Create a Jewish Legacy of Western
Massachusetts
Endowment Strategies:
Essential Infrastructure and
Conversations with Donors
Why Are We Here?
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Building a culture of Legacy and
endowment can be challenging.
Now, time to engage in endowment
building at your agency or
synagogue.
This is an ongoing process – it takes
preparation, and activity.
Today will focus on key elements of
the process you are undertaking.
Essential Elements for
Endowment Success
An Overview
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Building endowment is a proactive –
not reactive process.
To be successful, you must create a
strong infrastructure, understand
the donor’s perspective, and engage
in conversations.
The Paradigm Shift
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Ten years ago – endowments were
an embarrassment of riches
Now, fiduciary duty
However, the urgency of current
programs must be balanced with
preparing for the future
Why So Much Talk About
Creating a Jewish Legacy?

The economy is tough and taking a
toll on donors
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Since 2000
Now, uncertainty in markets, interest
rates, jobs, inflation, oil
Affects all wealth/age groups
Why So Much Talk About
Creating a Jewish Legacy?

Government grants are
disappearing – greater needs with
less available funds
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National Association of State budget
Officer – “Fiscal Survey of States”
June 2008 - $48 billion shortfall in
2009
Cuts will occur in public health, elderly
and disabled, education, work force
Federal government deficit at high
Why So Much Talk About
Creating a Jewish Legacy?
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Private foundation grants are
shrinking
The number of charities reaching
out to your donors is increasing
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819,000 in 2000
1,128,367 in 2007
Board have a fiduciary duty to
address mission
Understanding the Role of
Endowed Gifts in Development
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Planned gifts, legacy gifts, and
endowment are closely tied
Annual gifts – from income
“Lasting” gifts – from assets
Continuation of the relationship with
the donor
The Fundraising Pyramid
Donor
Commitment
PLANNED GIVING
MAJOR GIVING
ANNUAL GIVING
Nonprofit
Contact
Building Relationship with
Donors
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The most exciting – and
strengthening – element of this
process is building closer
relationships with donors – sharing
their visions and goals
Conversations let you get to know a
donor
It takes more than one conversation
And it requires a strong
infrastructure
Balancing Solicitations
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One of the greatest concerns
expressed by staff and boards is:
How do you balance needs and
solicitations?
You have limited staff and budget.
And you cannot afford to lose
current revenue.
You may feel you have to wait until
the time is “right” – but that day
will never come.
An Exercise
As a group, tell me your greatest
concerns about the impact of
endowment on your ongoing
fundraising.
The Infrastructure Required to
Build Endowment
A Strategic Assessment
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Your Strengths
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You have local and national resources.
You have a strong, committed Jewish
community.
You have a group of charities going to
the community at the same time – this
will help in education and marketing
A Strategic Assessment
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Your weaknesses:
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Most of your organizations are new to
the process.
Most of your organizations have limited
staff.
Staff is not trained in complex gift
options.
It may not be easy to build
infrastructure, assemble, and manage
the volunteer team – and expand the
marketing.
A Strategic Assessment
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Your Opportunities:
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You’re creating a long-term resource.
An endowment provides funds to
capitalize on opportunities or expand
strategically.
You’ll have resources to respond
quickly to critical and urgent needs.
You’ll have resources to take on new
ventures not covered by annual
revenue.
A Strategic Assessment
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Your Opportunities
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You’ll have the opportunity to build
stronger relationships with your donors
– sets the stage for ongoing
communications.
You can do it right – you’re starting at
the beginning.
You can build strength in the Jewish
community for Jewish causes.
There is an enormous transfer of
wealth underway - $41 to $136 trillion
A Strategic Assessment
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Your challenges:
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Articulating the case for
Legacy/endowment, and building it into
conversations with donors.
Finding the time to prioritize the work.
Changing the culture of your
organization to build donor
relationships
Positioning endowment to encourage
donors to make annual, capital, and
endowed gifts.
An Exercise
Divide into teams and identify your
organization’s greatest strengths and
weaknesses in building endowment.
You may select up to 3 of each.
The Case Statement
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The internal case for support:
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Start by building the case among staff
and board
Why do you need endowment?
Take the board through the exercise of
answering these questions:
Do you have a long-term purpose?
 Do cyclical economic variances impact
annual fund?
 Do you have new programs you want to
pursue – but no dollars?
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The Case Statement
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The questions, continued:
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Do you anticipate future needs not
currently funded?
Is there more competition for annual
gifts?
Are you dependent on grants?
Are you losing donors through
mortality, or a move from the
community?
The Six Greatest Concerns
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How can we hold
money for the
future, when
there are so
many needs
today?
We will appear
rich.
We don’t want
restrictions on
gifts.
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Won’t
endowment
giving hurt
annual giving?
These gifts seem
complicated.
This process
costs money.
The Case Statement
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The external case – why donors
should give
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Should
Should
Should
Should
inspire vision
inspire passion
be urgent
involve the donor
See page 15 – Ray Lynn Wilbur
statement
An Exercise
Make a list of the top five elements of
your case for support.
Gift Acceptance Policies
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Primary benefit is to maintain
discipline, while opening doors to
additional assets
Often come late in a development
program as charities move beyond
cash and marketable securities
There is organizational and board
liability for mistakes.
Gift Acceptance Policies – Why?
1.
2.
3.
4.
Decisions on a case by case
scenario are inconsistent.
The glittering appeal of the gift
obfuscates good judgment.
Without policies, you may send
mixed signals to donors.
Good policies will keep donors from
making mistakes.
Endowment Policies
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Location and form of endowment
Spending policy
Minimum fund sizes
Broad areas of endowment
How decisions are made
Publication and stewardship
Investment management
Other issues
Effective Data Management
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Data is gold – the key to
prospecting
Data is key in building relationships
It’s about more than membership or
annual giving – it’s about who they
are and how they relate to your
organization
Others can not sort, remember, or
analyze what’s in your brain –
unless you reduce it to data.
Key Data
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Name, address,
contact
Electronic as
well
If family, key
decision makers
Method of
solicitation,
contact
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Personal
interests
Family structure
and interests
Volunteer
history
Giving history
Use of services
Sound Fiscal Management
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The scandals of a few have created
concerns about all
No longer get “the benefit of the
doubt” – and you shouldn’t - you
should have sound policies.
Dual controls and active board
review
Standards for donor response
Transparency to public
Building the Legacy Team
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You need staff and volunteers – but
will need to work with the resources
you have
Rely on outside help for technical
advice and guidance
Rely on staff and board to ensure
key infrastructure is in place
Rely on volunteers to have
conversations with donors.
Building the Legacy Team
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Be patient – endowments and
legacies take time
Remember you’re working with your
best donors
Build a well-informed, motivated,
inspired team
Each individual should understand
the role they play in success
The Role of the Board
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Engage in planning
Participate in endowment design
Ask questions!
Ensure accountability
Review regular report on progress
Support process in budget
Provide support in outreach
Adopt policies, including ethics
Consider a gift!
The CEO’s Duties
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Drive strategic planning
Oversee case
statement
Ensure board is on
board
Make regular reports to
board and staff
Recruit planned giving
committee
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Define endowment form
Draft resolution to
commit gifts to
endowment
Assign oversight of
endowment
Set goals
Establish way to
distribute
Support calls
The CFO’s/Treasurer’s Duties
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Work with
development staff
to create
endowment
agreement
Review
administrative
requirements
Make checklist for
endowment
support
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Work with
investment
committee
Prepare quarterly
and annual
investment reports
Follow through on
receipt of gifts
The Development Officer
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Work with CEO/ED
on case statement
Identify budget
needs
Prepare marketing
materials
Make calls on
donors
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Prepare gift
proposals
Close and report
gifts
Follow through
with CFO/Treasurer
Contact donor after
fund operational –
send update
The Volunteers
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Embrace learning
curve!
Learn to articulate
the case.
Consider a
personal Legacy
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Give thought to the
impact of your gift.
Make the calls!
Get help when you
need it.
Setting Goals and Objectives
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Shaping expectations on goals –
two common mistakes
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The expectation the endowment will
address short-term funding issues
Expecting planned giving to generate
instant returns
Begin with Conceptual Goals
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Building the financial base of your
charity
Identifying new donors – and
cultivating connected donors
Creating a marketing program to create
greater visibility
Creating visibility for endowment and
gift planning
Improving infrastructure
Engaging board and volunteers
Next, Set Specific Goals
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Year One
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Strengthen data management
Building donor information
Create prospecting process
Adopt key policies
Create marketing plan
Update current marketing platforms to
include key messages
Develop method of tracking calls
Next, Set Specific Goals
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Year One (continued)
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Create recognition society
Make calls on top 50 prospects
Obtain endowment gifts from 50% of
the board
Obtain endowment gifts from 20% of
former board
Train staff/board on
endowment/planned giving
Next, Set Specific goals
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Year Two
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Raise board participation to 75%
Obtain 10 additional endowment
commitments from former board
Make calls on top 75 prospects
Celebrate success at 1-year mark
Send letters to 500 endowment
prospects
Create professional advisory council
Expand staff to support activities
Next, Set Specific Goals
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Year Five
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150 members of the recognition society
$2 million in endowment assets
$10 million in endowment
commitments
150 ongoing solicitations per year
Active committee/task force
Active advisory council
Track Indirect and Direct
Revenue Producing Activities
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Indirect:
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Number of prospects qualified
Number of records reviewed
Number of training sessions/volunteers
trained
Number of telephone contacts, written
contacts, personal contacts
Number of seminars, events
Track Indirect and Direct
Revenue Producing Activities
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Direct
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Gift commitments – irrevocable and
revocable
Cash revenue
Drafting the Implementation Plan
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Start with your goals
Incorporate infrastructure needs
(from assessment)
See page 28
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Task
People responsible
Staff/volunteer resources
$$ resources
Timeline
Tracking and Reporting
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Update progress on quarterly basis
Report internally - one page report
for consistency
Report externally – thank donors
and report impact
Basic Marketing Strategies
Opportunities for Donors
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Creating a Legacy is a joy – not a
burden.
Donor can select the charity and
purpose for Legacy
The gift can involve or honor family
The gift should fit within context of
other planning
Opportunity to give back
Opportunity to change the world
Challenges to Donors
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It is uncomfortable to talk about
bequests or death – “I’ll take care of it
later.”
How do I balance family with charity?
Where do I start?
Why do you need the money?
I’m not wealthy.
This is complicated.
My family doesn’t live here.
The Many Facets of Donor
Motivation
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Commitment to role of organization
in Jewish community
Deep religious faith
Commitment to “give back”
Services provided
Contribution to quality of life
Personal gratitude for success
The Many Facets of Donor
Motivation
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Memorial
Facilitating change
Desire to influence or control
activities
Guilt
Tax incentives
Donor Motivation: High Net Worth
Philanthropy Study
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2006 Study
Focused on philanthropic profile,
motivations and goals of high net worth
individuals (income >$200,000, assets
>$1 million)
3.1% of all U. S. households
98% of group made gift to charity in
2005
Type of Gift Vehicles Used
Type of Gift
% Who Have Created
Capital campaign
64.6%
Bequest
41.2%
Stocks/mutual funds
31.8%
Created foundation
19.5%
Created donor advised fund
15.9%
Important Motivations for Giving
Motivation
% of Respondents Citing
Meet critical needs
86.3%
Giving back to society
82.6%
Reciprocity
81.5%
Bring about a desired impact
68.5%
Nonprofits should do what
government cannot do
64.4%
Factors That Would Prompt
Additional Gifts
Factor
% of Respondents Citing
Spent less money on
administration
74.8%
Donor can determine impact of
gift
58.3%
Donor felt more financial
secure
52.0%
Donor received better return
on investments
46.6%
Donor not already financially
committed
40.2%
Center on Philanthropy at IU
Bequest Study
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Report in March 2007
Combined high net worth with
surveys in Indiana, St. Louis,
Memphis
Goal to identify potential bequest
donors, and donor motivation
48.4% had a will
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FindLaw 44.4% (2002)
NCPG 42% (2000)
Age Demographics for Those
With Bequest in Place
Age
Bequest Study
HNW Philanthropy
Study
30-40
8.9%
1.4%
40-50
28.1%
9.4%
50-6-
21.9%
19.3%
60-70
20.6%
27.5%
70-80
11.0%
25.1%
80+
8.9%
17.3%
Age Demographics for Those
Willing to Consider a Bequest
Age
Bequest Study
% of Sample
30-40
18%
18.2%
40-50
28%
28.8%
50-60
24%
18.3%
60-70
5%
10.9%
70-80
3%
7.8%
80+
1%
3.7%
Bequest Intention Potential
>$25,0
00
$25,000 $50,000 $75,000 $100,00
to
to
to
0+
$49,999 $74,999 $99,999
Bequest
currently
in place
6.6%
7%
7.6%
6.5%
10%
Would
consider
putting a
bequest
in place
28.4%
34.6%
28.8%
25.99%
35.63%
Giving Interests –
Generational Differences
Younger donors are less likely to contribute to religious
causes.
Great
Silent
All
Boomers
Secular
Religious
Gen X
Millennial
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%
Generational Differences
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After controls were factored, age
had little impact on amount.
Motivations varied by generation –
but not as varied as you would
imagine.
Motivations for Giving –
Generational Interests
Millen.
Gen X
Boomer Silent
Great
Overall
Basic
needs
poor
39.4%
39.6%
44.9%
46.7%
52.3%
43%
Better
community
34.3%
39.4%
35.9%
34.5%
36.7%
36.7%
Self
help
28.5%
34.3%
38.6%
41.3%
43.9%
36.7%
Better
world
44.5%
37.3%
33.8%
31.9%
26.5%
35.4%
Help –
those
w/ less
28.7%
27.8%
27.8%
28.5%
21.7%
27.9%
Generational Difference

Educational level affected donor
motivation

College degree more likely to cite
“responsibility to help those with less”
and less like to “meet the basic needs
of the poor.”
Identifying the Best Prospects
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Internal:
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Multi-year donors
Members
Major gift donors
Long-term leadership
Long-term volunteers
Current board
Corporate leadership
Staff
Finding the Best Prospects
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External
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Community investors
Always start internally
Educating Prospects
(Marketing)
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Integrating the Legacy Message in
Current Platforms
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Annual report
Website
Annual fund solicitations
Substantiation and “thank you” letters
Stationery
Newsletter
Board meetings
Annual appreciation luncheon
An Exercise
As a group, let’s brainstorm to
identify current marketing platforms
that may be available to you.
Create an Endowment/Legacy
Brochure
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A word from the Board Chair,
Legacy Chair, President
The case for Legacy/endowment
The endowment structure, options
in giving
Basic giving options
Two donor stories
Reply form
An Exercise: The Most
Effective Marketing Materials
What is the single most effective
piece of endowment marketing
material you’ve seen? Why?
Conversations with Donors
Making Calls on Potential Donors
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The personal call is the most
powerful, effective marketing tool
you have.
Cannot be reduced to a formula.
The good news is, it’s driven by the
donors interests – so easy to do.
Planning is critical:


Information
Calling strategy
The Secret for Success: It’s All
About the Donor

Here’s where you start:
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Information about the donor’s
relationship with your charity
Info from public sources
Anecdotal information from staff
What You Must Know Before
the Conversation
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The strategy – why you’re there
Why you picked this donor
Basic gift options
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Outright gifts
Gifts that pay income
Deferred gifts
Endowment options
What happens to the money
Assembling and Training the
Calling Team
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The importance of volunteers
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Willing to be training and make calls
Know the charity well
Have made personal commitment
Have participated in training
Training the team
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Role of endowment
Purpose of Create a Jewish Legacy
Strategy behind prospect selection
Role of volunteer
Basic gift options
The Top Fifty Prospects
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Use identifiers discussed earlier
Share list with volunteers
Allow the volunteer to select 2 to 3
names they are most comfortable
calling on
Setting Up the Call
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Step One – review the info.
Step Two – send the letter.
Step Three – follow up.
Step Four – set a time to meet.
Step Five – follow the phone call
with a letter confirming the meeting
time and place.
An Exercise: What Are Your
Greatest Fears?
As a group, share the donor question
or response you most fear as a part
of this endowment conversation.
The Course of the Call

Establish a relationship with the
donor
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How long have you been a donor to our
charity?
When did you make your first gift –
and why?
What are your concerns as you look out
10 to 20 years?
What do you believe are our greatest
opportunities and challenges?
More Questions
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What are the charitable interests
you are most passionate about in
the Jewish community?
How have you supported those
interests?
Do you realize you could create a
fund with our charity – either today
or through your estate – that would
address those priorities?
Would you like to talk more?
And Still More:
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What is the most significant
charitable gift you have ever made?
Why?
What are your goals for you
children, grandchildren in
philanthropy?
Do you have an estate planner you
work with you can recommend to
others?
Listen Carefully – Financial
Needs
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My CD income has been cut in half!
The dividends and interest from my
investments has dropped
dramatically.
I wish I could sell my stocks – but I
don’t want to pay capital gains.
I’m worried about taking care of my
parents – and my children!
I have a child with disabilities –
they are my first priority.
Listen Carefully – Financial
Transactions
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My brother and I are going to sell
land we inherited from our parents
– tired of taxes, management, and
conflict.
I’ve decided not to pass the family
business to my children – I think I’ll
sell it now to maximize its value.
I’m worried about having enough
income in retirement – I think I’ll
sell my stocks and buy tax-exempts
The Course of the Call
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Share information about your
charity.
Qualify the donor.
Move the prospect to the next step.
Ask for the gift.
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Know the gift goals.
Donor must be qualified.
Determine amount and type to suggest.
Set time to make the ask.
Who should be there?
Thank the donor.
The Follow Up
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The follow up is key to your success
– endowments are built overnight,
and deferred gift decisions are not
made on the first visit.
Make notes about the call, the
information developed, and steps
required for follow up.
Assess the value of the call.
Make a list of follow up items.
Send a thank you note for the call.
Seven Secrets for Success
#1 Find the Right Donors

It’s all about the donors
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Commitment better indicator than
wealth
Ownership is key
Find a way for each to participate
#2 Communicate Clearly and
Consistently with Those Donors
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Communication must express
expectations.
Communication must be ongoing.
Potential donors should be able to
identify themselves as the target
and get key information on how to
move forward.
#3 Stewardship is King

Stewardship is king
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Can’t begin with campaign – must
begin earlier
Hard to find time when in planning –
make time
Set stewardship as campaign value
#4 Spread the Endowment
Building Responsibilities
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CEO/ED duties
CFO/Treasurer duties
Development staff duties
Board and volunteer duties
#5 Report, Report, Report
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Boards love facts, figures and
success.
They prioritize those activities
heavily reported.
They must engage and take
ownership of the results.
Treat every report like a donor call
– provide stories, incentives,
results, impact
#6 Never, Never Quit Building
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The best campaigns reach goal and
keep going.
Think about Harvard, Yale,
etc……..they fundraise for
endowment daily.
Also remember, many of these gifts
will be revocable – don’t send the
message you don’t need the gift
any more.
Final Thoughts
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Success requires a plan
Focus on best prospects
Make those calls
Keep endowment visible
Know the answers
Stay with it! – building endowment
is an ongoing process