Planned Giving Toolbox Workbookafp.peachnewmedia.com/EdutechResources/resources//bytopicid/28… · 1 Sharing Your goals for Planned Giving How to explain Planned Giving to your donors

100 Great Meadow Road | Suite 103 | Wethersfield, CT 06109 | 800.397.0872| 860.882.0074 www.plannedgivingstrategies.com

The

Planned Giving Toolbox

Communications Ideas to Spark Conversations

Strategies Focusing on Donor Concerns

Hypothetical Donor Situations

Planned Giving Options

1

Sharing

Your goals for Planned Giving

_________________________________________________________________________

_________________________________________________________________________

How to explain Planned Giving to your donors

_________________________________________________________________________

_________________________________________________________________________

What are your biggest concerns about implementing Planned Giving?

_________________________________________________________________________

_________________________________________________________________________

What has worked or not worked in the past?

_________________________________________________________________________

_________________________________________________________________________

_________________________________________________________________________

Takeaway: Revisit your organization’s core values, mission and vision – for yourself. Then

communicate them to your donors stressing how these values are even more valuable in an

economic downturn.

Takeaway: get in front of as many donors as you can. Use donor events to tell your story.

Takeaway: Interview your top donors and ask for lessons learned . . . then compile the lessons

and send them to your donors.

2

5 Planned Giving Myths

• Difficult

• Need to be an expert

• All gifts are deferred

• Focus on organizational needs

• Planned giving is not fundraising

Source: Donor-Centered Planned Gift Marketing by Michael J. Rosen, CFRE

3 Stages of Planned Giving

1. Bequest and Beneficiary Designation

2. Life Income Gifts

3. Charitable Gift and Estate Planning Phase

3

To download The 5 Principles for

Planned Giving Success please visit

www.plannedgivingstrategies.com

http://www.plannedgivingstrategies.com/

4

Tax Advantaged Gifts

Would you like to save twice on your taxes with one donation?

Remind donors to consider donating appreciated investments.

Many donors only think gift = cash or check.

Donated appreciated investments saves on income taxes and capital gains taxes.

Make sure the investment was owned for more than a year! Otherwise the donor

will only be able to deduct the cost basis of the investment.

Example stock gift:

Stock purchased May 5, 2009 $10,000

Stock value on March 30, 2011 $20,000

Donor charitable deduction = $20,000

Additional tax savings of $1,500 on potential capital gains tax ($20,000 - $10,000 x 15%)

Based on 2012 capital gains tax rate for donor in the 25% federal income tax bracket.

IRS IRA Gift Matching Program

Name a non-profit organization as beneficiary on a retirement account and the

non-profit receives 100% of the funds. In essence, the IRS and the State contribute

a match for every dollar donated 20% to 50%.

This is an option for planned gifts of any size!

5

A Simple Solution: Donor Advised Fund • Eliminates the need to collect multiple gifting letters.

• Donors can make a single donation to the Donor Advised Fund.

• Donors can make larger donations in higher income years.

• Funds can be carried over to future year donations.

• Establishes a charitable fund that can be passed on to future generations.

• Can be invested in a variety of investments to grow without taxation.

John & Jane

• Very Charitable

• Annually made

donations to 15

organizations

• Frustrated by

having to gather

and collect gift

letters

• Asked if there is

a way they

could simplify

their giving

6

A couple that wants to provide a gift to

charity but is concerned about leaving an

inheritance to their children. Here is the

typical charitable lead annuity trust…

Charitable Lead Annuity Trust (CLAT)

Donor receives charitable deduction and makes a taxable gift.

Non-profit organization receives an annual income.

At the end of Trust, beneficiaries receive the remaining trust assets.

Jerry & Martha

7

We can create a more significant impact and legacy to the family and

non-profit by enhancing the trust.

Enhanced Charitable Trust (ECLAT)

By adding life insurance inside of the charitable trust Jerry & Martha

leverage their donation to create a larger benefit to the non-profit(s)

and their family.

Donor receives charitable deduction and makes a taxable gift.

Trust purchases income-producing investment and life insurance.

Non-profit receives an annual income.

Upon a donor’s death, trust makes final payment to non-profit and beneficiaries receive

remaining Trust assets.

8

Charitable Remainder Trust

Ken is 68 years old. He wants to

create a legacy to pass on a

significant amount to his favorite

non-profit and reduce his taxable

estate while planning to create a

retirement income for himself.

Ken Funds a Charitable Remainder Trust with $1 million.

He receives an income tax deduction, reduces his taxable estate, and potentially receives income

for life.

Upon Ken’s death the Trust assets are paid out to non-profit(s).

Two problems: Depending on the performance of the investments, the income may not last and

in a typical Charitable Remainder Trust, the non-profit unfortunately never knows how much it

will receive.

Charitable Use of a Commercial Annuity

These concerns can be addressed by using a commercial annuity within the Charitable

Remainder Trust.

Solution: The Charitable Remainder Trust purchases a $1 million annuity with a living income

benefit and a premium guarantee death benefit. The living benefit provides a lifetime income to

Ken backed by the financial strength of the insurance company; the death benefit provides the

opportunity to make sure the non-profit(s) receive at least what the donor contributes.

9

Wealth Replacement with Annuity

If Ken is concerned about leaving a legacy to his family, we can add in a wealth replacement

component to this planning to replace the million dollars that he donated to the Charitable

Remainder Trust by using some of the income generated by the Charitable Remainder Trust to

purchase life insurance. This can be protected from estate taxes by using an insurance trust to

own the policy.

10

Tax Free Wealth Replacement

Arthur & Michele are both 72 years old.

Arthur has a $1 million IRA. After reaching age 70½ he has

started to take his required minimum distributions, but they

do not need the funds for income.

They are concerned about how they can leave a legacy to their family and the non-profits that

they care about. With an IRA of this size, income taxes are going to be a concern and need to be

addressed.

We can address all of their concerns through a Tax Free Wealth Replacement Plan.

11

Ideas to Spark More Planned Giving Conversations

Create a Gift Planning Council

Small Group of Professional Advisors –

Include Financial Advisors, Attorneys, Accountants and Insurance Agents. They can review your

planned giving materials and provide feedback and answers or assist with gift planning

questions. It’s important to determine what the members would like to gain from the Council.

Your Council can help the advisors build a network of charitable planning professionals to assist

their businesses.

Create a Professional Advisors Network

Broad group of professional relationships

Provide information about your mission and on gift planning

Make two-way referrals

Remember, professionals are potential supporters themselves.

Concentrate on Topics that are Donor Focused such as: • Maximizing Your Children’s Inheritance

• Increasing your Retirement Income

• Crafting Your Legacy

• Creating a Family Vision and Plan

Educate Donors Make planned giving information widely available

Avoid using the term “Planned Giving”

• E-brochures

• Newsletters

• Envelope Stuffers

• Educational Seminars

• Message on Hold

• Radio Spot

• Website

100 Great Meadow Road | Suite 103 | Wethersfield, CT 06109 | 800.397.0872| 860.882.0074


Create a Marketing Plan of all Scheduled Communication to Donors • Are you communicating a planned giving message throughout your plan?

• Keep the message consistent; you can use the same example or story in various types of

communications.

• By incorporating planned giving in your communications, you can gradually build a

budget for planned giving over time.

Use Postcard Mailings Highlight your mission, impact and outcomes

• Drive traffic to your website, phone number or have a response card

• Focus on Donor Needs throughout the year

Jan 15 – Retirement Plan Designations

Mar 1 – Increasing Retirement Income

May 1 – Estate Intentions

Sep 1 – Increasing Retirement Income

Nov 1 – Unlocking Value in Your Assets

• Send an e-mail follow-up

• Track each mailing for results

• Segment List for focused mailings Source: Brian M. Sagrestano, JD, CFRE, giftplanningdevelopment.com

Use an E-mail Signature Tagline that promotes legacy giving and use a Tagline in general to convey your organization’s or program’s impact or value-

Must be authentic, memorable and avoid using jargon and acronyms

Must be specific to your organization

Must be eight words or less

Must be highly visible throughout all communication

Must make an emotional connection

Must capture the spirit or promise of your organization

Must clearly complement and/or clarify your organization’s name without duplicating it.

Must take the tone that will connect with your audience Source: www.gettingattention.org

Examples:

“Giving to the Future” – PGS

“A Mason for Life; a Gift for Eternity” - California Masons

“Be Remembered for Your Passion” - Houston Grand Opera

“Your Lake. Love it or Smell it” - Tippecanoe Watershed Foundation



Summary . . . Focus on the donor’s needs

You can help donors reduce taxes, simplify their giving and guarantee their gifts and

inheritances

You do not need to know all of the details

Develop relationships with advisors who can assist you

Consistently strive to start conversations

Planned Giving Action Steps

The NonProfit Times Survey of Planned Giving Vehicles showed the following:

1. Donors with a planned gift give a greater percentage of their income currently.

2. Donors who give currently are twice as likely to have a planned gift.

3. Since 3 out of 5 donors do not have a planned gift, the opportunity is huge.

4. A donor with one planned gift is likely to complete another planned gift.

5. Almost 6 out of 10 donors who consulted a professional completed a planned gift.

Ideal Year

_________________________________________________________________________

Actions to Take by Year End

_________________________________________________________________________

_________________________________________________________________________

Actions to Take in the Next 90 Days

___________________________________________________________________________

___________________________________________________________________________









Notes

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________



________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________

________________________________________



Who We Are

Since 1995, we have used our skills to listen to non-profits and their donors and take what we’ve heard to

build and perfect a proactive planned giving system that is the bridge between organizations and their

donors.

Through The Donor Motivation Program™

and an international network of trained professionals, we have

helped North American charities, large and small, “motivate planned giving!” More than 15,000 donors

have engaged in our educational Donor Presentation Experience and rated it either “one of the finest” or

“absolutely the best” of its type. Why? Because it “speaks donor!”

At PGS, our mission is to secure the continuity of non-profit organizations through the creation and

development of successful planned giving programs that add financial stability for future generations.

We work in a close, consultative role with your organization to help implement proven planned

giving strategies, provide necessary training and the support required for continued success.

Documents

Planned Giving Toolbox Workbookafp.peachnewmedia.com/EdutechResources/resources//bytopicid/28… · 1 Sharing Your goals for Planned Giving How to explain Planned Giving to your donors