What Type of Donor Are You?
In Part 1 of our 2-part series, we introduced you to three Donor Types and offered creative solutions to help donors make decisions that will ensure their gifts have maximum impact.
Philanthropy is serious business and most satisfying when infused with passion and purpose.
In Part 1 you met:
A. The “I want to make an impact” donor,
B. The “I’m running out of time” donor,
C. The “I’ll worry about it later” donor.
We now introduce two additional Donor Types, along with a methodology for each, to demonstrate how strategic charitable giving can be realized.
Type D: I WANT GIVING TO BE EASY
Scenario:
A donor with moderate capacity wishes to make a one-time gift but is overwhelmed by the number of requests. The donor wishes to remain anonymous, and wants the gift today to have a meaningful and lasting impact.
Process:
Our first step involves thoughtful discussion to determine the donor’s passions and priorities for giving. The donor then provides the gift amount and nature of the gift (i.e.. cash, appreciated stock). We then look at the work of agencies in sectors of interest and options for giving. To help preserve anonymity we provide options such as establishing a Donor Advised Fund (DAF).
Data Collection:
R&D Philanthropy researches, evaluates programs or projects that meet the gift amount objectives within each of the sectors of interest. We talk directly with those at agencies of interest to target opportunities. We create a Gift Options Report that is reviewed with the donor. As needed, we expand the options and provide additional reports.
Next Steps:
We work with the agency/program of interest to finalize a recommendation then facilitate the establishment of a Donor Advised Fund that meets the specific criteria. On behalf of the donor, R&D can receive and provide progress reports related to the gift. The donor has the option of continuing to use the DAF for future giving.
Outcome:
By thinking strategically, the donor is able to make timely decisions and be proud of the charitable giving knowing that the gift is being used in the way it was intended.
Type E: IT’S FOR THE NEXTGEN, MAYBE..
Scenario:
Mom and Pop established and run a family business. They always give charity and do their taxes on time. They have never done any strategic tax or estate planning thinking that the next generation will simply take over. But as they near the age of retirement, with 3 grown children now raising their own families, the parents are asking themselves – “what’s next?”
Process:
R&D Philanthropy begins a process to investigate the different decision makers interests and how they will and make decisions. Once everyone agrees, they can consult their own professionals or we can help connect them with legal, tax and estate planning professionals to offer estate and tax planning options that include reducing tax liability, preserving assets for the next generation and the potential use of life insurance to fund a major legacy gift that may otherwise not be possible.
We interface with representatives of charities of their choice to initiate a new project or fund an existing one with an appropriate naming opportunity. We work with the charity to structure a donor agreement that will ensure that the desires of the donor match the needs of the charity and that any future gifts will be applied as was intended.
Outcome:
With good philanthropic tax-advantaged planning, the family will be able to fund a named capital project and establish an endowment to ensure that funds will be available every year to support the project.
CONCLUSION
At R&D Philanthropy, we, the individual or family members, and the professional advisors, work as a philanthropic team to ensure that whatever your Donor Type, you can find financial and philanthropic fulfillment today and tomorrow.
We encourage you to reflect on your giving and if you identify with one (or more) of the 5 Donor Types, it’s time to connect.