Show Me the Money: Fundraising That Taps into The 90% of All Wealth That Is Not Cash

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Show Me the Money: Fundraising That Taps into The 90%

of All Wealth That Is Not Cash

Russ Mack

January 22, 2013


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Today’s Speaker

Russ Mack Executive Director

Leave No Donation Behind

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Show Me The Money! Fundraising That Taps Into The 90%

Of All Wealth That Is Not Cash

Leave No Donation Behind, a charity supporting charities 5

The why

The how (our charity)

Your charity ________

Today's purpose & deliverables • A case for your charity taking any and all non-

cash donations – You are serving your donors

– It's where the money is

– Your mission needs it

• Some simple steps that can put you in position to tap into non-cash donations immediately

• Invitation to a boot camp

Leave No Donation Behind, a charity supporting charities

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Your charity could make good use of more resources!

Takeaways

A simple 3-step process any charity can use to open themselves up to significant non-cash donations . . . almost instantly

A powerful incentive – we are just starting to see the greatest transfer of wealth the world has ever seen, as baby boomers age (and guess what they have most of?)

Perhaps the most powerful reason for taking non-cash donations – you are helping your donors

A charity’s (free) offer to help any charity take non-cash donations: tools, resources, phone support

A Donate Rescue program that will take a charity’s discards and turn them into contributions (also free, and done by a charity)


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This is personal • Diagnosed with a terminal disease

• Rare and hard to diagnose

• Owes her life to a charity

Board Meeting Dec 2012 8

What if the charity had not taken non-cash donations?

• Started by 4 patients with $800

• The charity does it all…and well: patient support, advocacy, research, medical education

• They can afford to do it all . . . because they take it all, basically any contribution

Show Me the Money! (Turning non-cash contributions into in-kind contributions, resources, cash)

Be able to take it all…in 3 steps:

1. Commit

– Do it right (by the rules)

– Get the best help and expertise

2. Change

– Eliminate limitations

– Assign Donor Stewart

– Develop policies and processes

3. Communicate

– Within organization

– Community

– World at large Leave No Donation Behind, a charity supporting charities

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Cheat sheet

You can’t fail…with help!

1. Education and information

– Access to experts

– Resources

– Forms, templates, checklists

2. Coaching and consulting

– Problem-solving

3. Donation Rescue Program – The option for when you are about to give up

– Get resources and cash from your donation discards

Help from another charity o Leave No Donation Behind

o Russ Mack, Executive Director

o 248 760-2360

o [email protected]

o www.LeaveNoDonationBehind.org (in progress)

mailto:[email protected]

http://www.leavenodonationbehind.org/


Are we there yet?

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New resources for your charity . . . Starting now! I. Why. Why. Why.

– The opportunity – The even bigger opportunity (crazy, really)

II. How . . . The Basics (your “get started now” package)

– Commit – Change – Communicate

III. Confidence that you can do it all . . . now – Support available – The “cost” of that free support


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Tired of

chasing

cash?


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These donations look familiar?


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a. $50,000 life insurance policy

b. $400,000 yacht

c. $30,000 vehicle

d. $500,000 appreciated stock

e. $20,000 antique German shotgun

f. $300,000 house

g. $50,000 in Kruggerands

h. $20,000 stamp collection

i. $500,000 bequest

j. $10,000 cash

These donations look familiar?


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a. $50,000 life insurance policy

b. $400,000 yacht

c. $30,000 vehicle

d. $500,000 appreciated stock

e. $20,000 antique German shotgun

f. $300,000 house

g. $50,000 in Kruggerands

h. $20,000 stamp collection

i. $500,000 bequest

j. $10,000 cash

All sorts of non-cash donations available

Real property:

Residential homes

Rental properties – from single family homes to apartments

Commercial properties of any sort

Vacant land, such as recreational acreage, home site lots

Time shares

Property:

• Cars

• Boats

• Planes

• Jewelry

• Frequent flier mileage

• Farm equipment

• Gold & silver

• Livestock

• Etc.

Financial instruments:

• Securities

• Retirement plan assets

• Patents

• Savings bonds

• Closely held stock

• Gas & mineral interests

• Life insurance

• Life insurance death benefits

Leave No Donation Behind, a charity

supporting charities 15

Real estate misunderstood

Great signs:

Single family residence

Free and clear

“Buyer in the wings”

Strong, fast local market (can sell fast)

Property in perfect condition

Donor is very cooperative, able to help

Easy

Challenging

Warning signals:

Liens on property

Multiple owners

Possible environmental issues

Maybe legal or title issues

Market for property is not good

Property needs improvement

Donor is not in a position to be much help


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“The largest transfer of wealth. . .”

• Estimated $41 trillion (steady number)

• $6 billion (or more) expected for charities

• From WWII gen & baby boomers

• Big effects: women more important, more vs. fewer charities, etc.

Ahead of the curve?


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• A church in Chicago was offered $50,000 in Kruggerands. Church secretary didn’t take message, thought they were German coins.

• A prominent nationally-recognized academy for the learning disabled in Michigan was offered a $20,000 antique German shotgun. But a gun didn’t seem appropriate for the silent auction. Plus, a gun and a school -- academy didn’t want the association.

• Condo’s are often routinely turned down by Habitat affiliates because of charter, or the ongoing costs of association dues

• 26 foot motor homes, corn silos, construction bulldozers . . . they can be very valuable . . . But these often sit or get passed over . . . because no one seems to know what to do with them

• Very few charities will take a real estate property that has money owing or needs fix-ups to make it sellable . . . But there is at least one charity that can partner to get this done . . .and the affiliate still gets money from the donation


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Money left on the table

“Not us! We don’t leave money on the table!”

3 biggest secrets . . . why non-cash donations are lost: 1. “Never thought of you.” Your charity

never even has an opportunity for the non-cash donation because you don’t show that you would consider, let alone welcome, non-cash donations.

2. “No one home” or “Lost in the cracks.” Donors call and never get a call back, connect with the right person, etc.

3. “You have to be kidding me?!” Charity passes on the donation. Donor not happy.

= $100,000+ a year in lost opportunities Leave No Donation Behind, a charity supporting charities

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Why do charities miss the boat (literally)?

• Perceived lack of time, expertise, resources

• Legitimate concern about complexity and risk

• Misunderstandings about what can and can’t be done as a charity

• “Zero factor” – potential donation becomes more intimating as you add zero’s. . .example: boat worth $500…$5,000…$50,000…$500,000…$5,000,000…etc.

• “Oprah factor” – charities feel what Oprah said she saw in all of her 25,000 interviews: _____________


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Every donation counts Generous donors contribute anything they

have to any charity they want.


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We make sure charities...

Leave no donation behind

Our vision:

Our mission:







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Get buy-in and excitement throughout

• Decision makers

• Leaders

• Staff

• Donors

• Volunteers

• Community

Lead with big picture – what will it mean for everyone

Overcome objections

Etc. Leave No Donation Behind, a charity supporting charities

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• Modify anything that might limit: bylaws, charter, policies and procedures

• Develop policies and processes – complexity will vary:

– Conflict of interest

– Gift acceptance policies

• Recommendations:

– Best practices…templates available

– Make it as simple as possible

– Don’t scare yourself into inactivity

– Don’t wait “until everything is nice and neat” – you will lose your energy, enthusiasm, six months, and who knows how many frustrated donors and lost donations Leave No Donation Behind, a charity


Also Recommended:

Make it simple Good exercise to

go through Speeds up

decisions and actions

Solves issues upfront

Etc. Templates

available


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As charities… we are conduits


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Recommended: “Donor Stewart”

Responsibility: Be the lead in helping donors make contributions

Qualities: • Listener, good people skills • Problem solver • Creative • Not an expert

Process: 1. Capture information 2. Acknowledge the potential contribution,

share with leaders 3. Seek appropriate expertise and propose a

solution (to leaders) 4. Facilitate solution (with help as necessary) 5. Thank donor and keep up relationship


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The Basics . . . Communicate 1. Communicate from top

down or inside own – Board – Leadership – Staff – Key donors – Volunteers – Community of supporters – Potential donors – Etc.

2. Expand to local community 3. Communicate to world at

large


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1. Announce changes 2. Them make info

permanent in all your communications (website, brochures, etc.)

The charity that saved my wife’s life Rare disease

Pulmonary Hypertension Association started with $800 and four patients at a kitchen table

$132,000/year in 1999

$10 million/year today, growing

Serious endowment, growing

They take anything and everything

Monthly fundraising e-newsletter

• Sophisticated, above reach of most charities

• But it does play a major part in the fundraising success of PHA

• Some key take-aways (for any charity)

– Personalized

– Suggests that they are open to anything

– Keeps it simple – provides one key contact person . . . with direct contact info


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800 sq feet library Population: 1000

Ask

Offer ways to give

Make it easy

Powerful and effective communication

As simple as . . .


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Please remember _________ charity in your will.







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Save a Donation* - Today (*to your charity)

• This is a big, big deal!

• There comes a time when a non-cash donation won’t work for your charity

– Too much time, resources, or expertise

– Other factors

– Even with our help it’s not something you want to take on

• You give up

• But hold on, all is not lost

• Before that donor reaches for the phone to call the next charity. . .

• We’ll step in (as a charity), rescue the donation if possible, split the proceeds with you

• Yeah, we know, it sounds too good to be true

• Try us! What have you got to lose

• We turn your discards into your donations

• Our mission: leave no donation behind! Leave No Donation Behind, a charity


Save those challenging non-cash contributions!

VetPower

Are we there yet?

36

Yup. Just about.

The deal. . .what we need from you

Your stories – to inspire other charities and nonprofits

Your learnings – so other charities can improve based on your lessons learned and best practices

Your referrals and recommendations

Your impossible-to-handle donations – so Leave No Donation Behind can afford to continue educating and consulting

-


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In today’s world

women as well

Shackleton was heading for the South Pole. That was a real adventure. Every bit as dangerous as he advertised*.

Helping donors make contributions, turning those contributions into valuable resources. A piece of cake! Harness those sled dogs. Let’s go. . .

*FYI. Shackleton advertised looking for 60 in his expedition. 5,000 applied! Leave No Donation Behind, a charity


Show Me the Money! (Turning non-cash contributions into in-kind contributions, resources, cash)

Be able to take it all…in 3 steps:

1. Commit

– Do it right (by the rules)

– Get the best help and expertise

2. Change

– Eliminate limitations

– Assign Donor Stewart

– Develop policies and processes

3. Communicate

– Within organization

– Community

– World at large Leave No Donation Behind, a charity supporting charities

40

Cheat sheet

You can’t fail…with help!

1. Education and information

– Access to experts

– Resources

– Forms, templates, checklists

2. Coaching and consulting

– Problem-solving

3. Donation Rescue Program – The option for when you are about to give up

– Get resources and cash from your donation discards

Help from another charity o Leave No Donation Behind

o Russ Mack, Executive Director

o 248 760-2360

o [email protected]

o www.LeaveNoDonationBehind.org (in progress)

mailto:[email protected]

http://www.leavenodonationbehind.org/


Of:

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Show Me the Money: Fundraising That Taps into The 90% of All Wealth That Is Not Cash