Judi Taylor Cantor, NYSARC Development Consultant

This is a question I hear more and more when I’m out and about talking with different NYSARC Chapters.  One reason that organizations create a Foundation is to separate the agency from the fundraising, and make a clear distinction with the accounting process.  Another is that chapters realize they can create a separate, active fundraising Board that is accountable only to the Foundation, of which NYSARC is required to be the sole member—a fresh start so to speak.

This has been a practice among many academic institutions, especially state-owned colleges and universities.  Just look at this recent conversation about branding and identity for a foundation vs. university that came up in the CASE (Council for Advancement and Support of Education) group on Linked-In:

 “We’re creating some new materials for a 50th anniversary campaign to build the university’s endowment. We’re waffling on branding the materials with the foundation’s logo or the university’s logo.”

And here’s an answer:

“I would go with the University. Although the Foundation is raising the money, I am assuming the 50th anniversary celebration is about the University. Likewise, the gifts that are received and the subsequent impact of those gifts is on the students and programs at Saginaw Valley State University. Our Foundation, has no employees- university employees “gift” their services and we only place endowed gifts with the Foundation, so it may not be or model. We are still trying to educate our constituents on what the Foundation is, 46 years after it came into existence. So for me, a clear message about the use of the funds is most important.”

And here’s another, very erudite answer:

“Having tackled this at Oklahoma State U years ago, it was clear in our materials that funds were to support the university and that the university’s non-profit foundation was the conduit for which donations were procured, invested and disbursed. The Foundation’s branding mark was on materials, but the language of each item spoke to the university’s needs. People give to support the university, with the foundation the quiet partner that makes donor opportunities possible.”

There are a lot of things to consider before the Chapter makes this expensive (and sometimes divisive) decision.  One of the most important, I think, is how you market yourself.  Do you confuse donors if your message is all about the good work you do within your Chapter, but direct their gifts to be sent to the Foundation?  Will you have a separate logo and positioning line for the Foundation—something different than that of the Chapter?  How will you communicate this change to your loyal donor base?

Equally important is the active participation of your stakeholders.  Is the mission different between the two 501(c)(3)s?  Will there be separate staff? Will your fundraising be part of the Chapter with all proceeds going to the Foundation?

Does this mean a lot of extra work for the Executive Director?

Before you go any further, a good resource to bounce ideas about creating a Foundation can be found at the Association of Small Foundations (www.smallfoundations.org), with headquarters in Washington, D.C.

Judi Taylor Cantor, CFRE | Contact Judi
NYSARC Development Consultant

Judi Cantor is NYSARC’s Development Consultant, providing consulting services to the Corporate Office and NYSARC’s 55 Chapters. With more than 25 years of fundraising experience and having brought in more than $100 million, Judi understands what’s required to build a successful development program. Judi’s primary development philosophy is creating a mutually-beneficial program, benefiting both the organization and donors.

Judi Taylor Cantor, NYSARC Development Consultant

I recently spoke at NYSARC’s Broome-Tioga Counties Chapter’s (ACHIEVE, Inc.) Annual Meeting.  It was an emotional day for me because Binghamton (where ACHIEVE is located) was the birthplace of my aunt, to whom I dedicate much of my work with NYSARC.  Aunt Evelyn had lived there briefly, before the seizures (epilepsy) and her imprisonment in a “mental institution” in Austin, Texas many decades ago.

On my tours of two of ACHIEVE’s agencies earlier that day, the air was full of positivity, thoughtfulness, and a look to the future. I loved meeting some of the consumers who were very proud of their work.   That evening, I watched as new Board members were inducted into ACHIEVE, Inc. The new Board members are young, diverse professionals with a passion for helping people.  I spoke with them and learned of their care and energy to do something great for ACHIEVE.  I have no doubt that ACHIEVE will have a very successful capital campaign.  They have strong leadership, a strategic plan, excellent succession, diversity, a warm and welcoming, professional development program, and the infrastructure to succeed.

So, their first steps in preparation for a Campaign had been accomplished:  they had actively solicited new Board members who will be donors and ambassadors for ACHIEVE.  Additionally, they were training their Board, beginning with a session I conducted the following day.

Board Development is the first key step to a successful campaign.  Peter Dunn, Executive Director of the Central New York Community Foundation, will be giving a workshop on this topic on August 9th at the Fund Development and Public Relations Educational Summit in Geneva.  Peter is an excellent speaker and someone you don’t want to miss hearing, especially if you are in the process of building your Board, contemplating stepping up planned giving, or beginning a campaign. Sign up now!

I wondered if ACHIEVE had used any of the important fundraising internal audit devices that are the next steps of many academic institutions when setting out on a campaign path. (It’s great to borrow from academic best practices because they’ve had—in some cases—centuries to perfect their operations.) For example, there is an assessment tool for Campaigns known as the “Dove Preparedness Index.”  It helps to evaluate an organization’s internal readiness to proceed along the campaign route.

Members of the administration (your CEO, COO, CFO, directors and managers) and the full development office are individually interviewed (usually) by a consultant.  Their answers are confidential and not to be shared with anyone—only the cumulative score is shared.  Answers to a questionnaire that looks like this (and can be modified to fit the needs of your organization) are tabulated and then compared with scores that demonstrate readiness:

Rate each of these on a scale of 1-10, with 10 being the highest:

1. Time, energy and resources you have to commit to the campaign:  _______

2.  A clear organizational strategic plan for growth: _______

3.  Fundraising objectives, based on important and legitimate institutional plans, budgets and needs:  _______

*4.  A written document that makes a case for supporting the campaign: _______ 

5.  An assessment of the institutional development program and a market survey addressing internal and external preparedness:   _______

*6.   Enlistment and education of leaders:   _______      

*7.  Ability and readiness of major donors to give substantial lead gifts:  _______ 

8.  Competent staff and, perhaps, external professional counsel:  _______

9.  Adequate, even liberal, funds for expenses:  _______

10.  Consideration of other factors—e.g., age of the organization, changes in the organization, caliber of the constituency, range of the institution’s giving program, size and geographical distribution of the constituency, previous fundraising success, quality of the program and impact of its services, human factors, competing and conflicting campaigns, trends in the nonprofit sector, local issues: _______

*The bold questions are “3 key” questions, and their scores are weighted.

Here are the significant metrics and their meaning for campaign readiness:

Excellent = Overall 75; 3 key = 25-30

Minimal = Overall 60-75; 3 key = 20-25:

Hold and work on it! = Overall lower than 60; 3 key = below 20

When planning a campaign, think about doing an internal audit that includes the Dove Preparedness Index, as well as an evaluation of your past fundraising practices.

The next step:  identification of wealth in your prospect and donor base.  Again on August 9th, at the summit in Geneva, the keynote speaker that afternoon, Tim Halpern, CEO of Comprehensive Prospect Research, will tell you how to find and research the top prospects for your campaign. Don’t delay–register today!

Judi Taylor Cantor, CFRE | Contact Judi
NYSARC Development Consultant

Judi Cantor is NYSARC’s Development Consultant, providing consulting services to the Corporate Office and NYSARC’s 55 Chapters. With more than 25 years of fundraising experience and having brought in more than $100 million, Judi understands what’s required to build a successful development program. Judi’s primary development philosophy is creating a mutually-beneficial program, benefiting both the organization and donors.

A hand shot up, “what can we do immediately?”

And another hand, “I know this stuff works. We have someone who visits each person who is giving consistently to us, and we’ve already received bequests.”

Each person’s comments and questions were revealing.  There is a “New Normal” in the air.  Staff are more open to thinking differently about how to fundraise. The government grants are diminishing for social services and we, as Americans, are being left to our entrepreneurial ways.

Whether your agency is small, medium, or large in terms of your annual budget, you will want to begin or ramp up your planned giving program now.

First—Ask Your Board

The top two planned gifts, in order of significance are:

1. Bequests
2. Charitable Gift Annuities

The first step in creating a planned giving program for your agency or foundation is to ask your Board to step up to the plate and name your organization in their will.  This is called a bequest.  When each Board member commits themselves to their bequests, this can be celebrated as the 100% Leaders’ Club, and will strengthen grant proposals.

See the NYSARC planned giving site for an example of the exact wording of a bequest.  Whether one chooses to create a simple (or outright), residuary, or contingency bequest, the most important thing to know is that the donor needs to be given your organization’s correct legal name, tax ID, and address to put in their will.  Create a small handout or brochure that gives this vital information and has a self-addressed envelope attached that donors can send back to you, telling you that they have your organization in their will.

Second—Look at the Data

Analyze your membership base.  Look for people who have been giving to your organization for a long period of time (more than 10 years) with small amounts. Tabulate each person’s “lifetime contribution”—this may surprise and delight you.  You will want to use this information when you meet with them.

Create a “visit list,” meaning that you are going to personally visit each of these people over the next year(s).  Make a goal for yourself of how many people each month you will visit—begin visiting with at least 2 different people a week.

Third—Visit with Donors

Then, meet with each person, listen to their stories of why they are investing in your organization, and find out more about them.  Let them know some of the exciting things that your organization is doing that may be of interest to them, but mainly thank them for their investment—noting the total when significant, and listen to them. Also, leave that bequest brochure and envelope behind for them to read later.

When back at the office, write up their stories and, with their permission, use them in your newsletter or on your website. Be sure to use pictures with each story—it makes a difference in modeling others’ behavior.

Fourth—Have a Check-Off Box Everywhere

In all of the materials you send to your donors, and on your website, always have a check-off box for bequests that reads something like this:

☐ I believe in the mission of this organization.  I have named [your organization’s name] in my will.

Name _____________________________________________

e-mail address ______________________________________

Address ___________________________ Zip ______________

Fifth—Tell Your Donors about Charitable Gift Annuities

When you meet with donors who have been giving to your organization over a long period of time, listen to them when they tell you they would love to give more but they need an income.  That is an indication that a Charitable Gift Annuity (CGA) may be a great gift for them.  When a donor creates a CGA, they give NYSARC at least $10,000 and get a fixed amount of money every quarter (or annually, as they wish) for life.  When the CGA matures, your organization receives 90% of the remainder and NYSARC keeps 10% for their administration fees.

NYSARC offers all the administration and investment of Charitable Gift Annuities and will help you with the paperwork when your donors want to give a charitable gift annuity.  Donors must be at least 70 years old, unless they want to give a Deferred Charitable Gift Annuity.

Most Important—Be Patient

This is just the beginning of a program that will outlive all of us. Be diligent and hardworking in getting the word out to your donors and potential donors that you want them to think of your organization in their philanthropic planning for the long term.  Tell your Board and your President that this takes time and you must be patient.  It will work for you!

This is a good start.  Once you’ve done these, NYSARC can advise you on additional steps to take to enhance your planned giving program.

For more information on Planned Giving, please visit the “Creating a Legacy” and “Giving and Getting” sections of our website.

Judi Taylor Cantor, CFRE | Contact Judi
NYSARC Development Consultant

Judi Cantor is NYSARC’s Development Consultant, providing consulting services to the Corporate Office and NYSARC’s 55 Chapters. With more than 25 years of fundraising experience and having brought in more than $100 million, Judi understands what’s required to build a successful development program. Judi’s primary development philosophy is creating a mutually-beneficial program, benefiting both the organization and donors.

John Trumbull - George Washington before the Battle of Trenton 1792

A one-eyed, 74 year-old man sits at a dinner table with a glass of wine, a flickering candle, a loaf of bread, and a friendly visitor.  It is a very cold winter evening in 1830 and the Revolutionary War, which bred the Declaration of Independence more than 50 years prior to this day, continues to be fresh in the minds of those who fought those bloody battles.

This evening in New Haven, Connecticut, a revolutionary fundraising method is about to be created by one of those veterans.

Shall I continue?  Don’t you want to know who these people are and what the revolutionary fundraising method is that I’m talking about?

I’ll tell you later, but first I want to talk with you about how Effective Storytelling is integral to your fundraising program.

When you tell a story about a real person and their struggles and eventual success (or failure) and lessons learned, that story helps model behavior.  For example, suppose you tell a true story in your annual report about how one of your donors gave $100 every year to your organization and then, upon her death, she left your organization as the sole beneficiary of her estate.  You go on to tell HER story—bring her to life and tell about her experiences with a child who had developmental disabilities, and details about her love of your mission.

At the end of this moving story, you’ll tell your audience how they can support your organization with a bequest, and you’ll give them the language so that they can use that information to write it into their will.

Believe it or not, you WILL eventually have people who have read the true story make a bequest to your organization.  You’ve paved the way for them.  You’ve shown them how.

That is just one example.  There are all kinds of stories to tell.  Donors want to know these things about your organization:

• Where the money comes from
  Talk about your top donors, and even your smallest donor.  Once, when I worked for a healthcare organization, I wrote about a 9-year old girl who had raised money for our organization by asking her friends to give her a donation to our cause instead of birthday presents (she had nearly died of the disease we were raising money for).  She raised $850 that way—and her story touched many people, who sent in donations in honor of their friends’ birthdays.
• Where the money goes
  People who invest in your organization need stories about how the money they give is spent.  Tell them about just ONE of the lives that their gift affects.  Write about one of your clients and one of the best days they’ve had at your agency.  What was going on?  Who was there?  What was the day like? Add color and feeling to the story and make it real for the reader.
• Why people give
  Testimonials from real people are priceless. When working for the Boston Symphony Orchestra I created a way to market our charitable gift annuities through the Program we printed for each concert.  I would tell the story of one of the donors, and why they loved music—what it meant to them.  This would always be accompanied with their photo, and a brief explanation of a charitable gift annuity.  I was so surprised one day when a prospective donor called me and invited me to his home to talk about doing what they had read about.  My conversation with him and his wife not only led to a large gift for the organization, I was able to tell his story, too!

There are so many ways to tell these stories:

• Audio—you can embed audio clips from your donors on social media and on your website with an explanation from you.  You can also embed donor’s audio into your PowerPoint presentations.
• Video—it’s so easy to take a video these days with your iPhone!  And that video can be shared through e-mail, social media, and your website.  Just think of the fun you can share about highlights of a fun-raising event you’ve just had!
• Visual tools—of course, a person’s artwork is always fun to share—you never know who might strongly connect with your cause when you tell a story that someone has illustrated.
• Annual report, brochures, “cool” Annual Fund letters—these instruments are tools for storytelling.  The charts and graphs and explanations should be only a small part of your Annual Report.  Of course you need to show the balance sheets—but the story behind the balance sheets is what your donors need to hear.  It is the people that help the Annual Report or Annual Fund Letters or Fundraising Brochures come to life (interested in receiving a copy of NYSARC’s 2011 Annual Report? Contact us today)

As our society turns to technology for so much of our day-to-day life, our souls long for the personal touch of humanity.  Your people stories nourish that longing and promote the compassionate care that is your mission.

Oh! Here’s more about the dinner on that cold winter’s night in 1830:

After the third glass of wine, John Trumbull, famous American painter, turns to his guest, and says, “what’s an old blind man like me to do?  My students don’t like me anymore and my paintings aren’t selling.  You’re connected at Yale.  I’d like to give them most of my paintings, to keep, and get an annuity for the rest of my life.  That way, no matter what my infirmities I’ll have an income and won’t have to worry about the money.”

Mr. Trumbull’s guest was his niece’s husband, who did have sway as a tenured professor at Yale.  It took another 18 months to work out the details, and John Trumbull created the first Charitable Gift Annuity in the world for $1,000/year.  He was 74 years old and lived for 13 more years.  Yale University still owns some of John Trumbull’s most famous paintings, including this one above of General George Washington.

Today, Charitable Gift Annuities are the second-most prevalent planned gift that donors give—after bequests. Nearly every nonprofit in America with assets greater than $10 million has set up a Charitable Gift Annuity program.  In NYSARC’s case, any donor can create a Charitable Gift Annuity and the Chapter is the beneficiary of 90% of that gift, with NYSARC receiving 10% and doing all of the administration and investing of the gift (learn more about NYSARC’s Charitable Gift Annuity program here: http://www.nysarc.org/get-involved/giving-and-getting/).

Judi Taylor Cantor, NYSARC Development Consultant

Judi Taylor Cantor, CFRE | Contact Judi
NYSARC Development Consultant

Judi Cantor is NYSARC’s Development Consultant, providing consulting services to the Corporate Office and NYSARC’s 55 Chapters. With more than 25 years of fundraising experience and having brought in more than $100 million, Judi understands what’s required to build a successful development program. Judi’s primary development philosophy is creating a mutually-beneficial program, benefiting both the organization and donors.

 It comes to you with perfect timing.  Yes, April 17 was our tax filing deadline this year, and for those of us who itemized taxes, it’s time to evaluate our charitable giving.

If your charitable giving is less than 5-10% of your net income AND you have appreciated (meaning held for a year or more) stock, I have a great idea for you from now on.  You should think about transferring stock to your favorite non-profit.  Let’s hope that NYSARC is on that list!

Transferring stock is an easy process, as the pictured card points out on its flip-side.

You phone your favorite non-profit (NYSARC’s number is 518-439-8311) and let them know that you are transferring stock, the name of the stock and how many shares, and what program, pledge, or unrestricted purpose you want the funds to go to (for NYSARC, you can support their Guardianship Program, self-advocacy efforts around the state, or all NYSARC Chapters by making a donation to the general fund).  Then you call your broker and give her the following information:

• the Non-Profit’s DTC Number (for NYSARC it is 2205, Key Bank, NA)
• the Account # to which the funds should go (#0062100 NYSARC, Inc.)
• the number of shares and name of the stock you are transferring

It’s that simple!

But the big surprise is how affordable this process is for you.  By transferring stock (instead of selling it and giving the proceeds to your favorite non-profit), you avoid capital gains tax AND you receive a FULL deduction for your gift (as allowed by IRS).

Judi Taylor Cantor, NYSARC Development Consultant

Let me show you how terrific this is.  Say in 2008 you purchased 100 shares of Apple stock at $50/share.  Today Apple (AAPL) is $580/share.  You’ve decided that you want to give $5500 to your favorite non-profit.  That will be only 10 shares!

Normally, you would have to cash out your stock, take the funds and deposit them in your checking account, and then write a check to your favorite non-profit.

Not this time.  You just pick up the phone, call your favorite non-profit and follow the steps above.  Then call your broker and make the transfer!

With this transfer, look what you gain:

10 shares formerly @ $50/share    = $500
10 shares now @ $580/share           = $5,800

Your gain was $5,300.

If you cashed out your stock, you would owe the US Government $795.

Instead, you will get a tax deduction for this philanthropic gift based on your $5,800 charitable gift!  You also receive the appreciation of the organization to whom you have given this donation.

I have some real-life examples of how exhilarating this can be.  When I worked with alumni donors a few years ago, there was an especially kind, thoughtful retired engineer who had a lot of DuPont stock, but he thought he didn’t have any money.  He was extremely interested in endowing a special room of one of the buildings that was about to be built.

I asked him if he had stock.  “Oh, that worthless stuff!” he said.  “I don’t think that amounts to much.”  I asked him to check with his accountant (who happened to be his son) and get back with me.

Within a week he called back.  He was so excited he could hardly talk.  “I have more than enough to endow that room,” he said happily.  I walked him through the process of transferring his stock so that he would avoid capital gains tax, and be able to have a hefty tax deduction on that year’s tax return.

It made him very happy.  It made his accountant/son very happy.  Most of all, though, it was a win/win for the institution.

Judi Taylor Cantor, CFRE | Contact Judi
NYSARC Development Consultant

Judi Taylor Cantor, NYSARC Development Consultant

Recently I overheard Christine Sears (Madison Cortland ARC) discussing golf tournaments.  She was comparing two different kinds of events—one, a day-time 18-hole tournament with all of the concomitant labors for the events person and the other, a 9-hole night-time tournament played with florescent golf balls.  In addition to how striking it would be to play golf in the dark, I couldn’t help but get excited about the latter idea.  ”Glow in the dARC” will be managed by the golf club, allowing Christine to have time to manage the donors. “When we met with the Golf Club, they said they would take care of everything for us, food, lighting fairway with candles, and all the other stuff that has to happen at a golf tournament,” Christine said.  ”I still need to set up the room with the raffles, posters, etc.”

How many times are development officers tasked with creating events, managing events, moving furniture, putting up silent auction posters, making name badges, carrying food/supplies/messages here and there? 

Of course, everyone has to do some heavy lifting.  BUT, development officers need to be spending MOST of their time doing fundraising.

That means they need to be helping to establish the relationships with donors and connecting Board members to large donors.

Examining Events

I am not saying that Events should not be done.  Events help to accomplish several things:  they can be used to get the message about your mission to the public, they can create first-time donors, they can help cement a relationship with a major donor (many times the chair of the event), and they can create warm and memorable feelings toward your organization.

Many, many times, though, events are run at a breakeven return.  When you compute how much time and effort the development officer puts into the events, your organization probably loses money on the events.

If the Chapter is able to get most of the event sponsored (e.g., by the golf club like Christine did) or hires an event management firm (of course, doing the due diligence necessary to be sure that firm has a solid track record), it would leave more time for the development officer to fundraise.

Here is a quick calculation for an event with all the behind-the-scenes organization done by the development officer:

• Gala expenses (hotel, dinner, entertainment, etc.) …$50,000
• Gala Income (30 tables @ $1,000, sponsorship, silent auction, etc.) …  $100,000

Sub-Net: $50,000

• Development Officer’s Time—6 months … $30,000

True Net: $20,000

Was it worth doing the event?  If the people who came to the Gala will contribute in some way in the future, then, yes, it is worth the cost ($80,000) of doing the event.

However, the Board should examine the basis for doing events, and think about how important it is to be fundraising with 1:1 calls.

Making the 1:1 Calls

If the Board took a full year to concentrate their time on 1:1 calls, just think what they might accomplish.

Here’s another back-of-the-envelope computation:

If you have a 12-person Board and each of them is given 10 prospective donors to call on in 1 year, along with the development officer or Executive Director, let’s look at what can happen if the donors give a minimum of $1000 each:

12 x 10 x $1000 = $120,000

That is an excellent basis for the beginning of an annual fund.  And it is a much better return on investment (ROI) than having an event.  If there are expenses for 1:1 calls, they are minimal.  Usually calls are done either in a person’s home or office rather than over a meal.  Talking about the mission of the Chapter while eating lunch or dinner usually misses the point of being able to listen to the prospective donor.

After calling on the prospects, the event (being managed by an outside vendor) could be a celebration for the success.

Judi Taylor Cantor
NYSARC Development Consultant, CFRE