Upcoming Programs
We are looking forward to two terrific guest speakers. Josh Birkhotz of Bentz Whaley Flessner will discuss how we can use descriptive analytics and provide real-world applications of modeling in his presentation Predict the Next Planned Gift. Dennis Bidwell of Bidwell Advisors will provide insightful information related to gifts of real estate in his talk Why and How Charities can Pursue Real Estate Gifts During These Challenging Economic Times.
A Millionaire Next Door
I would guess many of you read about a great donor named Grace Groner, who passed away at age 100 and left her entire $7 million estate gift to her alma mater, Lake Forest College. Her gift will enable many of Lake Forest's 1,300 students to pursue internships and study-abroad programs they otherwise might have had to forgo. It will be an extraordinary memorial to a woman whose life was a testament to the higher possibilities of wealth. But the study and internship program is not the end of Groner's legacy. She left that small house to the college, too. It will be turned into living quarters for women who receive foundation scholarships, and perhaps something more: an enduring symbol that money can buy far more than mansions. It will be called, with fitting simplicity, "Grace's Cottage."
A Brisk Walk Offered at Concordia University
I would like to thank MPGC Board members Brad Reiners and Glenn Thiel, who have arranged three offerings of MPGC's extraordinary planned giving boot camp, A Brisk Walk Through the Basics. The first of three will be presented by the GREAT CRAIG WRUCK on June 14 here in St. Paul at Concordia University.
A Brisk Walk Through the Basics is a one-day introduction to the nuts and bolts of planned gift instruments. If you are new to planned giving, need a refresher, or are a development generalist, you should attend this course. You will get an excellent overview of gift planning and the tools you need to make the most of it. All are invited to attend; all will find the course worthwhile. Space is limited to the first 60 people to respond. Reserve your spot today.
Registration Fee: $185/on or before May 10; $200/after May 10
6.5 CLE credits have been applied for
Another presentation will be scheduled in central Minnesota and a third on November 1 in St. Paul just before our annual conference. Again, look to the website event calendar for more details and to register.
Strategic Plan by Board
Your board is embarking on a planning process, thinking about our place in the nonprofit and fundraising communities and planning the future direction and goals of our organization. We want to hear your ideas! If you have thoughts on MPGC’s strategic direction, I encourage you to write to MPGC Chair-Elect Tricia Bunten at tbunten@d.umn.edu or me at SNelson@gillettechildrens.com.
For those of you who use LinkedIn, consider linking in to our MPGC group to connect with and learn from others in our organization!
In less than one year, our office went from a staff of nine to a staff of seven. While we did spend time commiserating over these losses (and still do some days), we all knew that we must forge ahead to do everything possible to provide resources for the patients we serve. However, it was also clear that we could not move forward under the “business as usual” approach to our work. So, before forging ahead, we took a step back as a team to assess our situation.
To accomplish this, we set aside a full day for a staff retreat and in preparation, each of us compiled a list of everything we do from the most minute and mundane to the tasks that are at the core of how we achieve our mission. We then headed off campus to remove ourselves from the distractions of the office…and so we could wear jeans!
To frame up our discussion, I suggested the following four ideas to help guide our day and focus our outcomes. We must:
Execute on high impact activities that make the largest contribution to the bottom line and that have the most public exposure
Deliver on Expectations of our Board and Senior Leadership Team
Evaluate how we do our work to identify inefficiencies
Increase Expertise for staff moving into new roles, which includes most of us
We then spent the morning listening and asking questions as each person verbally shared all of their tasks while another staff person recorded everything on large sheets of paper. With all of this information in front of us, we were able to have an honest and open discussion by answering the following questions:
What are the TOP priorities that we must execute successfully?
What are the processes we can change or make more efficient that support those activities?
What are the activities we need to take off our plates? Is it possible to do that? Are there others in the organization who can help us?
The ensuing discussion produced clear and actionable outcomes. For example, we were able to identify projects and tasks that could be outsourced or studied more deeply for process improvement. Additionally, we lifted up nine items for immediate action that could save time and generally make better use of resources.
However, the intangible outcomes were just as important. After the loss of key staff members, we started the process of creating a new team, and by doing this we gained a deeper appreciation for the volume and scope of each person’s work. We are still in the process of implementing outcomes and building our team. But we realize that the time we spent together will prove invaluable, for it helped to lay the foundation for moving forward under new realities and enabled us to face new challenges with a sense of confidence and purpose.
Register Today for the Upcoming Education Programs!
Tuesday, May 11, 2010
Midland Hills Country Club
>> REGISTER HERE
Breakfast Meeting: $30/member; $45/non-member Education Seminar: $35/member; $50/non-member
*Attend both sessions at a reduced rate ($50/member; $70/non-member).
Breakfast Meeting: Predicting the Next Planned Gift
Speaker: Josh Birkholz, BWF
Joshua Birkholz has built hundreds of custom models for large and small nonprofits predicting planned giving and prioritizing direct marketing for deferred gift development. In this breakfast session, Joshua Birkholz will introduce predictive analytics and provide applications for integrating this powerful science to increase your program’s production and efficiency.
Education Seminar: Why, and How, to Pursue Real Estate Gifts During Challenging Economic Times
Speaker: Dennis Bidwell, Bidwell Advisors
As gifts of cash and appreciated securities remain hard to come by, more and more development professionals are turning their attention to the single largest asset category for many of their donors, their real estate holdings. This presentation will profile the likely real estate donor and the typical real estate gift during these times. Trends and best practices regarding real estate gifts, as revealed in the 2008 Survey of Real Estate Gifts conducted by NCPG/PPP (and as reported in the fall issue of The Journal of Gift Planning), will be featured. Real estate gift structures that make particular sense during these times will be highlighted. The presentation will conclude with a review of the practical steps being undertaken by non-profits that have succeeded in their efforts to more intentionally pursue real estate gifts.
Two Perspectives on the Roth IRA Conversion and Its Impact on Charitable Planning
The opportunity for an IRA owner to convert his or her account into a Roth IRA has generated discussion with charitable planning circles. In this issue we present two different perspectives on what the Roth IRA conversion means for charitable gifts. The first article was written by a gift planner at a nonprofit and the second piece was written by a wealth strategist for a financial institution.
The March Breakfast Meeting and Education session involved two great guest speakers. Our first presentation, entitled “Probate for the Non Lawyer” was given by Ramsey County Probate Court Referee Dean Maus. He highlighted several key points to be aware of regarding the probating of wills.
Mr. Maus began by giving a definition of the term “probate.” The dictionary definition is to certify legally that a will is valid. However, probate is most commonly used to refer to administering and settling an individual’s estate in court after the person dies.
He stated that probate is required with any estate that:
• Is worth more than $50,000
• Includes real estate
• Involves property that is not jointly owned
• Has no named beneficiaries
In order for a will to be valid, it must be in writing and signed by the testator and two witnesses. Mr. Maus then described the three types of probate: informal, formal unsupervised and formal supervised.
A few interesting facts Mr. Maus shared: there is no timeline for filing a will; creditors have only four months from the time probate is opened to make claims; and each beneficiary is entitled to an inventory of the estate’s assets.
Following Mr. Maus was the Senior Director of Planned Giving for the Boys & Girls Club of America, Jim Gumpert. His presentation was entitled “Keys to Planned Giving Success,” and emphasized that any charity, regardless of size or location, can and should have a planned giving component as part of its overall resource development program.
He outlined the following steps of getting a planned giving program started:
1. Build a coalition of believers that includes the CEO and a key board member
2.
Develop the case for planned giving support
3.
Prepare the strategy – starting with the board
4.
Draft a board resolution to institute a planned giving program
5.
Create the structure of the planned giving program
6.
Establish a legacy society
7.
Use a founding members strategy
He then discussed the most important element to a program’s success: sustainability. His keys to sustaining a planned giving program included:
Ongoing marketing
Proactively identifying prospects
Soliciting membership
Focusing on simple gifts to start
Donor stewardship
In all, both speakers provided insightful and practical advice to all planned giving practitioners in attendance – whether their programs were new or decades old.
If you were unable to attend this or any past presentation, please visit the MPGC “Members Only” section on the web site to obtain handouts from previous education sessions.
MPGC's 34th Annual Conference
November 2-3, 2010
St. Paul RiverCentre
As one of the top planned giving events in the country, we attract more than 325 attendees from throughout the region for two full days of learning and discussing gift planning topics. Visit the Conference page for full details.
Submit Your Presentation! We invite you to submit your presentations online. Deadline: May 17
Exhibitor and Sponsor materials will be available April 16. Registration will be open August 13, 2010.
It has been many years since I first noticed what I perceived as a discrepancy in approaches to fundraising in urban versus rural areas. In the six years since a decision to return to life in a small community, and then agreeing to help raise charitable contributions for a new medical center in St. James, MN (pop. 4600), I have become convinced that my perception is accurate. I am also convinced that this puts rural America at a decided disadvantage. Not only are rural nonprofits underfunded, the local economy as a whole loses valuable resources.
Economic development cannot possibly do enough to replace the financial resources that leave rural America each time an elderly community member, especially the successful business owner or successful farmer, dies. The assets earned in small towns and rural areas are transferred out to children and charitable organizations, usually in the cities or out of state. The exception may be their local church.
People in rural areas are generous. They volunteer for local churches and other nonprofits. They help their neighbors. They raise money mostly through special events of all kinds. The most common event is a fundraising meal, a pancake breakfast, salad luncheon, spaghetti supper, or weekly Saturday evening fundraiser at the American Legion, VFW, or Eagles Club. Prices are low because that is what people can afford. I submit that while they are working hard to raise a few dollars for local organizations, sophisticated development offices with paid trained staff are developing relationships with members of rural communities that will result in significant major gifts and planned gifts for mostly urban organizations.
The flow of assets out of rural areas is not deliberate or intentional. This outflow is for a couple of obvious reasons: first, the professional planners in small communities are seldom engaged with organizations like the Minnesota Planned Giving Council or Leave a Legacy, nor are they likely to have ongoing education regarding charitable giving options; second, small organizations in rural communities do not employ professional development staff who are comfortable with building relationships and presenting opportunities to make meaningful gifts. It is not even in their realm of thinking. My hiring was out of the norm and done by a hospital administrator, who recognized a new medical center would not be possible without this controversial move.
When I first shared my observations about money leaving the community with a local estate planning attorney, she instantly agreed. She referenced being on the board of a bank in a small community and astutely observed: “every time someone died, the money left the bank for distant places.” She also had numerous opportunities to work with clients who were engaged with major gift and/or planned giving officers from colleges and universities and recognized the disparity in how much these organizations would raise versus those of the rural nonprofit.
If some of the choices people make for charitable gifts happen because they have never thought about leaving significant amounts of money to local organizations, it is time to change that paradigm. Small local organizations need to become obvious and relevant choices for residents to support — not only annually, but with meaningful estate gifts. More sophisticated planning tools must surface as options. Rural nonprofits must be prepared to manage large and complex gifts. It is time to change the thinking of people in rural areas and help them realize their communities are equally, if not more, deserving of significant gifts when compared to urban organizations. The challenge is how to get this done.
Building for the future requires a discipline and leadership, especially when budgets are stretched for organizations and individuals. It takes an understanding that there are community members who can make large gifts. It takes establishing a process that will continue annual support for local organizations to meet current needs, while building an endowment for the future. This requires the community organizations to share the message of the joy in leaving a legacy in their own community.
Success requires marketing planned giving – it is easy to make a bequest. It includes a plan for management of endowment funds that donors can depend on and trust. It includes attention to acknowledging current gifts and introducing the concept of life income gifts – all the things large nonprofit organizations take for granted but are missing in many rural areas.
Our new medical center is now affiliated with Mayo Health System. I am fortunate to have the support needed to be successful into the future as we build an endowment for the medical center foundation. Our community is also in the process of establishing a “community foundation” that will be a fund in the Southern Minnesota Initiative Foundation. We will have a fund for current needs and an endowment fund. We have learned that even where other communities have a “community foundation,” many are still “pass through” funds; ours will not be. We have a vision to build an endowment. It will not be easy when there are many current needs. Life will, however, not be better if we do not take this first step to create a community culture of philanthropy. I am very tired of buying and selling tickets to food fundraisers.
I challenge the Minnesota Planned Giving Council to find a way to facilitate change, to help rural communities preserve their financial futures. Small rural communities offer a quality of life for young children, families and elderly that is not available in urban areas. Economic development cannot possibly accomplish what a strong culture of philanthropy can do to preserve this way of life for future generations.
Rethink Your Next Donor Meal Lynn Praska, University of Minnesota Foundation
A colleague once warned me about eating at a donor’s home! While many of the elderly love to host us, sometimes more than food may find its way on to the plate. I was having lunch with a couple at their lovely home. Everything was going very well until I started to eat the chicken salad. It tasted great at first, but I soon realized it was full of cat hair. (I had noticed their cat lounging in the room next to us.) What to do next? Eat as much as I could and keep quiet. That experience provided for many a laugh upon my return to the office and certainly is one that I have not forgotten!
A Word to the Wise About Serving as an Executor Anonymous Author
Consider your institution’s answer very carefully if you are asked to serve as executor or personal representative for a donor. I worked for an organization that had said "yes" to this arrangement prior to my tenure. Upon the donor’s death, it became my responsibility to contact family and organize a funeral and burial (including choosing the donor's burial outfit from the closet!). In addition, the process required great diplomacy when dealing with a long-standing family feud between the estranged children of the deceased. My advice: charities can be donor centered while at the same time suggesting a neutral party with expertise to act in this capacity. In the end, both the donor and the institution will most often be better served.
Patrick Cook, ChFC Patrick Cook, ChFC, Director, Charitable Gift Planning Celebrates 10 Years with Minnesota Public Radio (MPR)!
When I was doing information interviews in 1999, I was struck by how often people in planned giving positions changed organizations. It was alleged that the average gift officer stayed in their position about 18 months! I felt that as I was just entering the profession, I would have to stay two years just to start paying my employer back for their investment in me and then maybe another three years to make it worthwhile for both parties. I still think that is true, but what I didn't realize was how fulfilling and fun the work would become after spending so many years getting to know and really care about MPR and our donors. I always wanted to feel like I was making a contribution to MPR's mission. I'm pleased to say that has come to pass the past couple of years.
Holly McDonough Gulden
In late November, Holly McDonough Gulden was promoted to the position of associate vice president of development at the Minnesota Medical Foundation (MMF). In addition to the gift planning department, she also is responsible for the foundation’s scholarships and medical education and Medical School - Duluth Campus development programs. Holly joined MMF’s staff as a planned giving officer in 2006. She previously worked as director of gift planning for St. Mary’s University in Winona; as executive director for the Cornucopia Art Center in Lanesboro, MN; and as planning and development director for SEMCAC – A Community Action Agency in Rushford, MN. She holds a Bachelor of Arts in Speech Communications, Training and Development and Spanish from the University of Minnesota and a Master of Arts in Philanthropy and Development from St. Mary’s University of Minnesota.
Ruby Pediangco In April, Ruby Pediangco, planned gifts officer of the Minnesota Orchestra, was named to the board of the American Council on Gift Annuities (ACGA) at the AGCA's conference in New Orleans, LA. Ruby is also a member of the MPGC Communications Committee.
Bert Swanson Bert Swanson, former MPGC member and former director of development at St. Joseph's, who left an almost immeasurable impact on philanthropic efforts in the Chippewa Valley, died March 17. Click here to read more.
Craig Wruck
Craig Wruck has created a useful and informative planned giving Wiki page that is dedicated to the notion that charitable gift planning and planned giving need not be complex or mysterious. Go to wikiplannedgiving.com.
Last year The Source began a Quick Poll. Here is a summary of the results from last year’s questions. Please continue to participate and let us know if you have any questions you’d like to see asked!
Is the level of giving to your organization, more, less, or the same in 2009 as it was in 2008?
More
Less
Same
Since the beginning of the year have you:
Laid off development staff
Hired development staff
Made no changes
The proportion of planned gifts to major gifts at your institution last calendar year (2009) compared to the previous year (2008):
Increased
Stayed about the same
Decreased
Take Our Latest Quick Poll
If you have a suggestion for a future Quick Poll question, please send it to Eric Ewald at erice@ewald.com.
Does your organization count planned/estate gift expectancies together with outright gifts for a combined fund raising goal?
Yes, planned/estate gift expectancies and outright gifts count toward the same gift goal.
No, our organization tracks separate fund raising goals: one for planned/estate gift expectancies and one for outright gifts.
No, our organization tracks a separate fund raising goal for each individual fundraiser (major gift officers, planned gifts officers, etc) within the organization.
Now more than ever, it is important for MPGC members to keep current and share trends and valuable techniques with others. The Source e-newsletter is a great way to “get published” while helping inform members and friends of MPGC.
Whether it is a unique donor experience or an article regarding a proven giving strategy, we want to hear from you.
If you have an expertise or experience in the area that you want to share with the MPGC membership, contact Mark Lofstrom at marklofstrom@yahoo.com or Lynn Praska at lpraska@umn.edu.
Submission Deadlines:
Summer 2010: June 30
Fall 2010: September 29
Help us make the MPGC newsletter the best it can be!
Mark Lofstrom and Lynn Praska
Co-Chairs, MPGC Communications Committee
The ideas expressed in articles are solely the opinions of the authors and do not represent any position taken or advice given by MPGC. Any calculations are for illustration purposes only and should not be considered legal, accounting, or other professional advice.
Upcoming Programs
