© ashton associates 2012 creating a bequest program in 60 days by debra ashton may 10, 2012
TRANSCRIPT
© Ashton Associates 2012
Creating a Bequest ProgramCreating a Bequest Programin 60 Daysin 60 Days
By Debra AshtonBy Debra Ashton
May 10, 2012May 10, 2012
© Ashton Associates 2012
Categories for Estate GiftsCategories for Estate Gifts
Bequests from traditional willsBequests from traditional wills Provisions in Living TrustsProvisions in Living Trusts Life InsuranceLife Insurance Retirement Plans (Beneficiary Retirement Plans (Beneficiary
Designation)Designation)
© Ashton Associates 2012
Determine Crediting GuidelinesDetermine Crediting Guidelines
Will bequests be credited in a campaign?Will bequests be credited in a campaign? If so, under what conditions?If so, under what conditions? How will they be booked on your gift How will they be booked on your gift
recording system?recording system? What are your rules for named endowed What are your rules for named endowed
funds set up through a bequest?funds set up through a bequest?
© Ashton Associates 2012
Prepare a one-page summary of Prepare a one-page summary of bequest wordingbequest wording
Make a list of people who have an Make a list of people who have an estate gift (revocable)estate gift (revocable)
Select a name for your societySelect a name for your society Have the name approved by Board of Have the name approved by Board of
TrusteesTrustees
© Ashton Associates 2012
Sample Bequest WordingSample Bequest Wording
““I give and bequeath to [legal name I give and bequeath to [legal name of charity], whose legal address is of charity], whose legal address is [address], the sum of $___________ [address], the sum of $___________ (or, ____% of my residuary estate) (or, ____% of my residuary estate) for such purposes as [charity] shall for such purposes as [charity] shall determine are in the best interests of determine are in the best interests of [charity].”[charity].”
Board of Trustees ResolutionBoard of Trustees Resolution
RESOLVED:RESOLVED:
Whereas (Charity) wishes to recognize and Whereas (Charity) wishes to recognize and honor those supporters who have honor those supporters who have established an estate gift that will one day established an estate gift that will one day support (Charity), we hereby create the support (Charity), we hereby create the “_____ Society” in special appreciation of “_____ Society” in special appreciation of their foresight and generosity.their foresight and generosity.
© Ashton Associates 2012
© Ashton Associates 2012
Develop a List of IncentivesDevelop a List of Incentives
Annual luncheon or dinnerAnnual luncheon or dinner Recognition certificateRecognition certificate Recognition itemRecognition item Listing in Annual ReportListing in Annual Report Special invitation to other donor Special invitation to other donor
eventsevents
© Ashton Associates 2012
Write to Founding MembersWrite to Founding Members
Who signs the letter?Who signs the letter?
Chair of Bequest SocietyChair of Bequest Society Chairman of the BoardChairman of the Board PresidentPresident Head of the Development CommitteeHead of the Development Committee OtherOther
© Ashton Associates 2012
Announce the new Society in your Announce the new Society in your next newsletter or publicationnext newsletter or publication
Place check-off blocks on reply cards Place check-off blocks on reply cards (annual giving, pledge forms, etc.)(annual giving, pledge forms, etc.)
Identify a target market for a bequest Identify a target market for a bequest mailingmailing
Plan the inaugural luncheon or dinnerPlan the inaugural luncheon or dinner Establish a Bequest CommitteeEstablish a Bequest Committee
© Ashton Associates 2012
Targeting your PopulationTargeting your Population% People with% People with % People without% People without
% People with% People with wills; open towills; open to wills; open towills; open to
% U.S.% U.S. bequest tobequest to making a futuremaking a future making a futuremaking a future
AgeAge PopulationPopulation charity in placecharity in place bequest to charitybequest to charity bequest to charitybequest to charity
____________________________________________________________________________________________________________________________________________________
40-5440-54 3737 3232 3838 6565
55-6455-64 2828 2828 2525 2424
65 and over65 and over 3535 4040 3737 1111
Source: 2008 Survey by Selzer & Company, Inc. commissioned by StelterSource: 2008 Survey by Selzer & Company, Inc. commissioned by Stelter
© Ashton Associates 2012
Using Bequest AgentsUsing Bequest Agents
Peer solicitation is always betterPeer solicitation is always better Recruit a Chair of the Bequest Recruit a Chair of the Bequest
CommitteeCommittee Identify Board Members who have a Identify Board Members who have a
bequestbequest Send recruitment letter from Bequest Send recruitment letter from Bequest
Chair to potential Bequest AgentsChair to potential Bequest Agents
© Ashton Associates 2012
Responsibility of Bequest AgentsResponsibility of Bequest Agents
Must have a bequest or other estate Must have a bequest or other estate giftgift
Agree to lend signature to one letter Agree to lend signature to one letter per yearper year
Allow an article to be written about Allow an article to be written about their bequesttheir bequest
© Ashton Associates 2012
Using Bequest AgentsUsing Bequest Agents
Draft a letter for signature by the Draft a letter for signature by the Bequest AgentsBequest Agents
Bequest Agents approve letter or adapt Bequest Agents approve letter or adapt it to their own styleit to their own style
Charity produces and mails lettersCharity produces and mails letters Send thank-you letters from Bequest Send thank-you letters from Bequest
Agents to people who replyAgents to people who reply
© Ashton Associates 2012
Using Bequest AgentsUsing Bequest Agents
Terms for volunteersTerms for volunteers
Bequest Chair:Bequest Chair: two to three two to three yearsyears
Bequest Agent:Bequest Agent: indefiniteindefinite
© Ashton Associates 2012
Stewardship and MarketingStewardship and Marketing
75% of people with a charitable 75% of people with a charitable bequest never tell the charity.bequest never tell the charity.
Some people do not want to be Some people do not want to be bothered even if you learn about a bothered even if you learn about a bequest.bequest.
Some can be worked with for a current Some can be worked with for a current gift.gift.
© Ashton Associates 2012
Some can be worked with for a Some can be worked with for a current giftcurrent gift
Combining a bequest with a current Combining a bequest with a current gift to create an endowed fundgift to create an endowed fund
Asking a donor to give the bequest Asking a donor to give the bequest during lifetimeduring lifetime
© Ashton Associates 2012
The First ConversationThe First Conversation
When the donor’s attorney calls you--When the donor’s attorney calls you--
Upgrading the size of the bequestUpgrading the size of the bequest
If the attorney will not disclose the If the attorney will not disclose the donor’s namedonor’s name
When you call the donor to discuss his When you call the donor to discuss his or her bequestor her bequest
© Ashton Associates 2012
Gift and Estate TaxGift and Estate Tax Imposed on assets passed during Imposed on assets passed during
lifetime or deathlifetime or death Exempt from the tax:Exempt from the tax:
$13,000 per donee ($26,000 for $13,000 per donee ($26,000 for couples)couples)
Assets passing to spouseAssets passing to spouseMedical or tuition paymentsMedical or tuition paymentsAssets passing to CharityAssets passing to Charity
© Ashton Associates 2012
The Combined Gift and Estate TaxThe Combined Gift and Estate Tax
20122012
-$5.12 million exemption per person ($10.24M -$5.12 million exemption per person ($10.24M per couple) per couple)
-High rate of 35%-High rate of 35%
-Surviving spouse can assume deceased spouse’s -Surviving spouse can assume deceased spouse’s unused portion of exemption.unused portion of exemption.
© Ashton Associates 2012
The Gift and Estate TaxThe Gift and Estate Tax
After 12/31/2012, the exemption After 12/31/2012, the exemption reverts to $1 million with a high rate reverts to $1 million with a high rate of 55%.of 55%.
© Ashton Associates 2012
SummarySummary
Every organization should have a bequest Every organization should have a bequest programprogram
You don’t need a director of planned giving You don’t need a director of planned giving to run a bequest programto run a bequest program
People who make bequests are very good People who make bequests are very good prospects for current giftsprospects for current gifts
Debra AshtonDebra Ashton
Author, Author, The Complete Guide to Planned The Complete Guide to Planned Giving © Giving © 20042004
Ashton AssociatesAshton Associates
24 Robertson Street24 Robertson Street
Quincy, MA 02169Quincy, MA 02169
617-472-9316617-472-9316
www.debraashton.com© Ashton Associates 2012