Planned Giving

Planned Giving:
‘A voluntary gift of any kind...
when the assistance of a qualified volunteer, professional staff person, or the giver’s own advisor(s) is needed to help complete the gift.’
– William Sharpe

What is Planned Giving?

• A "stop and think" gift
• More than just writing a check

Why is Planned Giving
Important?

Giving USA 2014

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Facts about estate donors

Planned Giving is...

• Not only for the wealthy
• Not only for the childless
• Not done without the inclusion of the family

Who is your Donor?

Profile #1: Wealthy Donor

• Person with considerable assets
• Has team of financial advisors
• Probably is connected to you already, but maybe not
• May be better to ask about a current gift
• Making decisions as early as mid-30's, but can change

Profile #2: Committed Donor

• Probably a small gift annual donor and/or volunteer
• Wants to do more but doesn't have current assets
• Usually makes decisions when 50+
• Once they commit, it doesn't change
• Usually already connected to your organization

Profile #3: Surprise DOnor

• You don't know them
• They may have consciously picked you...or not
• Even though they get attention, somewhat rare
• Could be any age

How to

Your Toolbox

• Gifts of Securities
• Bequests
• Life Insurance and other beneficiary designations
• Charitable Trusts (Annuity, Lead, Remainder)
• Retained Life Estate

Gifts of Securities

• Donor transfers securities to charity
• Donor gets charitable deduction for market value
• Charity (usually) sells securities and gets cash

Bequests

• Easiest tool to start
• Donor leaves an asset to the charity in a designation
• Can be specific, percentage, residual or contingent

Sample Terminology: General
"I give, devise, and bequeath to NAME OF CHARITY, LOCATION, the sum of $________ (or a description of the specific asset), for the benefit of NAME OF CHARITY and its general purposes.“

Sample Terminology: Specific
"I give, devise, and bequeath to NAME OF CHARITY, LOCATION, the sum of $_______ (or a description of a specific asset), for the benefit of NAME OF CHARITY to be used for the following purpose: (state the purpose). If at any time in the judgment of the trustees of NAME OF CHARITY it is impossible or impracticable to carry out exactly the designated purpose, they shall determine an alternative purpose closest to the designated purpose.“

Sample Terminology: Residual
"All the rest, residue, and remainder of my estate, both real and personal, I give to NAME OF CHARITY/LOCATION, for its general purposes.“

Sample Terminology: Contingency
"I devise and bequeath the residue of the property, real and personal and wherever situated, owned by me at my death, to (name of beneficiary), if (she/he) survives me. If (name of beneficiary) does not survive me, I devise and bequeath my residuary estate to NAME OF CHARITY/LOCATION, for its general purposes.“

Beneficiary Designation

• Another easy tool
• Donor names charity as full or partial beneficiary
• Can be life insurance, retirement or pension plan, etc.

Life Insurance SPecifics

• Can be Term or Whole Life
• For term, charity is beneficiary
• For whole, charity is owner and beneficiary
• Premiums MAY be tax deductible to donor

Now, the more complicated stuff

Life Income GIfts

• Donor makes a gift and receives income for life
• Tax deduction determined by expected value to charity

Charitable Gift Annuity

• Donor or designee gets set payment for life
• Charity receives what's left of the asset at end of life

Charitable Remainder Unitrust

• Donor gets a fixed percentage of principal
• Payment can vary from year to year

Charitable Remainder Annuity Trust

• Donor gets fixed payment each year
• Charity pays regardless of performance

Charitable Lead Trust

• Charity receives income for fixed period of years
• Asset is removed from the donor's estate
• Principal returns to donor or heirs after period

Retained Life Estate

• Donor gives home or farmland to charity
• Retains lifetime interest, usually to live on or use land
• Donor responsible for taxes and maintenance
• Charity can dispose of asset after donor's life

IRA Rollover

• Allowed donors to roll IRA to a charity
• 2014 not extended yet, but may be retroactively
• Stay tuned....

Where to Begin

Add this to everything:
"Please consider including ABC Charity in your estate plans. For more information, contact..."

Determine your Audience

• Long-term donors, regardless of size
• Committed volunteers
• Donors living on a fixed income
• Donors who have lived in their home for a long time
• Donors with high net worth

Determine your Audience

• Current and Former Board members
• Staff

Create a simple
enrollment form

Find professional advisors

• Community Foundation
• Financial advisors
• Attorneys specializing in estate planning
• CPA's
• Have more than one advisor

Don't worry about technical details.
Work on donor relationships.

Start the Conversation

Start the Conversation

• If the Donor says, "I wish I could do more...."
• In print, "If you could give more without sacrificing..."
• In newsletters, tell stories of current legacy donors
• If you identify a donor's life milestones, like retirement

Planned GIving Can Be Easy

Get Started!