Australia has a rich history of sporting excellence, and this passion for sport is reflected in the generous donations made to sports foundations across the country. However, relying solely on donations and fundraising events isn’t recommended. Foundations need to consider their funding mix and explore other sources of revenue to ensure sustainability.
Bequests (gifts made in a will) are an effective way to secure long-term financial stability for sports foundations. According to the Include a Charity campaign, the number of Australians leaving charitable gifts in their wills has increased by 40% since 2016, with an estimated AUD 1.5 billion being donated each year. With the right strategies in place, sports foundations can benefit greatly from bequest programs, ensuring they have the resources they need to achieve their long-term goals and make a positive impact on their communities.
Bequest Programs: What Are They?
A bequest program is a type of charitable giving program where donors commit to leaving a gift to a sports charity or foundation in their will or estate plans. You might also be familiar with the terms planned giving and legacy giving. A planned gift is a charitable donation that is arranged in the present but will be transferred to the designated charity at a future date, typically after the donor’s death. The terms bequest, planned giving, and legacy giving can and often are used interchangeably, but in this article we’ll stick with bequest.
A bequest program is a long-term strategy, not necessarily one that will produce immediate income. At the same time, they represent a potentially large source of revenue, and for this reason, should not be overlooked. Bequests can take many different forms, including a specific dollar amount, a percentage of the donor’s estate, or a specific asset, such as real estate or securities.
What Is The Benefit Of Having A Bequest Program?
Bequest programs help to build relationships with donors and promote a legacy of giving. Donors who make a bequest to a sports foundation are making a lasting commitment to supporting the organisation’s mission and goals, and this commitment can help to build a strong and loyal donor base. Bequest programs can also help to promote a culture of philanthropy within the sports community, inspiring others to support the foundation and ensuring that the organisation will continue to have a positive impact for years to come.
Under Australian law, bequests made to registered charities are exempt from certain taxes, including capital gains tax and estate duty. This can make a bequest a highly effective way for donors to support their favourite foundations or charities while also maximising the tax benefits of their estate plan.
Examples Of Successful Bequest Programs
In Australia, there are numerous sports foundations that have successfully implemented bequest programs. Let’s take a look at two of them.
First up is The Cathy Freeman Foundation. Which is dedicated to improving the educational outcomes for Indigenous children living in remote communities across Australia. Their bequest program has been instrumental in driving the foundation’s financial stability, allowing them to fund a wide range of projects.
Another foundation making a difference in the world of sports is the Australian Olympic Committee Foundation. This charitable organisation supports the Australian Olympic Team, providing funding for athlete programs and scholarships. Their bequest program has been highly successful in generating long-term support for the organisation. In fact, in 2020, the Foundation received a bequest of $2 million.
How To Start A Bequest Program
Starting a bequest program for a sports foundation requires careful planning and consideration. And as with any fundraising strategy, organisations need to be very clear on their purpose and ensure alignment with the long-term strategic objectives. Additionally, it’s important to allocate responsibility, time, and resources to the design, development, and deployment of the bequest program.
Who Are Your Key Prospects?
The next step in launching a bequest program is to identify potential donors who may be interested in leaving a legacy gift to the foundation. This can be accomplished by reaching out to current and past supporters of the organisation, as well as members of the community who are passionate about sports and the foundation’s mission.
Once potential donors have been identified, the foundation can begin to develop a comprehensive bequest program that outlines the different ways that individuals can leave a legacy gift, such as through a will, trust, or other estate planning vehicle. The program should also include information about the tax benefits of making a bequest to the foundation, as well as the impact that these gifts will have on the organisation’s ability to fulfil its mission.
Make Sure Prospects Know The Program Exists
Developing a marketing strategy that involves targeted communication to potential donors is strongly recommended. Consider communications in the form of direct mail, email, and social media, which will aim to promote the bequest program. The foundation can also hold seminars and workshops to educate prospects about the advantages of leaving a legacy gift.
For more information on developing a successful digital marketing strategy, check out these key steps.
Stewardship Is Key!
Lastly, the organisation should interact with donors who have provided a bequest to the organisation on a regular basis, thanking them for their support and informing them of the impact of their gift. By implementing these steps, you can build a successful bequest program that offers long-term financial support.
Avoiding The Bequest Pitfalls
Implementing a bequest program can be a powerful way for sports foundations to secure long-term funding and support. However, there are several potential challenges that organisations may face when setting up such a program.
Understanding The Regulation Requirements
Sports foundations need to comply with various legal requirements. These requirements cover tax laws, estate planning rules, and charity registration requirements. To be eligible for tax concessions and specific types of funding, foundations must be registered with the Australian Charities and Not-for-profits Commission (or eligible through the Australian Sports Foundation). In addition to this, organisations also need to adhere to state or territory-based laws relating to wills and estates if receiving bequests. It’s important to keep these legal obligations in mind when accepting bequests to ensure the foundation is compliant and operates lawfully.
Communication Is Key!
Communicating with donors is essential for establishing a successful bequest program. However, it can be tricky to engage donors in discussions about their wills and estates. Sports foundations can overcome this challenge by investing in donor education and engagement initiatives. Some effective strategies include hosting informative sessions, providing written materials on bequests and estate planning, and offering personalised assistance to donors who express interest in making a bequest. These initiatives can help donors better understand the benefits of leaving a bequest and make the process less intimidating.
Implementing Strong Governance
Managing bequests can be a complex undertaking, especially for smaller organisations that lack dedicated legal or financial staff. To navigate this challenge, sports foundations can establish clear policies and procedures for managing bequests. These policies should include guidelines for accepting and declining gifts, communication protocols for engaging with donors and their families, and systems for tracking and reporting on bequest income. To further support their efforts, foundations may also consider partnering with consulting services that can provide expert advice and guidance on bequest management. By taking these steps, foundations can ensure they are equipped to effectively manage bequests and fulfil their donors’ wishes.
Conclusion
Sports foundations in Australia have a rich history of receiving generous donations, but to ensure long-term financial stability, it’s important to explore other sources of revenue. Bequest programs are an effective way to secure long-term financial support and ensure that sports foundations can achieve their long-term goals and make a positive impact on their communities.
It is important to note that this strategy may not yield immediate revenue, seeking bequests is a long-term approach. However, time tends to fly by, and overlooking this strategy could be costly. Starting a bequest program requires careful planning and consideration, but by building relationships with donors and promoting a legacy of giving, sports foundations can inspire others to support and ensure that the organisation will continue to have a positive impact for years to come. If reading this made you think, maybe we need to update our strategy to include a bequest program, have no fear check out our sports philanthropy strategy service here.
