“Tsunami aid tops $3 billion.” – CNN.com 

Germany Responds to Tsunami Disaster With $660 Million – Nytimes.com 

Prime Minister says Canada’s aid could be ‘much greater’ than $80 million – cbc.ca/news

These are just a sampling of some of the headlines outlining relief efforts following the horrific events of December 26. 2004.  According to United Nations estimates, more than 150,000 people died in the Dec. 26, 2004 earthquake and tsunami in the Indian Ocean off the coast of Indonesia. 

An outpouring of public support across the globe including donations to disaster relief funds, gifts of food, water and clothing as well as relief workers to aid those affected has occurred in epic proportions.  More than $163 million in the U.S. and more than $70 million in Canada have already been donated.

By Ron Fairchild, CFRE, President and CEO, DVA Navion

When I was asked to write this article about international fundraising, I had some initial thoughts about how I wanted it to unfold – and then one the world’s worst natural disasters hit. The year 2004 will forever be marked for the pain and suffering that has been caused by the Tsunami. In the wake of this tragedy, the world has responded. At the time of this writing, unprecedented levels of support have already been received and if it continues will dwarf other disaster relief funds by a substantial margin. Without question the “Americas”, like many other parts of the world have enthusiastically jumped in to help the victims. Financial aid and volunteer support has been rapid and substantial. But will this outpouring of support to this particular crisis, forever change the face of philanthropy in the world? Time will tell. If history repeats, there will be an initial rush and then a fall back to complacency once the crisis is perceived to be over.  

But is the world changing towards an enlightened view that recognizes the need for ongoing philanthropy beyond the immediacy of a crisis? I believe there are signs that indicate we are at the edge of a global awakening to the need for philanthropy.

To read more about the Tsunami Disaster, Will this Change the World of Fundraising? Click here.

How the Job is Changing By Ken Ramsay, Legacy Leaders

The Planned Giving landscape is changing rapidly. How will practitioners have to change to be successful as the profession evolves?

The Challenge 

In the last issue of the Pulse, numerous industry leaders speculated on the trends of the Planned Giving industry over the next decade. Debra Ashton spoke about increasing government oversight and the need for successful charities to expand their Planned Giving programs. Judith Nichols stressed the increasing need to market more proactively and smarter as well as the rising challenge of ethical issues. Frank Minton mentioned the heightened competition for gifts and the ever-changing landscape of tax regulations in Canada and the U.S., in particular, the potential repeal or modification of estate tax.  I wrote about the internal forces “pulling” the profession to produce more and be more accountable and the external forces “pushing” Gift Planning to consider third party providers and to observe the “commoditization” of planned giving products – marketing of planned giving vehicles through new distribution channels. What effect will these trends have on the job of the Gift Planner (GP)?

The Job 

The job of the accomplished Gift Planner has always been one of the most challenging in fundraising. This challenge results from an unusual juxtaposition of intricate skill sets. The GP must be proficient in the following:

• Understanding of the technical side of our business and keeping abreast of the ongoing evolution of tax and regulatory rules and interpretations.

• Managing a complex business with sophisticated policies and procedures and ongoing administration of long-term gift arrangements and relationships.

• Marketing effectively, sometimes complex and always emotional, messages to a wide variety of potential donors.

• Relating personally in a highly ethical manner, one-on-one with affiliated professionals and individuals who are frequently elderly. 

All of the above must be done in a very professional manner and imbued with a real and heart-felt feeling for the mission of the organization. Quite a list - and all encompassed in one individual! Not only are these skill sets diverse but they also put side-by-side, unusual attributes – technical skill with the ability to have deep human interrelationship; sophisticated administration with creative marketing.  However, what will happen if the stakes get raised as our industry leaders forecast?

To read more about the Evolution of the Gift Planner, click here.

By Todd Cohen

Reprinted with permission of Philanthropy Journal at www.philanthropyjournal.com 

To help finance its move into producing its own television programming in addition to marketing satellite time to other television ministries, The Inspiration Networks in Charlotte, N.C., two years ago launched a planned-giving office. 

Like many nonprofits, the nonprofit network of 1,600 cable systems began its planned-giving operation with a "legacy" program, with consultant Robert F. Sharp in Memphis, Tenn., providing marketing materials about bequests. 

The TV ministry has added a charitable gift-annuity program, and with Wachovia Charitable Services handling investment of the funds, distributing checks, filing tax reports, and making sure the annuities meet IRS and state requirements, says Chuck Phelps, the ministry's director of stewardship and planned giving.

Do You Need to Outsource?

The Secret to Your Organization's Success: Do You Need to Outsource?  Reprinted with the kind permission of Charity Times www.charitytimes.com.

The choice as to which outsourcing partner to select cannot be taken lightly, as many of the services usually involved are central to an organization's success.

Like many commercial organizations, charities are increasingly looking to outsource third party services in a bid to reduce costs, attract new sponsors and increase both the amount and quality of benefits available to their members. There is a near endless queue of agencies claiming to offer a perfect union, but despite this apparent multitude of choice, many charities are still finding it difficult to find a suitable partner. It can be hard to differentiate between the merits of service providers and the final decision unfortunately too often boils down to a financial one. The choice as to which outsourcing partner to select, however, cannot be taken lightly, as many of the services usually involved are central to an organization's success. The aim of the guide below is to clearly layout the factors that need to be taken into account during the selection process, and hopefully make the decision that little bit simpler.

To read the five point guide for charities Considering Outsourcing, click here.

By Michael J. Rosen, CFRE

Capitol Hill watchers in the United States anticipate that President George Bush will call for a permanent repeal of the estate tax as part of his overall tax reform plan that will go before the new Congress.  When the White House first raised the issue in 2001, the non-profit sector debated the impact that the measure would have on philanthropy. However, the sector never reached a consensus and, therefore, the debate rages on. Fortunately, regardless of which way the new Congress decides the issue, there are three simple things every non-profit can do to maximize planned giving results. 

Double Taxation? 

The estate tax in the U.S. is being phased out through 2010. However, without further action from Congress, the so-called death tax will be fully reinstated in 2011. Those favoring the elimination of the estate tax argue that Congress created it to pay for World War I and that the tax has long since outlived its original intended purpose. They further argue that the tax often amounts to a double taxation of assets since individuals paid tax when they first earned the money. In addition, proponents of elimination say that many small businesses and family farms suffer because of the tax, since heirs inherit an ongoing business, rather than the cash necessary to pay the tax on the value of the business.

To read more about the Estate Tax and 3 Must Dos for Gift Planners, click here.

The Benefits and What to Ask Potential Providers.

The Planned Giving Pulse interviewed Michael J. Rosen, CFRE, about outsourcing planned giving.  How does an organization determine if they should be outsourcing planned giving, and what should they be asking potential providers? 

Michael J. Rosen, CFRE, is Executive VP of Client Development at Legacy Leaders in Philadelphia and Toronto.  In addition to being a frequent speaker at conferences, Michael was an independent fundraising consultant and the co-founder and co-owner of The Development Center, a pioneering direct mail telefundraising company (1982-1997).  

Pulse:  How do you determine if you should be outsourcing your planned giving program? 

Rosen:  If you are able to have effective face-to-face conversations with all of your prospective planned gift donors, either directly or with one of your key volunteer leaders, then you may not need to outsource.   On the other hand, if you are unable to do that with everyone you should be talking with, and/or if you are not confident that those conversations are the most effective that they could be, then you need to consider seeking assistance from the outside.

To read more, click here.