making planned giving and major gifts work
DESCRIPTION
Making Planned Giving and Major Gifts Work. When They’re Not Your Job. Identifying Prospects. Mine Your Data Base Consistent Donors Largest Donors. Pyramid of Giving. Planned Gifts Major Gifts Annual Gifts Event Participants Where is the money? Where do you spend your time?. - PowerPoint PPT PresentationTRANSCRIPT
Making Planned Giving and Major Gifts Work
When They’re Not Your Job
Mine Your Data Base Consistent Donors Largest Donors
Identifying Prospects
Planned Gifts
Major Gifts
Annual Gifts
Event Participants
Where is the money?Where do you spend your time?
Pyramid of Giving
Investment Involvement Interest Information Identification
Qualifying Prospects
Frequent Communications◦ Newsletters◦ Articles of Interests-Personal Testimonials
Educating Prospects
Giving Begins at Home Board of Directors Staff Volunteers
Family First
Develop “A” Prospect List Prepare Case for Support Identify and Train Team
Plan the WorkWork the Plan
Think Like a Major Gift/Planned Giving Officer◦ Build Relationships◦ Build Trust◦ Build Knowledge
Visit, Visit, Visit
Asking Questions (or at least find out)◦ What is your connection to our cause?◦ Why are we a priority?◦ Tell me about your family◦ Tell me about your career
Act Like a Major Gift/Planned Gift Officer
Compelling Reasons to Give Urgent Needs
◦ Program◦ Projects
Making the Case
Bequests
Life Income Gifts
Retirement Plan Gifts
Other Stuff to Give Away
Some basic planned gifts
In 2010 Americans gave $291 billion to charity
The Power of Bequests
Bequests can be fixed amount or a percentage
Pecking order can be set
Must be assets left
You’re done with it anyway
If you designate, do it carefully!
Tax advantages to a bequest are minimal for most of us
About Bequests
Publicize Those You Receive◦ But not from Bill Gates
Mailings
Educational Seminars
Have a Gift Acceptance Policy
Attracting Bequests
Most Loyal Donors◦ Number, not amount
“I Wish I Could Give More”
Those Why Worry About Your Future
Where to Hunt
Donor Establishes Gift Receives an Immediate Tax Deduction Guaranteed Income
◦ For life◦ For a number of years
Charity gets balance when annuity matures Benefits improve with age
Life Income Gifts
Gift Annuities◦ Easiest, least expensive to administer◦ Very little flexibility
Charitable Remainder Trust◦ Greatest degree of flexibility◦ Requires trust accounting
Tax return, etc.
Charitable Lead Trust◦ Works in reverse
Life Income Gifts
How They Work
Remaining ValueLeft to Charity
Income Portion$6,424
Gift Portion$3,576
Both earn Income
$132 per year
Pays $518 per year
from principal
Total Income
$650
Summary of Annuity Benefits
“I wish I could give more…”
Lapsed donors with some history
Alternatives to bequests
Existing annuitants
Where to Hunt
Distributing Checks
Issuing Tax Forms
Investing the Fund
*Will your organization shine or stumble?*
Great Stewardship is Required
Make your charity a beneficiary or POD designation through donor’s IRA Administrator◦ Proceeds would not be taxed
◦ If their estate is the beneficiary and the charity is paid from your estate (through the will) the proceeds are taxed.
◦ Tax-wise, the IRA will be the most expensive thing for anyone other than charity to inherit.
Retirement Beneficiaries
$100,000 Account- 28,000 Federal Income Tax- 3,070 Pennsylvania Income Tax- 1,000 Local Income Tax $67,930 Paid to estate
- 3,057 Pennsylvania Inheritance Tax$64,873 Paid to heirs
Charities would receive the full amount!
Cost of Dying With an IRA
Those close enough to hear the story
Use professional advisor network
Highlight in educational opportunities
Where to Hunt
Life Insurance◦ Should an agent be your planned giving officer?
Real Estate◦ Use it or sell it◦ Be aware of environmental issues
Be Open to Bargain Sales
Anything you want to, as long as:◦ Appropriate for your mission◦ Benefits exceed cost
Things You Can Receive
< 50 Years Old 50-70 Years > 70 Years Old
WealthyCash
Appreciated AssetsBequests
CashAppreciated Assets
Deferred Life Income
Lead TrustsRetirementBequests
CashAppreciated Assets
Life IncomeLead TrustsRetirementBequestsInsurance
Moderate Means
CashBequests
CashDeferred Life
IncomeBequests
CashAppreciated Assets
BequestsGift AnnuitiesRetirementInsurance
Limited Means
CashBequests
CashBequests
CashBequests
Gift AnnuitiesRetirementInsurance
Matching Gifts to Donors
Million dollar gifts don’t come in the mail Dead people give more than corporations People give to people There is no money hiding behind your desk
Trueisms
Karen PetrucelliKP [email protected]
Brian SheetzEast Ohio United Methodist [email protected]
Thank You!