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Planned Giving
A Guide to Fundraisingand Philanthropy
Fourth Edition
RONALD R. JORDANKATELYN L. QUYNN
WILEYJohn Wiley & Sons, Inc.
Contents
Preface
Acknowledgments
XXVll
xxix
PART I PLANNED GIFTS
CHAPTER 1 What Is Planned Giving?
1.1 Getting Started1.2 Introduction1.3 Planned Giving from the Donor's Perspective1.4 Planned Giving from the Organization's Perspective1.5 Planned Giving from Management's Perspective1.6 A Focus on the Future1.7 Cost Benefit Analysis1.8 Planned Giving and Annual Giving: Partners1.9 Perspectives for Success: Leadership, Resources,
and Staffing1.10 Planned Gifts Now and in the Future1.11 The New Planned Giving Donor1.12 The Young Planned Giving Donor1.13 Planned Giving in a Development Office1.14 Conclusion
CHAPTER 2 Charitable Gift Annuities and Deferred Gift Annuities
2.1 Introduction2.2 Charitable Gift Annuities2.3 State Regulation of Gift Annuities2.4 Charitable Deferred Gift Annuities2.5 Marketing the Deferred Gift Annuity2.6 Administration
CHAPTER 3 Pooled Income Funds
3.1 Pooled Income Funds (PIFs)
345667
91011111113
15
151520232626
29
29
Vll
Vlll Contents
CHAPTER 4 Trusts
4.14.24.34.44.54.64.74.84.9
IntroductionParties to a TrustTransferring Title to the Trust CorpusTrust PowersRevocable Inter Vivos Trust (Living Trust)Irrevocable TrustsCharitable Remainder TrustsCharitable Lead TrustsTax Consequences
37
373738383941425153
CHAPTER 5 Endowed Funds 55
5.1 Introduction 555.2 Endowed Naming Opportunities 555.3 Creating an Endowed Fund 565.4 Umbrella Funds 575.5 Scholarship Funds 585.6 Funding Endowed Funds 595.7 Current-Use Awards 595.8 The Fund Description 595.9 The Mechanics of a Fund Description 625.10 Endowed Chairs 635.11 Benefits to the Holder of the Chair and the Charitable
Organization 645.12 Profile of a Donor Who Creates a Chair 645.13 Cost to the Donor 655.14 How Charities Invest Funds for Chairs 665.15 Working with Faculty/Staff to Create a Chair 665.16 Types of Chairs 665.17 Individual versus Multiple Donors to Fund a Chair 675.18 Ways to Fund a Chair 675.19 The Internal Process . 675.20 Drafting the Terms of the Chair 685.21 Recognition 69
CHAPTER 6 Bequests and The Bequest Society
6.1 Introduction6.2 The Will6.3 Suggested Language6.4 Standard Bequest Forms6.5 Legally Binding Documents for Bequests6.6 Targeting Donors for Bequests6.7 Marketing Bequests6.8 Crediting Bequests
71
7171727475757677
Contents rx
6.9 Recognition Events 786.10 Administering a Nonprofit Bequest Program 816.11 Guide to the Probate Process 826.12 The Planned Giving Office and Bequest Administration 856.13 Typical Problems Encountered with Bequests 916.14 Distribution within the Charity 956.15 Facilitating Bequest Administration: Working
with Donors Today 966.16 Conclusion 97
PART II ASSETS INVOLVED WITH PLANNED GIVING
CHAPTER 7 Gifts of Securities
7.1 Introduction7.2 Securities Held by the Donor's Stockbroker or Banker7.3 Securities Held in the Donor's Possession7.4 The Value of the Gift7.5 The Date of the Gift7.6 The Donor's Charitable Income Tax Deduction7.7 Gifts of Shares of a Mutual Fund7.8 Closely Held Stock
CHAPTER 8 Gifts of Real Estate
8.1 Introduction8.2 Elements Affecting Gifts of Real Estate8.3 Factors Affecting Value and Marketability of Real Estate8.4 Tax Consequences of Gifts of Real Estate8.5 Working Out the Arrangements8.6 Outright Gift of Entire Property or Fractional Interest8.7 Denial of Charitable Income Tax Deduction for a Gift
of a Use of Property8.8 Gifts of Real Estate with a Retained Life Estate8.9 Gifts of Real Estate to Charitable Remainder Trusts8.10 Gifts of Real Estate to Fund Charitable Gift Annuities8.11 Gifts of Real Estate to Pooled Income Funds8.12 Gifts of Mortgaged Property8.13 Gifts of Conservation Easements8.14 Benefits to Donors8.15 Partial Interest Rules8.16 Qualified Donee Organizations8.17 Conservation Purposes8.18 Qualified Real Property Interests8.19 Tax Consequences8.20 Valuation8.21 Conclusion
101
103
103104105105106107108110
113
113114115117118119
119120124125127.127129131131131132133134135137
Contents
CHAPTER 9 Gifts of Tangible Personal Property 139
9.19.29.3
9.49.59.69.79.89.99.10
9.119.12
9.139.14
9.159.169.179.18
IntroductionOverviewGifts of Tangible Personal Property to PlannedGiving VehiclesSubstantiation RequirementsAppraisalsThe Gift Review CommitteeGifts of Major CollectionsIdentifying ProspectsDonor ConcernsNonprofit IssuesDepartmental AssistanceDeaccessioningEvaluating the GiftUnacceptable CollectionsThe Curation AgreementTax ConsiderationsLoaned CollectionsConclusion
139139
143144145145147148149150151151152152153156156156
CHAPTER 10 Gifts of Life Insurance 157
10.1 Introduction 15710.2 Definitions 15710.3 Life Insurance Agents and Planned Giving 15810.4 Ways to Use Life Insurance to Promote Major Gifts 15910.5 Policy Dividends 16010.6 Short-Term Endowment Policies 16010.7 Student Life Insurance Programs 16110.8 Insurance Used in Asset Replacement Trusts l 6 l10.9 Funding a Charitable Remainder Net Income
Unitrust/Flip Trust with Life Insurance 16210.10 Guidelines for the Planned Giving Officer 16310.11 Conclusion 164
CHAPTER 11 Retirement Planning and Planned Giving 165
11.1 Introduction 16511.2 Gifts of Retirement Plan Assets: IRA Charitable
Rollovers Extended 165
11.3 Tax Consequences of Charitable Gifts of RetirementAccounts at Death 166
11.4 Types of Retirement Plans 16711.5 Ways to Transfer Retirement Assets to a Nonprofit 16711.6 Summary 169
Contents XI
PART III PLANNED GIVING'S FINANCIAL IMPACT 171'
CHAPTER 12 The Tax Consequences ol Charitable Gifts
12.112.212.312.412.512.612.712.812.9
12.1012.1112.12
12.1312.1412.1512.1612.1712.18
12.1912.2012.2112.2212.2312.24
CHAPTER 13 Estate
13.113.213.313.413.513.613.7
13.813.913.1013.11
13.12
IntroductionIncome TaxesFair Market ValueThe Cost BasisDeductibility of Gifts of Tangible Personal PropertyAcceleration of DeductionDeduction Reduction ProvisionPledge and Promissory NoteDeductions and Recognition for Out-of-PocketExpenses and Gifts of ServicesThe Ordinary Income Reduction RuleIncome in Respect of a DecedentDeductibility of Charitable Contributions for BusinessOrganizationsDepreciationCapital Gains TaxesFederal Estate and Gift TaxesGift Tax Annual ExclusionPayments for Tuition and Medical BillsGifts by Husband and Wife—the UnlimitedMarital DeductionStreams of Income and Gift Tax ConsequencesSale of a Personal ResidenceGifts of Real Estate Subject to a MortgageTax Implications of a Bargain SalePartial InterestsConclusion
Planning and Planned Giving
IntroductionRelated DisciplinesIntestacyThe Will: A Road MapParts of a WillCoordinating Title to Property with the Estate PlanPlanning Considerations: Per Stirpes versusPer CapitaProbatePower of Attorney and Durable Power of AttorneyHealth Proxies and Living WillsTalking with a Prospect about Estate Planningand WealthConclusion
173
173174176176176179179180
180180181
182183183184185185
185186187187187188189
191
191191193193195197
198198200201
201202
Xll Contents
CHAPTER 14 Financial Planning for the Development Professional
14.1 Introduction14.2 Achieving Financial Objectives through
Charitable Giving14.3 Risk-and-Reward Theory14.4 Evaluation of Investment Alternatives14.5 Cash Investments14.6 Stocks14.7 Income Investments14.8 Mutual Funds14.9 Real Estate14.10 Portfolio Management and Planning14.11 Conclusion
203
203
204205207208209211212213214216
PART IV PLANNED GIVING PROGRAMS ON LOCATION 217
CHAPTER 15 What Charities Can Learn about Fundraising and PlannedGiving from Other Charities 219
15.1 Introduction 21915.2 Faith-Based and Religious Organizations 22015.3 Hospitals and Healthcare Organizations 22115.4 Educational Institutions 22215.5 Political Fundraising 22315.6 Community and Civic Organizations 22415.7 Arts and Cultural Organizations/Aquariums and Zoos 22515.8 Single-Illness Organizations 22615.9 Social Service/Humanitarian Organizations 22615.10 Conclusion 227
CHAPTER 16 Planned Giving in a Small or One-Person Organization 229
16.1 Introduction 22916.2 Education 23016.3 Support Network and Administration 23116.4 Legal Issues • 23116.5 Use of a Consultant 23216.6 Management Plan 23216.7 Establishment of Gift Vehicles 23316.8 Marketing 23316.9 Identifying and Soliciting Planned Giving Prospects 23616.10 Stewardship 23616.11 Creating or Restructuring Financial Support Areas 23716.12 Software 23716.13 Gift Crediting 23816.14 Conclusion 238
Contents Xlll
CHAPTER 17 Planned Giving at Educational Institutions 239
17.1 Introduction 23917.2 Types of Educational Institutions 24017.3 Centralized and Decentralized Programs 24117.4 Alumni: Ownership Issues at Educational Institutions 24217.5 The Planned Giving Officer: Fundraiser or Consultant? 24217.6 Preventing Conflicts: Working with Development Staff 24317.7 Developing Internal Relationships 24417.8 Constituents 24517.9 Managing Constituents 24617.10 Planned Giving Program Activities 24717.11 Gift Opportunities 24817.12 Conclusion 249
CHAPTER 18 Planned Giving in Healthcare Organizations 251
18.1 Introduction 25118.2 The Hospital Environment 25118.3 The Players 25418.4 The Patients 25618.5 Staffing the Development Office 26018.6 Priorities and Expectations 26l18.7 .Grateful Patients 26318.8 Working the Gift through the Organization 26518.9 An In-Depth Look at Planned Giving in a Healthcare
Setting 26518.10 Soliciting Patients Who Are Donors 26518.11, Working with the Donor's Physician 26618.12 From the Donor's Perspective 26818.13 Working with a Patient's Outside Advisor
to Complete the Gift 26918.14 Working with a Relative or Guardian to Make a Gift 27018.15 Patients with Terminal Illnesses, Including AIDS 27018.16 Stewardship 27218.17 Conclusion 272
CHAPTER 19 Planned Giving in Large, Established Arts Organizations
191 Introduction19.2 Donor Profile19-3 Relationship Building19.4 Gifts-in-Kind19.5 Tax Deductibility19.6 Form 828319-7 Use of Planned Giving Vehicles19.8 Marketing19-9 Boards and Volunteers
275
275275277280280280280281282
XIV Contents
19-10 Special Challenges Unique to Arts Organizations19-11 Conclusion
282284
PART V MANAGING DONORS AND PROSPECTS 285
CHAPTER 20 The Planned Giving Prospect-
20.1 Introduction20.2 Motivations20.3 Profile of a Planned Giving Prospect20.4 Finding the Planned Giving Prospect20.5 Working with the Planned Giving Prospect20.6 Conclusion
CHAPTER 21 Refocusing on Philanthropy
21.1 Introduction21.2 Fundraising from the Nonprofit's Perspective:
Development, Advancement, or Philanthropy?21.3 Changing the Focus to Philanthropy21.4 Activating Donors21.5 Getting Started21.6 Strategies to Promote Philanthropy21.7 Opportunities for All Types of Charities21.8 Conclusion
287
287287291292294296
297
297
298299300300301304306
CHAPTER 22 Working with Donors
22.1 Introduction22.2 A Planned Giving Office as a Service Center22.3 Management22.4 Educating Donors
307
307307308310
CHAPTER 23 Women as Planned Giving Donors
23.1 Introduction23.2 Gender-Based Differences in Giving23.3 Women's Access to Wealth23.4 Financial Challenges for Women23.5 Types of Donors
. . 23.6 Motivations for Giving23.7 Gift Planning Implications23.8 Types of Planned Gifts to Consider for the
Female Donor23.9 Women and Children: Their Philanthropy23.10 Working with Advisors23.11 Conclusion
315
315315316316317318319
321322322322
Contents xv
CHAPTER 24 Family
24.124.224.324.424.524.624.7
24.8
24.924.10
Philanthropy: Issues and Solutions
IntroductionRole of the Planned Giving OfficerBefore Meeting with the DonorFamilies in Sync/HarmonyFamilies Out of Sync/HarmonyDonors without ChildrenPositive Outcomes for Children from FamilyPhilanthropyTools for Continuing and Maintaining FamilyPhilanthropyGift Options for Family PhilanthropyConclusion
CHAPTER 25 Solicitation Strategies
25.125.225.325.425.525.625.725.8"25.925.10
CHAPTER 26 When
26.126.226.326.426.526.626.7
IntroductionThe Planned Giving Officer's MindsetPreparationThe Planned Giving ParticipantsThe DonorTypes of SolicitationsThe Solicitation ProcessThe Size of the GiftNegotiationsFollow-up
to Walk Away
IntroductionTypes of Problematic Gift SituationsWarning SignsPotential RemediesKnowing When to Walk AwayKeeping the Door OpenConclusion
323
323324324325326328
329
329330331
333
333333334337338339342346347349
351
351352355356
. 356357358
CHAPTER 27 Fundraising Etiquette: Do's and Don'ts for Successful Businessand Social Interactions with Donors and Prospects
27.127.227.327.427.527.627.7
IntroductionWorking a RoomWhen It Is Time to Move OnTelephone EtiquetteE-Mail EtiquetteIssues/ComplaintsThe Difficult Donor
359
359360361361362363363
XVI Contents
27.827.927.1027.1127.12
27.1327.14
27.1527.16
Donor VisitsRestaurant ProtocolOvernight Stays at Donor's HomeSocial InvitationsVisiting a Donor in the HospitalPlanned Giving Officer as a Third WheelFamily SquabblesIn SummaryConclusion
CHAPTER 28 Negotiating the Gift of a Lifetime
28.128.2
28.328.4
28.528.628.728.8
28.928.1028.1128.12
28.1328.14
28.15
IntroductionDefinitionMarketingPreparationCapacityQualifying ProspectsPropensityTriggersWorking the Gift Through the Nonprofit OrganizationDealing with the DonorCharitable Giving and Family DynamicsDealing with a Donor's Advisors and FamilyFundingTerms of the GiftConclusion
CHAPTER 29 Donor's Remorse
29.129.2
29.329.4
29.529.629.7
IntroductionWhat Is Donor's Remorse?Causes of Donor's RemorsePreventing Donor's RemorseThe Charity's ResponseLegal ConsiderationsConclusion
CHAPTER 30 Combating Donor Fatigue and Overcoming OrganizationalComplacency
30.130.2
30.330.4
30.530.6
IntroductionRecognizing the SymptomsDonor DisconnectsFixing the ProblemTreating the SymptomsMake the Charity Stand Out/Distinguish the Charityfrom Others
364365366367367368368368369
371
371372372372373374375375375377379379381381382
383
383384385387390391391
393
393394394395397
398
Contents xvii
30.7 The Role of Planned Giving30.8 Conclusion
399400
PART VI MANAGING A PLANNED GIVING PROGRAM 403
CHAPTER 31 Inside the Development Office 405
31.131.231.331.431.531.631.731.831.931.1031.1131.12
IntroductionAnnual GivingMajor GiftsFoundations and CorporationsStewardshipProspect ManagementInformation Systems and Computer OperationsGift Reporting and ProcessingResearchCommunications and Public AffairsAlumni RelationsConclusion
An Operational Plan for a Planned Giving Program
32.132.232.332.432.532.6
32.7
32.8
32.9
32.1032.1132.1232.13
IntroductionPerspectivePurpose of the Planned Giving ProgramGoals of the ProgramDonor ContactIdentify New Prospects and Solicit Existing PlannedGiving ProspectsEstablish a Strong Marketing Communications Effort toPromote Planned GiftsRaise the Visibility of the Planned Giving ProgramInternally and ExternallyRestructure Support Areas to Provide Services for thePlanned Giving ProgramInventory Existing Planned Giving TotalsPlanned Giving DatabasePlanned Giving BudgetConclusion
405405409409410410411411411411412412
413
413413414414414
415
415
417
418418419419422
CHAPTER 33 Working as a Successful Planned Giving Officer to RaiseCharitable Funds 423
33-1 Introduction 42333.2 Types of Roles for the Planned Giving Officer 42333-3 Attributes of a Successful Planned Giving Officer 42433.4 Top-10 List for Closing Large Planned Gifts: How to
Work with Planned Giving Donors 42533.5 Conclusion 428
XV111 Contents
CHAPTER 34 Planned Giving and Major Gifts
34.1 Introduction34.2 Definition34.3 Planned Giving and Major Gift Profiles34.4 Identifying Major Gift and Planned Giving Prospects34.5 Mobilizing the Nonprofit Organization to Produce
Planned and Major Gifts
CHAPTER 35 Hiring Staff
35.1 Introduction35.2 The Changing Marketplace35.3 Attributes of Successful Planned Giving Professionals35.4 The Process of Hiring a Planned Giving Officer35.5 The Planned Giving Assistant
CHAPTER 36 Increased Management Responsibilities in the DevelopmentOffice
36.1 Introduction36.2 New Skills, Abilities, and Thought Processes36.3 Is the New Position a Good Match?36.4 Advance Preparation36.5 Transferable Skills: Motivation, Team Building, and
Stewardship36.6 Working with a Management Consultant36.7 Establish Mutual Expectations with the Consultant36.8 Conclusion
CHAPTER 37 Managing Time in Planned Giving
37.1 Introduction37.2 Getting Organized37.3 Control the Office Environment37.4 Meetings37.5 Travel Time37.6 Working at Home37.7 Technology37.8 General Tips for Saving Time37.9 Conclusion
CHAPTER 38 Leadership and Management for a Development Team
38.1 Introduction38.2 Characteristics of Successful Leaders and Managers38.3 Leadership in a Development Office38.4 Leadership Rules to Live By38.5 Tools to Help Manage38.6 Educational Methods for Becoming a Better Manager38.7 Conclusion
429
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438
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459461461462
463
463463465467468468470470471
473
473474475476479481482
Contents xix
PART VII MANAGING OUTSIDE THE OFFICE 483
CHAPTER 39 Mobilizing the Nonprofit's Leadership
39-1 Introduction39-2 Vice President for Development39.3 President or Chief Executive Officer of the
Organization39.4 Role of the Board of Trustees39-5 Development Staff39-6 Volunteers39-7 Volunteer Fundraisers: Doctors and Deans39-8 Supporting Offices within the Organization39-9 Planned Giving Training Program39.10 Conclusion
485
485485
486
490490491492494495
CHAPTER 40 Creating a Volunteer Society for a Development and PlannedGiving Program 497
40.1 Introduction 49740.2 Rationale for Creation of a President's Society 49840.3 Defining the President's Society ' 49940.4 Benefits of Creating a Volunteer Society 50040.5 Goals ' 50140.6 Modeling the Organization 50240.7 The Chairperson 50340.8 Profile of the Society 50540.9 The Recruitment Process ' 50540.10 Subcommittees 50640.11 Creating a President's Society Fund 50740.12 Role of the Chief Development Officer 50840.13 Timeline for Creation 50940.14 Challenges . 50940.15 Conclusion 511
CHAPTER 41 Working with Nondevelopment Staff
41.1 Introduction41.2 Putting Development into Context for
Nondevelopment Staff41.3 Collaborative Efforts41.4 Development Communications41.5 Evaluation and Assessment41.6 Identification of Development Constituents41.7 Cultivation of Constituents41.8 The Solicitation41.9 Raising Funds from Individuals41.10 Raising Donors' Sights41.11 After the Gift—Stewardship
513
513
513514515516516519522523526526
XX Contents
41.12 Dealing with the Downside41.13 Conclusion
526527
PART VIII EVALUATING PERFORMANCE
CHAPTER 42 Evaluating a Planned Giving Program
42.1 Introduction42.2 Analyze and Assess42.3 Take Inventory42.4 Establishing Programmatic Goals42.5 Identifying Planned Giving Donors and Prospects42.6 Administration42.7 Evaluation of Staff Functions42.8 Marketing42.9 Staffing42.10 Technology42.11 Budget/Education42.12 Policies/Procedures42.13 Stewardship42.14 Outside Support
CHAPTER 43 Measuring Performance for Planned and Major Gift Staff
43.1 Introduction43.2 Reaching Goals and Objectives43.3 Moves Management43.4 Other Moves Related to Securing the Gift43.5 Additional Ways to Reach Goals and Objectives
Exclusively for Planned Giving Officers43.6 Team Consideration43.7 Frequency of Accountability and Tracking Prospects
529
531
531532532533534535535536541542542543543543
547
547549550552
552553554
PART K MARKETING 555
CHAPTER 44 Drafting Planned Giving Documents
44.1 Introduction44.2 Types of Documents44.3 Communicate a Message for a Purpose44.4 Know the Audience and Be Responsive to It44.5 Use Outlining44.6 Develop a First Draft44.7 Bring Others into the Process44.8 Manage Documents to Meet Deadlines44.9 Design an Effective Document44.10 Take Advantage of Desktop Publishing
557
557558559559560561562563564565
Contents xxi
44.11 Use Language Correctly and Effectively44.12 Recipe for a Document44.13 Conclusion
CHAPTER 45 Printed Materials and Publications for Donors and Prospects
45.1 Introduction45.2 Marketing Fundamentals45.3 The Case Statement45.4 Guide to Charitable Gift Planning45-5 Response Form45.6 Newsletters45.7 Columns in Nonprofit Publications45.8 Planned Giving Advertisements45.9 Buckslips45.10 Testimonial Advertisements45.11 Letters45.12 Pieces in Local Newspapers45.13 Conclusion
CHAPTER 46 Marketing the Noneconomic Benefits of Philanthropy
46.1 Introduction46.2 The Changing Financial and Tax Climates46.3 Noneconomic Benefits46.4 Articulating the Noneconomic Benefits46.5 Enrichment Brochure46.6 Enrichment Programs46.7 Enrichment. Brochure Illustrations46.8 Disseminating Enrichment Brochures46.9 Conclusion
CHAPTER 47 Making Planned Giving Presentations
47.1 Presentations
CHAPTER 48 Marketing Planned Giving to Professional Advisors
48.1 Introduction48.2 Ways to Begin48.3 Planned Giving Presentations for Outside Audiences48.4 Mailings to Professional Advisors48.5 Publication in a Trade Paper48.6 Technical Outreach Program48.7 Nontechnical Outreach Program48.8 Ambassador Program48.9 Planned Giving Manual48.10 The Professional Advisory Committee48.11 Establishing a Professional Advisory Committee48.12 Purpose of the Committee
566569570
571
571572572573574575575576576577578579579
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593
593
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601601603603604604604605605606606608
XX11 Contents
48.13 What to Expect48.14 Conclusion
610610
PART X POLICIES AND PROCEDURES 613
CHAPTER 49
CHAPTER 50
CHAPTER 51
CHAPTER 52
Gift Acceptance Policies
49.149.249.349.449.549.649.749.849.949.1049.11
IntroductionCashSecuritiesLife Income GiftsBequestsGifts of Tangible Personal PropertyGifts of Real EstateLife InsuranceNaming OpportunitiesAdministrative IssuesEthics
Nonprofit Organizations: Development Practices and Problems
50.150.250.350.450.550.650.750.850.950.1050.1150.12
IntroductionSymptoms of DisinterestIncident ReportAcknowledgmentsAccounting/Payments to Donor/BeneficiaryInclusion in Charity EventsDonor-Initiated ProposalsGift AgreementsProspect Control/Prospect ManagementStewardshipInsulation and IsolationConclusion
Policies and Procedures for Naming Opportunities
51.151.251.351.451.551.6
Nonpr
IntroductionPolices and ProceduresNaming CommitteePricing Naming OpportunitiesBackground CheckConclusion
ofit Investment Policies and Procedures
615
615617617619624625626628628628634
635
635635636637638638640640641641642642
645
645645646646647651
653
52.1 Introduction: Nonprofit Investment in Context for
52.2Planned Giving OfficersNonprofit Investment Issues
653655
Contents XXlll
52.3 Endowment Management 65852.4 Investment Strategies 66252.5 Portfolios for Planned Giving Options 66952.6 Donor Relations 67552.7 Investment Guidelines 68052.8 Conclusion 681
CHAPTER 53 Raising the Bar: Increasing Endowed Fund Minimums 683
53.1 Introduction 683532 Assessing the Charity's Current Minimums
for Endowed Funds 685533 Pegging the Minimum Based on a Good or
Service/Formulaic Approaches 68553-4 Setting Realistic Minimums 68653-5 Escalator Provisions 68853.6 Selling the Concept 68953.7 Political Fallout—Impact on Prior Gift Agreements
and Prior Relationships 68953-8 Conclusion 690
PART XI PLANNED GIVING IN CONTEXT 693
CHAPTER 54 Ethics and Planned Giving 695
54.1 Introduction 69554.2 ! Donor Rights and Nonprofit Responsibilities 69554.3 , Truth in Philanthropy 69654.4'' Donor Rights 69654.5 Nonprofit Responsibilities 70054.6 Donor's Representatives 70254.7 Payment of Professional Advisors' and Lawyers' Fees 70354.8 Prior Existing Agreements 70454.9 Fiduciary Role of the Nonprofit 70454.10 Ethics in Marketing 70554.11 Planned Giving Officer as Salesperson 70554.12 Ethical Dilemmas in Relation to Other
Development Officers 70654.13 Model Standards of Practice for the Charitable
Gift Planner 70654.14 Conclusion 708
CHAPTER 55 Planned Giving and Capital Campaigns
551 Introduction552 Campaign Counsel55.3 Advantages of Entering a Major Campaign
709
709710711
XXIV Contents
55.4
55.555.655.755.8
55.955.1055.11
Disadvantages of Entering a CampaignTypes of Capital CampaignsThe Nucleus FundTypes of Campaign GiftsPlanned Giving TrainingProfessional AdvisorsPlanned Giving and the Case StatementConclusion
CHAPTER 56 Stewardship and Planned Gifts
56.156.2
56.356.456.556.6
56.756.8
IntroductionCreate a Stewardship PlanGift AcknowledgmentGift AdministrationDonor RecognitionContinued Cultivation and Solicitation forAdditional GiftsEndowed FundsConclusion
CHAPTER 57 Institutionally Related Foundations
57.157.257.357.457.557.657.757.857.9
IntroductionBenefits of Institutionally Related FoundationsConsiderations in Establishing a FoundationThe Charity and the FoundationThe Foundation's Organizational FrameworkCommittees and Their FunctionsFundraisingManaging and Investing AssetsConclusion
CHAPTER 58 Outside Asset Managers: Policies and Procedures
58.158.258.3
58.458.5
58.658.758.858.958.1058.11
IntroductionWhen to Hire an Outside Asset ManagerWhat the Asset Manager Can Bring to the PlannedGiving ProgramSelecting the Asset ManagerFrom the Asset Manager: What the Planned GivingProgram Wants and NeedsResponsibilities of the Outside Asset ManagerConversion from In-House to Outside ManagerThe Nonprofit and Outside Manager RelationshipRecurring IssuesEvaluating the RelationshipConclusion
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Contents xxv
CHAPTER 59 Funding the Cost of Charity
59.1 Introduction59-2 Impact on the Charity59.3 Impact on Development Staff59.4 Impact on the Donor Base59.5 Donors Likely to Sympathize with Charity's Predicament59-6 Insiders59-7 Increasing the Management Fee on Endowed Funds59.8 Surcharges59-9 Traditional Giving Patterns5910 Restricted Gifts, Planned Gifts, and Life Income Gifts59.11 Implications on Minimum Gift Thresholds59-12 Implications on Planned Gift Options59-13 Campaign Gifts and Surcharges59.14 Disclosure59-15 Making the Case59-16 Conclusion
APPENDIX
Index
CD-ROM Documentation
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