by Barbara Barron | Posted September 30th, 2020

In the world of advancement, there are plenty of truisms and myths. Some are accurate — “People give because they are asked.” Or, said in the converse, “If you don’t ask, you won’t receive a gift.”

Some are wrong — “People give because they are looking for a tax deduction.”

Nope. Not true.

Giving is rarely about taxes. In fact, even during years when most tax benefits have been drastically reduced or even eliminated, the giving goes on. Something like 95% of Americans give charitably — somewhere. Historically, religious and educational organizations have topped the list. But people give to everything from animal rights to performing arts to social services. It’s a beautiful thing. In good times and bad, people give. We give to causes that touch our hearts.

(Small digression: I recently saw the stats on a crowdsource campaign for Breonna Taylor: Goal was $500k. So far, it has raised over $6 million from 205,000+ donors. Wow!) [Here’s the link if you haven’t given already.]

My point is that we give because we are inspired by inspiring missions. We give because we want to help make life better for other people. We give because we – in particular we Americans – have a philanthropic streak. Regardless of what you might think in our cynical times, statistically speaking, we are actually charitable people.

Kinda nice, right? Especially right now.

That said, in this time of COVID, there are some new and important elements of the stimulus package that directly affect the tax code and may positively impact charitable giving. And while perfect strangers are not suddenly going to send big checks to our schools, it is important to be sure our donors know how these changes may affect them.

It is part of our responsibility as advancement pros and stewards of donors’ gifts to be educated about how they work. It is also our responsibly to be sure we are communicating the details fluently to our community.

So, what are the basics? The first one is targeted to our largest donors. Our giving leaders.

The previous 60% adjusted gross income limit for individual charitable contributions has been suspended for 2020.

That means that the limit that allowed someone to give up to 60% of one’s adjusted gross income as a charitable deduction no longer exists. No matter how much they give.

So, for donors in this calendar year (2020), all cash contributions are now fully deductible. That might make a real difference for some and perhaps make it appealing for donors to give even more this calendar year.

The second change affects everyone but especially more modest donors. Perhaps younger alumni.

A tax filer who does not itemize their deductions – which is a lot of people – can now take a one-time deduction of up to $300 for cash gifts made to charitable organizations.

The provision is intended only for the year 2020; but in the text of the bill, it reads “taxable years beginning in 2020 …” and since it doesn’t include a sunset date, it is conceivable that it might extend beyond 2020. We don’t know that, but it is possible. Strike while this iron is hot.

Important to note that both deductions are only for gifts of cash made in the calendar year 2020. This does not cover other types of gifts or contributions made by donor-advised funds or private foundations.

So larger donors will realize a greater benefit and might be interested in making a larger gift.

Smaller donors, maybe some first-timers, will be able to deduct the cash gift up to $300 even if they don’t itemize.

Good news in this tough moment, all around. 

What can and should we do about all this? I believe it is our responsibility to fully understand these changes and what they can mean for our schools. That means:

• We ought to read the literature. 

• Talk it through with our school’s CFO so our offices are aligned. (Start by forwarding this article to them.)

• Look for ways to share the information with our giving community. Pop it up on the website. Include it in the newsletter.

• Be sure our Board and other volunteers and ambassadors in our school who talk with families about giving are fully versed.

Most of us are not financial experts and we must always remind our donors to check with their personal financial advisors to understand the implications of any gift. But it is our role to make people aware of the possibilities that lie in this moment.

In the end, this will never be the reason people give. Like I said at the top of this article, people will give because they believe in our mission. They care about our teachers. They love our community.

But let’s not take for granted the value of helpful information in an uncertain and scary time. By understanding it and sharing it clearly, you are showing your donors that you are on it. You are a trusted advisor. One more reason to have confidence in your fine organization.

Thank you for all you’re doing.  Let’s stay in contact.

More articles:

• 
  How Can You Set Yourself Up So That Next Fall is a Huge Success?
• 
  Metrics That Matter vs. Metrics That Don’t
• 
  What is Your Brand?
• 
  Success Story #2
• 
  The Steps We Skip
• 
  What if Fundraising Was Really about Creating Donor Joy?

The post How Do the Recent Tax Changes Impact Giving? appeared first on Barbara Barron.

by Barbara Barron | Posted September 12th, 2018

Let me start this by asking you a question: how many big asks have you made today?

“Well, Barbara, I asked my favorite barista Chloe for a little less foam on my latte, and then I asked Jason to re-send that e-mail he sent yesterday because it didn’t show up…”

I’m being silly here. Clearly, I mean big, as in, important asks. How many times today have you picked up the phone and asked a parent to give?

I imagine that most of us would answer with a big fat goose egg. Which is okay, honestly. There are likely a dozen reasons why. I’m not here to judge. Really. Rather, I’d like to pose a question to you:

Why, even though it’s our job to raise money for our schools, do we spend much of our time not actually asking for donations?

The answer?

Because asking is hard.

That’s right. Asking is hard. It’s tough to put yourself out there. I love it, personally, but that doesn’t mean I think it’s easy.

Here’s the thing: we naturally avoid hard things in our day-to-day. It’s very easy to stack our agendas with everything but asking.

But asking is what we should be doing. You and I both know that.

So how do we make what is always going to be hard to do, a little less painful?

I believe the solution is always in approaching it with confidence.

“Okay, Barbara. I’ll agree that confidence would help, but I can’t just magically become more confident…”

Sure you can! And there’s only one way to do it.

Do it regularly.

The reason we feel unsure is that we are out of practice.

So start by resolving to make a call with an ask every morning.

Have you subscribed to the newsletter yet? It only takes a minute.

First thing you do after you’ve had your coffee and have your wits about you. Can’t be an email. Has to be a call.

Can you agree to that? Write it down on a post it. Slap it on the monitor.

One ask every morning

I’m going to double down here: Make the most important call first. Just do it. I bet you’ll ride the wave of energy from that for hours!

See, it’s not just the best part of the job, it’s the most effective part – even if you aren’t feeling it. In every profession, whether you’re a cop or an attorney or a dentist or an airline pilot – there are parts of the job that are routine and easy, and aspects of them that no layperson can really do. That’s what makes them professions. Right? Right.

So, for us development professionals, the hardest part of the job is the ask. The fear of rejection exists in all of us – even those who don’t outwardly show it.

But it’s also the job.

Sometimes it takes extraordinary circumstances to see where you really thrive. Several years ago I worked at a school and for about six months solid, we worked to complete a major capital campaign. During that period, I routinely had as many as three big asks a day. My Head of School felt like he was about to collapse, but I was buzzing – even during my off hours.

I discovered that that was my happy place. Which means that my sad place is a week with no solicitations scheduled. When I see the calendar with open terrain, my energy sinks.

The ask is the most honest and real moment we have in this work. It’s the moment we get to (hopefully) look into the eyes of people who already care about our school and connect.

Connect, not sell. We’re not salespeople. We don’t have to sell our schools and their programs to these fine folks. We meet with people who are already believers. The hard work of touching their hearts has already been done. By our teachers. Coaches. Advisors.

Our job, in advancement, is to translate the feelings our supporters have into action. We give believers the opportunity to express their support in the form of a money gift.

We don’t create the feelings. We simply help others put them into fruitful action.

Yum.

“Hmm. That’s beautiful, Barbara. But that doesn’t make the morning ask any easier…”

Sure it does!

Because in those breathless moments before your donor arrives, or as the phone rings, you can tell yourself: “I’m about to have a conversation with someone who believes in my school as much as I do.”

That’s all you’re doing: having a conversation with an intent to collaborate.

That sounds like a fun bit of ego-less problem-solving! A way to connect with someone right after breakfast!

Have you subscribed to the newsletter yet? It only takes a minute.

I’ve written previously about how some of the lessons they teach in improv comedy are helpful for our profession. And you’ve no doubt read (or heard of) Malcolm Gladwell’s Outliers: The Story of Success and heard of the 10,000-hour rule. What’s the overlap, here?

You have to do the hard thing a lot to become a master at it, to harness your fear of it and turn it into power.

Think Stephen Curry shooting 3 pointers until his arms feel like lead.

Or Yoyo Ma, going over the same arpeggios for hours every day.

If you’re feeling really out of practice, which can happen after a day or two of not making any big asks, practice with your team. They might find the request strange – but they shouldn’t. Practice in a no-fail environment first, then take your act on the road.

Take 15 minutes at a Development Committee meeting or (even better) Trustee meeting and lead a practice session for them. Have them ask the person next to them for $5,000 for the Annual Fund.

Need a script or some talking points? Here you go:

1. Tell the person next to you about the specific program/initiative at your school that excites you most.

2. Explain why. (This should be easy.)

3. Follow up with: “So many people feel like you do about [that program/initiative.] Would you consider joining us with a gift of $5,000 to support its successful launch?”

4. Now, wait. In silence.

From that point on, instinct will take over.

Do that a couple of times. Do it in pairs. Then switch partners.

Heck, I’ll do you one better. If you, your Head, or one of your trustees, is feeling less than confident, maybe even a bit intimidated to ask for a gift for your school, I volunteer to practice with you over the phone.

I write this because I love my professional community, and I’m always happy to talk to a member of it. Even a total stranger!

Here’s how it’ll work: you have my e-mail and phone number and Twitter handle. Reach out via whichever method you like, and we’ll set up a 15-minute call in the next few days. (Obviously not if it’s a major holiday, yada yada, etc.)

We’ll shoot the stuff for a few minutes, then roleplay your big ask a few times.

Sounds like fun, doesn’t it? I can’t wait.

barbara@barbarabarron.com

860-604-9081

My name is Barbara Barron, and I’m writing this blog to share advice on a profession that I adore.

I’ve been working in the field of Independent School Advancement for nearly 20 years. In that time, I’ve had the pleasure of creating and implementing successful Strategic Fundraising Plans for so many incredible schools. I’ve had the privilege of seeing real growth at The Carey School, Marin Primary & Middle School, Woodside Priory, Crystal Springs, Sage Ridge and others. (Maybe we’ve met!)

Nothing makes me happier than seeing a struggling school start to thrive. I’m sure that you’re here to make a positive change as well. I hope my advice can be a part of that change.

Shoot me an e-mail if you want to swap tips, or share your voice here.

Let’s do this, together.

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