Unknown Speaker 0:03 All right, good afternoon or late morning, depending on where I'm talking to you from. This is Tim Sarrantonio, Director of partnerships and business development at neon one. I'm excited for today's presentation. Thank you for joining us the day after July 4 weekend. So really grateful for all of you coming in and learning on how we can unlock more stock donations for your nonprofit, we're joined with neon one, brand spanking new partner overflow. Jose is joining me today. And we're gonna kind of dive into a bunch of different stuff today. But we're gonna keep it tight, we're gonna keep it focused, we're going to debut a brand new integration. So let's go into kind of some base housekeeping items. As with all of our resources like this, and this is a really good one to record. We're recording this right now. And it will go up on the neon, one website under our resources events section by tomorrow. So you'll be able to check this out on demand. This is going to be one where we are taking questions. So I want to test that out with the crowd. If you can type in Unknown Speaker 1:17 who you are and where I'm speaking from today. I'd appreciate it just so I can confirm that the q&a section works. So if you can type out who you are and where I'm talking to you from. Unknown Speaker 1:33 Jose, we just talked about this. Hey, we got Gary from Denver. Hello, Gary. Okay, so we know it works. Unknown Speaker 1:41 Jose, where are we talking to you from? Unknown Speaker 1:44 Everyone based out of Northern California cross the bridge from San Francisco. Unknown Speaker 1:49 Awesome. And Tim, talking from niska Yoon in New York wheels got Lindsey from New Orleans. Welcome, Lindsay, Gary and everybody else today, thank you for popping in that also shows that the q&a works. So awesome. What we're also going to be doing is that this can be a extraordinarily complicated topic, if we let this spiral out of control, getting into the weeds, so what we're going to do is, is really kind of focus in on practical experience on how to manage stock gifts. There's a lot of data that comes in around this type of, of resource. And in many ways, I also feel that there's a lot more research to be done in this space. And that's actually why we're excited to be working with overflow on some really special items that will we'll see by end of year. But this is also kind of a nice welcome party. To them in the neon one ecosystem. This is an officially certified integration into neon CRM, we're going to touch on how that works at the end of today's presentation. But before that, we want to establish the importance of stock donations and how to uniquely approach these types of donors that prioritize this because there is a certain type of donor that actually is going to prioritize this. So pretty excited. Unknown Speaker 3:10 So what we're going to be doing today is that this is ideal, especially if you're using neon CRM when it comes to the integration. But what this is really going to be helpful for is, is first what is the role and importance of stock donations to nonprofits and, and the reasons why people are actually contributing this. So Jose is going to actually take us through a lot of the deep dive, this is their expertise. So for me, I'm going to pop in every so often with some larger contextual data, some insights there, but but really, we're leaning on overflow for a lot of this amazing insight. And then also, why now is a perfect time to rethink how you manage your stock donations process at your organization. And we're going to touch on the integration itself. So we have a little bit of a pre recorded demo that that the overflow team has put together on how this works for their platform. And then I'm going to walk through how it actually gets into the CRM. Jose, what are we not touching today? By the way, what are we not going to be getting into? Well, you know, Tammy ended up messing it stagnations can be incredibly complex. So we're gonna make sure we don't spiral that out of control. We're not going to go too far into the, like deep coordination and what happens behind the scenes. And then definitely no financial advice. We're not going to talk about things like GameStop and AMC, right. So no, no buy sell recommendations. But hey, if you're dabbling in that, more power to you, yes, go ahead and watch Mad Money if you need that type of stuff. But yeah, we just wanted to say that they want you to give us a little bit of an intro about who you are. And you know why you're joining us today. Unknown Speaker 4:51 Yeah, definitely. And thanks for having me, Tim. Surely excited about this whole partnership and what we're doing here. My name is Jose and Ida and I Unknown Speaker 5:00 oversee its development, Adam overflow in the privileged to be part of the team for some time now. And you know, actually prior to this, I was working in the FinTech space, financial technology space, specifically helping employees save more for their retirement. And it was, you know, it was a great product got to gain a lot of exposure to the stock market side of it, the financial advising world in, you know, when I learned about overflows, actually through, through our founder and CEO Vance, who I've known personally for about three years. And, you know, he reached out out of the blue and and, you know, shared with me the vision and what it is that overflows, looking to achieve. And I just really felt compelled to see how much money and how much wealth has been created. And, and grown in the stock market, especially from getting to help employees accumulate more retirement savings, that I really found there was this drop off of not many people giving stock to organizations, Unknown Speaker 6:03 or that being something that isn't really talked about, I know, you know, for myself, having given to organizations in the past, you know, I never knew I could donate stock, or the benefits of doing that. And I do have stock of my own. So, you know, actually, when I learned about overflow, I started giving stock to nonprofit organizations then really became that catalyst for me to start engaging in that way. But, you know, I got so passionate about it, that I felt like, Hey, you know, what, it's, it's a great time, with so many things converging, so much innovation in the stock market space apps like Robin Hood, in more and more people getting to own stocks, you know, it's about time that we help people easily give stock to their favorite constants and, and help channel some of that wealth into into generosity. So that's a bit about how I got started, you know, we were founded, overflow was founded based on an old proverb, talking about the world of the generous, getting larger and larger, and the world of the stingy getting smaller and smaller. So if we want everybody's throat to get larger, we definitely want to inspire generosity and help feel more impact in that way. So fun fact about myself, I, you know, back in 2017, my wife came to me with an amazing idea of, you know, doing this whole digital nomad lifestyle. So we literally took a whole year, you know, in 2017, we're still working, but we decided to, you know, sell a lot of the things we had and put our lives into three suitcases and travel the world and live across 17 countries in 2017. So happy to talk about that, at any point. That's a bit of my my myself. Awesome. We'll definitely get into that. Unknown Speaker 7:42 at the tail end, for sure. I got some questions there. And you know what, what I love about it and had fallen in love with overflow myself, by the way is because of that ethos about that that generosity is for everybody. I feel that like, you might not like the word philanthropist, but everybody can be a philanthropist in many different ways. And and it's that type of approach, why we're excited to have you folks as a partner, because this helps build out a larger vision that we've had of meet donors where they are, and make it easy on them. It should be easy for you as a nonprofit professional, and it should be easy on them. When it comes to the tech. The The issue is that everybody thinks that that fundraising is easy. And fundraising is not easy. But the tools can make the job easier. And that's where we're really excited to have you as part of the on one ecosystem. So what are we going to do today? Because this is something that like, and actually I'm going to do a quick poll for the folks who are here, in terms of how many stock donations Do you receive at your organization? Let's do a quick poll. Unknown Speaker 8:53 Okay, no, we don't have Unknown Speaker 8:56 too many people here. Unknown Speaker 8:59 All right. Cool. Awesome. Just quick poll. So I'm going to share this that that that that most of you folks who answered today, Unknown Speaker 9:07 don't actually get stock right now. And the others are getting between two to five gifts per year. Jose, you know, when we get into it, I would be interested to hear like, what's the typical situation for a nonprofit in terms of how much stock that they're getting. But, you know, we're going to get into actually how people give stock because I think that one of the things that are holding nonprofits back as they just do not know how to process this type of asset. And so we're gonna walk through that in the traditional sense, and then why we need to rethink that that process today. And that's where overflow is going to come in and how the integration basically helps you focus in on like, cultivating that relationship with that person and understanding who they truly are, as opposed to worrying about like, like getting that phone call and going I want to give you stock and then scrambling to figure out how to do that. That's Unknown Speaker 10:00 where this is going to come into play? Unknown Speaker 10:02 So why do stop donations matter? So Jose, this is you changed out my quote, which I'm completely happy about, that's perfectly fine. Why this Winston Churchill quote, why did that speak to you? Unknown Speaker 10:15 Yeah, I mean that this quote really hits home for a lot of things. I think we're in a phase in life, when it just in society where you see so many different avenues for building wealth, and accumulating things, right? Shopping Amazon, you know, platforms out there, I think there's so indicative of a deeper behavior and harder posture that people have, where they really want to find things that help define them, right, whether it be buying the new Tesla vehicle, or, you know, being being current being relevant. And so this is pretty convicting to me. Because it reminds me that, you know, life is not really about what we get. But it's truly about what we give. And it makes me really ask myself, what am I giving, right? I can give my time I can give my money, I can give, you know, several different things. But it helps really expand the view of what we can give. And that's something that we try to create in the way we engage not only nonprofits, but also donors, this, we try to beg the question of what are you giving, right, instead of just giving via debit or credit, or instead of just giving out of your checking account? If you have other areas of wealth, right? If you have other areas of your life that you've been getting, getting getting and accumulating things in, you know, how do we inspire you to give out of those different areas, so really ties into why stock being such a bucket of wealth accumulation for a lot of people. And this is a key thing about today's workshop is that we're going to basically be able to talk about two sides of the equation here, which is from the donor perspective, as well as from the nonprofit perspective, which I think a lot of times, you only hear from one side. And what we're going to do is debut data that talks to how donors are thinking about this, and then how nonprofits are thinking about this problem. So we're pretty excited about that. And the kind of the story we're able to tell about that. But But why, you know, why stock out of all the different things that people can give? Like, why stock it, you know, out of like, why not just slap down a credit card or something like that? Unknown Speaker 12:23 Yeah, it's a question that I literally asked myself when I was discovering overflow and wondering if I should step in and join the company. And, in fact, you know, it's actually the most tax efficient way to get out of any other method. And that blew my mind, you know, as a donor myself. And so we kind of dig into a deeper, we see that a lot of people, especially back in 2020, started buying up a lot of stocks and made decent gains, you know, right now we're at a period in time, unique period in time where people are sitting on so many stock gains and wondering what to do next about that. And if we really break down what happens, in most cases, people cash out, right, they sell the stock, try to lock in a gain, but automatically, they're going to be subject to a capital gains tax. And that can be 37%, right, depending on where you live. So I'm in California, we, we, we get a 37% capital gains tax hit. But you know, in, in reality, if you were to donate that stock, it's a different avenue for using that asset. And if you do that, there's tremendous benefits, right. So I would really break it down into three benefits. The first one being, not having to pay any capital gains tax, right. So as a donor, if I were to, let's say, you know, I bought Tesla stock at 300 bucks, and it grew to 600 bucks, then I have a lot of that, instead of giving 37% to Uncle Sam, I can donate that stock, and then not have to pay any capital gains tax. And in turn, I'm actually giving more toward the cost that I want to support toward the nonprofits with the nonprofit's not going to be paying the capital gains tax. And then thirdly, my tax deduction is going to be even bigger, right, so if I put in $300, into a Tesla share in that group, 600 bucks, then the tax write off is going to be for 600, it's not going to be for 300 bucks. So it doesn't matter what I ended up buying the stock for. In the end, I can write off the market value of the stock when I ended up giving it to the nonprofit organization. So it's kind of a way to let the market grow your donation and make an impact out of some of that wealth accumulation. Unknown Speaker 14:37 And we're gonna get into to kind of the demographics of who this appeals to because there's actually some very, very pertinent data on why this particular asset is going to become more and more important to your donor base. We really want to stress that that this is an asset that people are going to want to give this and if you make it easy for them, then this can be Unknown Speaker 15:00 A really really impactful way to connect with folks and make them lean into your mission and just love you more. Because what you're doing is focusing on the the donors love of your mission, not the conduit of how they want to give that. So Unknown Speaker 15:17 why why fundraise for stock? So this is start to kind of getting into our thesis point of why this particular asset is important. So this is thesis point number one. So, let's say walk us through what do these numbers mean, actually here? Unknown Speaker 15:32 Yeah, you know, when we speak to nonprofits, about why they should enter into stock donation, so really invest more time and effort into that, it really ties in to the owners capacity to give. And if we want to inspire generosity, we really want to mirror fundraising with those different areas of wealth that that donors have. And I mean, the first stat here speaks to it pretty clearly, right? When you look at the American households, and how they hold their, their wealth, only 3% is actually held in cash in their checking savings account. And so already, you know, the vast majority of somebody's wealth is really tied up either in real estate, or it's, you know, in a life insurance account, or it could be, you know, in different non cash assets. But stocks make up a really decent portion of that, right. And that's what we're looking at catering more toward those areas of giving, or the capacity to give, right, those areas where people can actually get more. And right now, with the majority of giving coming from from cash, it's really limiting the potential that that a nonprofit can have when it comes to fundraising. Right? If we keep focusing on cash, there's always going to be so much competing for that. And people feel like they're kind of cast poured, in a sense, right? When they're faced with an opportunity to donate $700 or $1,000, they're really going to be thinking through that, because they have so many different trade offs and alternatives for that cash, right, whether it be groceries, helping somebody out, you know, paying bills, etc. So there's a lot, really contending for that. But when it comes to stocks, it's kind of this untapped bucket on the side where a lot of people might even treat it like Monopoly money, right? It's just sitting there, it's not really, it might be grown with the market, but it's a passive bucket, a passive channel that hasn't really been tapped into. And so it does open up a different psychological space for donors. When you talk about stocks. It's it's an area of abundance, right? It makes them feel wealthier. And it's proven that if people feel wealthier, they're going to give more. It's so you know, looking specifically at donors that are more affluent it see. It's a more than 100,000 in investable assets, 80% of them already own appreciated assets like stock, and that's backed by research from fidelity, charitable. So, you know, the opportunity is there, it's in front of us, right. So we see that, you know, firstly, the vast majority of people's wealth is in areas other than cash. And there's a switch that needs to happen from a fundraising standpoint to be to be able to capture and encourage larger donations, but then also, for affluent donors, they're ready. Right? They either know about this or may not know about this, but when they encounter the opportunity to give stock, and already know they have stock, it's this easier and more attractive opportunity to be generous. And in the nonprofit's that are really going after this and, and speaking and engaging with donors around stock donations are reaping tremendous benefits. You know, we have seen research coming out of the Texas Tech University, where they ended up running the studies across, Unknown Speaker 18:48 you know, a lot of nonprofits. You know, I even have the exact number here of how many nonprofits they looked at 1 million nonprofit tax returns over the course of five years. And based out of that data, they found that those nonprofits that were actively receiving stock actually grew six times faster than those that didn't. Right. So the multipliers and the growth opportunities also there, you know, making a strong case for why we should fundraise for sock. It's a significant set of research and there's a lot of research missing when it comes to how donors are actually giving. There's a lot of good data for people like Professor Adrian Sargeant on like the reasons people stopped giving, for instance, or or the psychological reasons why they give, but the the economic breakdown Unknown Speaker 19:39 is sorely lacking, in my opinion when it comes to to the ways that donor donors give. So this university of texas study is pretty significant. And, and again, that was actually looking at organizations who accepted and processed, just cash. You know, here's my visa, here's my discover you know, or Unknown Speaker 20:00 Here's a check, versus I'm going to accept non cash assets. So I think this is a very, very important piece of data to focus in on. Now. The other one is the donors themselves. And so this is brand spankin new research from the Fundraising Effectiveness Project, q1 2021, breakdowns on dollars by donor sighs. So if you don't know, the Fundraising Effectiveness Project is the largest analysis of individual donor giving in the world. And this only looks at individual donors it's not take, it's not like giving you a say where it's trying to balance also foundation grants and, and Corporation money. It's just individual donors contributing. Neon one is a partner, a proud partner in this research, and I want you to zero in on those major donors, major donor sizes, we're talking the $5,000 and above. And this has been holding pretty strong through multiple years, in that the vast majority of the money is being driven by high net worth individuals who are giving a significant amount of money. Now neon one actually even has internal analysis. And we've we worked with overflow on this, during our Unknown Speaker 21:17 kind of integration discussions on like, hey, there's a significant amount of money being run through our CRM, for stocks as well, these are individuals we're actually putting in stock, as the gift stock and securities, which is important to the integration itself, we're talking a fair amount of money. So high net worth individuals are making them the majority of the donor base out there. And, and according to a Barclays study that was done relatively recently, within the last few years, the biggest reason that these types of folks don't want to continue giving to a nonprofit is that they're actually worried about financial mismanagement. And so if the first experience that your organization gives a donor around stock gifts are, it's hard, that doesn't necessarily give a lot of confidence in a donor, being able to say, you know what this is, this is an organization that I want to support. So let's get actually into the mechanics of how people typically donate stock now, because this is important, I live this. So I'm going to get into that at the end of this. But Jose is going to walk us through, like how to actually people give stock right now. And there's going to be things that like, have nothing to do with financial technology in terms of a future state, they are just how they always are. And then there's things that we can re envision. Jose, take it away in terms of like, let's start with the basics. You might hear the term securities or brokerage account, what does that actually even mean? Unknown Speaker 22:53 Yeah, I mean, you know, in answering this question, the first thing to be looking at is, where do people hold stock, right, because that's the first and foremost piece of any donation coming in, right? In the case of debit or credit giving, you've got a bank account. And that's typically where people hold that asset. When it comes to stocks, people hold that asset in a brokerage account. So you can think of it as a bank account for stocks specifically. And that's really where they hold all these different stocks that they end up purchasing. And that's where they can go ahead and trade and buy and sell these securities. So I wanted to make sure everybody knew what that what we meant by a brokerage account, because that's going to play a play a key part in the flow and how somebody give stock now, so Tim, we can move on to the to the next slide. This one, let's sit with this one for us to walk through the typical process for how a nonprofit, you know, has to accept and how a donor has to give stock donations, let's walk through this, you know, kind of from the point of view, and make sure to tag which point of view somebody like how long it might take and what might the variable be there to for us. Unknown Speaker 24:05 Yeah, one comment that I would make before delving into this is realizing that the process around donating stock, it's very much on the donors plate today. So as a nonprofit, if you're getting I know several, several organizations here are seeing about two to five stock donations. Today, you may just give donors a PDF form or some instructions, brokerage instructions that they can go ahead and take and then process that donation. But what happens on the donor center is really what we're looking at here, right. So if we're to put ourselves really in the shoes of the donor, primarily, we can see that the donor is first going to reach out to the to the nonprofit. So they'll contact you express interest in donating stock. They may or may not know that you accept stocks, that's a big piece. To begin with. We speak to organizations that want to make it more prominent and want to make it a lot more visible. Unknown Speaker 25:00 To go ahead and donate stock, so if they know that you accept stock, they will then you know, reach out and try to get that information, they need to go ahead and transfer that stock to your brokerage account. So nonprofits, so you could end up giving them that PDF form and instructions. And then ultimately, it's a process where it's really on the donors plane to go ahead and complete the rest of the flow. And what we found is that there could be a big lag and, and the lace and the donor following through with that, right, so they're given a PDF form, they've got to print it out, fill it out, right, we'll find a printer first to even have a, have a printer, fill it out, and then mail it out to the brokerage, so they can actually get that stock moved over to your brokerage account. And so that process in between can differ, you know, some donors may have a financial advisor who can go ahead and handle that for them, but most owners don't. And that's, that's the truth that many donors, in the end have to actually go ahead and execute that donation themselves. And so um, you know, if they don't have a financial advisor to be helping them, they've got to now take, you know, an indefinite amount of days, however long it's going to take them to go ahead and complete that process, manually get that form, mailed out. And then you know, by the time it gets to the, to the nonprofit, you know, you may or may not know, who ended up making that stock, if what we hear often as we speak two different organizations is that a stock can arrive into your brokerage account, but the broker may never really tell you who ended up making that stock donation. So many organizations go out, you know, out of their way to find out and kind of play this guessing game and figure out who ended up making that stock gift, and that that can create a lot of complexity and errors in the process. And so the donors kind of left in the dark a bit wondering, hey, that the nonprofit ever received that gift. Unknown Speaker 26:59 And the development team is worried about, you know, who do we acknowledge the gift for who do we give a donation receipt to so that's one of the frequent gaps that we see nonprofits facing. And and it makes sense because the broker is not focused on serving the nonprofit, right? Their focus is the donor, it's the investor, it's the person holding the stock, that's their client. So they're not really thinking about donor development, they're not thinking about passing that information over to the nonprofit. And so by the time the nonprofit receives that stock donation, it can be weeks, it could be up to a month, you know, once a 30 days is kind of the total range. But we're looking at the total range at the point that the stock is being shuttled from one brokerage account to the other assuming that there are no errors in the process. So if there's any error in that form, PDF form that the donor had to fill out, in the beginning to get the stock moved from point A to point B, then the process starts all over again, right, donor has to go ahead and fill it out again, completed, reach out to the brokerage again, and get that stock moved over to the nonprofit. So that's a glimpse into the usual kind of painstaking process for giving stock. And if you compare it to how somebody can give via debit or credit, there's a huge imbalance, right, with democratic giving somebody can put in their credit card number or debit card number and gift literally in two minutes. But suddenly, when it comes to giving a really significant amount in stock, because typically, stock donations are much larger than than debit or credit donations, it can take, you know, up to a month. And so that's something that really convicted us, the overflow made us think about, hey, we're going to be increasing generosity in the form of stocks, what needs to change. And from our standpoint, we had to break that down and condense it into something that donors can do in two minutes, right. And a nonprofit can then receive stock donations, within a matter of days in less than a week. And two, and typically, is the organization sitting on the asset, or is the best practice to sell the asset as quickly as possible? Unknown Speaker 29:12 Yeah, the the process that we see happening in most cases would be liquidating the stock upon receipt, many, many nonprofits don't want to be worried about a when do we sell the stock? And how long are we good to go? Unknown Speaker 29:26 That's not your job, basically, is that exactly. That's the argument that we had, well wouldn't even be an argument. It was like one of them. I remember the first time getting stuck in my last job. And that was, the argument was like, the finance team and the development team needing to decide like, how much was this? You know, because it was like, at what point because our policy was liquidate. But like, then there was an argument on like, what point from whose perspective like there was a delay in a few days and things Unknown Speaker 30:00 went up in depth. Like, there's a lot of questions that this, this opens up if there's not a set set of policies around this asset in particular. And then so there's a lot of work that can really kind of mess up things or even like, you know, what are you receiving the person, all this type of stuff. So this looks like a pain in the butt, basically. Unknown Speaker 30:23 Bottom line, bottom line, so why do we need to rethink this? Well, I think there's a few different reasons. First and foremost, this this absolutely beautiful graphic. Unknown Speaker 30:35 And I told Jose, I'm like, I'm gonna keep this graph again, because I love the graphic itself. But it's from donor, Roger cravers, book retention fundraising, which I have right here, and I scanned directly from it, because there is, this is not on the internet. But I love the actual Unknown Speaker 30:52 graphic itself, because now we're going to switch into your perspective, we talked a little bit about from the donors perspective, why this is important to them. Okay, there's, there's tax reasons, there's a lot of different reasons why this is an asset that they prioritize, there's more and more people who want to give this type of asset. So let's flip the point of view. And think of it from your perspective. Now, let's walk through it in your shoes on why this should matter to you. First and foremost, this gets into donor retention, a lot of organizations are going to potentially receive an initial contributions, for instance, maybe even smaller amounts, they might be through cheque, they might be through cash, Unknown Speaker 31:37 that they're testing out the experience of giving to you. So that's why it that that the number of the gift matters very little when it comes to your stewardship plans, because you need to be stewarding people in positive and engaging ways no matter what. The reason that it matters later on, though, is that small gifts can unlock larger gifts. And if it's shown that no matter the asset, there is a positive experience around that type of of process for your organization, higher likelihood that they're going to come back. And so retention retention is one of the biggest issues that we have in the industry Fundraising Effectiveness Project still is putting Unknown Speaker 32:26 overall retention in the low 40s. About 43%, I believe is the last numbers. And then new donor retention is consistently hovering around 20%. That means that somebody who gave in 2020, now is very, very likely to not give to you again in 2021. Addressing the experience through plugging these holes, is how we should start to think about it. And high net worth individuals, as we saw are going to think about asset different assets differently. If your website only talks about online donations, cash, credit, things like that, and then doesn't even talk about even writing a check. What you've done is that you've zeroed in on the donor experience to be that and that alone. So different segments are going to have different needs. But ultimately, if you design an experience that is donor friendly, this is going to help now why is this even further more important for rethinking the digital experience around this particular asset? Why does overflow exists basically, while we saw how long it takes, and a lot of times individuals get a little dicey though, because and I'm like this too, I actually have a bit of techno skepticism where where there was this narrative that came out of the pandemic, it's like digital saves everything. No, it's actually not. The vast majority is still kind of that old school way of giving. But we are starting to see an important sea change. And that's why it's important for organizations to get ahead of it. Because your donors are experiencing a digital transformation. Outside of charity. vast majority of Americans actually, you know, might not even be giving to a charity, but they're giving. And so what we are seeing is that first Blackbaud giving in debts, good indicator in terms of just general ways that people are giving Blackbaud has a lot of organizations using them. They saw a 13% year over year increase in online gifts. It's one of the largest shifts that the Blackbaud and giving index actually saw when it came to giving online. Giving Tuesday, which helps oversee the Fundraising Effectiveness Project actually saw a noticeable shift in quote unquote large gifts shifting online. So a lot Unknown Speaker 35:00 People just think, Oh, well, people are only giving, you know, $10. Online, that's not necessarily true. And that's because the financial technology is innovating, as we're going to see very shortly. This is some special research that neon one has partnered with visa to start to explore on, they actually did an internal analysis on a lot of money. And they're actually showing over a five year path, that check usage is decreasing by 20%. Over the past five years, so the narrative that only high net worth individuals are giving by cheque Unknown Speaker 35:37 is not necessarily going to always be true. We're starting to see an acceleration in that, and then overflow. Jose, what have you seen with your own internal analysis of your client base in terms of the average size? gift for an organization? Unknown Speaker 35:55 Yeah, the numbers on here, and it's, you know, $6,031? So we've seen and it's, it's, it's blown our mind? Honestly, we, we did not? Unknown Speaker 36:05 I mean, we felt, you know, when we, when we found that overflowing, we stepped into the space, we felt there would be more generosity. Unknown Speaker 36:12 But never did we anticipate seeing a 47x larger gift compared to the average, you know, online. capsulation, right, via via debit or credit. You know, in fact, back in 2020, we, by the end of 2020, our average stagnation was actually 2150. So, we saw here, we literally tripled that average, and it's steadily increasing more and more. Unknown Speaker 36:38 And if I could add, you know, Tim, I, I think one of the biggest factors in driving factors of success, that have allowed us to see this amount, or even bigger donations has been twofold. So the first side of it is driving that education and, and creating excitement and delivering content, and messaging to donors around this, because they they're pumped when they hear about donating stock, you know, they're, they're excited about this opportunity of the bypassing capital gains tax of giving more of be more savvy in the way they give, and giving out of the areas where they have more a greater capacity. And then the other side of it is truly making it easy, right, the easier you make it, the more people are going to do it. And so for us, it's been, it's been sort of obvious, but at the same time, refreshing to see that, hey, if we actually make this a two minute process, a lot more people are going to be given in this way, people that haven't given in this way before. And that's, that's core to adoption, from our perspective making. It's about connecting the dots. I mean, that's what fundraisers who really really you know, were dialed in are doing is that they're, they're, they're taking these different trends. And they're actually kind of zeroing in on their own donor base and saying, How can I make this easier not only on myself, but on my donors. So I can focus in on the relationship cultivation, so I can focus it focus in on my mission, not the delivery mechanism. And so neon one is really going to be pushing the boundaries in terms of understanding donor behavior. Unknown Speaker 38:09 So we're going to work with overflow, we're going to work with giving block on cryptocurrency, we're going to work with visa on really kind of analyzing donor behavior to help empower you if the right decisions. But this is this is the data is very clear that we need to pay more attention to giving a multi channel experience even digitally. So a lot of times the assumptions we had was if it's a large gift, it's not going to be something that somebody is going to want to give online. That narrative is changing. Now. Unknown Speaker 38:41 How does that work? So what we're going to do is quickly go over some of the basics of the overflow platform and how it integrates into the CRM and how we design that experience collaboratively. With the overflow team. This is one of the most exciting integrations that we've debuted. So Jose, I know you have a few slides that kind of talk about the platform at the high level. And then we have a short video that shows the donor experience. And then I'm going to zero in on how it gets into the CRM. Unknown Speaker 39:10 And then and then we'll open it up for General q&a, folks. But also the handout By the way, which has some great extra resources at the end of it, including some fidelity charitable research is something you could download, but will also be available in the resources section. So just an important point. This is a certified integration. That means something in neon one world so when we have something join the ecosystem, we put it through testing. So we put it through testing to make sure that the integration makes sense going into any CRM system. This is not a custom thing every single time. There's a consistency that means that we can support it for any number of organizations who want to adopt the integration. And then also the the the public documentation is another important piece because it explains it better. Unknown Speaker 40:00 Actually what happens. So you actually know what goes into your system. And this is something that especially whenever money is created, that that's very important to us. So So overflow is a certified integration, you can find it in our partner directory, we link to the product documentation as well. But what's the product do itself? Let's give a quick overview. And then we can play that video Jose as well. Unknown Speaker 40:24 Yeah, definitely at a high level, we start by having that exposure and data visibility to donors, right, when they come to your website. Do they know that you accept stock? Yes or no? Right? Do they have the big into, you know, a sub tab somewhere kind of hidden, to figure out if you donate stock? Or do you make it more prominent. And what we've done in this case with one of our clients and Meals on Wheels, San Francisco, we ended up having a dedicated section for giving stock talking a bit about the benefits of doing that. So again, that education is key. And then having a button that somebody can click on to then donate stock. And so the next slides here are going to go through the the process of how we how we get this going. But the first page that we show when somebody don't click the Donate stock on that abadan is a custom page dedicated to your nonprofit. So we could have your logo, messaging from you front and center of anything that you want to say related to, to your impact and stop donations. And then from here, somebody can click the Donate stock. And that'll take them to the next step here. And when I was talking about the average stock donation through overflow being the size it is, and growing steadily, one of the the other factors that I wanted to highlight is the ability for people to see and be reminded of how much they have in their portfolio. A lot of people don't know off the top of their head, you know, what they have in their portfolio, right, they have to go into their brokerage account, they have to check and see what they have. And so we we integrated that seamlessly into the flow, where people can actually see what they have in their portfolio, and then pick and choose what they want to donate. And one of the feature sets that have has been really well received and was heavily requested by by donors, as we were testing, this is being able to see which stocks have appreciated the most. So So Tim, you know, we rank the stocks that somebody hold based on that appreciation, right? And so the first ones that are going to be displayed, are going to be the ones that they've made the most money in. And then based off of that, they can make more educated decision around what I'm going to give and what I'm going to bypass capital gains tax on. So it's been really compelling, being able to add that in. And so the next and final slide here, I believe is going to be that final confirmation once the pick and choose what they want to donate and and send that donation through in less than two minutes, we can confirm that donation, send the donor email communication, laying out what they ended up donating. So that donor experiences dialed in from a communication perspective, giving them clarity into what they've given. And, you know, we even go to the point of automating gift acknowledgement receipt. So we truly handle the full process from a donor, making a stock gift, the donor receiving that donation receipt, in the end. And it's important because and we'll go through kind of like a short video that we have that that shows this live. And this is important, folks, because donors who are giving this type of asset want to know that you understand and appreciate that asset. And and so even given Tuesday, in a separate study, they actually analyzed organizations who treated cryptocurrency as an example, which is very similar asset in terms of how it works from a tax standpoint. Unknown Speaker 43:48 They said if we treat it like a credit card donation versus not a credit card donation, and it's its own unique process, what's the impact, and they actually found that if you treat these types of assets, like somebody who's given a credit card usually lowers the amount that they're giving. So, especially with overflow, leaning into the fact that there's like your actual brokerage account information populates in there, so you can get confirmation before you're about to give is awesome for your donors. This gives them absolute confidence that gets back to that Barclays item, which is what you're doing is is is planting the seed, that their ability to create transformation to your organization is is also tied directly to the power of that asset. They could visualize that they could see that and then they can immediately have that kind of kick into their organization. Maybe we can pop into the showcase of this so people could see this live. Okay. Unknown Speaker 44:49 Now let's go ahead and do it. Cool. Let me go over and make sure I know how to do this. Unknown Speaker 44:56 Okay, Unknown Speaker 45:03 Hey, it's Jose with overflow where we are inspiring the world to give starting with stocks, I wanted to provide a demo of how the overflow experience comes to life in a nonprofits website, we've been grateful to serve a nonprofit called World Bank. And what they did is they embedded the overflow button into their website so that their donors can see when they land on their website, that world would a bank accept stock, and it's pretty visible and prominent for them. So we offer that to nonprofits with two lines of code that they can go ahead and copy and paste and embed anywhere on their site. So from here, a donor can go ahead and click the Donate stock. And it's going to take them directly to the CO branded experience that we provide at overflown. So you're going to see here that at the top left, we're going to have the nonprofit logo, and then down below, we can have a customizable message by the nonprofit same down here, and the donor can then click to donate stock. And the first thing we're going to do is implement two factor authentication. So we're going to be asking for an email or a phone number to ensure that it's going to be a secure experience for the donor. So I'm going to put in a phone number here, and be able to move forward with the donor flow. So once I get a code, I'll be asked to input that and proceed to donate. Unknown Speaker 46:21 Alright, so now we're going to have a waiting message. And it's going to reemphasize the benefit of donating stock to this organization. And what we found is that donors don't always remember what they have in their stock portfolio. And they really enjoy and appreciate being reminded of what they have and being able to see and pick and choose what exactly, they would donate to that organization. So they may have stock across multiple brokerage accounts, it could be fidelity, Schwab, etc. So we can then allow them to add those brokerage accounts securely and privately, and be able to pick the stocks that they want to donate to the organization. So if I type in fidelity, I can then be able to log in to that fidelity account. And this is powered by Yoda Lee, they're a prominent financial services firm powering this capability for many banks nationwide. And going back here, we can then show them different accounts that they have, and hold stock in and the donor can click into one and be able to see the exact stock tickers that are within that account. And we're going to provide a couple of data points, we're going to show them how many shares they have of that particular stock, we're going to show them how much they've made in that stock. And that's a really key component where you know, if they're reminded of how many shares they have, and they're able to see how much those shares have grown by, that's really going to tie directly to the impact and the tax advantage of donating stock, right, the higher the appreciation, the more they could end up paying capital gains tax. So it makes the most sense for them to donate a share like Apple where they've made the most money. Unknown Speaker 47:54 Right here, a donor can go ahead and select the amount of shares that they want to donate. So by combining all of this information will really inspire people to give more than what they initially intended to give. So somebody might have wanted to give 10 shares of Apple, but after seeing that they have close to 2000 shares, they may end up giving 30 shares and it adds up really quickly. You know, we've been grateful to see a lot of generosity through our platform in the average stock donation through overflows $6,031. Next up, we're going to let the donor pick the selection order of those shares that are going to be donated. So it could be first in first out last In First Out purchase date purchase price. That really depends on what the donor wants to do. And if they have any questions or don't know what what we mean by first in first out last in first out, we can go ahead and break them down for them here. Unknown Speaker 48:44 And up next, we're going to be asking the donor to pick whatever campaign or font they want to donate to. So this is optional. If the nonprofit has different campaigns going on, they can go ahead and create a drop down menu. And we would display that for the donor to pick and to indicate what they want what they want the stock donation to go toward Exactly. And lastly, we're going to be asking for the donor information so we can make that visible and accessible for you as a nonprofit. So you can see here that we're going to ask for the first name, last name, email, we're going to ask if the account is co owned phone number, and down below address and let them sign off directly from their phone or their desktop without having to print out any forms, mail out any forms which which can typically delay the process for the donor and the nonprofit. So we're going to shorten that process and let them sign off right away. Unknown Speaker 49:34 And lastly, be able to submit that donation. So we've really timed this and we found that it takes typically two minutes or less for a donor to go through and be able to donate stock to a nonprofit. And lastly, they can go ahead and share that donation on multiple social media outlets from Facebook, Twitter, LinkedIn, or via email or take the link and pass it around and encourage people in their network to donate stock to your organization. Thanks much for watching. Unknown Speaker 50:09 Okay. Unknown Speaker 50:12 All right. Let me go ahead. And I think we're back to sharing my screen, Jose. Unknown Speaker 50:17 Yep, yeah, I can see your screen now. Awesome. So, obviously pretty simple process there, when it comes to actually donating. What happens is that that type of asset, what we've done is programmed that at the point of transaction, we're talking about the moment that basically somebody is getting a receipt in their email, what's going to happen is that that gift, or if they're even giving multiple stock donations, then those are going to get split into the CRM and put into the CRM automatically. So what happens is that an organization on the nonprofit side says, You know what, I love this, I want to offer this to my donors. And instead of having to like manually download a bunch of stuff and move it over to the CRM, the overflow team works with you to make the connection between the platforms, all you're doing is giving them an API key when you get down to it. And the instructions tell you where to find that. And then when somebody makes that gift, it goes right into the CRM, if they're already in the CRM, it doesn't make a new record. If they are brand new to the CRM, it takes their basic information, and it puts them right in there for you. And what it looks like is this, it actually goes in as a stock and security gift. Unknown Speaker 51:41 And then when you get into the actual gift itself, Unknown Speaker 51:45 you have the individual donors record. But then what we've added is special data specific to overflow number of shares, the stock name, the stock, close price, and the ticker symbol, Unknown Speaker 52:03 every single one of these is going to be available for reporting as well. And you don't have to do this, you don't have to you don't have to actually add this to your system, what's going to happen is that the the the integration itself adds this data, and then it locks it in. So anytime any donor gives that gift, it's populating the actual amount of the gift in full. And then the individual share metadata itself. And so I then in turn, wanted to run a report on that, or kick off a workflow on that thank you for your stock gift. Unknown Speaker 52:38 You could do that. So even if I go over to donation, donation, detail information, Unknown Speaker 52:45 that information is available for output, Unknown Speaker 52:49 as well as available for research on to so if I even type in a ticker, Unknown Speaker 52:58 and I want to look up all my apple shares that have been donated, I'm able to do that. Unknown Speaker 53:05 And it's that simple. That's it. That's the integration. It adds that information as a donation custom field. So that information is then found in this area here Unknown Speaker 53:22 in terms of your overall settings, but it uses the standard payment type of stock and securities for you to be able to do that. And it's that simple. That's it. Unknown Speaker 53:34 So we have some resources that we've curated specifically for you folks, as well, that's available in the handouts. Unknown Speaker 53:42 Otherwise, that is Unknown Speaker 53:44 our presentation. today. We are we do have some extra time for questions, because this could be a pretty wonky asset. So we're here at your pleasure, pleasure to answer anything that you may need. Unknown Speaker 53:58 Any questions, folks for today? Unknown Speaker 54:02 staring at the q&a. Unknown Speaker 54:08 Everybody's chill because they came out of the July 4 weekend. Unknown Speaker 54:18 All right. Unknown Speaker 54:20 That's it. That's it. I think we covered it. I think we covered it. I maybe that's maybe that's why it's good that we answered literally everything around stock. So I do I do know that we're going to continue to be deepening things with the overflow team. We're going to be doing some awesome research together. They're going to be joining us a generosity exchange later in October. So so we could kind of drill into how to engage donors who want to give stock. A little bit more strategy. This is kind of the technical know how I think that that engaging donors in specific ways would be important. How so okay, how much, Jose that Ruth is wondering like, what's your pricing Unknown Speaker 55:01 Yeah, yeah, definitely. So we have two packages currently, one of them is what we consider to be the self serve model where you can take the technology, take a playbook that we give you and start promoting this and actively get it up and running. And then the other package is a really full service. So we actually dedicate a person to your team, that's going to be creating any custom marketing, you know, content communication, that you need to go ahead and promote this, we actually created the package. Because we found that many nonprofits want to promote this, but don't always have the bandwidth to go ahead and do it. So depending on the package, there's a subscription fee, and we can get into that, you know, further down the line, and then our processing fee is based on the actual stock volume that's coming in. So whatever you receive, we get a 3% cut off of that. And we're actually a company that capsure processing fees. So if somebody gives a really generous large donation to your organization, then we only make 3% on the first 25,000 of any single stock donation. So and in the in the follow up email, there'll be a way that if you want to talk to a team member at overflow, Unknown Speaker 56:15 that you know that that'll be something that's directly set up, and we don't charge for the integration itself. It's just if you have the service and you turn the service on, then you can make a connection between the two. And that doesn't cost anything. That's very important to us. So definitely, Ruth, you know, we can have you connect with the team there learn a little bit more. But if you go even to into the resources handout, there's actually that direct URL on the learn about overflow that's going to get you connected directly to a team member, but it will be in the follow up email too, as well. Awesome. Well, Jose, thank you so much for joining us today. This was great, really excited about our relationship, folks, if you also go to our blog, a little bit more overview of the overflow Unknown Speaker 57:01 process. And the reasons that stock are so important. We just published that launch blog today. So you could check that out under our blog, as well. And there'll be some really good data there as well for you. Unknown Speaker 57:14 Awesome, folks, have a lovely day. Thank you for joining us today. Jose, thank you so much for helping us kick off this awesome partnership. And I know that we'll be seeing a lot more of each other coming soon. Sure. Well, thanks, Tim. Thanks, everyone. Alright, thanks, everyone. Thank you. Transcribed by https://otter.ai