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Great record keeping in your customer relationship management (CRM) software streamlines the donor journey, enables metrics, bolsters accountability, and drives momentum in moves management. However, teams who aren’t used to intensive data entry can feel intimidated and quickly get behind.

Any new habit takes some getting used to, which is why we are offering eight suggestions for frontline fundraisers on how to keep from getting behind and stay on top of action entries.

Note: we recommend that fundraisers enter all “meaningful contacts” into the CRM. This includes communications or interactions that would be important or helpful for others to know in order to best cultivate the donor towards a gift request and steward them throughout the donor journey.

1. Review your calendar at the beginning of each week and enter upcoming actions, such as meetings or calls, into your database.

Having a list of open/incomplete actions in the CRM creates your to-do-list for you. It also makes things easier in the future; for example, you will simply have to confirm the details, add any notes, and hit complete.

2. Open the constituent or opportunity record prior to any call and leave it open until you’ve added the action.

That way, if you need to immediately jump on another call, you will have a reminder on your screen to enter the action details before you close the tab. It also promotes treating the CRM as a system of record where you can take notes directly into the associated records as often as possible.

3. Leverage technology to take advantage of shortcuts such as:

Integrate your CRM into your email so that outcoming emails to constituents are automatically added to the CRM and incoming emails can be added with the click of a button.

Some CRMs, such as the RENXT App, allow you to dictate your notes. If using this feature, just make sure to review them later to ensure everything transcribed correctly.

Other CRM’s, such as Salesforce, allow you to send chat messages to your colleagues from a constituent, opportunity, or action. Tag applicable colleagues on an action record after adding meeting notes as an FYI or on an opportunity to indicate a status change such as “pledged” or “received.” This both saves time (as you will not have to send an extra email) and keeps you aligned with CRM best practices as any follow-up discussion will automatically be in the CRM.

If available, utilize your systems or development operations teams to create templates for bulk uploads of actions.

4. Group similar tasks together to reduce friction.

If you have a few opportunities or constituents on similar tracks, enter or plan actions for them all at once. Reducing the need to open your CRM and enter one-off interactions will save you time.

5. When you enter a completed action, plan one or two steps ahead.

It will be much easier to think of your next touchpoint and create a reminder for yourself to take action later while your mind is already on the cultivation and servicing of the relationship.

6. Find your own regular use for accurate actions.

If you are only entering actions to meet expectations or serve someone else’s job function, you will not be as likely to keep up with it. Some suggestions are to use future actions and deadlines to remind yourself to get things done, or to check in with all open actions at the start of each day. Looking at actions over the last two weeks can help you spot who is missing out on your attention.

7. Launch a summary report or dashboard that is available to you and shared with your manager.

If actions feel as though they disappear into the ether, it is not compelling to keep up with them. With updated action entry and a dashboard, you can experience the motivation that comes from seeing your actions add up in real time.

8. If you are still running behind on entering actions, block off one or two hours at the end of the week to do so.

Having this recurring time in your calendar will help you make sure all actions and notes from the week are in the database. If you have a few minutes left over in your time block, use them to get ahead on future activity entry, and make the next week a little easier.

We see over and over again that investing time into good record-keeping is worth the growing pains. Dynamic data insights, and seamless transfer from one fundraiser to the next, are just a few of the benefits. Take the time to try these tips and you will find action entry becomes part of your regular routine and your best way to deliver great relationship management.

CCS Fundraising is a strategic fundraising consulting firm that partners with nonprofits for transformational change. We plan and implement fundraising initiatives to help nonprofit organizations make a bigger impact, including Systems projects to help organizations use their CRMs to drive strategic fundraising activity. To learn more about our Systems work, contact Allison Willner, Vice President of Data Strategy, at systems@ccsfundraising.com.

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Major Donor Fundraising: Finding New Prospects With Predictive AI

May 10, 2024

CCS’s Senior Data Scientist John Sammis explains how your nonprofit can use predictive AI to unearth new major giving potential in your donor database.

Publication

CCS Philanthropy Pulse

February 15, 2024

CCS’s annual Philanthropy Pulse report provides nonprofits with helpful data to navigate the ever-evolving philanthropic space.

SEE ALL IN: Systems

Leadership transitions, especially at the independent school Head level, have been unprecedented in recent years. In March 2022, NAIS conducted a Snapshot Survey on Head Turnover where they found that over two-thirds of schools have had one or two new heads in the last ten years. With new leadership comes the opportunity to chart a new strategic course, and when done right, the process gives new leaders unparalleled opportunity to convene and engage the school community to develop a shared vision.

As the end of summer approaches (far too fast), independent school teams are putting the finishing touches on their fundraising plans for the coming year. Whether they have a new Head of School or are working with a long-term leader, in addition to designing the FY23 strategy for annual giving, major and planned gifts, and alumni and parent engagement over the summer, many will also begin developing a long-range plan and preparing for a significant campaign. Establishing clear strategic priorities with broad community support is imperative to translating a nascent vision into campaign success.

Recently, CCS partnered with The Cambridge School of Weston (CSW), an independent coeducational day and boarding high school in Weston, MA, to conduct a school-wide strategic priority development process that united the community around a compelling vision for the school’s future. CSW’s Head of School, Lise Charlier, stepped into her role in 2019 and skillfully led the school through the Covid-19 pandemic. As students returned to campus and restrictions loosened, Charlier and CSW’s Board of Trustees began thinking about the school’s next steps. In a multi-pronged approach, CCS worked with CSW to create comprehensive buy-in for the school’s strategic priorities and build the framework for a compelling campaign case for support.

Vision & Case Development Task Force

To help Charlier and school leadership further develop a cohesive vision and case for support for CSW, CCS convened a Vision & Case Development Task Force of 12 trustees, current parents, past parents, and alumni three times over the course of two months. First, this group participated in generative breakout group discussions about CSW’s future:

“What is important for CSW to achieve in five years?”
“Why is this important?”
“How will this strengthen the student experience?”

From these discussions, four key long-term priorities and themes rose to the top: access, sustainability, community, and innovation. The group then zoomed in on each priority and answered the following questions:

“Why is this theme critical?”
“What philanthropic initiatives would be required to achieve this vision?”
“What collateral does CSW need to tell the story of this priority?”

The Task Force was instrumental in building an initial framework for long-term planning and outlining the steps needed to achieve success.

Board of Trustees Visioning Session

Following the completion of the Task Force’s work, we presented the key takeaways and themes from the group’s discussions to the Board of Trustees to frame a discussion around developing CSW’s strategic priorities for the next five years. In small groups, trustees discussed CSW’s strengths and opportunities for growth and improvement. They also each shared their vision for CSW five years from now, what is needed to achieve this vision, and the impact this vision would have on the student experience. The full group reconvened to share takeaways and noted that many themes aligned with the Task Force’s findings.

Faculty and Staff Visioning Session

We convened CSW’s full faculty and staff to share about the work to date, provide an overview of campaign planning and execution, and outline the steps needed for campaign success. We explained the importance of input from CSW’s faculty and staff when developing strategic priorities and a strong campaign plan. In breakout groups, teachers and administrators discussed the same questions the trustees addressed in their visioning session. When each group shared its vision for CSW’s future, there was broad consensus among the Trustees and Task Force.

The strategic conversations between CCS and CSW are exactly what schools need to achieve their long-term goals. While it’s difficult to set aside time to garner community buy-in and support, it’s essential to the success of both a strategic vision and a campaign. Schools must engage in the difficult, but essential work of building support ahead of major initiatives to maximize engagement amongst key stakeholders.
Ann Snyder, Senior Director of Communities Engagement, Council for Advancement and Support of Education (CASE)

Following these sessions, we assembled and reviewed all discussion notes and confirmed the clear alignment on CSW’s vision and priorities among the Task Force, trustees, and faculty and staff. This led to the creation of three strategic priorities and funding opportunities for a significant comprehensive campaign:

Support and grow CSW’s community through increased financial aid, faculty development, and innovative partnerships
Enhance CSW’s campus to fuel student and faculty work through increased environmental sustainability, greater physical accessibility, and enhanced buildings and community spaces
Secure CSW’s future and impact through growing the endowment to ensure financial sustainability and flexibility

CCS and CSW are now partnering on a Campaign Planning Study to gather feedback from 50+ community members about these priorities and the proposed campaign plans. So far, there has been widespread support for these priorities. We will continue these conversations over the coming weeks and present our recommendations for next steps to the Board of Trustees in September.

Lessons Learned

Community buy-in is essential. Asking for input from different constituencies was essential to build trust and comprehensive understanding of the vision for CSW’s future. Each group’s feedback also helped build out the nuanced details for each strategic priority.
Strategic priority development takes time. This multi-stepped approach required careful planning and dedicated time to be successful. Planning ahead and building in extra time for priority development is essential for a strong campaign design.
Early faculty and staff involvement builds strong partnerships. In our Campaign Planning Study conversations with faculty and staff, they have all expressed strong support for the proposed tenets of the campaign and have enthusiastically volunteered to help in donor cultivation and solicitation. Involving faculty and staff early in the campaign planning process creates buy-in and a willingness to help achieve campaign success.

We look forward to continuing our partnership with CSW to design a strong, phased, comprehensive campaign to help achieve the school’s vision and long-term goals.

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2025 Philanthropy Pulse Webinar: Data-Driven Insights Shaping the Future of Giving

Wednesday, February 12, 2025

Join us for an exclusive webinar, where we will unveil key insights from the 4th edition of our annual CCS Philanthropy Pulse Report.

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Maximizing Fundraising Opportunities in South Florida

December 18, 2024

South Florida is experiencing great philanthropic growth, and the momentum looks likely to continue well into the future. In this article, we help you understand the most important trends and components of the philanthropic landscape that will help you maximize fundraising opportunities in South Florida.

SEE ALL IN: Primary and Secondary Education

Case Studies

Georgetown Day School

Mid-Atlantic and Southeast US

Georgetown Day School (GDS) embarked on a campaign to unify its campus, bolster its financial aid program, and enhance programs through the Annual Fund. GDS engaged CCS to conduct a development assessment, planning study, and campaign. The campaign is on track to exceed the $50M goal.

Thomas Jefferson School

Central US

CCS partnered with Thomas Jefferson School to launch the school’s first major fundraising campaign. As the COVID-19 pandemic struck, CCS advised Thomas Jefferson on how to address immediate needs, evolve its campaign strategy, and maintain fundraising.

Cultural institutions have long relied on membership programs as the cornerstone of their fundraising efforts. A recent CCS study of nearly 20 cultural membership programs throughout the Midwest found that, on average, membership programs were generating $1.8M per year. This year’s Giving USA Annual Report revealed an increase of 27.5% in giving to Arts and Cultural organizations in 2021. Now, more than ever, is the right time to ensure that your program is optimized to retain these members, maintain increased giving levels, and maximize your institution’s mission.

Prioritizing, or even establishing, a membership program is dependent on the long-term strategy of your development department—and sometimes the organization at large. A membership program may be great for acquisition purposes and rebounding after disruption to your fundraising goals, but a donor circle or giving society may be more effective in cultivating donors towards renewed and larger commitments to your organization. Through a recent partnership with a leading cultural organization in Chicago, CCS helped to evaluate and develop a potential new membership structure. This process identified three questions for cultural organizations to consider when evaluating membership programs, and donor engagement overall.

Question 1: Do you have the right program for your needs?

The impact of recent national and worldwide events has positioned organizations to explore and assess the effectiveness and sustainability of their donor engagement strategies. CCS’s recent membership study included a cultural institution with over 20,000 members contributing $4 million annually, but with a base that was predominantly focused on their visitation benefits. COVID-19 closures caused a roughly 50% drop in this revenue line in 2020. Organizations can learn from these disruptions to enhance their existing strategies. As you think about the program you have in place, consider running an analysis of your program looking at:

• How has your program grown in total donors?
• How has your program grown in total revenue?
• How has your average gift for this population changed?
• Through what channel are these donors giving?
• Which donors are renewing?
• Which donors are not renewing?

Once you have identified key metrics for improvement, we recommend studying best practices of your peer organizations. CCS often conducts peer benchmarking exercises to help shape our clients’ programs and strategies.

Question 2: Do you have an entry point for these donors?

Both giving societies and membership programs typically offer a compelling reason for investing in the mission through donor benefits. Benefits are a way to engage new members and donors as well as increase giving for current ones—and keep constituents moving through the pipeline. Typical member benefits include free admission and free or discounted parking, while giving societies might offer anything from the tangible (a show poster or tickets to opening night) to more access-oriented benefits (a VIP ticketing concierge or the ability to host a private event). Regardless of what you offer, make sure you are focused on two key points:

These benefits are engaging donors in your mission
These benefits are what donors want

We all know that the best donor to solicit is a past donor. While your membership program or giving society may have a few goals (like upgrading annual fund donors into mid-level giving constituents or creating a planned giving prospect pool), retention is key. And to retain, you must engage donors in your mission.

As stated in our national survey, one leading zoo in the Midwest reported that after acquiring members through more transactional benefits, they emphasized learning opportunities for engagement. By hooking the donor with the mission, this organization was able to increase giving and achieve a 70% renewal rate (the average for survey participants).

You can also think outside the box with your mission-oriented benefits…and be more cost-effective! Consider the observation from our recent Perspectives on Philanthropy webinar: it may be time to think of a fourth “T”—Time, Treasure, Talent, and now Testimony. Asking donors to speak up or act on your behalf can be an engaging (and affordable!) benefit. Consider creating a giving circle around signing petitions to advance your cause or empowering donors with the tools to take elements of your mission (like an eco-friendly picnic for a zoo or aquarium giving society) to their friends.

Finally, make sure the benefits that you offer are what your donors want. It may seem obvious, but it’s easy to get stuck in your ways and not realize that what you’ve always offered isn’t cutting it anymore. Consider surveying your donor base, including current, lapsed, and prospective constituents, to get a full picture with the following questions:

Please rank your benefits in order of importance.
- Followed by list of offerings
Have you used the following benefits in the past year?
- Consider a conditional “No” follow-up of “Why have you not used this benefit?”
Of the following potential new benefits to membership, rank the suggestions in order of importance.
- Followed by list of benefits that you may offer in the future

Question 3: How are you managing your donors for your goals?

After your organization has created a membership program that best suits the organization’s needs and an appropriate entry point, the next step is to consider how you are managing your donors for institutional goals. In a conversation with a cultural institution in Chicago, we came across a surprising statistic: long-time members were less likely to upgrade their membership than newer members. The reason for this was clear – members become comfortable and accustomed to their yearly contribution, and without the active engagement and management of your membership, your organization will struggle to “move the needle” when it comes time to increase your request. Considering we saw an average membership of 30,000 across our study, ineffective membership management could result in a potential loss of philanthropic revenue for your organization.

A key element for the successful organizations we surveyed was utilizing their tools and systems effectively. There was an overwhelming consensus that there are more opportunities to leverage data and tools in more effective ways. The most frequently mentioned data analytics strategies included identifying prospects that have the potential to elevate future gifts or move up in membership levels, and conducting more analysis on philanthropic trends, instead of focusing purely on data entry.

While upgrades and renewals are key tenants of any great membership program, testing additional philanthropic messaging to your members can create new pathways to revenue. In particular, including gift planning messaging can lead to unexpected gifts to your organization. This year’s Giving USA data reports that over $46.1 billion was given to top organizations through deferred giving vehicles in 2021. Beyond your major gift program, long-time members are your best gift planning prospects. These donors who may not think they have high net worth can realize especially impactful giving to an organization they have a great affinity for through this vehicle. Even more important when considering that, according to the Boston College Center on Wealth and Philanthropy in their 2009 study, between $45 to $150 trillion is set to be bequeathed over the next five decades, resulting in at least $21 trillion in new charitable gifts.

Conclusion:

According to Giving USA, when accounting for bequests and family foundations, individuals represented 88% of all philanthropic revenue in the US in 2021. An internal audit, guided by the questions above, can support your institution in securing new members, retaining and upgrading current members, and creating new pathways of revenue to elevate the mission of your organization.

Interested in evaluating your membership program?

Our firm would be thrilled to partner with your organization.

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2025 Philanthropy Pulse Webinar: Data-Driven Insights Shaping the Future of Giving

Wednesday, February 12, 2025

Join us for an exclusive webinar, where we will unveil key insights from the 4th edition of our annual CCS Philanthropy Pulse Report.

Article

Maximizing Fundraising Opportunities in South Florida

December 18, 2024

SEE ALL IN: Arts & Culture

Having a robust and up-to-date database can make a world of a difference in fundraising and stewardship. In an industry where fundraisers and development staff are competing for over $390 billion in philanthropic dollars, the opportunity is immense, and so too must be your attention to your donors.

Of the ten sub-sectors reported on by Giving USA 2022, 27% of those dollars were donated in support of religious causes, including Episcopal parishes.

While there are many ways to increase your stewardship potential, it all starts with your data:

Who are your donors? (e.g., baptized members, community members, friends)
What programs or initiatives do your donors support? (e.g., annual fund, property)
How do your donors give? (e.g., online, plate collections, mail)
What inspires your donors to support you? (e.g., religious “duty,” ministry)

To track this type of information, many parishes invest in donor databases that help them manage their directories and information on individuals who have been visited or require further contact by their outreach or welcome teams.

To store and manage this information, parishes, like most nonprofit organizations, recognize the value of a system more elaborate and comprehensive than an excel spreadsheet. But after that initial investment, and maybe a few weeks of user training, it can just seem easier to use the database like a spreadsheet after all: linear and disconnected from the process of stewardship. Only using the system for its most basic functions defeats the purpose of the investment and can bring parishes back to square one in regard to data.

It’s easy to see why this cycle repeats. Producing good data takes time, a deep understanding of the system, and requires effective management to create a process that gets you closer to your desired objectives. The good news is that there are big opportunities and untapped potential with a database that can do so much more than store contact and donation information. Most importantly, it can help you do your job of donor stewardship more efficiently. Those who expand their database usage see immediate results.

When your parish is focused on ministry, formation, and outreach, managing membership information is understandably not always a priority. Whether your parish is responding to a natural disaster, providing much needed support to a family who has lost a loved one, or celebrating the life and renewal of members and the community at large, you cannot justify substituting these priorities with minuscule administrative tasks.

In addition to the time investment issues that comes with learning a data management system, constraints could also be due to staff shortages or turnover, resulting in the frustrating loss of the investment your staff and vestry made to train users of the database. But despite any limitations, this institutional knowledge cannot be fully realized if you don’t know how to maximize the features in the database.

Identifying Preventable Errors

Many institutions within this sector invest in databases designed specifically for Episcopal parishes. While many parishes are effective at managing the basics such as contact and donation information, they do not always fully utilize the more robust features the databases have to offer. Because of this, common oversights emerge that can have detrimental results.

Something as simple as pulling (exporting) data from a system to create a capital campaign prospect list can quickly turn into a small headache. This occurs when appropriate filters are not applied, such as removing names of individuals who were under the age of eighteen or deceased. Imagine if during a leadership committee meeting, in a room with volunteers present, several individuals known to be deceased ended up on your donor list. These individuals are normally marked as deceased in a database, but if there is not a full understanding of how to use the query system, you leave yourself open to these kinds of vulnerabilities.

The solution can be as simple as checking a box: “Do not include individuals marked deceased.” This and other data mistakes are common with any database, but when your mission is that of a parish, these mistakes can be costly both financially and spiritually.

Another common example is the management of information on households and families. It is not unusual for spouses to donate separately or children to have separate accounts if they are baptized members when their parents are not. In one instance, an infant child ended up on a mailing list and this error was only noticed when the child’s grandmother approached the development team with mail addressed to her grandchild. It then became evident that there was no protocol for reviewing accounts that were missing date of birth or age, making it too difficult to filter out members under the age of eighteen.

Making Forward Progress

Recognizing the need for a checks and balance system, and protocols for how to manage information, many Episcopal parishes have expressed an eagerness to address these issues. In one example, a parish formed an informal group of church members to review the directory and mail lists. Hearing there was a need for something other than asking for money, volunteers began to stop by the office to review the prospective campaign and annual fund donor list, providing the type of information that fundraisers and development staff find invaluable when building an effective program:

“These individuals should be asked for more.”

“These families have to be approached by the Rector.”

“This family is my next-door neighbor, let me talk to them.”

This kind of collaboration will always lead to a healthier database and often more fully involved parish members. Beyond the membership directory and donor lists, other potential donors who are lapsed, or are not official “members,” could be identified as prospects who have a strong affinity to the work of the parish and could demonstrate a higher likelihood to support the mission.

If your parish is facing a similar issue, it’s important to know that it’s never too late to maximize your database. Trusting your own data, and how you use that data, can make a world of a difference so that you can continue outreach with confidence. Once you have a system established to review your data, you can begin to focus on maximizing features you are paying for in your chosen database.

Four Ways to Start Maximizing Your Database’s Potential

Form a committee to review and audit the membership directory and contact lists annually. This can start with your welcome committee and be supported by your ministry programs and clergy.
Take the time to learn about your database. What are the strengths and weaknesses? What features does the database have that could replace intensive and timely manual work your staff is doing? (e.g., producing mail lists, segmentation of annual fund donors, integration with online church directory systems).
Invest in staff and volunteer training, and budget this training annually. Database features are always improving, sometimes because of scheduled maintenance and other times because you asked for a new feature.
Document your best practices. If the features of the database don’t exactly meet your objectives, find a work around, and document those processes so in the case of turnover, nothing gets lost in the transition.

Information is always changing, but having a plan in place to review and update your data, and investing the time to learn your database can be the difference between meeting fundraising goals and exceeding them. While the data doesn’t update itself, allow your database to help you reach your full potential.

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2025 Philanthropy Pulse Webinar: Data-Driven Insights Shaping the Future of Giving

Wednesday, February 12, 2025

Join us for an exclusive webinar, where we will unveil key insights from the 4th edition of our annual CCS Philanthropy Pulse Report.

Article

Maximizing Fundraising Opportunities in South Florida

December 18, 2024

SEE ALL IN: Episcopal

How do you make the best decisions on how to prioritize your team’s valuable (and limited) time and resources to maximize your effectiveness in cultivating and closing major gifts?

Sharpen your focus on those who have the greatest capacity to give and make sure you are working with your top and most obvious donors first when prioritizing your valuable time. While a seven-figure prospect who has not responded to repeated outreach may still be a long-term relationship to pursue for many reasons, a consistent five-figure donor who is not yet giving at their seven-figure capacity may be a higher current priority for your organization.

Fortunately, data can inform how to segment donors into short, medium, and long-term focus. Examining the intersection between Recency, Frequency, Monetary Value (“RFM”) and wealth screening is the simplest way to start narrowing your prospect pool to focus on those who are both closest to you and have capacity. When those very basic results are combined with relationship mapping and engagement analysis, they form the foundation of a strong plan to increase major gifts.

RFM: What is it and why would we do it?

A Recency, Frequency, Monetary Value (“RFM”) analysis is the scoring of current donors to rank and prioritize your database through three attributes: recency, frequency, and volume of giving. It can help you answer many questions, including: Who has given recently and is with you right now? Who has given over time and demonstrated loyalty to your cause? Who are your top lifetime givers?

Questions to Answer

Before getting started on your analysis, you’ll want to ask yourself the following questions:

Would I like to measure total lifetime giving or total giving within the past certain number of years (e.g. the last 10 years)? This will inform how you set up your RFM key, described in the guide.
Do I have enough information about each donor to complete the analysis? You will need name, database ID, the date of their last gift, the number of times that they have given (lifetime or within the time frame you decided), and the amount of their giving (lifetime or within the time frame you decided).
Who will I use to screen my data? There are many vendors; which one you use is less important than knowing that you are aiming to focus on those closest to you with identified capacity and knowing that using publicly available data is one helpful tool to inform that decision.

How to Perform an RFM Analysis

You have followed along and may be wondering, how exactly does one perform an RFM analysis? Jessica Roberts, Assistant Vice President of Data Analytics at CCS, can help! Jessica has used advanced analytics to advance nonprofit fundraising for over 15 years and has put together a step-by-step guide here: How to Perform an RFM Analysis. For questions about the process or donor analytics more broadly, contact Jessica and CCS’s Data Analytics Team at analytics@ccsfundraising.com.

Wealth Screening: Another Tool in the Quiver

There are many vendors who can screen your data for pennies per name, and many organizations already have access to built-in screening through database subscriptions. While wealth screening is not perfect (every screening turns up a million-dollar donor with low identified giving capacity), it can be very directionally important. The consistent $1,000 donor who gave last year with a capacity to give $1M+ that you never thought about is one ideal outcome of this exercise for short-term focus. Those who screen as high capacity but have limited giving history or are currently unassigned to a portfolio can be reviewed for relationship mapping or discovery meetings to advance long-term goals.

Other Recommendations

Whether you have 50 front-line fundraisers or are a one-person show, there is some number of people that you can realistically connect with each quarter. Determine your unique number, and create filters in an excel spreadsheet that contains your RFM and wealth screening results to exclude lower capacity and lower RFM scores until you get there.
We have found that the most robust results of an RFM analysis occur when they are used to inform community engagement and donor request strategies.
Having clean data is important. Performing an RFM analysis could be an excellent opportunity to organize and update your data to maximize the accuracy of your results.
Harness the power of your data by asking yourself, “What do I want to know about donor behavior?” Your questions can likely be answered by increasing data gathering and exploring advanced tools for data-driven fundraising solutions.

How can we help you?

CCS offers an array of Data Analytics services to help nonprofit organizations reach their full fundraising potential.

EXPLORE ANALYTICS SERVICES

Today, many nonprofit organizations round out their annual and major gift efforts with programs focused on planned giving. Implementing a planned giving program can be an effective way to diversify revenue streams and move donors along a continuum of commitment to your organization similar to the one shown below.

Recently, CCS partnered with Holocaust Museum LA (HMLA) to design a planned giving program that will be rolled out to a select cross-section of donors in the near future. HMLA felt it both important and relevant to increase emphasis on planned giving, particularly because the concept of honoring legacy is a central theme in their mission to “commemorate those who perished, honor those who survived, educate about the Holocaust, and inspire a more dignified and humane world.” Holocaust Museum LA CEO, Beth Kean, said, “With an aging community of survivors, we had long wanted to create a proactive planned giving program to offer families opportunities to make an enduring, meaningful gift that will impact future generations. We just didn’t know where to get started. After CCS helped us launch a successful capital campaign, we knew their team of strategic fundraising experts would be the perfect partner to guide us on a legacy program.”

Many of the volunteers at the heart of the Museum’s programming are Holocaust survivors now in their 90’s. Others have parents, grandparents, or other family members who escaped or perished during the Holocaust. Couple this history with statistics on the alarming increase of hate crimes and extremism in our society today, and the need for HMLA’s work to endure is evident. A successful planned giving program provides a unique opportunity to quickly scale an organization’s endowment as well as meet more immediate cash needs. At HMLA, such a program will help ensure that the Museum’s vital work continues in perpetuity.

In order to develop a planned giving program tailored to the Museum, CCS conducted a gift planning assessment and first sought to understand the attitudes about and proficiency with planned giving that exist within HMLA’s universe of donors. HMLA’s unique legacy-focused culture combined with the Jewish concepts of tzedakah and tikkun olam – moral obligation to give charitably and to repair the world – suggested that such a program would flourish at the Museum; however, it was important to see this intuition confirmed by data. Thus, we worked with HMLA to isolate a strong set of planned giving prospects and invited them to participate in a survey that gathered qualitative and quantitative data related to donor satisfaction, engagement, and interest in planned giving. What we learned about this community was encouraging and provided us with the basis for developing the materials, events, and messaging that now compose HMLA’s planned giving program.

The program was designed to start small and eventually grow into a more robust operation as HMLA expands its staff and expertise with various gift planning vehicles. Initial focus was placed on developing the following materials:

Prospect matrix – This database grew out of the planned giving survey, wealth screening analysis, and other data analytics work. A significant list of potential planned giving donors was created and then prioritized for cultivation. Strategic outreach activities were designed to correspond with various prospect groups. For example, a follow-up email was designed to announce the planned giving society, and multiple versions were created with text befitting survey participants, current planned giving donors, or those in the survivor community.

Preliminary brochure – A brochure featuring donor testimonials was designed for digital and print use to introduce the planned giving program. The brochure includes a QR code and website URL that enable donors to sign up to learn more about the program. A separate list of planned giving vehicles and their benefits was developed to accompany the physical brochure and serve as a donor takeaway at meetings and events.

Recognition and benefits – CCS worked with the Museum team to conceptualize Enduring Truth, a legacy society for planned giving donors. Benefits of membership include special listings and the chance to participate in legacy society luncheons, planned giving seminars, and planned giving salon events. CCS also reviewed and updated HMLA’s gift acceptance policies to adhere to current standards and support a greater organizational focus on planned giving.

Planning calendar – An annual calendar of planned giving communications and events was created to ensure that donors at various stages in the pipeline are being cultivated and stewarded at an optimal cadence.

Branding and messaging development – A concept note for a digital planned giving newsletter was developed to welcome new legacy donors, celebrate milestones, provide advice from featured financial experts, and spotlight events and exhibits at the Museum.

List of experts – A list of financial planners, CPAs, estate attorneys, and other experts was compiled. During the course of the project, many of the individuals listed were engaged to review materials and plans and provide feedback to the Museum. In the future, these individuals may be featured in the newsletter or invited to speak at seminars and other planned giving-focused events.

Creating the simple tools above as well as the talking points and communications plan to introduce them to potential donors were foundational steps in crafting what will undoubtedly be a strong planned giving program at Holocaust Museum LA. CCS looks forward to our continued partnership with HMLA as they embark on implementing and growing their planned giving program for the benefit of their donors and mission.

If you have questions about exploring gift planning work at your organization, please contact info@ccsfundraising.com.

In 2016, Michael Waldman, the visionary CEO of St. Paul JCC, sought CCS Fundraising out as a partner when the fundraising slowed on their Capital Campaign. The multi-million-dollar campaign was initiated to reimagine spaces, including a state-of-the-art performing arts center, aquatic center, fitness facilities, and a cultural arts wing. Together, the JCC and CCS created a plan to move the needle upwards from $7 million. By the end of 2017, more gifts were secured than imaginable, reaching $15 million. By the end of 2018, the total surpassed $16 million and membership had grown by 600 families. Today, the JCC is stronger than ever, having merged with another local JCC to form the Minnesota JCC with Michael at the helm. Brooke Laskin, Vice President at CCS, caught up with Michael Waldman to reflect on their partnership, Michael’s leadership, and the role of Jewish values in philanthropy.

Brooke: Can you believe it’s been more than five years since we worked shoulder-to-shoulder?

Michael: It’s flown by and the last pledges are being paid this year. We were fortunate that more than 99% of the funds pledged came to fruition!

Brooke: What an impressive rate of return. What do you credit it to?

Michael: Our donors, our friends, our community, our Jewish values. We are fortunate.

Brooke: Let’s talk a little about Jewish values. Like many, I learned how to swim at a JCC as a preschooler, but I also learned about the Jewish values of tzedakah (giving back) and tikkun olam (repairing the world) as a JCC preschooler.

Michael: These values are all about philanthropy – making the world a better place and doing acts of charity. We teach this early on at our early childhood centers, two camps (Butwin and Olami), and through our youth programming. What’s unique about the JCC is that we are guided by Jewish values and our campers and preschoolers are both Jewish and non-Jewish. We program through a Jewish lens, and create accessible ways for our youth to experience the act of giving on a local level to help them see what is right in front of them and then help them connect what they learn to a more global perspective. For example, why is it important to give to food banks? We didn’t just do a canned food drive to reach a goal and have pizza party– we did it because someone is going to eat those canned goods who otherwise may go hungry tonight. It’s important for kids in our community, who may never know what it is like to be hungry, to understand early on how to be better citizens of our community and world. While these are Jewish values, they are ultimately human values that relate to us all.

Brooke: Tell me a little about how you carry out these values in your own home and how they have been passed down from one generation to the next.

Michael: I looked at what my grandparents and parents instilled in family about giving back. While they didn’t have a lot of money, they still gave financially and through gifts of time. Today, my parents talk to my own two sons and their other grandchildren about giving annually. They tell each grandkid to research a nonprofit and they donate to the places the kids recommend. The giving has shifted from the zoo, to homeless shelters, to Alzheimer’s research, to cleaning up the ocean – whatever is on their minds as they grow up. It’s more than a teaching moment – it’s never been a question of why philanthropy is important because it is so ingrained.

*A group of adults take part in a Zumba class at the St. Paul JCC.*

Brooke: A passion for fundraising runs in your family!

Michael: My father was a social worker and, as he took on the role of an agency executive in the 1980s, that came with the role of fundraising. He started a comedy event at Jewish Family and Children’s Services to raise money, which was novel at the time. Today he is 81 and has retired three times. He keeps restarting at places to fundraise and is now helping a local Jewish overnight camp. He loves it and I am inspired by him.

Brooke: The JCC has persevered through a lot as a result of COVID. How have you adapted and grown as an organization?

Michael: We saw a growth in annual giving as a result of COVID. There was recognition of what the JCC means to people who are marginalized, such as those with disabilities or the elderly. Without the JCC, many were isolated from the community with no connections other than our staff that did outreach. For example, we adapted our programming so that, rather than having people come to the JCC for their meals, we delivered it right to them and created a kosher drive-through. On the fundraising side, we would never have asked people for money by Zoom before COVID, but now we find we can connect with more people more often using technology, and that is a good thing. That said, it’s still not the same as sitting at the table with someone or catching up in the parking lot after a board meeting. But we have found meaningful ways to continue to move relationships forward.

Fast forward to now, we had a $1.5 million deficit this year because we’ve dropped a main source of revenue as a result of the pandemic – membership. People weren’t coming in person. Less members means less classes, less campers, less personal training, and more. We dropped from 3,700 membership units to 1,400 during the pandemic and are now back up to 2,700. We set up the Gesher Initiative to bridge the difference. Gesher means “bridge” in Hebrew. Generous people who understand that the JCC must get through this are stepping up.

Brooke: How did combining with another JCC during COVID play into this all?

Michael: We had been exploring a combination effort ahead of the pandemic and we had a strong theory that combining would have both a positive programmatic and financial impact. Obviously, no one knew COVID was coming, but our hypothesis proved to be accurate—when resources got tight, we found important opportunities to be more efficient together. Significant planning and work by dedicated leaders had occurred ahead of the pandemic, and we were fortunate that the timing lined up.

Brooke: Any advice to other organizations considering merging?

Michael: Start with an open mind. Start by saying, “We think there might be value in combining. Let’s see if this is true.” It is critical to weigh all information and not solely focus on the financial aspect. The first step was asking, “Should we merge?” Then the next step was, “How?” We explored many different options and structures. In the end, we wound up forming two new entities—an operating JCC and a separate foundation that holds our endowments and real estate assets.

*Kids in a JCC program smile for a group picture in their life jackets.*

Brooke: It’s been awhile since I worked on your case for support. What’s your latest pitch?

Michael: Just as it’s always been—we change lives in ways large and small. We’re more than a place to exercise—we are a community. The purpose of the case is to help people understand that it’s all about what we do with revenue—through summer camping; early childhood education; supportive services; Jewish art, culture and enrichment; and of course, health and wellness, we ignite the human spirit and transform lives every day in ways big and small. We invest your money back into the community through scholarships, meal programs, programs for people with disabilities, and more. Everything we do is interfaith and welcoming to all that share our value of inclusion, and everything we do is done through the lens of Jewish values and culture. What other organization fights antisemitism by bringing people of all faiths together to have fun?

Brooke: I’m a JCC champion and I hope my annual fund gift, combined with other friends, will help the J persist for generations to come. Thanks for catching up, Michael.

This interview was adapted and edited for online article format.

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CCS Philanthropy Pulse

February 15, 2024

CCS’s annual Philanthropy Pulse report provides nonprofits with helpful data to navigate the ever-evolving philanthropic space.

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Building a Culture of Philanthropy

November 24, 2020

“Culture” is ubiquitous, although that does not mean it is easy to define. Instead, “culture” presents a challenge when we try to change it without buy-in from essential stakeholders. Understanding that every organisation has a particular culture, whether or not stakeholders acknowledge it, is crucial in formulating a fundraising strategy.

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Donor-advised funds—or “DAFs”—have firmly established themselves as a philanthropic vehicle in the donor toolbox. A recent special report from the Giving USA Foundation and the Indiana University Lilly School of Philanthropy highlights that “total grant dollars from DAF-sponsoring organizations […] nearly doubled from 2014 to 2018.” In 2019, grants from DAFs represented 6.1 percent of all dollars given to charitable organizations—up from 3.8 percent five years earlier—and have experienced a 90 percent net growth in grant dollars from 2014-2018.

In this two-part article, we will unpack:

The DAF ecosystem: how money moves through the system and the unique roles each type of sponsoring organization plays within that system.
The two DAF donor types are known and unknown. We will define DAF donor personas and outline strategies to engage each persona and increase investments in your organization more deeply.

“As DAF grantmaking continues to grow, it’s important for charities to understand how DAFs work and why donors use them. From what we’ve seen – both in our own work and elsewhere in the field – DAF donors seem to grant similarly to the ways highly affluent donors always have. DAF donors are likely to be similar to an organization’s other wealthy donors, with maybe a marginally greater desire for convenience or anonymity, and so similar fundraising strategies should be applicable,” said Jon Bergdoll, co-author of the report and Associate Director of Data Partnerships at the Indiana University Lilly Family School of Philanthropy.

How Do DAFs work?

To take advantage of this massive pool of charitable opportunities, veteran, green, and aspiring fundraisers across all sectors must understand not only what a DAF is but also how the DAF ecosystem operates. Knowing who the stakeholders are within that ecosystem and their roles and motivations enables fundraisers to design strategies targeted at DAF donors that will help drive philanthropic revenue to their organization’s mission.

How a DAF Operates

Note: lines indicate the flow of cash.

A chart showing how a Donor Advised Fund operates by showing the relationship between a Donor, their Donor Advised Fund that is operated by a sponsoring organization, and a 501(c)(3) nonprofit.

The donor contributes to a DAF of their choosing. A DAF is operated by a sponsoring organization: a public charity that establishes and maintains the DAF. Depending on the type of sponsoring organization that maintains the DAF, donors may transfer any number of asset classes to the DAF (e.g., cash, appreciated securities, cryptocurrency) and make the DAF a beneficiary of a trust, will or insurance policy.
The donor receives an immediate tax benefit at the time the donor transfers assets to the DAF (e.g., income tax deduction, capital gains tax avoidance). The donor’s assets will be invested while in the DAF with the goal of growing the donor’s philanthropic capacity, much like a typical investment portfolio. Depending on the type of DAF and the donor’s relationship with the sponsoring organization, the donor may have influence over how their contributions are invested and grown within the DAF.
Once the donor contributes to a DAF, they have officially made a charitable gift and no longer have control or ownership of the contributed funds. Rather, the donor will have advisory rights to recommend that grants be made from the DAF to a qualified charity of the donor’s choosing. DAF policies differ and may affect the timing of gifts, the amount of a gift, and the nonprofits that are allowed to receive grants.
Since the nonprofit grantee receives the actual gift from the DAF, not the original donor, the nonprofit grantee may or may not know the identity of the original donor. By their very nature, DAFs are a convenient way for donors to remain anonymous or difficult to identify (intentionally or unintentionally) through traditional research, which may present challenges to a nonprofit seeking to cultivate relationships with DAF donors and grow their fundraising revenue.

Donor-Advised Fund Ecosystem Stakeholders

With a baseline knowledge of how assets travel through the DAF ecosystem, we will now dive deeper into the distinct stakeholders that drive this ecosystem. When building your nonprofit’s fundraising strategies, consider the unique characteristics of each stakeholder and design targeted approaches to best leverage the opportunities DAFs present.

Tip: It is recommended that you research the DAF organizations that donors give through to your nonprofit and/or that your donor prospects utilize as their giving vehicle to better understand how your mission and work align with the policies and goals of the sponsoring organization. Armed with that knowledge, you can tailor your communications and show how your nonprofit will help the donor and the sponsoring organization meet their philanthropic goals.

Sponsoring Organizations

There are more than one thousand sponsoring organizations and over one million donor advised accounts in the United States as of 2020. There are three main types of sponsoring organizations with different goals, motivations, and often different policies and regulations: National/Commercial, Community Foundations, and Single-issue Charities. Within each subgroup, individual sponsoring organizations may have additional policies that are unique to that organization.

National or Commercial

Examples	Fidelity, Schwab, Vanguard
Market Share	61% of DAF grant dollars
Characteristics	Independent organizations often affiliated with a financial institution that typically provide a broad and national approach to grant making.

Single-issue Charities

Examples	Catholic Foundation, Jewish Federation, Stanford University
Market Share	13% of DAF grant dollars
Characteristics	Organizations with a targeted mission or philanthropic goal focused on a singular issue. Many university DAFs and DAFs housed at established nonprofits are considered single-issue charities.

Community Foundations

Examples	Silicon Valley Foundation, New York Community Trust, The Chicago Community Trust
Market Share	26% of DAF grant dollars
Characteristics	Noncommercial entities that are created for and by individuals within a geographic region, often with local expertise and insight into community needs.

How to Fundraise from DAFs

DAF donors are typically motivated to give through a DAF for several reasons, with three of the most common reasons being: (1) more control over tax benefits; (2) ease of the experience; and (3) ability to make secure, longer-term plans.

1. Tax Benefits

A donor receives tax benefits at the time they transfer assets into a DAF and not when a grant is made to a nonprofit from the DAF. Donors can decide when the tax environment is most advantageous to them and their financial plans. Donors can also avoid capital gains tax liability by deducting the full market value of their contributed assets (versus any gains they may make from selling those assets in the open market).

Donors who invest in cryptocurrency and seek to make a philanthropic investment with revenue generated from their crypto investments may find DAFs appealing as well; because the crypto market is so volatile, the donor can decide to transfer crypto assets into a DAF, and at an opportune time suggest a grant from their DAF to a charity of their choice when they are prepared to make that decision. In this way, the donor can maximize the amount of their philanthropic investment and mitigate any risks associated with the volatile crypto marketplace. There is more predictability and control over financial planning for many donors when using a DAF as the preferred method of giving.

Tip: While tax benefits are a motivating factor for many donors using DAFs, tax benefits in general remain a low priority for most donors in their decision to make a philanthropic gift.

2. Experience

Many DAF sponsors offer donors services such as access to online platforms that streamline record keeping and enable monitoring of their total philanthropic impact in one place. Others may offer the ability to research nonprofits, track the growth of their assets within the DAF, influence the DAF investment portfolio, name their DAF, and network with other DAF account holders (DAF accounts can be called “foundations” without having to comply with more strict regulations that apply to formal foundations). Sophisticated DAF sponsors can help donors liquidate assets and assist with complex asset donations. Commercial DAF sponsors may provide a one-stop shop for all of a donor’s financial planning needs (e.g., financial advising, portfolio management).

Tip: Because some DAF donors can influence DAF investments, your nonprofit may have multiple opportunities to benefit. Consider speaking with your DAF donors about recommending your organization as part of the DAF investment portfolio if your organization can produce financial returns.

3. Long-term Planning

As noted previously, a key benefit of using a DAF is asset growth while the philanthropic dollars remain in the DAF. Donors can plan for future philanthropic gifts at a level higher than they may be capable of making today. As a result, donors can better build their philanthropic strategy and vision that includes near, mid, and longer-term impact goals.

Additionally, DAFs can make estate planning a bit more seamless, giving donors the ability to name nonprofit beneficiaries of the DAF upon the donors’ passing. The average age for opening a DAF is 55 (an average that continues to skew younger); these individuals are likely contemplating their philanthropic legacies. Donors with families they hope to engage in shared philanthropy may also find DAFs appealing for this reason; donors can give family members advisory rights to their DAFs and name family members beneficiaries of their DAF, giving their beneficiaries a philanthropic platform that they can use to support their personal social impact goals into the future.

Every donor is unique, as are their philanthropic goals and motivations. However, these common motivators for using a DAF can help inform the way you discuss giving with your donors and prospects who use DAFs and enable new and creative ways to engage your donors in philanthropy.

Engagement strategies for DAF holders likely will not be as straightforward as those for more traditional donors. The complexity of the DAF ecosystem and its built-in anonymity prevents DAF holders from being easily identified as there are no DAF holder lists to tap into or databases to access. Instead, fundraisers need to emphasize:

The Unknown DAF Donor – curating your own list of potential DAF donors by determining who within your organization’s network uses a DAF
The Known DAF Donor – recognizing the best way to engage with those donors that are already known to use DAFs

Prospecting for the Unknown DAF Donor

While it may be difficult to identify which of your donors or prospects use DAFs, the following approaches are worth considering to help uncover DAF donors and prospects:

Survey your donor base periodically and ask them what their preferred giving vehicle is. Consider asking your donors directly whether they use a DAF as part of their philanthropic strategy.
Work with your Board (and other key stakeholders) – especially those who give through DAFs. Ask Board members to identify prospects they may know who use a DAF. This strategy translates to other high-level DAF donors who can be champions for your mission among their peers.
Create a “ways to give” page on your website that includes a separate section on DAFs and track traffic to that page. Consider sending targeted email outreach to groups of donors that highlight DAFs as a way to give to your nonprofit, and provide embedded links to your website that offer more information on this topic – those who click through are likely DAF donors (or future DAF donors).
Use other marketing technology, such as HubSpot and Pardot, that track an individual’s engagement with you and your content – through your emails, websites, calls, and other platforms – to gather additional data points on activity that may identify them as a DAF donor.
Identify local DAF organizations and review their Board, volunteer lists, and donor roles for likely DAF holders. Develop relationships with these organizations that may then be more likely to highlight your organization and its mission to their DAF holders.
For DAF donors who give to your organization anonymously through their sponsoring organization (it is estimated that fewer than 5 percent of DAF donors give anonymously), send stewardship materials to the sponsoring organization itself. Encourage representatives at the organization to share any stewardship materials and impact reports with that donor. Offer the donor (via the sponsoring organization) opportunities to remain anonymous to the public while engaging with your organization in special one-on-one conversations.

Tip: Many supporting organizations, particularly community foundations, also make grants directly from their operational and programmatic funding. Building relationships with these organizations can support potential grant opportunities with those supporting organizations beyond the DAF holders.

Leveraging the Known DAF Donors

In addition to traditional stewardship best practices, there are strategies you can build into your fundraising plans to fully leverage those donors that you know have and use a DAF. A few baseline recommendations include:

Accurately capture and track all information in your database or CRM so you know who has a DAF (use gift receipts from the sponsoring organizations and insights gleaned from the methods above).
Understand any restrictions and limitations that may exist for gifts from DAFs (e.g., no benefits of value can be provided, recognition is generally okay, allowance of pledges and pledge payments are dependent on sponsoring organizations and evolving IRS protocols/legislation). Educate your team and your board on these factors.
Consider sending DAF-specific appeals, mailings, or impact stories to donors and prospects you know give through DAFs or who you suspect may have a DAF.

There are also certain circumstances in which specific DAF donor persona types can be engaged to maximize philanthropic revenue.

DAF Donor Personas

The Loyal DAF Donor With Capacity to Give More

Characteristics	You know they use a DAF, but they give at your lower levels.
Effort	●○○
Opportunity	●●○
Tips for Success	Identify the sponsoring organization if possible. Research the minimum investment required and use that figure to help inform your target ask amount.

The Legacy DAF Donor Building Their Estate Plan

Characteristics	Older DAF donor whom you want to engage in a planned giving conversation and/or engage their family in your organization’s mission.
Effort	●●○
Opportunity	●●●
Tips for Success	Speak to the legacy of their gift and their longer-term impact on your organization. Ask questions to better understand their philanthropic mission and goals. Describe how your work addresses those goals. Invite their family to join in these conversations and attend events.

The Trusted DAF Donor to Turn to in Times of Need

Characteristics	Unforeseen circumstances happen — such as market crashes, socio-political uncertainty, and public health crises. Because DAF donors have already designated funds to philanthropy, these disruptions have less of an effect on their giving.
Effort	●○○
Opportunity	●●●
Tips for Success	Solicit DAF donors for incremental gifts, in times of crisis and uncertainty, that can provide your organization much-needed support. As your organization develops its strategic plan, review your DAF donor base (tracked in your CRM), and establish a contingency plan that leverages this group of donors and provides more future certainty.

Symbol Key	None	Low	Moderate	High
Effort: Time and resources needed to execute recommended strategies	○○○	●○○	●●○	●●●
Opportunity: Projected return on investment	○○○	●○○	●●○	●●●

The Bottom Line

Contributions to and grants from DAFs continue to grow at impressive rates, meaning that DAFs are likely to play an even more prominent role in philanthropy in the future than they do now. Testing and implementing new, targeted strategies that are informed by the DAF ecosystem can position you and your organization for sustainable growth and future success.

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Making the Case for Endowment at Your Independent School

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The COVID-19 pandemic and the fluctuating economy in the years since revealed how critical endowments are for the growth and sustainability of independent schools. Learn how to make the case for an endowment at your school with our concrete tactics.

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Proposals That Stand Out: Adding Financial Illustrations to Blended Gift Requests

April 25, 2024

Seeking gift strategies and tips for building effective proposals? Explore this on-demand video.

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Retirement assets continue to grow with $39.4 trillion held in the U.S. retirement market in 2021. By comparison, donor-advised funds (DAFs), which have garnered much publicity in recent years due to their steady increase in popularity with major donors, totaled $35 billion in 2020, three orders of magnitude less than retirement assets.

That bears repeating. There is 1,000 times more wealth in retirement assets than in DAF assets.

And yet, many fundraisers often overlook retirement assets, most of which are growing tax-free in Individual Retirement Plans and employer-based Defined Contribution Plans like 401(k)s, when discussing charitable giving options with donors.

To inspire transformational giving to nonprofits from one of the largest asset classes available, fundraisers should understand how donors might use their retirement assets for both philanthropic impact and personal financial advantage.

This article will explore:

The importance of gift planning culture
Favorable conditions and trends pointing towards future increases in philanthropic giving from retirement assets
Reasons why fundraisers may be hesitant to engage donors regarding retirement assets
Best practices for fundraisers to educate donors about the benefits of giving from retirement accounts.

Why Gift Planning Culture Is Important for All Nonprofits

A gift planning culture is an institutional commitment to donor-centric fundraising with an expanded focus on noncash assets. Fostering a culture of gift planning within a nonprofit offers myriad benefits to the organization and its donors. Importantly, it helps nonprofits create a more robust revenue pipeline in the short- and long-term. In many cases, noncash assets and deferred giving options allow donors to make their largest gifts to charity.

A planned gift is any current or future gift, made during a donor’s lifetime or at death, in consideration of a donor’s overall financial or estate planning. These gifts are holistic in scope and make use of all available gift types and both cash and noncash assets to help a donor make a personally meaningful gift.

The vast majority of household wealth in the U.S. (up to 97%) is held in noncash assets like stocks, real estate, art, businesses, and retirement assets, rather than in cash or checking accounts. Fundraisers must become more effective at transforming relationships with donors from transactional conversations about annual cash gifts to communicating the value of giving noncash assets during and after their lifetime. When this dialogue is more common between fundraisers and donors, the nonprofit can realize an elevated fulfillment of its mission in partnership with committed donors. These donors in turn can achieve their individual philanthropic and financial goals.

While gift planning is most frequently associated with helping Ultra High Net Worth (UHNW) donors diversify and maximize their philanthropic impact, it also provides new pathways for charitably inclined people at various levels of wealth by utilizing common assets like retirement plans.

Focus on Retirement Assets: Current Favorable Industry Trends

The current philanthropic landscape reflects strong market gains over the last forty years. One beneficiary of market growth is retirement assets, which have nearly tripled since 2000.

CCS is beginning to see evidence of the iceberg that is retirement account giving. Early evidence of growth in asset-based giving can be seen in the results from CCS’s Philanthropy Pulse survey. More than half of respondents expect their organization to secure more deferred gift commitments in 2022.

Promisingly, a majority of nonprofits we surveyed reported receiving gifts from noncash sources like donor-advised funds (80%), appreciated assets (61%), and bequests (57%).

CCS confirmed further evidence of the impending flood of giving via retirement assets as seen in the frequency rankings above. Gifts from retirement assets by beneficiary designation or IRA-qualified charitable distribution ranked as the fifth most popular gift type. This is higher than trusts, annuities, and life insurance. However, nearly double the number of survey respondents receive gifts from DAFs (80%) as compared to gifts from retirement plans (46%).

The frequency of gifts from retirement assets compared to DAFs in this survey highlights untapped opportunity in light of the value of these assets in the United States. While DAFs could indeed be funded with retirement assets, there remains remarkable potential for increased giving directly from retirement plans, from donors of varying capacity.

Even as CCS gained valuable insight from the nonprofits surveyed about positive shifts towards gift planning, results also showed untapped potential for nonprofit organizations to increase charitable giving from all types of noncash assets, including retirement assets.

Though the environment is promising for further diversification of donation-relevant assets, it's clear many nonprofits struggle to normalize and integrate noncash asset giving. So, how do fundraisers overcome barriers to engaging donors in gift planning conversations?

Addressing Fundraiser Hesitancy to Lean into Gift Planning

In CCS’s decades of experience, we have seen a few main reasons fundraisers are hesitant to lean into gift planning discussions with donors:

The nonprofit’s gift planning culture is underdeveloped and under-resourced.
The potential complexity of a planned giving strategy deters fundraisers who lack confidence in this type of fundraising.
The supporting systems and operations, including gift acceptance policies and database utilization, often need review and refinement.

Unsurprisingly, CCS’s Philanthropy Pulse survey results confirmed gift planning is the area in which fundraisers have the lowest self-assessed expertise. Nearly two-thirds of responding organizations (65%) felt that their fundraising staff members were only somewhat or not at all knowledgeable about gift planning.

Addressing these issues is relatively simple, though not easy, just as culture change is simple to understand and difficult to implement successfully. Ultimately, nonprofits will need to invest time and money in various mechanisms to institutionalize their gift planning culture.

Consider:

Leadership and staff training on the importance of gift planning culture and defining a role for everyone in this holistic method of fundraising
Consistent fundraiser professional development that includes conference attendance, webinars (many of which are free), reports and books, external speakers, etc.
A formal assessment of the nonprofit’s gift planning culture and systems to identify areas of strength, opportunity, growth, and development
Regular opportunities for fundraisers to convene and discuss planned giving strategies for specific donors at all stages of engagement

Taking a few hours per year to educate frontline fundraisers and nonprofit leaders on the basics of securing retirement assets as charitable gifts offers a win-win for both deepening relationships with donors and capturing a greater share of wealth held in noncash assets to impact an organization’s mission. Nonprofits can leverage gift planning to help donors act in their own best financial interests, whether that be mitigating tax burdens or providing an income stream, which positions organizations as impactful partners in their donors’ lives.

Growing Gift Planning with Donors

When organizations commit to building or deepening gift planning culture, it is important to bring donors along on this journey simultaneously. The Giving USA Foundation confirmed nearly half of donors with bequests (40%) learned of such estate planning options from a nonprofit, as opposed to their financial advisor or estate planning attorney. Therefore, fundraisers have an incredible opportunity to shape how a donor views their organization relative to their financial and philanthropic potential.

The CCS Gift Planning Practice Group suggests these quick tips and actionable steps for fundraisers to consider when exploring retirement plans as a giving vehicle with their donors.

Common retirement assets like IRAs and 401(k)s can be given to an organization during the donor’s lifetime or as part of an estate plan.
Any person at age 70.5 can gift up to $100,000 from an IRA to a qualified charity and have that amount satisfy any Required Minimum Distributions (RMDs). This gift will not be treated as a taxable distribution.
The new age at which individuals must begin initiating RMDs is 72. This change went into effect with the SECURE Act, signed into law in December 2019.
Donors who inherit an IRA must take distributions, even if the donor is not yet of retirement age. Donating those funds could help the donor avoid increased income tax liability and gain a charitable tax deduction.

Actionable Steps

Always encourage donors to consult with a tax expert when considering any proposals or gift requests to ensure the donor understands their tax liabilities and potential savings.
Identify potential and current donors who are 70.5+ years old, are currently giving from an IRA, or who may have inherited an IRA for a targeted conversation.
Plan messaging to donors early in the new year to let them know that your organization accepts gifts from retirement plans. This benefits the donor in two ways:
- The donor can avoid the IRS penalty if the distribution deadline was missed.
- The donor can capitalize on investment gains such as higher-yield dividend payments that generally occur at the end of Q4 (December 31st).
Ensure your organization’s EIN and other details are easily accessible on your website.
Build in giving from IRAs and other retirement plans into conversation talking points and proposals.
If a donor wants to leave either a specific dollar amount or a percentage of the total assets of their retirement plan to your organization, they first need to check with their plan administrator to ensure that such a beneficiary designation is allowed.

What’s Next?

With a reasonable investment of time and strategy, many more nonprofits can strategically expand their opportunity to secure these simple yet impactful gifts of retirement assets.

On March 29, 2022, the U.S. House of Representatives passed SECURE 2.0, and it’s expected that the U.S. Senate will act on this bill in the coming months. The Senate is basing its bill on the Retirement Savings and Security Act of 2021, so between the two drafts, it is possible there will be significant changes to the funding and disbursement of retirement accounts. Of particular interest to fundraisers is the potential to increase the age of Required Minimum Distributions from age 72 to 75 over the next 10 years.

This piece has been prepared for informational purposes only and is not to be construed as legal or tax advice. Individuals should consult their lawyer, accountant, or tax advisor with regard to such matters.

Exploring gift planning?

If you or your fundraising team is looking to increase your knowledge, planning, and execution in gift planning, CCS Fundraising offers a wide range of services to meet your needs and interests.

Meet the Authors

This article was written by members of CCS’s Gift Planning Practice Group.

Christopher Dake

CCS Alum

M. Angel Flores

Senior Vice President

Christianna Robertson

Senior Vice President

Dominic Pepper

CCS Alum

Anne Thomas

CCS Alum

At CCS, we often hear from our nonprofit clients that gift officers have little interest in considering small donors as potential major gift prospects. At first glance, the chances seem slim that a donor who just gave $50 will go on to give $50,000. However, upon closer analysis of an organization’s donor data, we often find that a meaningful number of major donors started out by giving a gift under $250.

CCS has developed proprietary coding to analyze the major donor pathway and discover how small donors were converted to major donors in the past. The charts below demonstrate the results of a recent major donor pathway analysis we completed with a human service organization, which answered three key questions:

How many of the organization’s major donors started out as smaller donors?
How long does it take to convert a small donor to a major donor?
What is the relationship between the size of the donor’s first gift and the time it takes to convert to a major donor?

How Many Major Donors Started Out Small?

This human service organization defines a major gift as a donation of $25,000 or more. Upon completing our analysis, CCS found that among the organization’s 732 major donors, 213 started with a first gift of less than $250. That means that almost 1 in 3 major donors were acquired as rather small donors.

This chart demonstrates that smaller donors should not automatically be ignored as potential major gift prospects if other evidence suggests that they could upgrade to the major giving level.

How Long Did It Take to Convert Small Donors to Major Donors?

The following chart shows how many years it took for each of the 732 donors to start giving at the $25,000+ level. We learned that it can take quite some time for small donors to convert to major donors:

Approximately 48% of today’s major donors took at least five years to start giving major gifts
Approximately 33% took at least 10 years
Approximately 7% took more than 20 years

There are many reasons why it may take small donors years to start giving at a higher level. Some donors may have taken years to generate enough wealth to make a major gift. Others may have had the capacity for major giving earlier but were not yet solicited. Fundraisers may interpret this chart as evidence that major gift asks should be made sooner for some compelling prospects, looking to “slide this chart to the left.”

What Is the Relationship Between the First Gift Size and the Time It Takes to Give a Major Gift?

In our analysis, CCS found that the smaller a donor’s first gift, the longer it took for them to give a major gift. Nevertheless, 1 in 10 donors who converted to a major donor within three years started with a gift of $100 or less.

This analysis proves that this human service organization had small donors with major gift potential. The next question is “which of today’s small donors are the most likely to become major donors, like the 200+ who did so in the past?”

To understand which small donors have the potential to convert, CCS pairs major donor pathway analysis with predictive modeling. Predictive modeling uses a variety of donor characteristics to forecast which donors are likely to give a large gift to the organization, resulting in an actionable list of prospects for gift officers to further qualify and cultivate.

As a result of understanding how small donors can become major donors, nonprofits can uncover new prospects for making transformational gifts.

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