Strategies

The Gift that Keeps on Giving

Theatres are nurturing relationships with patrons that will be financially rewarding, even in the afterlife

by Eliza Bent

THE CHALLENGE

Is there a way to procure funding without going through the hassle—and hustle—of a capital campaign? How can you raise funds for your theatre in a quiet, respectful way while targeting the people who are most likely to give? Cincinnati Playhouse in the Park of Ohio—as well as such companies as Connecticut’s Long Wharf Theatre, Minneapolis’s Guthrie Theater, Berkeley Repertory Theatre of California and Seattle Repertory Theatre—are cultivating planned-giving programs, in which donors make a gift to the theatre in their wills. It’s the gift that keeps on giving.

Several factors laid the groundwork for Playhouse in the Park’s planned-giving program. In 1994–96, during a major capital campaign, the organization began accepting deferred gifts as part of a donor’s total campaign pledge. That prompted the Playhouse leadership to institute a planned-giving advisory committee, which provided the early structure of the program and eventually became a standing committee of the board. The Morse Johnson Society, named after a founding board member who served on the board for 19 years and was president for 12, was launched in June 2000 (as part of the theatre’s 40th-anniversary celebrations). Simultaneously, the theatre had concluded a debt-reduction campaign which allowed its leaders to think more creatively about the future. The Morse Johnson Society and the planned-giving program provided the theatre with a way to raise funds and increase its endowment without actually conducting an official capital/endowment campaign. “We modeled our program on higher education, which has been doing planned giving for a long time,” states M. Patricia Rosely, the Playhouse’s director of development.

THE PLAN

How do you get the word out about planned giving? To start with, advertisements. Rosely estimates that about half of the Playhouse’s programs include an ad for planned giving. Additionally, all pledge cards include a check box that asks patrons if they plan on including the Playhouse in their wills, or if they would like more information about planned giving. This allows for a more direct marketing approach. “Then again,” Rosely says, “not everyone will let us know they plan on giving to the Playhouse.” At the program’s outset, a quarterly newsletter on planned giving, covering topics like gift annuities or estate planning, went out to members of the Morse Johnson Society and prospects. Recently the newsletter has was back due to the Playhouse’s enhanced website. Occasionally seminars are held for prospective funders where experts share information on a specific planned-gift opportunity. In addition, once a year the Playhouse holds a dinner for members of the Morse Johnson Society that features a special guest artist. In the program’s first five years, Rosely recalls, gifts were actively recruited, but “in 2006, we took a step back from active solicitation, as we were in the early planning phases for a capital campaign for a building project. As we’re still exploring options, we continue to do a ‘soft sell’ for planned gifts.” In the past year about nine people have approached the Playhouse about planned giving because of information they have seen in brochures and pledge cards.

KEY PLAYERS

According to Rosely, “The best planned-giving prospects are people who have been involved with the Playhouse for more than 10 years.” She notes that these potential givers might have never given to the theatre in the past beyond purchasing tickets. “The key is actively communicating with our patrons about the opportunity for making a planned gift to the Playhouse. It is also important,” Rosely continues, “to have a board that is committed to the program in terms of making a planned gift to the Playhouse and asking others to do the same.” Rosely estimates that about 20 to 25 percent of the board is part of the Morse Johnson Society. Lawyers and financial advisors equipped to explain the mechanics of planned giving—through such means as charitable trusts, life insurance policies and gift annuities—to donors are essential. “We also couldn’t do this without the Greater Cincinnati Planned Giving Council,” Rosely says.

WHAT WORKED

“Our total gift commitment at this point is just over $6 million,” Rosely beams. And that’s not including patrons who have recognized the Playhouse in their wills but have yet to notify the company. The son of a longtime patron recently informed the theatre that his father had included a small bequest in his will. “It was humbling to hear that. You feel like you are part of something bigger,” Rosely says. Size of gifts varies—some donors simply say that the Playhouse will be included in their wills, while others are more specific. One donor has informed the theatre that it will receive $1.4 million in life insurance proceeds. “Unrestricted gifts are wonderful,” Rosely says, “but so are other kinds of gifts.”

WHAT DIDN’T

One big challenge for the Playhouse is oversight. “We don’t have one person on staff dedicated to planned giving,” Rosely observes, while a university, for example, might have an entire department dedicated to its active recruiting and management. Gift-acceptance policies pose another difficulty. There are cases in which it might be more trouble than it’s worth to accept certain properties or donations. Or gift annuities—who pays the premium? “The policies for accepting gifts are critical to your success in being able to navigate potential gifts with prospects—and keeping you out of trouble,” Rosely reasons.

WHAT’S NEXT

“This year we are going to review our gift-acceptance policies and also reevaluate our strategy for securing gifts in light of the new economy and our potential building project,” Rosely notes. The theatre also plans on scheduling one-on-one meetings with members of the Morse Johnson Society to obtain critical feedback about the program and talk about other potential givers. And just who are those possible future donors? “I think that the planned giving field is just now starting to understand how important it is to market to younger folks, between 35 and 55. Also, during tough economic times when it may be difficult for some donors to give cash gifts, a combination cash/planned gift may allow the donor to give more than they could otherwise.”