Ho How to Implem emen ent a a Legac acy y Chal Challenge a - - PowerPoint PPT Presentation

Ho How to Implem emen ent a a Legac acy y Chal Challenge a at Your ur In Institution

Courtney Tsai, Director of Development, Planned Giving, George Washington University Sara Eigenberg, Deputy Director, Planned Giving & Endowments, U.S. Holocaust Memorial Museum

OUR SHAR ARED ED GO GOAL… AL…

• To raise A LOT of $$ in an EFFICIENT and COST

EFFECTIVE way!

• To build further LOYALTY within our donor base
• TO BUILD LEADERSHIP

Gen ener eral D Definition

• n o
• f a Legacy Chal

allenge

The definition can/will be different for each

• rganization, but in general a Legacy Challenge is:
• A matching gift program; that
• Focuses on raising planned gifts.

GW’ W’s Legacy C y Chal allen enge e DEF EFINED ED

• A MATCHING GIFT PROGRAM:
• That utilizes a matching pool of unrestricted CASH
• to entice planned giving donors to document new planned

gifts (Challenge focused exclusively on planned gifts)

• The planned giving donors are able to DIRECT THEIR

MATCHING DOLLARS

USHMM’S L ’S Legacy cy Cha Challenges D DEFINED

• A MATCHING GIFT PROGRAM focused on:
• Raising NEW planned gifts for the Endowment
• Raising NEW outright gifts for the Endowment
• Identifying EXISTING planned gifts directed towards the

Endowment

• Identifying EXISTING, undirected planned gifts that we then had

directed towards the Endowment

So Sounds G s Good, B But First, So Some “Insi side Baseball”… ”…

THE WI WIND-UP . P ...

• Crunch some numbers focusing on ROI
• Review and compile some information regarding what your program has

already done

• Sketch out what additional target audiences you want to reach
• Create a short list of your ideal challenge donor(s)

Get all your ducks in a row….make sure you have built the case before the…

PITC TCH…!!

PRESENT YOUR CASE AND GET INTERNAL APPROVALS

• Development Leadership
• Treasurer/CFO buy-in; CEO buy-in; Board Approval?!

AND…. ….

You Go Got t t the O e OK… K… Now t to De Determine t the Ru e Rules

Th The Ru Rules Sh s Should Answer K r Key y Questions

• What types of gifts will count for the program? Just planned gifts? Outright gifts

directed towards an endowment? Both?

• What matching % will be applied/what “cap” will be placed on the amount of

matching funds allocated to a gift?

• Will documented bequests and other planned gifts count at face value or discounted

value for purposes of the match?

• Can matching funds be directed to create new, named scholarships or other named

funds?

• What documentation will be sufficient for matching purposes?
• How can the matching donor fulfill the match?

The G e GW L Legac acy C y Chal allen enge e Rules es

• Match of 10% of the value of each new planned gift commitment, up to $10,000 per gift. The

total matching funds available, to start, were $250,000.

• Donors were able to direct the cash match to their area of interest at GW.

Reason for Our Rules

• Incentivize donors to provide us with details regarding their planned gifts;
• Enable planned giving donors to make an immediate impact within their “area of passion” at GW

even though funds from their own planned gift won’t be received for years; and

• Allow many donors to participate.

Direct Funds t to Several P Purpos

• ses:

MATCH $

USHMM L Legacy Cha Challenge R Rul ules

• Match of 10% of each new or newly quantified outright or planned gift to a Museum Endowment

fund (general or restricted), with a maximum match of $25,000 per gift. The total matching funds available were $1,000,000.

• To qualify, donors had to direct their gifts to a Museum Endowment (general or restricted) and the

match money was automatically to be designated for the Museum’s General Endowment Fund. Reason for Our Rules

• Incentivize donors to provide us with details regarding their planned gifts;
• Build our General Endowment as that was (and is) a main focus of our ongoing campaign. Having the

matching funds go directly to our General Endowment also made tracking much easier.

• Enable planned giving donors to feel as though their gift was leveraging further support for the

Museum; and

• Allow many donors to participate.

A Match % % and M Match Cap are N e Nec eces essar ary

KEEP IN MIND: A one-one match for a Legacy Challenge will not work unless you have millions of dollars in your match pool

GW and USHMM both used a 10% match

• HOW IT WORKED…GW had a $10,000 cap SO:
• A $10,000 planned gift qualifies for a $1,000 cash match
• A $100,000 planned gift qualifies for a $10,000 cash match
• A $1,000,000 planned gift also qualifies for a $10,000 cash match
• HOW IT WORKED…USHMM had a $25,000 cap SO:
• A $10,000 planned gift qualifies for a $1,000 match
• A $250,000 planned gift qualifies for a $25,000 match
• A $1,000,000 planned gift also qualifies for a $25,000 match

15

Finding t g the R Right M Match Donor

• r(s)….

“If your actions inspire others to dream more, learn more, do more, and become more, you are a leader.” –John Quincy Adams

(Yes, this is John Quincy Adams…the internet is amazing….)

Ideal LE l LEADERS/Prospects for

• r Y

You

• ur Lea

Lead M Match

• Donor(s) who love public recognition
• Donor(s) who “want their gift to have a big impact”
• Donor(s) who haven’t yet made their big outright or planned gift
• Donor(s) who have proven “easy” to work with
• Donor(s) who have connections in the community (e.g. alumni group,

their hometown, or beyond). Donors who can serve as LEADERS!!

Reac aching t g the C e Chal allenge e Goal

• al

Mark arketi ting P Plan an an and P Piece ces

It is KEY to come up with attractive collateral material for your legacy challenge such as:

• A Legacy Challenge “One-Pager” describing the program
• Buckslips describing the Challenge that can be placed out at events or in outgoing mail
• USHMM included buckslips in thank-yous to our Membership & Collections donors
• Different types of ads that can be used in your organizational magazines, newsletters, e-

newsletters, blogs, Facebook pages...

• Please reference sample pieces included with your handouts

*Endeavor to make use of any and all EXISTING institutional pieces to advertise the Legacy Challenge*

Legacy Challe lenge G Gift C Con

• nfirmatio

ion Fo Form

USHMM

• Created our “Confirmation of Deferred Commitment Form” to serve our Endowment Campaign efforts
• Form allows donors to both QUANTIFY their planned gifts and DIRECT those gifts to our General

Endowment. GW

• Created a special Gift Confirmation form to serve their Legacy Challenge.
• Form allows donors to QUANTIFY and EXPRESS DONOR DIRECTION and INTENT, but is not Endowment

specific. KEYS POINTS TO REMEMBER

• These forms are NOT binding; donors can of course still change their estate plans at any time
• These forms should be SIMPLE and EASY TO UNDERSTAND

Targeted Letter to to P Pros

• spec

ects

• This can help you reach out to your donor base
• Can also enable you to reach out more broadly
• Does your match donor have networks you could contact?
• Will they write a letter/sign a letter on your behalf to their friends?

Other Marketing Ideas

• Would your match donor host an event?
• Can your match donor speak at events already being held?

SO… O….HOW’ W’D W WE DO? O?!

GW L Leg egac acy C y Challen allenge R e Return on L Lead ead D Donor Inves estmen ent

2000000 4000000 6000000 8000000 10000000 12000000

Matching Funds

• Min. Raised to

use all matching funds Actual Amount Raised $336,094 $3,360,940 $12,395,068

GW L Leg egacy cy C Challenge S Sur urvey R Resu esults ts

• ALL respondents said they learned of the Legacy Challenge via their

Development Contact and/or the personal letter

• 70% said they learned of the Legacy Challenge via their Development Contact
• 30% said they learned of the Legacy Challenge via the personal letter
• 60% said the Legacy Challenge influenced their decision to document their

planned gift a “great deal” or “somewhat”

• 3 respondents said they would be somewhat interested in participating as a lead

donor for matching funds for a future Legacy Challenge

USHM HMM L Legacy C y Challen enge R Results

FIRST LEGACY CHALLENGE RESULTS (April 30, 2012--April 30, 2013)

• 102 qualifying gifts totaling $26,633,673
• Donors from 25 states represented
• Gift vehicles included bequests, CGAs, Retirement Plan designations, life insurance policies, CRTs...
• Smallest gift was $1,000 and the largest qualifying gift was $13,000,000

SECOND LEGACY CHALLENGE RESULTS (April 30, 2014—April 30, 2015)

• 106 qualifying gifts totaling $65,347,674
• Donors from 26 states represented
• Gift vehicles included bequests, CGAs, Retirement Plan designations, life insurance policies, CRTs...
• Smallest gift was $1,000 and the largest qualifying gift was $22,000,000

MOST RECENT CHALLENGE RESULTS (February 15, 2017--February 15, 2018)

• 139 qualifying gifts totaling $37,415,505
• Donors from 23 states represented
• Gift vehicles included bequests, CGAs, Retirement Plan designations, life insurance policies, CRTs...
• Smallest gift was $1,000 and the largest qualifying gift was $20,000,000

Other Added B Ben enefits

• Motivating for donors all along PG continuum
• Donors who haven’t yet considered a planned gift
• Donors who are considering, but haven’t taken the step
• Donors who have completed their gift, but have been reticent to document
• Another way/reason to bring up planned giving
• For major gift officers;
• For board members;
• For other people in your organization
• Potentially a jump-off point for further donor stewardship

KEY T Y TAKEAWAYS…

• GO FOR IT!!
• This is a great way to expand your program’s reach, quantify existing and new gifts, and build leadership
• Be flexible with timing
• Pay attention to the back end of the program
• Think about what you need to report and to whom
• How are you going to manage the marketing, workload, and tracking
• Get the support of key volunteers in the beginning
• This is your chance to leverage another or a new major gift from a leader
• Explore alternative sources of funding for your matching pool
• Consider directing realized, unrestricted bequests into the matching pool
• This idea is SCALABLE
• Consider pairing the Challenge with another event or milestone
• Such as: An Institutional Anniversary, an ongoing Campaign, a new marketing push….

Con

• ntact u

us with q questions:

Courtney Tsai Director of Development, Planned Giving The George Washington University courtneytsai@gwu.edu; 202.994.8144 Sara Eigenberg Deputy Director of Planned Giving and Endowments U.S. Holocaust Memorial Museum seigenberg@ushmm.org; 202.479.9733