Are You Harnessing the Power of Noncash Assets?
It’s time to stop chasing the cash donations and ask for noncash assets. That’s what Russell James said at the recent CGP 2024 conference.
Why should you pursue noncash gifts?
According to James, less than 3 percent of people’s wealth is in cash. If you only chase cash gifts, you’re limiting the possible gift size to that 3% of wealth. If you ask for assets, on the other hand, you open the door for a much larger gift from a much larger pool of wealth, including real estate, securities, etc.
But money isn’t just about numbers. It’s about feelings. People feel differently about different types of money. Wealthy people like to hold wealth. What type of philanthropy allows donors to hold wealth and be charitable? Most planned giving vehicles.
As soon as someone has committed to a legacy gift, there is an average 75% increase in annual charitable giving. What causes that change? Psychologically, their philanthropy has changed from giving from their disposable income to giving from their wealth.
So how do you go about asking for noncash gifts?
The best way to get to know how your donor feels about their money, their wealth, and the legacy they want to build with it is—you guessed it—talking to the donor. No big surprise there, it’s all in the relationship.
James suggests you tell prospects some donor stories—be inspirational. This opens the door to say “You remind me of another donor. He was in a similar situation. I remember he used some creative planning. It avoided taxes and helped him make a big impact. Would you mind if I put together some ideas for you to look at?” The goal of the first conversation should be to get permission from the donor to share valuable options at the next meeting.
But with a donor base of 5,000, or 20,000, or 100,000, it’s just not possible to get to everyone, right?
Actually, it’s very possible. If you want to know more about how you can scale your conversations to a wide swath of donors, introduce them to noncash giving, and still get to know their hearts, Canopy can help! Contact us today.