Recently I flew back from Detroit, Michigan after spending a weekend speaking four times for two of our charity clients. Detroit, as you know, has for some time borne the brunt of both the auto industry slow-down and other demographic trends that find baby boomers and others moving to warmer southern states with healthier economies. This leaves the faithful few in Detroit to pick up the slack and try to make the best of it. What I found in my three days there was a realistic but none-the-less determined and even upbeat attitude among believers who serve as leadership at a board or staff level of these two charity clients. And, perhaps most surprising was the affirmation I received from three donors who resonated with my discussion of the "Big Jar."
If you have heard me speak in the last couple of years, you'll recognize the "Big Jar" concept. The average American has 9% of his/her net worth in cash, but 91% in assets. We in the non profit community tend to focus an inordinate amount of time raising money for our various missions from this 9%, i.e., the "Small Jar". And, we pay virtually no attention to where the real assets are.
The reason for this is that most of those assets are illiquid and inaccessible for today's budget needs. They are things like home equity, life insurance death benefit and IRAs. But in every database there are going to be a few donors who have a family owned business or an apartment building or a farm or ranch-an asset like Barnabas had in Acts 4:36-37, who elected to "sell a field he owned" and use it for charitable purposes.
PhilanthroCorp has witnessed and encouraged this kind of asset based giving for years. However, a recent study by VIP Forum has encouraged us to step up and become more proactive in helping our charity clients to encourage gifts of assets from their donors.
Well, back to Detroit. What I found this weekend was three donors of these two organizations who came up to me after my presentations and said, "Please call me. I have 'such-and-such' a situation that may be ideal for a current gift using assets." These assets might be stock in a family business or a piece of developed real estate, etc. We will be following up with these people this week and before year end, hope to serve them by reducing capital gain taxes, creating income tax deductions and perhaps most significantly, giving them the joy of making a contribution to their cherished nonprofits out of the "Big Jar."
While I was on the plane, I read in the Monday, September 22nd Wall Street Journal, an article entitled "Nonprofits Brace for Slow Down in Giving". (http://wsj.com/article/SB122204616120361673.html.) In the midst of all the recent turmoil on Wall Street charities, according to this article, "also are gearing up to tap their wealthy board members and other well off supporters for extra cash". Note that, "extra cash". Let's get more money out of that "small jar" and pay no attention at all to the "Big Jar." My point here is that if in an economy as depressed as Detroit we can have three donors step up and say, "Hey, I've got an asset, I've got a family business, I have some real estate that could make an ideal current gift with tax benefits for my family and a valuable new resource for my charity"…can't this happen all over America? Of course, it can.
Later in the article, Gordon Campbell, President and Chief Executive of the United Way of New York City says, "There will be fewer dollars coming in the doors. There needs to be thought given to strategic alliances, partnerships, back office consolidation, mergers and acquisitions. In many ways it's a variation of what is going on Wall Street." Well, I agree with Mr. Campbell on much of this, but I think he is missing the most significant point. That is, helping donors understand how to give out of the "Big Jar."
PhilanthroCorp is the leading organization in America helping charities understand and implement a strategy that can surface donors who, for the first time, understand how to give out of the "Big Jar." If for whatever reason this hasn't hit your radar yet, please send me an email today.
The fourth quarter is the very best time to communicate "Big Jar" gift possibilities. We would like to help you any way we can. Even one "Big Jar" gift by year end could result in a six figure or even seven figure bump to your financial statement, not to mention some significant tax or wealth transfer benefits for your donor.
For the Kingdom,
Greg Ring