how to create and sustain your legacy society€¦ · Øcharitable remainder trust – crut and...

Planned Giving Essentials

How to Create and Sustain Your Legacy Society

This workshop will deliver the tools you need to add a planned giving program to your fundraising plan. Designed for the small NPO with limited staff time, you will learn what simple steps you can take to create an endowment program for the sustainability of your organization’s

future.

Lisa L. Huertas, MBA, CFRE | www.donormaven.com | [email protected]

http://www.donormaven.com/

mailto:[email protected]?subject=PACE

Planned Giving EssentialsWhy Planned Giving?

“During the next 10 years, Florida residents will transfer more than $322 billion in assets between generations.

By 2060, that figure is projected to reach $3.2 trillion.

People don’t have to be billionaires to make a planned gift; there are options for people with only a few personal assets.

The result is philanthropic potential that exceeds any period in the region’s history.

One planned gift of $1 million could generate $50,000 a year – year after year – for a nonprofit organization.”

- Florida Philanthropic Network, Planned Giving Toolkit




Planned Giving EssentialsAssets versus Income

In planned giving, you are dealing with assets, not income. Income is for the annual fund.

Assets are for people’s legacies.80% of planned gifts come in the form of bequests.Most bequests to charities are made in a person’s

last five years of life.




Five Easy Steps

1. Create2. Segment 3. Mail 4. Communicate5. Recognize




Step One

Create Your Legacy Society

Announce you have a Legacy Society.

That’s it!

There are no legal forms to fill out and you do not have to start with any members.

Step One

Create Your Legacy Society

Decide on what benefits to give your Legacy Society members.

An annual tea or luncheon can be held for the Legacy Society.

Pins are often awarded.

Recognition in the Annual Report, in Newsletters and on the Website, but only if

the donor wishes it.

Step Two

Find Your Legacy Society Members

Segment Your List

Look for donors who are in their 70s or higher.

Look for donors who have given regularly for 10 years or more – the amount does not

matter.

Monthly giving donors should also be included.

Step Two

Find Your Legacy Society Members

Ask your donors to tell you if they have already made provisions for your organization in their

will or estate planning.

Step Three

MailingMail a letter to your segmented list of Legacy

Society Prospects at least once a year.

Early April and September are the recommended months.

Step Three

MailingThe most common legacy gift is a bequest.

Stress that you do not need to be wealthy to gift assets to leave a legacy.

Step Three

Mailing

The mailing should include your letter, a #9 reply envelope designed for legacy

information, and your organization’s planned giving brochure.

Step Three

MailingIn crafting a legacy gift, the donor intent is key.

In your letter you can let your donors know that they can specify exactly how they want

their legacy gift to be used.

Step Four

Communicate

Planned Giving should be part of news sent out by your organization.

Step Four

Communicate

Set aside space in your Website, Annual Report, Newsletters, eNewsletters, eBlasts, and Social

Media for Planned Giving Messaging

Step Five

Recognize

Donor recognition for your Legacy Society members should not be overlooked.

Step Five

Recognize

Once a year invite them to a tea, a luncheon, or, best of all, a special gathering that is unique to your mission, as a thank you for what they are

doing for your organization.

Five Easy Steps

1. Create2. Segment 3. Mail 4. Communicate5. Recognize




Planned Giving

Planned Giving Vehicles You Should Know (but don’t have to memorize)

ØCharitable Gift Annuity – CGA

ØCharitable Remainder Trust – CRUT and CRAT

ØCharitable Lead Trust – CLUT and CLAT

ØIRA Rollover

ØLife Insurance

ØReal Property

ØTangible Personal Property




Planned Giving

Charitable Gift Annuity (CGA)A legal contract where the donor gives your organization cash, stock, or other marketable assets in exchange for an

agreed income for life. This works for one or two annuitants. Use of the American Council on Gift Annuities

(ACGA) table of rates is recommended.


http://www.acga-web.org/



Planned Giving

Charitable Remainder Trusts (CRUT and CRAT)Instruments where the donor retains a fixed or

variable interest for life. The remainder of the trust goes to your organization after the death of the last

beneficiary.




Planned Giving

Charitable Lead Trusts (CLUT and CLAT)Instruments where your organization retains a fixed or variable interest income for a negotiated number

of years. The trust’s assets go back to the donor or to the donor’s beneficiaries at the end of that time.




Planned Giving

IRA Charitable Rollover ProvisionDonors aged 70 ½ or older can gift up to $100,000

per year from their IRA. They do not pay income tax on this gift nor do they receive a charitable

deduction.




Planned Giving

Life InsuranceDonors who wish to do so are able to buy life insurance and designate your organization as

the beneficiary of the policy.




Planned Giving

Real PropertyAfter review by your organization’s Gift Acceptance

Committee, and with due diligence completed, donors may give marketable real property to your

organization to fund a deferred giving instrument or through bequest.




Planned Giving Tangible Personal Property

Also to be reviewed by the Gift Acceptance Committee, this could be:

Cars, BoatsJewelry

AntiquesArt

Collections - Stamps, Coins, etc.




Resources

•Florida Philanthropic Network Planned Giving Toolkit•Florida Philanthropic Network•American Charitable Bequest Demographics (1992-2012) – Dr. Russell James, J.D., Ph. D.

•Oklahoma City Community Foundation•Community Foundation for Palm Beach and Martin Counties•Community Foundation of Northern Colorado•Association of Fundraising Professionals International•American Council on Gift Annuities•Showcase of Fundraising Innovation and Inspiration•Crescendo Integrated Marketing for Planned Gifts•PGCalc•Planned Giving.com•Stelter Planned Giving Marketing

The following resources include letter templates, marketing tools, gift calculation tools, and other ideas for starting and growing your legacy society.

Lisa L. Huertas, MBA, CFRE | http://www.donormaven.com/ | [email protected]

../Fundraising%20Materials/FPN-Endow-FL-Future-Planned-Giving-Toolkit.pdf

http://www.fpnetwork.org/

http://www.encouragegenerosity.com/ACBD.pdf

http://occf.org/toolkit/

https://www.yourcommunityfoundation.org/toolkit

http://www.mycommunityfoundationnc.org/pages/nonprofits/endowment-building-toolkit

http://www.afpnet.org/

http://www.acga-web.org/

http://sofii.org/

http://www.crescendointeractive.com/

http://www.pgcalc.com/

http://www.plannedgiving.com/

http://www.stelter.com/




Questions?





Thank You!A copy of this presentation will be made available to you.

It will also be posted on my website, www.donormaven.com.

You are welcome to email me at [email protected] and request a copy.



mailto:[email protected]



how to create and sustain your legacy society€¦ · Øcharitable remainder trust – crut and...

Documents