Does a Charitable Remainder Trust, Beneficiary Designation, Bequest of Shares or Tangible Personal Property, Annuity or Charitable Lead Trust mean anything to you? If it doesn’t spend an hour with us and it will. These are sophisticated giving methods by which you can tempt your highest givers to make larger donations to you. It’s not difficult but it is very common in America and many of your donors will have been offered these methods by the nonprofits and other organizations they support. You need to know about them in order to be able to compete effectively.

1. Fundraising from America:
Planned Giving
Programs
Presented by Nancy Bikson
Chapel & York Limited

2. - What is Planned Giving and why it is important?
- Types of Planned Gifts
- Bequests
- Life Income Gifts
- Charitable Lead & Annuity Trusts
- Who Makes Planned Gifts?
- When is the right time to establish a program?
- Board’s Role in Planned Giving
- Steps to Success
- Review
- Q&A
Fundraising from America: Planned Giving Programs
Today we will be covering…

3. Planned Giving…
- Sometimes referred to as gift planning.
- A method of supporting non-profits and charities that enables
philanthropic individuals or donors to make larger gifts than they could
make from their income.
- While some planned gifts provide a life-long income to the donor, others
use estate and tax planning techniques to provide for charity and other
heirs in ways that maximize the gift and/or minimize its impact on the
donor's estate.
What is planned giving and why is it
important?
Fundraising from America: Planned Giving Programs

4. Whether a donor uses cash, appreciated securities/stock,
real estate, artwork, partnership interests, personal property,
life insurance, a retirement plan, etc., the benefits of funding
a planned gift can make this type of charitable giving very
attractive to both donor and charity.
What is planned giving and why is it
important?
Fundraising from America: Planned Giving Programs

5. Giving USA
45.74 (15%)
23.41 (7%)
18.15 (6%)
228.93(72%)
Foundations
Bequests
Corporations
Individuals
2013 Contributions: $316.23 billion by source of
contributions (in billions of dollars - all figures are
rounded) Source: Giving USA Foundation™
Fundraising from America: Planned Giving Programs

6. Bequests:
In the US, Testamentary Bequest is the technical term for a gift left in a
Will. It may also be called a Bequest or Legacy. 501(c)(3)s can accept
Testamentary Bequests which are tax-deductible for estate tax
purposes. Bequests can also be made to non-US charities.
Donors can leave 501(c)(3) non-profit organizations money, stock,
bonds and other securities, and any other tangible property, for
example works of art, collections, real estate, personal items,
memorabilia and intellectual property rights.
Types of Planned Gifts: Bequests
Fundraising from America: Planned Giving Programs

7. Bequests can take several forms such as:
Specific bequest - a certain amount of cash, securities, or property.
General bequest - property that is similar to all other items distributed,
usually cash.
Percentage bequest - a stated percentage of the donor's estate.
Residual bequest - all or a portion of what remains of the estate after
specific and general bequests are distributed.
In many cases it is necessary to obtain professional evaluation, and in
some cases it is necessary to have this valuation agreed by the IRS.
Types of Planned Gifts: Bequests
Fundraising from America: Planned Giving Programs

8. Bequests are Key!
- More than 80% of planned giving dollars come from bequests.
- REMEMBER: bequests are REVOCABLE - donors must receive
appropriate stewardship so they don’t change their Will!
- Those who make bequests will probably change their plan several
times. You need to be in the final Will.
Types of Planned Gifts: Bequests
Fundraising from America: Planned Giving Programs

9. Life Income Gifts:
A life income gift allows a donor to give assets to the non-profit while
providing a donor or others with income for a period of time before the
non-profit is permitted to use a donor gift. A donor may make a life
income gift by transferring securities, cash, or other property to the
non-profit or a trustee. The trustee then manages the investment of the
assets and pays an income to a donor, a donor designated
beneficiaries, or both. Income payments continue for the beneficiaries'
lives or, in some cases, for a term of up to 20 years.
Types of Planned Gifts: Life Income Gifts
Fundraising from America: Planned Giving Programs

10. There are several kinds of life income gifts available:
Charitable Gift Annuity
In exchange for an outright gift, the non-profit agrees by contract to pay a fixed amount each
year to a donor and/or another beneficiary for life.
Charitable Remainder Unitrust
A donor establish a trust from which a donor and/or other beneficiaries receive variable annual
payments for life and/or a term of years. At the end of the term, the remainder of the trust
assets go to the non-profit for the purposes a donor designate.
Charitable Remainder Annuity Trust
A donor establish a trust from which a donor and/or other beneficiaries receive annual
payments of a fixed dollar amount for life and/or a term of years, after which the
remainder of the trust assets pass to the non-profit for the purposes a donor
designate.
Types of Planned Gifts: Life Income Gifts
Fundraising from America: Planned Giving Programs

11. Charitable Lead Trusts:
A charitable lead trust is a philanthropic and estate planning tool. A donor can
transfer assets, such as cash, stocks and artwork, to a trust for a set term of years.
Each year, payments are made from the trust to the donor's designated
charity/charities.
It is called a lead trust because the charity/charities is/are entitled to the lead (or first)
interest in the trust asset, and the non-charitable beneficiary receives the remainder
(or second-in-line) interest.
Once the trust's term expires, what is left goes to the donor's heirs. Handling assets
in this way can shelter the assets' appreciation from estate taxes.
Types of Planned Gifts: Charitable Lead
Trusts
Fundraising from America: Planned Giving Programs

12. Two Types of Charitable Lead Trusts
Charitable lead trusts are of two types: charitable lead annuity trusts and
charitable lead unitrusts. In the first type, the donor sets a fixed annual
gift for the charities named. In the unitrust, the charities receive a
percentage of the trust's value each year. This means that those benefits
will fluctuate based on the trust's investment returns or losses.
Annuity trusts are the most popular because the charitable payments are
fixed. In the unitrust assets grow and the percentage going to charity
uses up more and more money, thus leaving less for the heirs.
Types of Planned Gifts: Charitable Lead
Trusts
Fundraising from America: Planned Giving Programs

13. People at all income levels leave charitable gifts, although those earning
$100,000+ are more likely.
Consistent donors, Current and former board members, current and former
volunteers, staff members.
Education makes a difference:
- 40% of those who finish high school include a charity in their will.
- People with a college degree are 22% more likely to leave a planned gift to
charity.
- People with post-college education are 47& more likely to leave a planned gift to
charity.
People will religious affiliations are more likely to make a charitable bequest.
Who Makes Planned Gifts?
Fundraising from America: Planned Giving Programs

14. Single people, widows/widowers, couples without children. Married woman
least likely to leave charitable gift.
Basic profile of a bequest maker:
- Single
- Highly educated
- Attends religious services
- Earns more than $100,000K
Who Makes Planned Gifts?
Fundraising from America: Planned Giving Programs

15. Establishing a program is easy.
Promoting can be very basic through your website and
communications with donors.
Promoting it amongst the Development Team working with
the 501(c)(3) is imperative
Follow up is crucial.
When is the right time to establish a
program?
Fundraising from America: Planned Giving Programs

16. In a typical US charity, this is what the Board would be requested to do.
Your Board may do less...
- Making a planned gift themselves
- Help to identify prospects
- Cultivating and soliciting gifts
- Opening doors by introducing staff members
- Hosting events
- Offering testimonials in marketing materials
- Learning how to respond when donor / prospect brings up possibility of a
planned gift
- Scheduling meetings with professional advisors
- Presenting a proposal
- Once gift is made, remaining involved in donor
Board’s Role in Planned Giving
Fundraising from America: Planned Giving Programs

17. - Develop a Case Statement. Clearly define needs and ways to give.
- Prepare planned giving policies.
- What types of gifts accepted
- What programs will gifts fund
- How will funds be invested
- Provide staff training.
- Create a professional advisory committee.
- Identify prospects.
- Donors who have given $25+ for three or more years running
- Donors who are 65 and older
- Donors who have given $1,000+ one off donations
- FLAG: frequency, longevity, age, gender
- Others without children who can be cultivated
Planned Giving: Steps to Success (1/2)
Fundraising from America: Planned Giving Programs

18. - Establish legacy society for donor recognition.
- Hold training sessions for your board.
- Outline what planned giving is
- Provide a profile of planned giving prospects
- Describe how planned giving fits into development picture
- Make personal visits to donors and prospects.
- Market your planned giving program.
- Create brochure and legacy society / ways to give
- Include testimonials in your newsletter
- Recognize donors in publications
- Provide sample wording for a bequest
- Create a direct mail / e-blast for planned giving to targeted prospects
- Add info about it to your website.
Planned Giving: Steps to Success (2/2)
Fundraising from America: Planned Giving Programs

19. A summary of today’s webinar:
- Planned giving is a huge opportunity for non-profits.
Approximately 27billion given annually through
bequests and that only currently accounts for 7%
of total US Giving.
- People at all income levels make planned gifts. However an ideal
profile would be: Single, Highly educated, Attends religious services.
Earns more than $100,000K
- Current donors are best planned-giving prospects.
- Bequests are key. More than 80% of planned giving dollars come from
bequests.
- Bequests require proper stewardship; most people change their estate plans
several times
Fundraising from America: Planned Giving Programs

20. This information was not intended to be legal advice.
It is advised that you consult your own legal expert in regard to your specific situation.
that’s it!
for listening.