PG & SoMe: Using Social Media for Planned Giving Outreach

PG & SoMe:
Planned Giving & Social Media
NextGen:Charity 2010
delivered by
Tony Martignetti, Esq.
Martignetti Planned Giving Advisors, LLC
November 19, 2010

@TonyMartignetti #NextGen10
http://www.mpgadv.com 2
Where Weʼre Headed
• What is Planned Giving
• Why is it important
• How is Planned Giving done
• Who are the best prospects
• Traditional prospect outreach
• Using social media properties
• Continuing Ed.

What is Planned Giving
A method of charitable giving that involves
the donorʼs consideration of their
retirement plan and family estate plan,
and
Usually (not always) accrues cash to a
non-profit at the donorʼs death

Why Is Planned Giving
Important
• Build endowment
• Help through next recession
• Lifetime relationships
• Welcome those with modest incomes
• Your competitors are asking

How is Planned Giving Done
• Revocable gifts (your donors can take them back)
-- very valuable to your program
-- Charitable bequests
-- Living trusts
-- Beneficiary designations
• Irrevocable gifts

Charitable Bequests
• Not hard to do
• Except, unlikely youʼll be told
• Xcellent for people of modest means
• Tax deduction for estate doesnʼt matter
• Gain cash, property, anything of value
• Even though revocable, valuable
• Not necessarily small if “residual”

Living Trusts
• Check your checks
“revocable living trust” “living trust” “revocable trust” “trustee”
• Help donor make you remainder beneficiary
• A way to avoid probate
• Received at death
• I see easy transfer to you
• True, no deduction doesnʼt matter
• You get trust remainder quickly

Beneficiary Designations
• Life Insurance
• Retirement plans
-- IRA, 401(k), 403(b), Small Employer
Pension (SEP), SIMPLE IRA
• Commercial annuities
• Bank and brokerage accounts
• Any asset with a beneficiary designation

Where We Are
Revocable gifts
Irrevocable gifts
pay life income

Irrevocable Gifts That Pay Life
Income
Donor
donorʼs
death
nonprofit
lifetime income
cash, stock,
real estate
planned
gift

The Life Income Gifts
(a/k/a love those acronyms)
• Charitable Remainder Annuity Trust (CRAT)
-- fixed income for life
• Charitable Remainder Unitrust (CRUT)
-- variable income for life
• Charitable Gift Annuity (CGA)
-- fixed income for life
-- lower minimum gift than charitable trusts

Charitable Remainder Trusts
• Income tax charitable deduction when trust created
• Typical is husband & wife getting income
-- “income beneficiaries”
• You are remainder beneficiary
• One trust can benefit multiple nonprofits
-- “Iʼd like to help you but I have other charities I support”
-- “You can help us all”
• Hard to do for less than $100,000

Charitable Gift Annuity
• Fixed income for life to 2 “annuitants”
• Typical is husband and wife
• Income tax charitable deduction
• At death of annuitant(s), whatʼs left is a gift to one
nonprofit
• Substantial web of state regulation for approval,
especially in CA, NJ & NY

Where We Are
Revocable gifts
Irrevocable gifts
pay life income
donʼt pay life income

Irrevocable Gifts That Donʼt Pay
Life Income
• Life insurance ownership
• Retained Life Estate
• Charitable Lead Trust

Life Insurance Ownership-
Nonprofit Owns Policy
• Charitable deduction
-- your donor loves you
• An increase in your net assets
--cash surrender value
-- your CFO loves you

Retained Life Estate
• Not just primary residence
• Expiration, then transfer by deed to nonprofit
• Wave bye-bye “remainder interest”
• Yet retain “life interest”
• Or, a/k/a Life Estate
• Report upfront, immediate deduction
• Keeps donor paying taxes, maintenance, insurance,
repairs

Charitable Lead Trust
Model: Donor
2- income
for
period of years
Nonprofit
3- close of trust
1- cash, stock,
real estate
Lead
Trust
Heirs

Where We Are
Revocable gifts
Irrevocable gifts
pay life income

Who Are The Best Prospects-
Where To Look
• Board, for leadership gifts
• Other current donors
• Exclude events & last yearʼs dinner honoree
(unless committed)

Who Are The Best Prospects
• Age 60 and over
• Consistent donors (they love your work)
-- Ignore gift size
• Any income & asset level
• May need income supplement
• Single, female, widowed, heirless (ideal)
• Women outlive men; critical to Planned Giving

This Sickens Me
“A few female friends and I have let it be known to some of the nonprofit organizations
we support financially that we would like to explore planned giving options that
include their charity. None of the three organizations I mentioned this to have
followed up with me...my women friends have had similar experiences. And each
time I share the story at a fundraising training I collect another example of a
woman who has dropped hints, left messages, sent emails or boldly said
something about estate planning & planned giving and they've been ignored or
forgotten.
“The age group I'm referring to is mid-40's to mid-60's. We have disposable income
now but will have more to share later. Some of us don't have children to leave our
assets to and others of us simply want to leave a legacy gift in addition to anything
we'll do for our families.”

Where We Are
Revocable gifts
Irrevocable gifts
pay life income
• Traditional prospect outreach
• Using social media properties

Traditional Prospect Outreach
• Personalized direct mail
• Publications
• Face-to-face meetings
• Seminars
• Events
• Board meetings
• Web
• ALL relevant & integrated with social media work

Using Social Media Properties
• Penetration 20% among 60+
--rising at steep, increasing rate
• Email most common & comfortable
• Facebook most common property
-- the kids & grandkids
• Grave privacy concerns
-- Liking; chat; external sites

“Social media, done well,
strengthens the bond between the
nonprofit and its constituents.”
(Nonprofits and Social Media Ain't Optional
http://www.ventureneer.com)

That leaves you with:
Willing but skeptical novices
Fish where the fish are
Bait with what they like to eat

• Concerns about identity theft
-- Physical address, every page
-- Contact: phone number with name and
dept.
• Concerns about ease of use
-- Make the font larger and have easy page mods
-- Make it clear and easy

The Basics Still Apply
-- Strategize & understand
-- Listen to communities online & off
- health care; finance; taxes;retirement;
politics
-- Communicate--Try & fail
-- Measure
--views, hits, followers, downloads, where
from, where to; not money

The Big Four
Facebook
YouTube
Twitter
LinkedIn
(last two probably not big, but their influencers will be there.)
Don't forget old-fashioned email

Multi-channel conversation
Social media best when reinforced by offline prompting and
branding
Consistent messages across channels
Relationship precedes call to action

Plan & strategize about meeting your constituents online,
the same way you strategize around in-person cultivation
Aggregated for most
Tailored for a few

Continuing Ed.
• Blog: http://www.mpgadv.com
• Tony Martignetti Nonprofit Radio: FB
• The Martignetti Report enewsletter
-- leave a biz card
• Twitter; LinkedIn
• “Planned Giving Simplified” by Robert Sharpe, Wiley publ.
• http://www.ventureneer.com/
• http://www.whatgives.com/
• http://www.socialmediaexaminer.com/

PG & SoMe: Using Social Media for Planned Giving Outreach

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