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Reviewing recent research about gift planning and how it provides insights on planned giving behavior. A quick set of facts for fundraisers.
Citation preview
Does charitable bequest planning cannibalize current giving?
“I don’t give anymore,
because I have a planned charitable bequest”
Does charitable bequest planning
cannibalize current giving?
Tracking the entire “lifetime” movie
• Collect giving information to all charities for years before, during, and after plan changes
• Large, federally-funded, longitudinal, in-person, well-compensated, nationally representative, study on health and retirement issues since 1992
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Before -8
years
Before -6
years
Before -4
years
Before -2
years
Mixed After +2
years
After +4
years
After +6
years
After +8
years
An
nu
al C
har
itab
le G
ivin
gin
Co
nst
ant
(In
flat
ion
Ad
just
ed
) 2
01
2 D
olla
rsGiving Before and After Adding
Charitable Beneficiary to Estate Plan9,439 observations from a nationally representative longitudinal study
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
$9,000
Before -8
years
Before -6
years
Before -4
years
Before -2
years
Mixed After +2
years
After +4
years
After +6
years
After +8
years
An
nu
al C
har
itab
le G
ivin
gin
Co
nst
ant
(In
flat
ion
Ad
just
ed
) 2
01
2 D
olla
rsGiving Before and After Adding
Charitable Beneficiary to Estate Plan9,439 observations from a nationally representative longitudinal study
$7,381 average annual giving post-plan
$4,210 average annual giving pre-plan
+$3,171 average
annual giving increase
Does charitable bequest planning
cannibalize current giving?
Does charitable bequest planning cannibalize current giving?
Avoid technical language when first introducing a gift planning vehicle
Avoid technical language when first
introducing a gift planning
vehicle
Results from 10 survey groups
including over 5,000 total participants
collected during 2014
Please rate your interest in pursuing the following charitable giving arrangement
Make a gift
where you get an immediate tax deduction, still control the
investment of the assets and receive income from the
investments for the rest of your life with anything left over going to
charity at your death.
where you get an immediate tax deduction, still control the
investment of the assets and receive income from the
investments for the rest of your life with anything left over going to
charity at your death.
Make a transfer of assets
Different groups rate their interest after receiving different descriptions
Does it make much difference?
Describing a CRT
14%
54%
32%27%
53%
20%
Interested now Not now, but in future
Will never be interested
Transfer
GiftMake a giftwhere you get an immediate tax deduction, still control the investment of the assets and receive income from the investments for the rest of your life with anything left over going to charity at your death.
where you get an immediate tax deduction, still control the investment of the assets and receive income from the investments for the rest of your life with anything left over going to charity at your death.
Make a transfer of assets
2014 Survey (A/B)1,101 Respondents
Make a gift
and in exchange receive a guaranteed lifetime income from
the charity.
and in exchange receive a guaranteed lifetime income from
the charity.
Enter into a contract with a charity where
you transfer your cash or property
Does it make much difference?
Describing a CGA
13%
44% 44%
29%
48%
23%
Interested now Not now, but in future
Will never be interested
Contract
Gift Make a gift and in exchange receive a guaranteed lifetime income from the charity
receive a guaranteed lifetime income from the charity
Enter into a contract with a charity where you transfer your cash or property and in exchange
2014 Survey (A/B)1,101 Respondents
Formal terms lower charitable interest
Interested Now
36%
22%
Will Never Be
Interested
14%
23%
2014 Survey, 1,417 Respondents, Group F/G
Get an immediate tax deduction and still receive income from your investments for the rest of
your life by making a gift where you control the investment of the assets, but anything left over
goes to charity at your death.
Get an immediate tax deduction and still receive income from your investments for the rest of
your life by making a gift
using a “Charitable Remainder Trust”
where you control the investment of the assets, but anything left over goes to charity at your
death.
Formal terms lower charitable interest
Interested Now
50%
23%
Will Never Be
Interested
8%
19%
2014 Survey, 1,418 Respondents, Group F/G
Receive a tax deduction and make a gift that pays you
income for life
Receive a tax deduction and make a gift that pays you
income for life
called a “Charitable Gift Annuity”
Formal terms lower charitable interest
Interested Now
26%
15%
Will Never Be
Interested
23%
30%
2014 Survey, 1,422 Respondents, Group F/G
Immediately receive a tax deduction for 70% of the value of a house or land by
making a charitable gift of the property, but keeping the right to use it for the
rest of your life.
Immediately receive a tax deduction for 70% of the value of a house or land by
making a charitable gift of the property,
using a “Remainder Interest Deed”
but keeping the right to use it for the rest of your life.
Interested Now
23%
12%
Will Never Be
Interested
12%
14%
2014 Survey, 1,246 Respondents, Groups D/E
Make a gift to charity in my will
Make a bequest gift to charity
Formal terms lower charitable interest
Avoid technical language when first
introducing a gift planning
vehicle
Avoid technical language when first introducing a gift planning vehicle
The decision to leave an
actualcharitable
bequest (not just a survey
response) isn’t dramatically
influenced by slight phrasing
changes
The decision to leave an actualcharitable bequest (not just a survey response) isn’t dramatically influenced by slight phrasing changes
3,000 testators in the normal process of completing their wills were randomly assigned to one of three groups
Many of our customers like to leave money to
charity in their will. Are there any causes you’re
passionate about?
Would you like to leave any money to charity in your will?
No reference to charity
Cabinet Office Behavioural Insights Team (2013) Applying behavioural insights to charitable giving
5.0%
10.4%
15.4%
Charitable bequests are influenced by a simple social example
Charitable plans among
1,000 testators
Charitable plans among
1,000 testators
Charitable plans among
1,000 testators
Many of our customers like to leave money to
charity in their will. Are there any causes you’re
passionate about?
Would you like to leave any money to charity in your will?
No reference to charity
Cabinet Office Behavioural Insights Team (2013) Applying behavioural insights to charitable giving
The social example also increased the average amount of bequest gifts
Cabinet Office Behavioural Insights Team (2013) Applying behavioural insights to charitable giving
$5,610 $5,291
$11,333
No ask Simple Ask Social NormUsing £1=$1.70 exchange rate
Charitable plans among
1,000 testators
Charitable plans among
1,000 testators
Charitable plans among
1,000 testators
The social example dramatically increased total charitable dollars
Cabinet Office Behavioural Insights Team (2013) Applying behavioural insights to charitable giving
$280,500
$550,264
$1.75 million
No ask Simple Ask Social NormUsing £1=$1.70 exchange rate
among1,000 testators
among1,000 testators
among1,000 testators
The social norm increased charitable bequest intentions
Interested Now
30%
23%
12%
Will Never Be
Interested
9%
12%
14%
2014 Survey, 1,866 Respondents, Groups D/E/LateG+H
Many people like to leave a gift to charity in their will. Are
there any causes you would support in this way?
Make a gift to charity in my will
Make a bequest gift to charity
The decision to leave an actualcharitable bequest (not just a survey response) isn’t dramatically influenced by slight phrasing changes
The decision to leave an actual charitable bequest isn’t dramatically influenced by slight phrasing changes
It is better to tell stories of living
planned bequest donors than deceased
bequest donors
It is better to tell stories of living planned
bequest donors than
deceased bequest donors
New Survey
v.
Instead of testing question wording, now
testing impact of marketing messages for
40 national charities(4,560 participants)
Baseline BEQ GiveAmer Cancer Society 26.79 36.77The Red Cross 25.93 41.12ASPCA 24.18 33.77Habitat for Humanity 24.01 34.90Amer Heart Association 23.17 33.95Natl Cancer Coalition 22.56 34.54Breast Cancer Res Fnd 22.53 33.93Natl Breast Cancer Fnd 22.43 33.48The Amer Humane Assn 22.23 33.91The Alzheimer's Found 21.40 32.00Susan G. Komen Br Canc 21.39 29.22Dana Farber Cancer Inst 21.13 29.63American Diabetes Assn 20.84 32.54World Wildlife Fund 20.82 29.08Guide Dogs for the Blind 20.80 31.46The Alzheimer's Assn 20.80 31.86American Lung Assn 20.78 31.40MD Anderson Cancer Cr 20.59 30.53UNICEF 20.37 32.31The Salvation Army 19.98 31.44
Baseline BEQ GiveWildlife Conserv Soc 19.90 29.26Goodwill Industries 19.65 34.42Big Brothrs/Big Sisters 19.47 30.49The United Way 18.97 28.97Joslin Diabetes Center 18.91 29.18Canine Compan for In 18.90 29.67Fnd Fightng Blindness 18.77 28.37AIDS Project LA 17.71 25.64Prevent Blindss Amer 17.51 28.32San Fran AIDS Found 17.39 25.49Nat Audubon Society 17.33 24.24YMCA 17.16 28.12Boys and Girls Clubs 17.14 30.10Girl Scouts 16.71 31.27YWCA 16.21 24.42Amer Indian College F 15.97 22.33CARE 15.86 24.69Boy Scouts 14.51 23.56United Negro Coll Fnd 14.13 21.90Ducks Unlimited 13.60 19.49
Social NormsFormal Evidence
Information indicating that it is common for Americans
to leave 5% or 10% to charity. Sharing survey
results showing agreement with concept.
Spendthrift Heirs Formal Evidence
Statistics showing how rapidly heirs typically
spend inheritance from published academic
research
MessageGive-
BEQ GapGap50+
GapMale
GapFemale
None 10.2 14.0 7.7 11.7Spendthrift Heirs (Formal) 9.4 11.4 8.4 10.1Social Norms (Formal) 8.8 11.7 7.5 9.7Heirs + Social Norms 8.0 10.2 6.4 9.0
Charitable bequest decision making emphasizes “visualized
autobiography” brain regions
Contrast Brain RegionMNI co-ordinates
Peak p FWE
Clust-er p FWE
(1) Beq> Give Lingual Gyrus -2, -78, -2 .004 .000
Precuneus 26, -66, 42 .102 .009(2) Beq> Vol Lingual Gyrus 2, -80, -4 .007 .000
Precuneus 30, -66, 40 .180 .004
Precentral Gyrus -34, -3, 36 .397 .001(3) Beq> (Give+ Vol) Lingual Gyrus 0, -78, -4 .001 .000
Precuneus 26, -66, 42 .007 .001
James, R. N., III & O’Boyle, M. W. (2014). Charitable estate planning as visualized autobiography: An fMRI study of its neural correlates. Nonprofit and Voluntary Sector Quarterly, 43(2), 355-373.
With new images or pure text (no significant difference)
Deceased bequest donor life stories
MessageGive-Beq
GapGap50+
GapMale
GapFemale
None 10.2 14.0 7.7 11.7Spendthrift Heirs (Formal) 9.4 11.4 8.4 10.1Social Norms (Formal) 8.8 11.7 7.5 9.7Heirs + Social Norms 8.0 10.2 6.4 9.0Deceased Beq. Stories 6.7 7.5 4.4 7.5
With new images or pure text (no significant difference)
Living bequest donor life stories
E.g., “School janitor Lester Holmes died in 1992” becomes “School janitor Lester Holmes signed his will today”
MessageGive-Beq
GapGap50+
GapMale
GapFemale
None 10.2 14.0 7.7 11.7Spendthrift Heirs (Formal) 9.4 11.4 8.4 10.1Social Norms (Formal) 8.8 11.7 7.5 9.7Heirs + Social Norms 8.0 10.2 6.4 9.0Deceased Beq. Stories 6.7 7.5 4.4 7.5Living Bequest Stories 4.4 4.3 3.3 5.0
With new images or pure text (no significant difference)
Effect of More Stories
1st 4 Stories: Janitor, pet groomer, carpenter, symphony patron
2nd 3 Stories: fisherman, coach, physician
MessageGive-Beq
GapGap50+
GapMale
GapFemale
None 10.2 14.0 7.7 11.7Deceased 1st 4 stories 6.8 7.5 5.5 7.6Deceased All 7 stories 6.6 7.5 5.4 7.4Mixed Dec/Liv 7 stories 6.0 7.2 5.0 6.6Living 1st 4 stories 4.8 5.7 3.9 5.4Living All 7 stories 4.1 2.5 3.0 4.7
Which of the four message
types worked best for which of
the 40 charities?
Living donor stories outperformed all other messages for 40 out of 40 charities tested
Although numerical ability declines with age, verbal knowledge does not
Park, et al (2002) Psychology and Aging, 17(2), 299-320
It is better to tell stories of living planned
bequest donors than
deceased bequest donors
It is better to tell stories of living planned bequest donors than
deceased bequest donors
Many people increase their interest
in a charitable bequest if given the
option to leave a tribute bequest
honoring a loved one
Many people increase their interest in a charitable bequest if given the option to leave a tribute bequest honoring a loved one
Bequests to friends and family (v. charitable bequests) more heavily involve brain regions of Emotion (mid/posterior cingulate cortex;
insula) and Memory (hippocampus)
Can a charitable bequest represent a loved one, and thereby connect with this
memory and emotion?
Female, 63 widowed
‘The reason I selected Help the Aged...it was after my mother died...And I just thought – she’d been in a care home for probably three or four years. And I just wanted to help the elderly...I’d also support things like Cancer Research, because people I’ve known have died...An animal charity as well, I had a couple of cats.’
Bequest charity representing loved ones
“‘[In my will I have a gift to] the Cancer Research. My father died of cancer and so I have supported them ever since he died.’
Male, 89 married (Routley, 2011, p. 220-221)
Do you have a deceased friend or deceased family member who would have appreciated your support of an International relief organization such as CARE or UNICEF?
Also tested for living friend or family memberAlzheimer’s The Alzheimer's Association, The Alzheimer's Foundation
Diabetes Joslin Diabetes Center, The American Diabetes Association
Wild Birds Preservation National Audubon Society, Ducks Unlimited
Wildlife World Wildlife Fund, Wildlife Conservation Society
Minority College Fund United Negro College Fund, American Indian College Fund
Blindness related nonprofit Foundation Fighting Blindness, Prevent Blindness America
Youth-related charitable Girl Scouts, Boy Scouts, YMCA, YWCA, Big Brothers / Big Sisters of America, Boys and Girls Clubs of America
AIDS research and care San Francisco AIDS Foundation, AIDS Project Los Angeles
Animal welfareAmerican Society for Prevention of Cruelty to Animals, The American Humane Association
International relief UNICEF, Care
Cancer research American Cancer Society, National Cancer Coalition, M.D. Anderson Cancer Center, Dana Farber Cancer Institute
Guide dogsGuide Dogs for the Blind, Canine Companions for Independence
Breast cancer researchBreast Cancer Research Foundation, National Breast Cancer Foundation, Susan G. Komen Breast Cancer Foundation
If so, please state your relationship to them and write at least 25 words describing their interest in or connection with this cause.If you signed a will in the next 3 months, what is the likelihood you might leave a BEQUEST gift honoring a living [deceased] friend or family member to _____
Testing the tribute bequest
Change in charitable bequest intention for those with family/friend connection
Total Age 50+ Male FemaleMemorial reminder +14.0 +14.0 +13.5 +14.0Living reminder +9.2 +9.3 +7.7 +9.9
Connection reminder + tribute bequest offer
increases interest
Average share with family/friend connections to each cause
Total Age 50+ Male FemaleMemorial reminder 22.1% 27.1% 19.5% 23.6%Living reminder 34.2% 36.1% 30.4% 36.6%
Change in charitable bequest intention for those with family/friend connection
Total Age 50+ Male FemaleMemorial reminder
+11.7 +12.2 +11.0 +12.1
Memorial reminder(after othermessages)
+15.0 +14.0 +15.3 +14.8
Living reminder
+9.4 +11.3 +6.4 +10.0
Living reminder (after other messages)
+9.2 +9.1 +7.9 +9.9
Connection reminder + tribute bequest offer can be “stacked” with other bequest messages
Giving – Tribute Bequest
TotalAge 50+ Male Female
Memorial reminder(after living/ deceasedstories)
-4.2 -1.7 -6.5 -3.1
Living reminder (after living/ deceasedstories)
-3.3 -2.3 -2.4 -3.7
Donor stories + tribute reminder eliminates giving-bequest intention gap for those with friend/family connections
DONOR STORY
TRIBUTE REMINDER
DONOR STORY
DONOR STORY
Tribute bequests are more attractive for ascendants, less for descendants or friends
Family and friend words associated with interest in a tribute bequest(ranked by strength of correlation)
Positive Non-significant Negativegrandmother +7.5 dad girl -12.8family +3.5 children boy -13.7mother +2.4 uncle kids -8.4aunt +2.6 sister girls -12.1grandfather +2.7 mom friends -3.5husband +3.6 wife boys -11.6
cousin brother -6.4parents daughter -6.1son child -5.8father friend -1.4
Phrasing the tribute question
Interested Now
23%
16%
13%
Will Never Be
Interested
17%
21%
21%
2014 Survey, 1,961 Respondents, Groups B/A/H
Honor a friend or family member by making a memorial gift to charity in
my last will & testament
Make a bequest gift to charity in my last will & testament in honor of a
friend or family member who appreciated the charity's work
Make a bequest gift to charity in my last will & testament in honor of a friend or family member who was
passionate about the charity's work
1 in 4 increased their intention to leave a
charitable bequest
Many people increase their interest in a charitable bequest if given the option to leave a tribute bequest honoring a loved one
Many people increase their interest if given the option to leave a tribute
bequest honoring a loved one
Are Americans becoming much
less likely to have a signed and
witnessed will or trust document?
Are Americans becoming much less
likely to have a signed and
witnessed will or trust
document?
51%
53%
55%
57%
59%
61%
1998(n=18,987)
2000(n=18,142)
2002(n=17,353)
2004(n=17,464)
2006(n=17,033)
2008(n=16,280)
2010(n=17,562)
2012(n=17,798)
2014(projected)
U.S. 55+ population with a will or trust
States allowing “Transfer on Death” deeds in 1995
States allowing “Transfer on Death” deeds in 2000
States allowing “Transfer on Death” deeds in 2005
States allowing “Transfer on Death” deeds fall 2014
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
Age 55+ use of will alone or trust
Will Only
Funded Trust
8.0%
8.5%
9.0%
9.5%
10.0%
10.5%
11.0%
1998(n=18,987)
2000(n=18,142)
2002(n=17,353)
2004(n=17,464)
2006(n=17,033)
2008(n=16,280)
2010(n=17,562)
2012(n=17,798)
2014(projected)
Charitable beneficiary among those aged 55+ with a will or trust
0%
2%
4%
6%
8%
10%
1998(n=18,987)
2000(n=18,142)
2002(n=17,353)
2004(n=17,464)
2006(n=17,033)
2008(n=16,280)
2010(n=17,562)
2012(n=17,798)
2014(projected)
U.S. 55+ with a charitable beneficiary
Are Americans becoming much less
likely to have a signed and
witnessed will or trust
document?
Are Americans becoming much less likely to have a signed and witnessed
will or trust document?
Don’t the aging demographics say we should be getting big charitable
bequest dollars now??
Don’t the aging
demographics say we should be getting big
charitable bequest
dollars now?
0
20
40
60
80
100
120
140
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
20
14
20
16
$ B
illio
ns
An
nu
ally
Est. High ('98-'17)
Est. Middle ('98-'17)
Est. Low ('98-'17)
Charitable bequestsreceived
Charitable bequests:Predicted
v. Received
Estimated annually is 1/20 of 20 year estimated total from P.G. Schervish and J. J. Havens (1999) “Millionaires and the millenium: New estimates of the forthcoming wealth transfer and the prospects for a golden age of
philanthropy”. Bequests received are inflation-adjusted numbers from Giving USA 2014
76
78
80
82
84
86
88
Me
dia
n A
ge a
t D
eat
h
Linear (Male BequestDonor)Linear (FemaleBequest Donor)Linear (All Female)
Linear (All Male)
Wealthy people die old.Wealthy bequest donors die even older.
“the life expectancy [of a 65-year-old female Charitable Remainder Trust Donor]… would be… nearly 10 and one-half years longer than the charitable income tax deduction table (90CM Table).Clontz & Behan, NCPP 2010
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95+
Cumulative percentage of charitable bequest dollars by donor age at death
Over 80% of charitable bequest dollars come from decedents aged 80+
Half of all charitable bequest dollars came from decedents this age and older…
Current U.S. study:
Age 89
New Australian study (5% sample of national
probate files):
Age 90
2000000
2500000
3000000
3500000
4000000
4500000
19
14
(A
ge 1
00
)
19
17
(A
ge 9
7)
19
20
(A
ge 9
4)
19
23
(A
ge 9
1)
19
26
(A
ge 8
8)
19
29
(A
ge 8
5)
19
32
(A
ge 8
2)
19
35
(A
ge 7
9)
19
38
(A
ge 7
6)
19
41
(A
ge 7
3)
19
44
(A
ge 7
0)
19
47
(A
ge 6
7)
19
50
(A
ge 6
4)
19
53
(A
ge 6
1)
19
56
(A
ge 5
8)
19
59
(A
ge 5
5)
19
62
(A
ge 5
2)
19
65
(A
ge 4
9)
19
68
(A
ge 4
6)
19
71
(A
ge 4
3)
19
74
(A
ge 4
0)
19
77
(A
ge 3
7)
19
80
(A
ge 3
4)
19
83
(A
ge 3
1)
The “baby bust” is driving demographics
Births
0
5,000,000
10,000,000
15,000,000
20,000,000
50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95-99 100+
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Key population not growing, YET
Total resident population by 5-year age groups
Temporary flat trend in key population
Don’t the aging
demographics say we should be getting big
charitable bequest
dollars now?
Don’t the aging demographics say we should be getting big charitable
bequest dollars now?
90% of planned bequest donors never change their plans
90% of planned bequest
donors never change their
charitable plans
The NCPG (2000) study showed that 90% of planned bequest donors don't change their plans
Fiction
Among those (avg. age of 58) WITH a charitable plan, 10% chose “Amount Decreased” when asked about their overall plan, “Has the amount of the charitable bequest ever increased or decreased?”
FactIt showed that IF charity stayed in, plan changes decreased total charitable amount 10% of the time
Old data
Post-mortem for largest estates
Plans changes occur over time
We can see this only in
a LIFETIMEsurvey
not in a
ONE TIMEsurvey
The ten-year test
Among those who reported a charitable plan in the initial year AND answered the same
question 10 years later, what percentage still reported having a charitable plan?
1994 v. 2004; 1996 v. 2006 1998 v. 2008; 2000 v. 20102002 v. 2012
Most still report charitable plans 10 years later
0%
10%
20%
30%
40%
50%
60%
70%
1993/4 to2004
1995/6 to2006
1998 to2008
2000 to2010
2002 to2012
10-Year Retention of Charitable Estate Component
age 70+
age 50-69
50%
55%
60%
65%
70%
75%
80%
85%
2002 2004 2006 2008 2010 2012
Charitable Plan Loss Trajectory Among those still answering the question who reported having a
charitable component in BOTH 1998 & 2000
“Count it and forget it” doesn’t work!
90% of planned bequest
donors never change their
charitable plans
90% of planned bequest donors never change their charitable plans
Most charitable plans are added within five years
of death
Most charitable plans are
added within five
years of death
Most realized charitable plans added within 5 years (shown in red) of death
Total Number Total $
Although most charitable plans were added within 5 years of death, ONE longer-term plan was worth FOUR made in the last two years.
A 5% national sample of 2012 probate records in Australia showed an estimated
• 31% of charitable wills were signed within 2 years of death
• 60% were signed within 5 years of death
Baker, Christopher (2014) Encouraging Charitable Bequests by Australians . Asia-Pacific Centre for Social Investment & Philanthropy - Swinburne University
Age at Will Signing(by share of total charitable bequest $ transferred)
76%
11%
13% 80s+
70s
pre-70
Australian data from: Baker, Christopher (October, 2013) Encouraging Charitable Bequests by Australians . Asia-Pacific Centre for Social Investment & Philanthropy - Swinburne University
Factors predicting when charitable plans are
ADDED
1. Approaching death (final pre-death survey)
2. Becoming a widow/widower
3. Diagnosed with cancer
4. Decline in self-reported health
5. Divorce6. Diagnosed with
heart problems7. Diagnosed with
a stroke8. First grandchild9. Increasing
assets10. Increasing
charitable giving
Factors predicting when charitable plans are
DROPPED
1. Decline in self-reported health
2. Approaching death (final pre-death survey)
3. Becoming a widow/widower
4. Divorce
5. Diagnosed with cancer
6. Diagnosed with heart problems
7. Diagnosed with a stroke
8. First grandchild
9. First child
10. Exiting homeownership
Most charitable plans are
added within five
years of death
Most charitable plans are added within five years of death (and many are dropped)
More older adults (50+) are
resistant to planned giving concepts than younger adults
(30-50)
More older adults (50+) are
resistant to planned giving concepts than younger adults
(30-50)
Difference in older (50+) v. all respondents
Questions
I Will Never Be Interested
DefinitelyInterested
Now
All gift of cash +0.1% +2.4%
All bequest gift +8.5% +0.6%All tribute bequest +10.1% -0.2%
All TOD +13.2% -0.2%All donor advised fund +13.9% -0.2%All gift of stocks/bonds +14.3% +0.0%All retained life estate +15.9% -0.9%
All CGA +16.8% -2.3%All CRT +25.2% -1.9%
A larger share of older adults are decidedly resistant to bequest
giving and planned giving(2014 Survey)
Older adults are initially more resistant to bequest giving but more responsive to
bequest marketing
0
2
4
6
8
10
12
14G
ive
-Be
qu
est
Gap
All
50+
Older adults are initially more resistant to
bequest giving but are more responsive to
bequest giving marketing
{ { { {{ { {
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}
Change in charitable bequest intention for those with family/friend connection
Total Age 50+Memorial reminder +13.97 +13.96Living reminder +9.22 +9.33
Older adults initially more resistant to tribute bequest concept (survey #1) but more
responsive to tribute bequest reminder (#2)
Average share with family/friend connections to each cause
Total Age 50+Memorial reminder 22.1% 27.1%Living reminder 34.2% 36.1%
Will Never Be Interested
All 50+
All bequest gift 15.9% 24.4%
All tribute bequest 20.3% 30.4%
More older adults (50+) are
resistant to planned giving concepts than younger adults
(30-50)
More older adults (50+) are resistant to planned giving concepts, BUT are also more responsive to messages
If you are in the signed and witnessed will, you should expect to receive a
gift at death
If you are in the signed and
witnessed will, you should expect to
receive a gift at death
The entire “lifetime” movie (tracking same people from mid-life to post-mortem)
New data
Previous data
Old data
Small one-time snapshots in life
Post-mortem for largest estates
Wills that
won’tWhat ultimately
happened to those written and witnessed will documents reported during
life?
Reported wills are often unused
16%
38%10%
19%
11%
6%
Distributed estates where decedent reported having a written and witnessed will (n=6,063)
No will found
Will probated
Unprobated will: nothingmuch of value
Unprobated will: estateotherwise distributed
Unprobated will: trustdistributed
Unprobated will: other
Funded trusts more likely to work
75%
5%
10%
4% 2%4%
Distributed estates where decedent reported having a funded trust (n=913)
Funded trust exists
No documents
Will probated
Unprobated will:Otherwise divided
Will - Nothing much ofvalue
Will - Unknown
If you are in the signed and
witnessed will, you should expect to
receive a gift at death
If you are in the signed and witnessed will, you should expect to receive a
gift at death.
It is important to mention tax deductions when initially describing a
planned gift
It is important to mention tax deductions when initially describing a planned gift
Social Desirability
Bias
The motivational effects of tax
benefits appear when measured
directly
People are unlikely to report giving as motivated by personal benefits like tax deductions
Interested Now
50%
33%
31%
Will Never Be
Interested
8%
14%
20%
2014 Survey, 1,904 Respondents, Groups D/E/F
Receive a tax deduction and make a
gift that pays you income for life.
Make a gift that pays you income for life and
receive a tax deduction.
Make a gift that pays you income for life.
Mentioning tax deductions increases charitable interest
Interested Now
26%
12%
11%
Will Never Be
Interested
23%
33%
42%
2014 Survey, 1,826 Respondents, Groups F/B/D
Immediately receive a tax deduction for 70% of the valueof a house or land by making a charitable gift of the property, but
keeping the RIGHT TO USE it for the rest of your life.
Make a charitable gift of either a house or land, but keep the RIGHT TO USE for the rest of your life and immediately
receive a tax deduction for 70% of the value of the property.
Make a charitable gift of either a house or land, but keep the RIGHT TO USE it
for the rest of your life.
Mentioning tax deductions increases charitable interest
InterestedNow
28%
27%
21%
Will Never Be
Interested
17%
20%
25%
2014 Survey, 1,782 Respondents, Groups E/A/C
Get an immediate tax deduction by making a gift where you still control the
investment of the assets, and receive income from the investments for the rest of
your life with anything left over going to charity at your death.
Make a gift where you get an immediate tax deduction, still
control the investment of the assets and receive income from the investments for the rest of your life with anything left over going
to charity at your death.
Make a gift where you still control the investment of the assets, and receive income from the investments for the rest of your life
with anything left over going to charity at your death.
Mentioning tax deductions increases charitable interest
It is important to mention tax deductions when initially describing a planned gift
It is important to mention tax deductions when initially describing a
planned gift