind. When you don’t mind, it doesn’t matter! Myth: Planned giving is for the wealthy.* Fact: Donors at all financial levels make planned gifts. In fact, some planned gifts, such as bequests, do not affect one’s cashflow during his or her lifetime. Myth: My prospects are not online. Fact: Your website is the first place your prospects will go for information. Myth: The real money is in current gifts. Fact: Only 5% of this nation’s wealth is in cash… you do the math. Myth: Planned gifts are a distraction in campaigns. Fact: They provide 30% or more of comprehensive campaign totals. Myth: Planned giving is complex, expensive and time-consuming. Fact: Planned giving can be as simple as you want it to be. And several planned gifts do not require an attorney.Free tools and resources. Planned Giving Infographics.*Jennifer Meckling at the Oklahoma City Foundation says it well: “Just because a donor doesn’t have cash doesn’t mean they don’t have assets that could be turned into a significant charitable contribution. Category: Giving, Planned Giving Marketing
