WHY PLANNED GIVING

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WHY PLANNED GIVING ?
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What is Planned Giving?

• A fund raising function gifts that require
  planning often through a legal instrument
• Giving from wealth rather than income
• A program to educate cultivate of donor
  prospects for the purpose of receiving current
  and deferred major gifts

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What is Deferred Giving?

• Many planned gifts are deferred . . . the
  charity does not receive the gifts until a later
  date, often at the donors death
• Bequests, charitable trusts, gifts from insurance
  and retirement accounts, a gift of real estate
  under a retained life estate arrangement

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Common Planned Gifts

• Bequests
• Whole Life Insurance policies
• Retirement Accounts
• Special Real Estate gifts
• Charitable Trusts
• Charitable Gift Annuities

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How Planned Giving Differs from other Fundraising

• Requires different ways of asking the donor for a
  gift
• Takes more time
• Legal aspects
• Measurement of results is difficult
• The ultimate gift

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Annual Gifts vs. Planned Gifts

• Donors work on their schedule
• Stocks, other assets
• Requires much thought and advice
• Personal
• Selected prospects

• Donors work on your schedule
• Checkbook gifts
• Requires minimal thought or counsel
• Less personal
• Everyones a prospect

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The Most Common Planned Gift Bequests

• Most planned giving programs begin with bequests
• Approximately 70 - 80 of planned gifts come in
  the form of bequests.
• In recent years almost 20 billion annually
• Only about 42 of adults have a will (according
  to legal resource Martindale-Hubbell)

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Bequests

• NCPG Survey Reasons people do not leave an
  estate gift to charity
• No one asked them to
• No one suggested that they do so
• Didnt think of it

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Bequests

• ..only 5 of those who die leave a bequest to
  charity, compared to over 85 who give in their
  lifetime
• Determinants of U.S. Donor Behavior The Case of
  Bequest by Adrian Sargeant Elaine Jay, June
  2004

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Identifying Potential Donors

• Consistent, committed donors
• Donors 55
• Board members
• Long-term volunteers staff
• Major donors (maybe)

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Identifying Potential Donors --- Bequests

• According to recent studies, approximately 70
  of Wills that contain charitable dispositions
  are, on average, executed by a 78-year-old woman
  some 3.5 years prior to death at the age of 81 or
  82.
• Robert F. Sharpe, Jr.

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Why Planned Giving?

• Older Americans - the number is growing
• 34.9 million (12.4) people over age 65 in U.S.
  (2000 census)
• By 2030 71.5 million (10.6)
• In 1900, 120,000 older than 85 2005 over 4
  million
• Older Americans have money
• 65 hold between 12 - 30 trillion
• 3.8 million millionaires in the U.S. (2004)
• 313 billionaires in the U.S. (2004)
• Americans gave 241 billion to charity in 2003
• Bequests in 2003 totaled 21.6 billion (Giving
  USA 2004)
• 51 of gifts to higher ed are from trusts and
  estates
• Bequests constitute 20 - 25 of total individual
  giving (over time)
• ??Intergenerational transfer of wealth - 41
  trillion??
•       

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Why Start a Planned Giving Program?
Benefits to Donors

• Provides more flexibility in giving opportunities
• Helps people meet personal and financial
  goals-tailored to meet specific needs
• Can increase current income for the donor
• May avoid capital gains tax

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Why Start a Planned Giving Program?
Benefits to Donors

• Provides a way for donor to pass assets to family
  at a reduced tax cost
• May provide current tax benefits for future gifts
• Allows a donor to make a significant gift NOW
• It feels good!

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Why Start a Planned Giving Program?
Benefits to the Charity

• Increases number of potential donors
• Allows charity access to larger (major) gifts
• Allows charity to increase professionalism of its
  fundraising efforts
• Enhances the mission
• Builds endowment

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WHY PLANNED GIVING ?

• For more information about starting a planned
  giving program, contact
• Mary Downey
• Downey Associates,LLC
• marydowney_at_sbcglobal.net