By Bill High
4 : Major Gifts Through Business Sales
As the overall number of donors has continued to decline , there ’ s been an increasing emphasis on major donors and major gifts . Much of that major donor demographic is part of the Boomer Generation who are retiring and in the midst of business transition — specifically business sales . For instance , ArkMalibu , an M & A firm , reports in their yearend review : “ Excluding the Materials sector , all major Global Industry Classification Standard sectors saw positive growth in deal size and count from 3Q20 to 4Q20 [ and ] aggregate deal value grew 162 percent .” 4 As business sales continue at record pricing levels , there is a largely untapped opportunity for donations of stock as a charitable tax planning component of the transaction . This opportunity — donation of closely held stock as part of a business sale — represents one of the most fruitful areas for major donor growth .
7 : The Importance of Reserves
The economic downturn of 2020 showed us the importance of having a reserves fund or endowment set aside . Organizations that could dip into reserves were less threatened by an unpredictable economy . A reserve account or a “ foundation ” may be as simple as setting up a donor-advised fund . During a crisis , a fundraiser can go to major donors and ask for contributions to a reserve account or foundation and explain that the contribution will pass through to cover operating costs . The key is that “ reserve account ” or “ foundation ” suggests the idea of a larger gift . Especially as private schools face an uncertain future , endowments will become increasingly necessary for stabilizing their finances . Focus on building up a reserves fund or an endowment fund that will sustain your school through hard times .
5 : Subscription Mentality
What used to be limited to magazines and newspapers has expanded to streaming services , meal kits , and a category of monthly subscription boxes . According to Small Business Trends , 69 percent of Americans have multiple subscriptions . Angel investor Eric Stromberg notes subscription “ creates an environment where default consumer behavior is retention .” 5 Nonprofits are wise to create a subscription program as well . 6 As with any monthly giving program , a subscription model provides consistent support and helps insulate charities from economic swings . But the subscription model aims to include donors as subscribers to the work , with regular updates as long-term partners . The challenge will be to develop and maintain those relationships with subscribers . They expect to get something of value — a personal message or valuable insight others don ’ t receive .
One final note . As we entered 2021 , I heard many say , “ I ’ m so looking forward to getting back to normal .” Now , in the latter half of the year , my response is that there is no going back ; this is our normal . While we will see vaccines increase , COVID-19 cases decrease , and borders reopen to us , let ’ s make no mistake : The year 2020 was about more than just a global pandemic . It was about fundamental systemic changes in our world . We must embrace change to advance the work . As the prophet , Daniel , proclaimed , “. . . the people who know their God shall stand firm and take action .” 8
If we can assist you on your journey , please don ’ t hesitate to reach out to us at thesignatry . com . ■
Bill High practiced law for twelve years before becoming the CEO of The Signatry . As CEO , he has spent over eighteen years helping families live simply and give generously . He specializes in coaching families , individual givers , and financial advisers regarding biblical generosity and family legacy . He and his wife , Brooke , have four children and three grandchildren . He can be found at billhigh . com .
6 : The Resilience of the Charitable Heart
In The Man Who Couldn ’ t Stop Giving , Sam Kean , writing for The Atlantic , says simply : “ Explaining generosity is a headache for biologists ; Charles Darwin considered the trait one of the gravest threats to his theory of natural selection .” 7 We saw this play out last year : During a global pandemic and when things seemed to be at their worst , charitable giving was up for 2020 . At The Signatry , we saw giving go up by nearly 30 percent . No matter the times , no matter the hardship , the giving heart still exists and moves to aid those in need . And that is indeed good news .
ENDNOTES 1 . “ The Nonprofit Sector in Brief 2019 ,” National Center For Charitable Statistics , June 2020 , https :// nccs . urban . org / publication / nonprofit-sector-brief-2019 # the-nonprofit-sector-inbrief-2019 . 2 . Lester M . Salamon and Chelsea L . Newhouse , Nonprofit Economic Data Bulletin no . 48 . “ 2020 Nonprofit Employment Report ,” ( Baltimore : Johns Hopkins University Center for Civil Society Studies , June 2020 ). Available at ccss . jhu . edu . 3 . “ Charitable giving increased 7.5 percent in first half of 2020 ,” Philanthropy News Digest , October 8 , 2020 , https :// philanthropynewsdigest . org / news / charitable-giving-increased- 7.5-percent-in-first-half-of-2020 . 4 . “ ArkMalibu M & A Market Monitor — January 2021 ” ArkMalibu , January 26 , 2021 , https :// arkmalibu . com / news / arkmalibu-ma-market-monitor-january-2021 . 5 . “ 7 Surprising Industries Turning To Subscription Business Models ” CB Insights , accessed March 16 , 2021 , https :// cbinsights . com / research / report / subscription-business-modelindustries . 6 . Dave Raley and Carly Berna , “ Sustainer Giving in a Subscription Economy ,” Outcomes , accessed March 16 , 2021 , https :// outcomesmagazine . com / sustainer-giving-in-asubscription-economy . 7 . Sam Kean , “ The Man Who Couldn ’ t Stop Giving ,” The Atlantic , May 2015 , https :// the atlantic . com / magazine / archive / 2015 / 05 / the-man-who-couldnt-stop-giving / 389531 . 8 . Daniel 11:32 ( ESV ).
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