Dan Harris of Wells Fargo Charitable Services presents his ideas on simplifying planned giving in this Minnesota Community Foundation and Saint Paul Foundation webinar.

1. A Planned Giving Program in One Hour per Week April 6, 2011 Wells Fargo Private Bank provides financial services and products through Wells Fargo Bank, N.A. and its affiliates. Wells Fargo & Company cannot provide tax advice. Please consult your professional tax advisor to determine how this information may apply to your own situation. Dan Harris Senior Vice President, Regional Manager Wells Fargo Philanthropic Services 720-947-6775 [email_address]

7. Gift Planning Program 1. The active solicitation of planned gifts. 2. Any efforts undertaken in the process of marketing, cultivating, designing, facilitating, and stewarding gifts to charitable organizations.

8. 2009 charitable giving Total = $303.75 billion Source: Giving USA Foundation ™ / Giving USA 2010 Why? Individuals $227.4 75% Foundations $38.4 13% Bequests $23.8 8% Corporations $14.1 5%

15. Percentage of respondents who have created a planned gift: Campbell, 2007: ~8% PPP, 2001: ~11% Iceberg (Direct Mail), 2007: ~17% Percentage of respondents who would consider leaving a PG: Iceberg (Direct Mail), 2007: ~18% Campbell, 2007: ~31% Why Planned Giving?

16. TRUE or FALSE? Most Planned Gifts are Bequests and Beneficiary Designations TRUE: 80% (Partnership for Philanthropic Planning 2001 survey)

17. Bequest used as Vehicle: PPP (survey of donors), 2001 : ~80% Iceberg (survey of nonprofits), 2007 : 90% to 100% Bank of America (High Net-Worth Philanthropy), 2008: Vehicles used by High Net-Worth Households: Bequest 55.9% Donor-Advised Fund 20.6% Charitable Trust 17.3% Foundation 13.9% Charitable Gift Annuity 8.4% TRUE: Bequests & Beneficiary Designations

18. TRUE or FALSE? Most people tell the charity about the planned gift. FALSE: 67% Don’t Tell (Partnership for Philanthropic Planning 2001 survey)

19. Percentage who have informed charity: Iceberg (Direct Mail), 2007: ~8% PPP, 2001: ~33% Stelter/Selzer (age 40+), 2008: ~36% Myth: Most People will Tell You

20. Charitable Bequests are made mostly by WEALTHY people FALSE: At time of bequest commitment, 58% of bequest donors had income of less than $75,000. (Partnership for Philanthropic Planning 2001 survey) TRUE or FALSE?

21. Partnership for Philanthropic Planning, 2001 : Income at time of bequest commitment: <$20k 11% $20-34.9 12% $35-49.9 13% $50-74.9 22% $75-99.9 14% $100-124.9 12% $125-149.9 5% $150-174.9 4% $175+ 8% Median: $60.4 / Mean: $75.9 Myth: Only Wealthy People 58%

23. Charitable Bequests are made mostly by OLDER people FALSE (Partnership for Philanthropic Planning 2001 survey) TRUE or FALSE?

24. PPP, 2001 : Age at time of bequest commitment: 18-34 3% 35-44 14% 45-54 26% 55-64 22% 65-74 20% 75+ 15% Mean age: 58 Myth: Only Older People Campbell & Company, 2007 : Has charity named in will: <30 0.7% 30-40 8.9% 40-50 28.1% 50-60 21.9% 60-70 20.6% 70-80 11.0% 80+ 8.9% 65% 60% Conclusion: Don’t limit marketing only to older people.

25. People give primarily to reduce taxes FALSE (Partnership for Philanthropic Planning 2001 survey) TRUE or FALSE?

26. Motivation PPP, 2001 : Desire to support the charity 97% The ultimate use of gift by the charity 82% Desire to reduce taxes 35% Long-range estate / planning issues 35% Create a lasting memorial for self or loved one 33% FALSE

27. Motivation for Wealthy Donors Bank of America, 2008 : Give Back to Community 81% Support Same Orgs / Causes Annually 71% Social Beliefs 70% Moved at How Gift Can Make a Difference 67% Feel Financially Secure 65% Political / Philosophical Beliefs 59% Remedy Issues Affecting Me Personally 58% Religious Beliefs 51% Being Asked 48% Public Recognition 5% Conclusion: Your mission, and how you share it, is essential. FALSE

28. Leaving money to charity in your estate plan requires hiring an attorney FALSE: Beneficiary Designations do not require an attorney. TRUE or FALSE?

29. The Best indicator that a person is likely to leave a bequest is their WEALTH FALSE: The best predictor is LOYALTY Source: Samuel D. Caldwell , President, The Planned Giving Company. “The Old Gray Mare Ain’t What She Used to Be: The Revolution in Planned Giving Marketing.” 2007, 2008 TRUE or FALSE?

30. Loyalty The best predictor of willingness to make a planned gift: long-term loyalty to your institution or cause . Fact: over 90% of planned giving donors exhibit loyal patterns of giving. Source: Samuel D. Caldwell , President, The Planned Giving Company. “The Old Gray Mare Ain’t What She Used to Be: The Revolution in Planned Giving Marketing.” 2007, 2008 © 2007 The Planned Giving Company LLC (used with permission)

31. Which Donors are the best planned giving prospects? Answer: those who are loyal. Next Question: How do you measure loyalty? Loyalty

32. The PRIMARY way that donors hear about gift planning options is at a Face-to-Face Meeting with a representative of the charity FALSE TRUE or FALSE?

33. How Learned About PPP, 2001 : How Donors First Learned about Gift Options The Charity through its published materials 34% A legal or financial advisor 21% Family or Friends 20% The Charity through an individual visit 11% Speaker at a financial planning seminar 8% General knowledge / self 7% Another donor 6% Other 6% Don’t Know / no answer 9% Conclusion: Telling your constituents about PG is essential.

34. For the INITIAL contact to discuss estate gifts to a charity, Most People Prefer to schedule a Face-to-Face Meeting with someone from the charity TRUE or FALSE?

35. Stelter / Selzer Survey, 2008 : Preferences for INITIAL CONTACT about including a nonprofit in their estate: Send Information in Mail 42% Call Personally on Phone 8% Work Through Advisor 8% Contact By Email 6% Arrange in-person Meeting 3% Not Sure 39% When Respondent HAS NO WILL IN PLACE: Send Information in Mail 67% FALSE: Donors Prefer Face-to-Face?

39. See the “Weekly Activity” Handout. PG: Getting Started

43. One Hour Per Week 6. Leave-A-Legacy: Brochure

44. One Hour Per Week 7. Leave-A-Legacy: Advertisement

46. One Hour Per Week 8. List donors who have given in each of last three years (or more), or otherwise are loyal donors . ● Make a schedule to call them ● Send LAL brochure with next communication 9. Make a list your senior or most loyal volunteers . Send a thank you letter with LAL brochure.

47. One Hour Per Week 10. Write an article for your newsletter or website. Discuss your org’s need for long-term funding. Include: “ Have you ever considered an estate gift to (your org)? A charitable bequest provides an opportunity to give something back to your community, helping our programs and services long into the future. We would be honored by your support. Please feel free to contact (name and contact info) with any questions. Thank you for your confidence in our efforts.”

49. Planned Giving Training Minnesota Planned Giving Council www.MNPGC.org

51. Dan Harris Senior Vice President, Regional Manager Wells Fargo Philanthropic Services 720-947-6775 [email_address] Questions? Please Email or Call With Additional Questions! See accompanying paper for list of resources.