Stages of Endowment/Planned Giving Effectiveness

Developing Operational Advancing Excelling

Endowment EvolutionNo operatingendowment in place

Board resolution to form endowment orfoundation with specificobjectives

Board employs fund-raising mechanism to build funds (e.g., planned giving, capital campaigns, outright gifts)

Greater than 25% ofoperating funds derived from endowment

Intend to take nextsteps

Planning begins; initialgifts secured

Endowment balance isgrowing; goals havebeen set; investmentcommittee active

Principal grows even withlarge operating fundpayments; Board executes annual drives

Planned Giving Evolution

Intend to take next steps

Only planned giftscome from “out of theblue”

Board approves plannedgiving policies and procedures

General marketing andspecific asks generateoutright gifts and estateclub members

A staff member has specific PG responsibility to maintain marketing and gift consistency

Board champion stepsforward with leadershipand gift; Board priority

PG committee in place;investment strategy;Board and community education underway

PG now viewed as anintegral component of fund development; highcommunity recognition

CONSUMPTION

HEIRS CHARITY

IRS

LEGACY

Current Beneficiaries of Wealth: Heidi and John Smith

Goals: Leave their children $1,000,000 each and replace taxes whenever possible with charity

100%

76% 24% 0%

HEIRS TAX CHARITY

NEW Beneficiaries of Wealth:Heidi and John Smith

100% + INS

< 1% 71%

HEIRS TAX CHARITY

71%

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 $557,905,182Tax $7,124,112 $17,124,988% Lost 56% 3%

CRTHeirsCommunity

Foundation

Insurance

Tax Deduction Lifetime Income

WIN-WIN-WIN!Series 1- Sale and Reinvest Series 2- Charitable Remainder Trust

($500,000)

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

1 2 3 4

Series1

Series2

IRS FAMILY HEIRS CHARITY