Planned Giving – An Essential Fundraising Vehicle

1. Planned Giving – An Essential Fundraising Vehicle Michele Thomas Dole, MS, CFP® Faculty, The Fund Raising School

2. Planned Giving Definitions A gift legally provided for during the donor’s lifetime but whose principal benefits may not accrue to the organization until a future time, generally at the death of the donor and/or the income beneficiary. Planned giving connotes thoughtful preparation and planning, usually requires professional advice, and can apply to all forms of gifts. The term is used most commonly for gifts of future interest.

3. Benefits To the Donor • Gratifies human need for enjoyment of giving • Encourages estate planning • Makes a larger gift than if making one outright • Creates a permanent memorial • Makes a gift with retention of income • Provides income for self and/or beneficiaries • Assets managed at low or no cost • Income, estate, and capital gains tax savings

4. Benefits to the Organization • Increases available options of giving • May produce “actual-received” gifts on a regular basis that will add to the organization’s income holdings • May be irrevocable • Increases possibility of a donor changing a bequest to a lifetime gift • May lead to future gifts through estate planning and bequests • Can be used as a basis for future planning

5. Brief Description of Planned Gifts

6. Brief Description of Planned Gifts

8. Planned Gift Instruments (Summary) • Wills and bequests • Charitable gift annuities • Deferred payment gift annuities • Charitable remainder unitrusts • Charitable remainder annuity trusts • Charitable lead trusts • Retained life interest gifts • Life insurance gifts • Retirement plans • Pooled income funds

9. Gifts of Appreciated Securities • Great tax savings for donor if stock has significantly grown • Gift deduction value is the average of the high and low on the date of transfer to the charity • Donor transfers using the charity's DTC instructions • Charity usually immediately sells the stock and invests proceeds

10. Wills • Simplest to initiate by organization • Impetus of planned giving • Can be promoted through mass marketing • Face-to-face negotiations best approach • Beneficiary must be clearly indicated • Is a revocable gift • Gifts larger than lifetime gifts • May lead to other lifetime gifts • Makes a large deferred gift possible Sec. 3, 47

11. Qualified Retirement Plan • Most people have this resource • Name the charity via Beneficiary Designation Form • Substantial tax planning savings for the donor

12. Life Insurance • Policies may be contributed to charitable organization. • Organization should be made an irrevocable beneficiary and owner of policy. • When existing paid policy is given, or when premiums are paid, donor may claim tax deduction. • Premiums are considered deductible charitable gift. • Organization should be aware of IRS rulings on insurance as gifts; check with your state’s IRS office for information. Sec. 3, 87

13. Start-up Steps for a Planned Gifts Program • Secure commitment of board, staff, and development personnel. • Appoint study committee; make recommendations to the board. • Adopt a plan. • Determine training programs needed for staff.

14. Start-up Steps for a Planned Gifts Program • Hire planned giving staff. • Organize gifts committee. • Prepare promotional plan. • Establish office management procedures. • Begin mail cultivation.

15. Thank you