Forever unrestricted
|
TODAY'S ANNUAL GIFT |
|
TOMORROW'S ANNUAL GIFT |
DRAW FROM ENDOWMENT |
$100 |
20x |
$2,000 |
@ 5% = $100 |
$1,000 |
20x |
$20,000 |
@ 5% = $1,000 |
$10,000 |
20x |
$200,000 |
@ 5% = $10,000 |
$100,000* |
20x |
$2,000,000 |
@ 5% = $100,000 |
Using the 20 x annual support formula, this modest door could leave $2,000 to annual fund legacy endowment and be named in your legacy society. If your donor dies with as little as a 1973 VW Bug in his estate, he could make that gift happen.
Creating legacies out of annual gifts not only increases your steady stream of unrestricted funding, it builds your planned giving society members. These individuals are more likely to make additional planned gifts in the future.
Statistically, the low-end, steady annual fund donor is more likely than any other demographic to commit to a planned gift. But, if they're only making a $100 annual gift to your institution, they might not think of themselves as "high enough on our radar" to qualify for a planned gift, perceiving themselves as not wealthy enough to discuss "legacy" giving. By asking your donor to endow his annual support, you'll have built his legacy within the annual fund.
Testing the Formula
At JBL, we've been encouraging this unrestricted revenue path for four decades. To test the effectiveness of this formula for building unrestricted funds for your institution, choose four to six individual donors of different ages and walks of life. These individuals should be loyal donors, with giving histories of at least five years, or support given to campaigns or special projects.
Meeting in person, ask your donors, "Why do you support us with your generous annual gift?" Capture this information for your testimonials, and use the opportunity to discuss their personal passions to underscore the value of endowing support.
What's the Potential for Income?
Imagine if you could expand this endowment to include 10-50 percent of your current annual loyalists? You can. What an honor to recognize your donor for providing annual support in perpetuity in the year their commitment is made. When their bequest has matured, as income is drawn, your donor is recognized annually in annual reports and other recognition sites, with family members notified of the honor.
What about the …?
"But, we would like these donors to give a larger annual gift today."
Ask. Then, use endowed annual gift by bequest as a back up.
"But, we are saving them for a bigger ask later."
What is the strategy and when will the actually ask occur? If it's more than six months down the road, this ask is a relationship builder, not a hindrance. Passionate people die on the proverbial president's list of untouchable prospects without an opportunity to help because they are too special to touch.
JBL is here to help you build your unrestricted endowment. Coaching your staff and volunteers, or supporting a complete re-vamp of your donor materials and strategies, we can help you raise more money. Call us at 603-924-3834.
August 2010:
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