iowa council of foundations
TRANSCRIPT
© 2020 Heaton Smith Group
Gift Planning in Community FoundationsThe Gift Planning Conversation
Iowa Council of Foundations
Carol Golden Sheryl AikmanSenior Consultant Senior Consultant
© 2021 Heaton Smith Group
What is a planned gift?
A gift the donor needs help to accomplish
Usually from assets, not income
Often structured to take advantage of charitable tax deductions
May integrate family, financial and charitable goals
© 2021 Heaton Smith Group
Assets and tools for planned gifts
● Gifts from assets○ Stocks and bonds○ Real estate○ Business interests
● Bequests
● Beneficiary designations
● Gifts that provide income○ Charitable gift annuity○ Charitable remainder trust
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Gift planning readiness
• Strategic plan with clear value proposition
• Board and staff believe in long-term relationships
• Strong sense of stewardship
• Financial stability
• Time and staff resources available
© 2021 Heaton Smith Group
Gift planning in community foundations
• Endowment is natural fit with legacy planning
• Ability to accomodate gifts of all amounts
• “Naming opportunities” are built in to fund structures
• Succession planning is a natural opportunity for legacy ask
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Who are your prospects?
● Board members and former board members
● Current fundholders
● Other donors who give regularly
● Professional advisor referrals
● Community leaders (“movers and shakers”)
© 2021 Heaton Smith Group
Talking about death, money and taxes
Death Legacy
Money Good fortune
“What I’ve built”
“What I’ve worked hard to accumulate”
“What will be left after I take care of family”
Taxes Money that stays in my community
Money that I have a say in the use of
Ways to provide more to my children
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Top motivations
1. Cause is personally important
2. Belief in organization’s impact
3. Ability to leave a larger gift than during life
4. Desire to give back
5. No spouse / significant other / children
6. Family members are financially comfortable
Only 10 percent of planned giving donors cite tax benefits as the motivating reason for making a planned gift.
© 2021 Heaton Smith Group
• Establish comfort and connection.
• Understand what they need and want from the community foundation.
• Listen to their story.
• Name a next step for follow-up.
Your goals in the conversation
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Discovering your donor
How did you learn about the community foundation?
You’ve lived in our community for a long time. What do you love most about it?
You mentioned that your attorney recommended you talk with the community foundation. What brought that up?
I noticed that you are a loyal supporter of the Arts Center. Tell me why it’s important to you.
How do you
use your
donor advised
fund for your
charitable
giving?
Please, tell me your story.
© 2021 Heaton Smith Group
Cues and clues: Family and lifestyle
• Single
• No or few children
• Married, financially mature children
• Concern that children will inherit too much
• Concern that a spouse, child or loved one will need income
• Moved or planning to move
• Retired or planning to retire soon
Cues and clues: Income and assets
© 2021 Heaton Smith Group
• Owns business
• Plans to sell business
• Retirement plan
• Owns collection(s)
• Recently received inheritance
• Personal residence(s)
• Appreciated real estate (commercial, farm, etc.)
• Appreciated stock
• Depreciated stock
• Govt/corporate bonds
• Savings bonds
• Commercial annuities
• Mutual funds
© 2021 Heaton Smith Group
ConclusionCarol Golden Sheryl AikmanSenior Consultant Senior [email protected] [email protected]