The document discusses how planned giving can help donors efficiently transfer wealth to charity through tax planning methods like charitable gift annuities and appreciated assets, allowing more of their money to benefit causes important to them. It provides an overview of current wealth transfer trends, examples of how planned giving benefits donors through tax savings, and tips for nonprofits to establish a planned giving program with limited resources through prospecting loyal donors and past leaders.

1. Powerful Planned Giving with a
Shoe-String Staff and a Shoe-
String Budget!
Bryan Clontz, CFP® President, Charitable Solutions, LLC (404) 375-5496

2. Agenda
• Wealth Transfer Overview
• Planned Giving Defined
• Two Examples: Appreciated Stock and
Charitable Gift Annuities
• Legacy Motivation of Planned Giving
• Planned Giving Prospecting 101
• Next Steps

3. Wealth Transfer Realities
• 1998-2052 (55 Years) Havens and Schervish
Report
• Transfer Between $41-136 Trillion (Low End
is 2% Growth - High End is 4% Growth)
• Charitable Bequests $6-25 Trillion
• Drivers: Asset Appreciation, Depression Era
Savers, Self-Perception of Wealth, Social
Capital and Legacy Goals

4. Current State of Planned Giving
$304 Billion; Total Individual Giving and Bequest Giving=$258.96 Billion
Corporations
5.6%
Foundations
10.9%
Bequests
9%
Individuals
74.5%
Charitable Remainder Trusts/Lead Trust Value in 2009 - $125 BILLION
Charitable Gift Annuity Value in 2009 - $15-20 BILLION
Life Income Gifts Represent 10-12% of All Planned Gifts
Charitable Remainder Trusts
Extrapolate to $2 Trillion!!!!!
Source: Giving USA, The Annual Report on Philanthropy for the Year 2009

5. Definition:
Planned giving is a process using tax and
financial planning methods allowing the
donor to efficiently achieve his/her
personal and charitable objectives.
• Answers: How should I give or what
is the best way to give?
• Solution: Lowers the donor’s real
cost of giving.

6. Donor: Mr. & Mrs. Boardmember
Tax Bracket: 40%
Capital Gains: 20%
Goal: Improve efficiency of giving.
Assumes: Cost $10/share, Value $50/share
Cash Gift Stock Gift
Total Value $1,000 $1,400
Savings
Ordinary Tax 400 560
Capital Gains Tax 0 225
Net Cost of Gift $600 $615

7. Appreciated Stock or Property
Federal government effectively matches
$1.40 for every $1.00 a donor contributes

8. Charitable Gift Annuity Overview
• Contract providing fixed payments over 1 or 2
lives in exchange for contribution
• Obligation extends beyond original gift
• Simple, One-Page Agreement Offered by Public
Charities
• Existed more than 160 years in US
• Bargain sale calculation:
FMV-PV Life Annuity = PV Remainder Interest
(Charitable Income Tax Deduction) – Must
comply with 10% rule

9. Typical CGA Donor
• 78 Year-Old Female
• $44,000
• Cash or Publicly-Traded
Securities
• 80-90% of all 2008 life
income gifts were CGAs

10. Optional for
Large Gifts
Insurance
Tax Deduction Lifetime Income
CGA
Heirs
Charity

11. Current Beneficiaries of Wealth:
Heidi and John Smith
100%
76% 24% 0%
HEIRS TAX CHARITY
Goals: Leave their children $1,000,000 each and
replace taxes whenever possible with charity

12. NEW Beneficiaries of Wealth:
Heidi and John Smith
100% + INS
71% < 1% 71%
HEIRS TAX CHARITY

13. Social Capital:
The concept of social capital clearly reveals that
you have a choice - and the power - to direct how
assets you will not be allowed to keep will
ultimately be distributed and used.
Involuntary Philanthropist Voluntary Philanthropist
Alwin Ernst John Rockefeller, Sr.
Estate $12,642,431 $557,905,182
Tax $7,124,112 $17,124,988
% Lost 56% 3%

14. Planned Giving Resources
• Planned Giving Design Center – free articles, free
technical reports and free planned giving calculator
– www.pgdc.com
• Giftlaw Pro – free articles and technical reports –
www.giftlaw.com
• Planned Giving Council Members Listserve – Gift-
Pl, Non-Planned Giving Council
–plannedgiving@yahoogroups.com
• Debra Ashton – The Complete Guide to Planned
Giving $95 at www.debraashton.com

15. Planned Giving Prospecting 101
• People You “Know” Have Made A
Planned Gift
• Founders and Past/Current Leaders of
Your Charity
• “Loyals” – Consistent Givers
• Opportunistic Development – Listen,
Listen and Listen

16. Next Steps
• Case
• Planned Giving Committee
• Formalize Policies and Procedures
• Develop Rifle-Shot Approach Plan
• Solicit and Ask Questions
• Develop Proposals
• Consistent Drip Marketing