Trendwatch | Seven Planned Giving Lessons from a Walnut Grove

In Missouri, they call black walnut trees Ozark Black Gold. A hard, durable and very beautiful
wood, walnut is in great demand. However, walnut trees take time – and lots of it – to grow to
usable dimensions — not just years, but decades. Furthermore, there is a fair amount of work
involved. But the rewards make growing walnut worth the time and effort.

Does that sound familiar? Walnut groves and gifts by bequest have a great deal in common.
Both take time to mature; the rewards often take years to materialize. But when the time
comes, the rewards are worth the wait.

There are many lessons planned giving specialists can learn from walnut groves (especially
when they use solid planned giving research as a reality check).

Lesson 1: Pick the right spot. For walnut farmers, it's an area with enough moisture, but well
drained, and moderate temperatures. For planned giving specialists, the place to look for
success is the annual gift list. Every donor who has made repetitive annual gifts should be
considered as a bequest prospect.

We can hear you asking now, "That's a pretty large group of people. How can we possibly work
with all of them with our limited staff?" Thank you, that leads us to …

Lesson 2: Learn to recognize the trees most likely to grow. Even the best land will only support
so many trees, so the good farmer focuses attention on the most likely to grow. The farmer
must learn to quickly identify potential. A productive planned giving program also needs a way
to sort prospects in order to make the best investment of time and effort. A solid, constantly
refined database marketing program that gets donors with high potential to raise their hands
delivers that capability.

Lesson 3: "Plant and forget" is not a good plan. Neglect doesn't work for walnuts, and it won't
generate planned gifts. Consider a thoughtful cultivation program that includes information as
well as "asks." What information? Certainly you want to let donors know how gift money is
being used. Information on giving options and regulatory changes that might affect their plans
are also helpful. And it is hard to say "thank you" and "we appreciate you" too often.

Lesson 4: You don't always know what you've got. In the walnut grove, the actual yield may
differ from expectations, better or worse. A similar situation exists with planned giving, except
that the potential for "better" is very high. Yes, you'll have immediate knowledge of certain
gifts such as charitable gift annuities, but research suggests that you will know about only one
in four gifts by bequest. Now, if only your walnut grove would deliver such pleasant surprises.

Lesson 5: Patience is a virtue. Unlike the wheat farmer, who plants and harvests within a
period of a few months, the walnut grower waits 20-30 years. While planned givers once
considered the likely period being the making of a bequest and its distribution, evidence
suggests that the average interval may be getting longer. Why? Several research studies
indicate that people are making wills earlier than previously thought, and a recent program
managed by Gabriel Group was very consistent on this point. That's not all — life expectancy
is rising. While you may have to wait longer for planned gifts, like walnut trees yield walnuts
every year, your donors also yield annual "crops"…and your bequest donors will very likely
remain as solid, reliable annual gift donors throughout their lives.

Lesson 6: Respect the differences. There are many varieties of walnut trees, and even more
among donors. Some want to be recognized publicly; others want their gifts to be private.
Some give for purely philanthropic motives; others want to know the financial advantages of
their gifts. While research indicates donors are unlikely to remove a charitable cause from their
wills, some want to keep the right to change. Make sure donor preferences are recorded, so
your associates and successors know to take as good care of them as you do.

Lesson 7: Make the best possible use of your resources. Your resources are your team and
your tools. Growing lumber and growing gifts is a team effort, so take the time to reach out to
yours. Make sure your board knows that building planned gifts is one of their commitments;
then work out a plan that helps them do an effective and fulfilling job of it. Volunteers can be
both prospects and scouts. Develop a trustworthy network of marketing and database partners,
and learn from their experience. Finally, see that you have good tools, beginning with a good
internal database and contact manager.

A Final Thought: There are billions of dollars at stake. In 2008, reported bequests totaled
$22.66 billion. Most of these gifts were designated years ago, and many of them were the
result of thoughtful cultivation by professionals who were willing to invest their time and efforts
to build a solid future for their organizations.

Sources:
Giving USA, a publication of the Giving USA Foundation, researched and written by the
Center on Philanthropy at Indiana University

Planned Giving Depth Interview Report, commissioned by Gabriel Group for The Salvation Army
Eastern Territory

Mirren, Kathryn, Asking the Right Questions: The Metrics and Mysteries of Planned
Giving Indiana University School of Philanthropy, 2008 Bank of America Study of High
Net Worth Giving

About the Authors

William Ziercher
Vision Leader and Chairman
As Vision Leader, Bill taps into his deep knowledge of marketing to produce forward-thinking
plans for both the company and its clients. His resume includes founding The Sterling
Companies, which his team built from start-up to $30 million in sales in a little over a decade
then sold and subsequently founded a business consulting group, prior to becoming an owner
of Gabriel Group.

Bill has received numerous awards for excellence in business and direct marketing including
Direct Marketer of the Year from the Direct Marketing Association of St. Louis, and Young
Entrepreneur of the Year. He also participates in a variety of community affairs, as a trustee,
advisor and board member for several nonprofit and Christian organizations. He has a BSBA
from the University of Missouri and has completed studies at MIT.

Elsie L. Listrom, CFRE
Vice President
Elsie is Vice President of Gabriel Group's Nonprofit Division and has more than 20 years of
direct fundraising experience with nonprofit organizations across the country.

At Gabriel Group, she has developed and trained a team of fundraising professionals who bring
their clients practical, results-driven fundraising solutions. Under her leadership, the nonprofit
division has quadrupled in size and has become nationally recognized for its strategic use of
database analytics to foster renewal and upgrade of donors. Prior to joining Gabriel Group in
November 1994, Elsie served as Director of Development with the Missouri Historical Society;
Director of Development for the Society for the Performing Arts in Houston, Texas; and at the
University of Houston Foundation; San Diego State University and her alma mater Minnesota
State University at Moorhead.

Renee L. Durnin, CFRE
Director, Nonprofit Services
Renee joined Gabriel Group in 2006 as Director of Nonprofit Services heading up the company's
Salvation Army team. Additionally, she is responsible for onboarding new fundraising clients
and developing production processes for Gabriel Group's Nonprofit Division.

Renee is a direct marketing professional with more than fourteen years of industry experience
specializing on accounts such as the National Multiple Sclerosis Society, San Diego
Zoological Society, Smithsonian Contributing Membership, The Interfaith Alliance and
Elizabeth Glaser Pediatric AIDS Foundation. She has extensive knowledge of all phases
of the production process.

She graduated magna cum laude from Truman State University in Missouri.

About Gabriel Group
Gabriel Group is a full-service fundraising company engaged in smart deployment of traditional
and emerging technology tools. The company serves its clients needs across the spectrum
of opportunities — acquisition; retention and upgrade; annual, major and planned giving
campaigns; and fulfillment.

For more information on Gabriel Group's work for nonprofits, please call or email Elsie Listrom,
CFRE, Vice President at 314-743-5710 or elsiel@gabrielgr.com.