Adnet conference

1. A Model for Helping NPOs Create a Sustainable
Future
Presented by
Jacky Alling
Kimberly Kur
ARIZONA ENDOWMENT
BUILDING INSTITUTE

2. AEBI Description
The Arizona Endowment Building Institute
was created in 2005/2006 to give Arizona
nonprofit organizations the tools and
education they need to develop and
implement planned giving and endowment
building programs. The objective is to
increase current outright gifts to
endowments and future gifts via Wills and
other planned giving vehicles.

3. Topics for Today
•AEBI’s roots
•The current AEBI program
•Why nonprofits choose
•Why ACF chooses to do AEBI

4. AEBI Roots
•Leave a Legacy, Planned Giving Round Table
•Planned Giving Institute
•Designed to be a flexible program that adapts
to the needs of each class.
•Part of a continuum of planned giving and
endowment education
– PG Basics, PG 101, PG 202

5. Funding Partners
The Virginia G. Piper Charitable Trust
The Stardust Foundation
The Arizona Community Foundation

6. One Nonprofit’s Take
Participation in AEBI gave us the guidance,
structure, and, frankly, a kick in the pants to
formalize and engage our endowment building.
The things we learned had direct influence on
our request and receipt of a $2 million initial gift
that was the cornerstone of a formal campaign
launched in January 2008. To any organization
considering participation, I can only say, "€oeDo it!"
— Foundation for Blind Children

7. AEBI CLASS 1 CHARITIES
Crisis Nursery
Desert Botanical Gardens
Florence Crittenton Services
The Phoenix Zoo
Valley Presbyterian Church Foundation

8. CLASS 2 CHARITIES
Ballet of Arizona
Beatitudes Center DOAR
Prescott College
SARRC
Foundation for Blind Children

9. CLASS 3 CHARITIES
All Saints Episcopal Church & School
Phoenix Symphony
Sojourner Center
St. Mary’s Food Bank Alliance
St. Vincent de Paul
UMOM
Yavapai College

10. CLASS 4 CHARITIES
Area Agency on Aging
A New Leaf
Banner Health Foundation
Beatitudes Campus
Catholic Charities Community Services
Gompers Habilitation Center

11. CLASS 5 CHARITIES
Arizona Animal Welfare League
Christian Care Communities
Phoenix Art Museum
Phoenix Rescue Mission
Rainbow Acres
SARRC

12. CLASS 6 CHARITIES
Musical Instrument Museum
YWCA of Greater Phoenix
Tumbleweed Center for Youth Development
VALLEYLIFE
Boys and Girls Club of Metro Phoenix

13. AEBI Program Overview
ENDOWMENT
ACTION
PLAN
Nonprofit
Team
Monthly
Meetings
Nonprofit
Deliverables
Mentor and
Director
Support

14. Key Ingredients of the Secret Sauce
Mentors
Board
engagement
Data
screening

15. Who Gets Involved
•Selection Committee
•Nonprofit teams
– Staff: Executive Director, Director of Development, Finance
Officer
– Volunteers: Board Chair, plus two other board members
•AEBI Director
– Designated by the Arizona Community Foundation
•Mentors
– Recruited by director or nominated by participants
•Guest presenters

16. Mentor Role
•Participate in monthly team and mentors’
meetings
•Provide guidance for the AEBI work of
the assigned charity team
•May provide presentations
•Assist the director with adjusting the
curriculum for the current class needs

17. Mentor Characteristics
1. Willing to commit to full participation in all
curriculum sessions, and other required meetings.
2. Committed to encouraging philanthropic support
for charities, as demonstrated through their
professional and volunteer activities.
3. Experience in planned gifts or estate planning.
4. Available to their assigned charity for advice and
support during the program’s 15-months.

18. Curriculum
• Each team member and each mentor will receive
Diana Newman’s “Endowment Building” book.
• Training topics include:
– Legal structures for endowments
– Developing a case for support
– Donor solicitation and cultivation
– Donor stewardship
– Marketing planned gifts
– Policies, e.g., Investment, Spending, Windfall, Gift Acceptance
– Gift agreements
– Board and committee engagement
– Working with allied professionals

19. AEBI Meetings
• For Each Nonprofit
– Monthly Group Meetings
• educational presentation plus a work session breakout
– Separate Team Meetings
• team sets dates to meet as a team to work on assignments
• with mentors and/or AEBI director (as needed)
• For mentors: monthly mentor meetings for progress
reports and curriculum review.
• No meetings are held in June, July or December.

20. Nonprofit Action Items
•Planned Gift Testimonial
•Data for Screening
•Presentation to your Board about AEBI,
Planned Giving and Endowment Building
•Case for Support
•Windfall Policy
•Investment Policy

21. Nonprofit Action Items
•Spending Policy
•Gift Acceptance Policy
•Top 10 Cultivation Action Plans
•Top 10 Stewardship Action Plans
•Marketing Plan with Budget and Case
Statement
•Endowment Goal
•Endowment Action Program

22. Cost Considerations for the Charity
•AEBI fee is $5,000 per charity for the entire
course (covers Blackbaud data screening)
•Planned Giving Round Table participation is
expected
•Cost of Endowment Action Plan creation and
implementation

23. Connecting with Alumni
•ACF maintains a contact list for each nonprofit
participant that includes the executive director
and the director of development.
•Each alumni is invited to attend the monthly
sessions.
•AEBI director provides alumni with on-site
presentations on specific topics upon request.

24. Application Process
•Review the selection criteria
•Seek board approval and a board resolution to
participate
•Identify and confirm team members
•Complete and submit application

25. AEBI Selection Considerations
• Have and maintain a volunteer and/or donor database.
• Have enough individual donors to speak with about planned
giving (about 1,000).
• Have a solid reputation for good fiscal management over
several years.
• Employ enough paid staff to follow up with the program’s
assigned tasks – Executive Director and Development
Director at a minimum.
• Exhibit evidence of board/volunteer leadership support for the
project, including the commitment of your Board President
and one other volunteer leader to actively participate on your
AEBI team.

26. AEBI Selection Considerations
• Commit to fully participate in all program trainings.
• Exhibit willingness and ability to pay the $5,000 participation
fee.
• Have been in operation for at least 10 years.
• Have an annual operating budget of at least $1 million.
• Have been fundraising for at least 5 years in the individual
sector, raising a minimum of $250,000 annually.

27. Selection Committee
• Meets annually to select the next cohort.
• AEBI funders are represented and professional
advisors connected to planned giving and
endowments also participate.

28. If a Nonprofit Is Not Ready?
What do we tell a nonprofit that is not ready for
AEBI?
•Enroll in another seminar within the AEBI
spectrum, such as the Planned Giving and
Endowment Building 101 and/or 202 seminars.
•Join AFP and PGRT and attend their monthly
meetings for education and peer networking.

29. Common Challenges
• Marketing plan
• Creating and adopting policies
• Database management
• Turnover of team members
• Keeping up with pace of AEBI

30. Lessons Learned
• AEBI can’t do everything. We can provide the
information and tools, but the nonprofit must
provide the resolve to continue their efforts
after the program ends.
• Alumni have not been easy to continue
contacting for follow up. (Turnover can be an
issue.)
• Recruiting qualified nonprofits is becoming
more difficult—fewer nonprofits are primed to
participate.

31. Why Nonprofits Choose AEBI
Nonprofits are seeking a new (or improved)
revenue model to support their programs.
Making long-term changes to the way you do
business is difficult. AEBI offers a structure for
change.
If you do what you’ve always done, you’ll get what
you always got.

32. Nonprofit’s Viewpoint
“These months of learning, planning and effort
have created a new emphasis on endowment
development. Our leaders, staff and trustees are
better prepared to promote and manage
endowment. We are privileged to have been
selected and grateful to the staff and funders
who had the vision to execute this program. The
impact of this process will continue for years.”
— Valley Presbyterian Church Foundation

33. Why AEBI is a good fit for CFs
We can set the example on endowment building.
We create sustainable capacity within our grantees so that
future grants from our organization can have new impact.
We can afford to take the long view.
We can build goodwill throughout the nonprofit and
professional advisor communities.

34. Why AEBI is a good fit for CFs
We create opportunities for new agency funds.
We foster positive relationships with development community
and allied professionals.
Nonprofits will participate because the program is run by a
grantor (as opposed to a consultant).
Full spectrum of courses can help all nonprofits, as opposed
to consultants who can only help clients with money.

35. For More Information…
Contact
Ed Knight, J.D., AEBI Director
eknight@azfoundation.org
602.381.1400
Also, feel free to contact:
Kimberly Kur - kkur@azfoundation.org
Jacky Alling - jalling@azfoundation.org