Based on a presentation at the 1995 Annual Meeting of the Canadian Association of Gift Planners

If you intend to work successfully with allied professionals in developing a planned giving program, several key assumptions are important.

Firstly, the basic ingredients required for planned giving are as outlined in Planned Giving for Canadians by Frank Minton and Lorna Somers:

• The institution is well-established and perceived as having a long-term future;
• The constituency of the institution includes 1,000 or more prospects aged 50 or more;
• Several hundred of the institution’s donors have given $100 or more in a single year; and
• The governing board of the charity is committed to a planned giving program.

 

Secondly, the leadership of your organization is committed to a vision which allows for investments today that will pay off only tomorrow. This commitment must be present both at the level of the governing board and beyond, and is particularly critical to the active and meaningful involvement of allied professionals.

Thirdly, the involvement of allied professionals is part of a broader commitment to the marketing of planned gifts, which implies an understanding of the notions of investment, return on investment and payback period.

The challenge is therefore one of involving volunteers who might not see the fruit of their work, because the payback period may be far longer than their term of service to the organization.

Finally, don’t hesitate to start with small steps.

Why involve the allied professionals?

Thanks to the high degree of specialization in the various professions – law, accounting, financial planning – you can’t reasonably expect to have all the specializations represented on your in-house staff, a situation that applies for even the biggest fundraising shops in North America. If you access the experience of, and resources available to allied professionals in terms of specialized libraries, databases, articles and printed materials, they will help you remain abreast of changes in the regulatory environment and in the laws applicable in your jurisdiction.

Allied professionals can prove invaluable in helping you educate donors, prospects and volunteers. Robert Pierce, Vice President of the Equion Group, maintains that most Canadians significantly under-manage their wealth (and Pierce’s clients include some of Canada’s leading executives and industry owners). This is corroborated by the small sample of planned gifts (largely bequests) received by the Royal Ontario Museum in the last two years. Allied professionals are particularly important in this context, since the fundraiser representing the institution must be removed from a position where there may be a perceived (or actual) conflict of interest. Even if the fundraiser is, by training, an allied professional in a given field, they cannot both represent the institution and act on behalf of one of its donors in dispensing legal or other types of professional services.

Yet another objective should be to involve allied professionals in the charitable enterprise. They can contribute to the governance process through committee and board memberships, which include a responsibility to help develop the framework for gift planning in terms of policy-making. Don’t overlook the opportunities, in making them aware of your case for giving, to provide them with general information about your charity in terms of making a planned gift, every time you correspond with a lawyer or estate officer.

You should also keep them aware of recent developments in the regulatory environment as they apply specifically to gift planning. Don’t overlook the very real possibility that they may be able to support your prospect development and solicitation activity (though this should be limited to instances where a peer relationship exists or at the donor’s request).

Finally be aware that in providing their input on specific cases where a donor/prospect might ask for such advice, allied professionals will be in a position to benefit financially – an acceptable situation, though it must be understood at all times as not the primary objective of the relationship they enjoy with the charity.

Working with limited resources

As a fundraiser, never provide information which could leave you open to accusations of undue influence or which could be construed as a substitute for professional advice. Always encourage the donor to seek independent representation, and include appropriate disclaimers on any printed materials and correspondence which you produce in connection with planned giving.

Credit, recognize and acknowledge your sources, but don’t hesitate to borrow from others. Finally, remember that the first step in avoiding conflicts of interest is to be frank about the potential for them to occur. The fact that you have involved allied professionals doesn’t limit your responsibility, as the professional fundraiser, for full disclosure. It is your responsibility to be aware of all appropriate standards of professional and ethical practice.

Turn initially to those allied professionals who are part of your institution’s family of friends and donors. Do you have a lawyer in your database? Even better, might you have a lawyer whose practice is a general one or who specializes in estates and wills? Has your institution received a bequest recently? If so, have you begun to develop a relationship with the executor or trust officer acting on behalf of the estate?

At the Royal Ontario Museum, we have established a division of responsibilities among the Board, Committee and Advisors. The Board of Directors of the ROM Foundation overseas all fundraising programs and provides direction in policy-making to ensure that the Museum maximizes philanthropic income over the long term. It also assumes fiduciary responsibility and serves as stewards of the donor’s intentions. This role is particularly significant in that the Foundation is the repository of the Museum’s endowments. The Major Gifts and Planned Giving Committee is a standing committee of the Board of the Foundation, and therefore exercises authority only as delegated by the Board in matters related to governance.

The ROM Foundation Planned Giving Advisors operate independently of the Foundation’s governance process. The Advisors do not form part of an Advisory Group which meets regularly, though they may come together at various times to learn about the Museum. We also work with others acting informally:

• fundraising colleagues
• fundraising consultants
• allied professionals serving in isolated cases
• members of other ROM and ROM Foundation Board and Committees

 

Avoid building false hopes and be prepared to deliver on the expectations of a group of motivated individuals. Ensure that your volunteers, in whatever capacity, have an effective point of contact at the institution. This might mean delaying the involvement of allied professionals until you have recruited a planned giving officer. At the ROM Foundation, the Development Associate, Gift Planning and Capital Gifts, assumes this role.

You should also have some basic infrastructure in place. At the very minimum, planned giving should be integrated in your direct-response and annual fund materials before you start offering estate and financial planning seminars. This will reduce the likelihood of internal battles between allied professionals and volunteers.

Who to involve and how to ask

Ideally, you will want to involve estate lawyers, trust offers, and financial planners. Remember that bequests continue to account for 80% of all planned gifts. Look for professionals with established reputations, or from firms with established reputations, Donors and prospects will want such assurances. Professionals who are effective public speakers, communicators, writers and motivators will bring expertise to your planned giving program that extends beyond the expected strength in their narrow specialty.

When recruiting allied professionals, remember that board members and staff can often prove to be effective recruiters. Narrow the assignment down to a specific task initially! “Would you join our Foundation as a Planned Giving Advisor and write an article for our newsletter on wills?” Remember to thank, and thank at least twice – once from a peer and from a staff member.

Finally, encourage them to become involved.

EXHIBITS:

The Royal Ontario Museum Foundation

Planned Giving Advisors

Description of responsibilities

Planned Giving Advisors to the Major Gifts and Planned Giving Committee of the ROM Foundation will bring professional expertise to the planned giving programme at the Museum. As estate and tax lawyers, accountants, financial planners, insurance executives, investment counselors, trust and estate officers, and brokers, they will bring invaluable knowledge to the marketing and promotion of planned gifts in support of the Museum. It is anticipated that there will be about ten advisors who will serve the Foundation in this capacity.

Mandate

Specifically Advisors will:

• participate in presentations at seminars on estate and financial planning for Museum members.
• suggest and/or contribute articles to Museum publications about the tax aspects of giving and about planned giving;
• promote the Museum and may, at times, have opportunity to refer a potential donor to the professional staff of the Foundation;
• from time to time be called upon to advise on marketing strategies, to vet articles, marketing materials and prototype planned gift agreements; may be called upon to brief Foundation staff on legal, technical or regulatory changes and developments;
• meet from time to time as a group to discuss issues of common concern and to learn about the programs and activities of the Museum.

 

Professional staff at the Foundation may refer a potential donor to an Advisor to obtain professional advice. Referrals will be provided at the request of the donor only. Unless at the request of the potential donor, Advisors will not be involved directly in the solicitation of planned gifts.

The Royal Ontario Museum Foundation

Planned Giving and Major Gifts Committee

Composition

The Planned Giving and Major Gifts Committee is to be chaired by a member of the Board of Directors and to be composed of not less than three members. Its membership will not be limited to directors of the ROM Foundation.

Mandate/Scope

The Planned Giving and Major Gifts Committee will recommend to the Board of Directors policies to facilitate major gift fundraising from charitable foundations and through planned gifts. The Planned Giving and Major Gifts Committee will be involved closely in the development of recognition vehicles for major gifts.

Terms of Reference

• to receive information from the Executive Director to formulate policies and strategies in the area of planned giving and major gift fundraising for recommendation to the Board;
• to monitor the ROM’s progress in securing major gifts including planned gifts;
• to develop fundraising targets and financial objectives for the planned giving programme and special appeals to charitable foundations;
• to develop plans for the cultivation of prospective donors;
• to participate in the evaluation of prospective donors to be reserved for solicitation of major gifts including planned gifts;
• to participate in solicitations of major gifts and planned gifts from individuals and charitable foundations for the ROM and its affiliates;
• to plan and recommend policies to the Board in regard to comprehensive campaign efforts for capital and/or endowment purposes.