Planned Giving In Small- and Mid-size Shops

Tony Martignetti, Esq. February 16, 2012

• What is Planned Giving

• Why have a program

• Revocable planned gifts

• Prospects for revocable gifts

• Irrevocable planned gifts

• Prospects for irrevocable gifts

• Promoting your program

• Continuing Ed.

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A method of charitable giving that involves the donor’s consideration of their retirement plan and family estate plan, and  Usually means cash to a nonprofit at the donor’s death

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• Individual giving dominates  • Helps you build endowment • Complement to Major Giving • Complement to Annual Giving  • It’s not only for the wealthy • Helps you through recessions

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Your donor can take it back  -- But, very valuable to your program   • Charitable bequests • Living trusts  • Beneficiary designations   Stewardship critical

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• Very simple• Expect people of ordinary means• Not wise to ask for substantiation• The most popular• Unlikely to be revealed• Residual may be substantial• Expect property or cash• Not likely to be revoked• Everybody needs a will • Even though revocable, valuable• Regardless of tax deduction to estate

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Not for charitable purposes, but has a remainder that has to go somewhere

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 • Life Insurance • Retirement plans  -- IRA, 401(k), 403(b), Small Employer Pension (SEP), SIMPLE IRA • Commercial annuities • Bank and brokerage accounts • Any asset with a beneficiary designation or    -- Payable on death (POD) or    -- Transfer on death (TOD)   TonyMartignetti.com

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√ What Planned Giving is √ Why have a program√ Revocable planned gifts

• Prospects for revocable gifts 

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 • Consistent donors

• 55 and over • Have a living trust    -- check your checks: “Trustee”; “TEE”; “Revocable

Trust”; “Revocable Living Trust”; “Living Trust”

•Have a financial asset with death benefit    -- your face-to-face meetings are valuable research    

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Donor

donor’sdeath

Nonprofit

lifetime income

cash, stock, real estate?

planned gift

Charitable Remainder Annuity Trust (CRAT)• Fixed income for life or

years• Fixed percentage• Valued once• Bearish or uncertain donor• Risk averse• Wants certainty• Help multiple charities

Charitable Remainder Unitrust (CRUT)• Variable income for life or

years• Fixed percentage• Revalued annually• Bullish donor• Risk taker• Wants growth• Help multiple charities

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• Fixed income for life• Bearish or uncertain donor• Risk averse • Wants certainty• Help one charity• Big web of regulation by states

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• Love your work • 65 and over• Need more income• Own appreciated assets

o but cash works• Own real estate (remainder trusts)

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• They love your work• Age and giving history are meaningful  -- consistent donors  -- ignore gift size• Women in philanthropy, especially Planned Giving• Single, widowed, heirless• Look to your board for leadership 

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• Publicize your legal name & federal tax ID number-- needed for the revocable gifts-- let donors include you without asking for help-- your tax ID is not private like social security number

• Email  -- short messages encouraging gifts  -- sidebar in newsletters

-- include legal name & tax ID• Print

-- PS in existing mail channels, so no cost-- drop a slip in envelope w/legal name and tax ID-- sidebar or testimonial article in newsletters

• Events-- short mentions when appropriate

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√ What is Planned Giving

√ Why have a Planned Giving program

√ Revocable planned gifts

√ Prospects for revocable gifts

√ Irrevocable planned gifts

√ Prospects for irrevocable gifts

√ Promoting your program

•Continuing Ed.

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 • tonymartignetti.com• Facebook: Tony Martignetti Nonprofit Radio

-- Big Nonprofit Ideas for the Other 95%

• “Planned Giving Simplified” by Robert Sharpe, Sr., pub by Wiley

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