A Message from Sherrie Brach
 Focusing on longer-term giving may be the best strategy to increase your United Way's current support. Donors who make legacy commitments repeat and increase their annual gifts at higher rates than those who do not. It is more cost effective to approach existing loyal donors for planned gifts than trying to raise new dollars from new prospects who we don't even know.
It is difficult to grow annual giving when we lose donors, particularly Tocqueville donors. By asking Tocqueville donors to make legacy commitments for the future they actually become more invested in United Way and continue to make annual gifts.
Boomers represent a significant percentage of our Tocqueville donors. Daily, over 10,000 "boomers" turn 65. Most are leaving the workplace and their connection to United Way.
Research shows boomers are among the most receptive to the idea of making a planned gift. Why not approach this group at a time in their lives when they would be most likely to make a legacy commitment. United Way Life is an excellent way to approach these boomers in a way that increases their annual gift and endows it for the future. You can learn more about United Way Life in this newsletter.
So don't be afraid to talk to your donors about planned giving. Rather than competing with their annual gifts, holding the planned giving conversation is a great way to increase their annual support while also building for the future.
Sherrie Brach
Executive Vice President, Investor Relations
United Way Worldwide
|
| |
United Way Life | |
What is United Way Life?
It's a service that offers donors a chance to increase their annual support of United Way while creating a gift outside of their estate. It happens to use life insurance as the vehicle. By using life insurance a donor avoids having to change existing estate plans or giving away their assets earmarked for loved ones.
How does it work?
A donor agrees to take out a new life insurance policy where United Way is the sole owner and beneficiary. They increase their annual giving to United Way and the increase is used to by United Way to purchase the life insurance. The donor may receive a tax deduction and creates a future gift to perpetuate their annual giving.
How has it been received by donors and local United Ways?
It has been very popular by donors and local United Ways. The donor is happy because they have made a larger gift than they ever dreamed possible. The local United Way has access to a turn-key program that is easy to implement and explain. To date over $16 million new gifts have been created and 37 United Ways are participating.
What is the future of United Way Life?
The future is bright. Originally we were focused on gifts of $250,000, known as Tocqueville Legacy Circle (TLC), but now experiencing more and more gifts at $1 million plus. These are Million Dollar Legacy Circle gifts. We also believe more and more donors will be making blended gifts...part outright and part deferred. United Way Life will play a very important role.
How does a United Way participate in United Way Life? The local United Way should contact DJ Hampton or Ed John. | | _________________________________________________ |
|
|
Finding Dollars Beyond the Reach of the Annual Campaign | |
While the annual campaign remains our lifeblood, many United Ways see the real revenue growth opportunities are beyond the reach of the annual campaign. Endowment gifts and planned giving play a key role here. Clearly the recent Data Base II report illustrates that gifts to endowment funds and planned giving experienced significant growth.
The following illustrates increases experienced in 2012 DBII report over the one conducted in 2011:
Gifts to Endowment Funds: 118%
Irrevocable Deferred Gifts: 65.8%
Revocable Planned Gift Expectancies: 35.3%
The revocable planned gift expectancies category is perhaps the best evaluation of a United Way's current planned giving efforts. This category reached an all-time high last year.
Antidotal reports indicate several United Ways are planning multi-million dollar endowment campaigns. Others, while not in an endowment campaign mode, are approaching their largest and most loyal donors for major outright or deferred endowment gifts in addition to their annual gifts. However, the most widespread strategy is approaching Tocqueville donors to make provisions to endow or perpetuate their gifts and United Way Life is a key strategy for "endowing" gifts.
_________________________________________________ | |
|
| |
| |
 The recent tax legislation included some provisions that increase the giving incentives for tax-smart donors. The charitable deduction remains. Higher taxes on income, estates and capital gains may actually reduce the "cost" of giving. The Charitable IRA Rollover is extended through 2013...reopening a pool of money for charitable donations. A webinar on the new tax law will be held on January 16th at 4:00 pm (Eastern) along with a special presentation at the Major and Planned Giving Institute, January 23-25, in Las Vegas. United Way Worldwide will be providing marketing templates, web-based interactive tools and training on how best to utilize the new tax law to increase giving.
Register for the January 16th webinar
| |
|
|
| |
| |
 
Ed John DJ Hampton
Quina De Laine
| | _______________________ |
|
|
Webinar on the New Tax Laws | |
January 16, 2013
4:00-5:00pm ET
The new tax laws bring opportunities that may enhance your donors' annual gifts, major gifts and planned giving opportunities. You will learn how higher tax rates for high income donors will reduce their "after tax" cost of giving. See how increased capital gains tax will make giving appreciated property even more attractive. Receive an update on the Charitable IRA Rollover and the special provisions that are retroactive to 2012.
Register here.
| | _______________________ |
|
| | |
The Charitable Gift Annuity (CGA), Still Misunderstood | |
In 1848, the American Bible Society issued one of the first charitable gift annuities in the United States and its popularity has grown with many non-profits, colleges and universities, but it is underutilized by the United Way system because many don't understand it or think you have to be a planned giving professional to use it. But thanks to the National Charitable Gift Annuity Program, United Way Worldwide does all of the work to close the gift and the local UW gets the residuum.
To help you understand the CGA's popularity among donors, note this fact: in the last quarter of 2012, United Way Worldwide closed five CGA agreements worth close to $300,000, with the donors initiating the gift. With a CGA, the donor receives a charitable deduction, lifetime payments, and a chance to leave a legacy gift to their favorite United Way.
Every United Way can use gifts outside the annual campaign, so why not consider the CGA.
Click here for more information on the Charitable Gift Annuity.
| | ________________________ |
|
| |
PROFILE FROM THE FIELD | |
David Hall
VP, Legacy Gifts
United Way of Central Alabama
| |
Q&A with David
Describe your job
My title is Vice President of Legacy Gifts and I work with the 3 other members of our department to build relationships with our most loyal donors, cultivating their continued giving through the annual campaign and endowing their impact through Legacy Gifts.
How long have you been at United Way?
I have been working at United Way for 5 years. I have been a United Way donor and volunteer for over 30 years.
What has been your biggest success at United Way?
Developing a Legacy Gifts model for the work we do here. We moved the focus of our work away from tools (trusts, bequests, CGAs, etc.) to people. Nobody wakes up in the middle of the night and thinks, "I have just got to set up a CRAT." They wake up with the desire to make a difference, realizing they have the financial resources to do so. Our job is to show them the best and smartest way to fulfill that passion for impact.
Modesty aside, what skill or expertise do you feel you do best?
Working with our volunteer champions. These are the folks who get us in the door and then we assist the donor in deciding the best means of making a legacy gift.
What word of advice would you give to someone just starting a career in planned giving?
Learn as much as you can about your donors, especially the ones who give year after year. It doesn't matter how much they give. Call them on the phone and thank them. Talk to them about why they give and what is important to them. Send cards and notes. You will know when the time is right to invite them to consider a legacy gift.
Policies and procedures are important, but your time is much better spent talking to donors. You will learn the difference between CRATS and CRUTS by going to UWW conferences and workshops. However, your career will be built on the relationships with your donors.
Read full article. |
|
|
