Planned Giving Focus Group Call
Jan. 14, 2013
Facilitator: Brighid O’Keane, Brighid@PeoplePoweredMovement.org
Presenter: Viken Mikaelian, Founder and Director of PlannedGiving.com,
success@plannedgiving.com
A planned gift is any major gift, made in lifetime or at death as part of a donor’s overall
financial and / or estate planning (vs. donations through a donor’s discretionary income,
which my be budgeted for, but not planned.
Types of Planned Giving
There are four types of planned gifts that are the easiest to give and receive. They don’t
effect cash flow during ones’ lifetime, and they don’t require a lawyer to set up.
1. Bequests
Donors include a provision in their will directing that a gift be paid to your organization
after their death
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Provide a codicil, a document that amends a previously executed will. Click here for
a sample codicil.
Donors face two sets of choices when they write a charitable bequest:
i. First, they can give your organization either a specific amount of money or
item of property (a "specific" bequest), or they can give a percentage of the
balance remaining in their estate after taxes, expenses, and specific
bequests have been paid (a "residual" bequest).
ii. Second, they can direct you to use their bequest for a particular program or
activity at your organization (a "restricted" bequest), or allow you to use it at
your discretion (an "unrestricted" bequest).
Create a solicitation letter and firm your talking points and messaging.
Sample talking point: “You can make a gift that costs you nothing during your lifetime
/ doesn’t upset your cash flow.”
See the Alliance Guide to Fundraising #3 for a sample bequest letter.
Tip: Don’t use the word bequests, instead use the phrase “a gift through your will or
estate.”
2. Insurance policies
Donors can direct a charitable distribution from the balance remaining in their retirement
plan (IRA, 401(k), Keough, etc.) at death. They can also make your organization the owner and
beneficiary of a new life insurance policy.
3. IRAs
The IRA Charitable Rollover is a special tax provision which allows individuals 70 ½ and
older to transfer up to $100,000 per year directly from an IRA account to a 501(c)(3)
charity without having to recognize the transfer as income.
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The current extension of this provision applies only to qualified charitable
distributions made before 1/1/14. More information is available here.
Sample talking point: “Leave your children possessions that are taxed a lot less.”
(IRAs are taxed 70% when given to heirs).
4. Appreciated “stuff”
Before your organization starts soliciting and accepting the following gifts, you should
develop a gift acceptance policy. See the Alliance Guide to Fundraising #3 for more
information.
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Securities (stocks and bonds)
o Donors will receive a charitable income tax deduction equal to the fair market
value of the shares, no matter what they originally paid for them
o Donors will pay no capital gains tax on the transfer.
 Stocks can be treated like cash – they have to be given directly or else
the donors will have to pay a tax.
o Note: Trusts are more complicated – donor should have a financial advisor
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Real estate
o Donors receive an income tax deduction equal to the appraised fair market value
of the property, with no capital gains tax due on the transfer
o Real estate is 45% of our nation’s wealth
o Sample talking points: “You can remove a large taxable asset from your estate.”
“Donate your property today instead of waiting 8 months for it to sell.”
o Before you accept a property donation, consider the following:
 Can you use the property to help you carry out your mission?
 If so, will the costs to adapt it to your use and maintaining it be
reasonable?
 If not, is the property saleable within a reasonable period of time?
 Are there any mortgages on the property? Are there any environmental
issues that could be a liability?
o Tip: Use a real estate facilitator or community foundation to help with this
transaction.
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Property (e.g. cash)
o Donors receive an income tax deduction equal to the fair market value of the
property, with no capital gains tax due on the transfer
o To be tax deductible at fair market value, the items must be related to the taxexempt function of the organization. Property gifts that are unrelated to the
mission may only be deducted at the donor’s cost basis.
o Donors can make a gift using property that they no longer need or are able to
maintain
What to know about Planned Giving
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People over-complicate planned giving and are nervous about asking. Your first step
should be to simplify a planned giving program.
Planned giving is a pro-active approach to fundraising. One large gift can be
transformational.
Don’t be afraid to be bold in your ask.
Planned giving is for the average person (vs. major gifts from the top income
percentage)
95% of the U.S.’ wealth is in assets (5% is cash)
50-100% more income in 2-5 years even if you “dabble” in planned giving
Take a business and marketing approach (e.g. Nature Conservancy, St. Jude’s
Hospital)
Start a Planned Giving website associated with your organization
Steps to Initiate a Planned Giving Program
If you’re a non-profit, you’re already in the planned giving “business.” Formalizing a
program is a proactive approach to seeking funds.
1. Develop a toolkit and start advertising ways for donors to give planned gifts
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Meet with your Executive Director, Development Directors and Communications
Director. Do an inventory of every piece of communications you put out and have
a stair speech in each piece (e.g. email signature, newsletter, annual report,
magazines) linked to a gift description
Develop a 12-Month Planned Giving Marketing Plan
Know your stair speech. Educate donors about ways they can give
Talking points: “You don’t have to be wealthy to make a significant gift.”
2. Talk with financial advisors, lawyers and community foundations in your area.
Anticipate your donors’ questions and ease their concerns with informed responses
and suggested resources. Familiarize yourself with planned giving options. Be a
resource. Here is a helpful planned giving cheat sheet.
3. Go to your annual giving database and select donors who have given
consecutively for 10 years or more. Meet with them, take them out to coffee and
ask them to consider a planned gift to your organization. See what they’d like to do in
the long run and what legacy they’d like to leave.
More Tips and Resources
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Donate $10 to an organization that has an active planned giving program. Learn
about their “moves management” plan to see how they communicate with you over a
year.
Cultivate one donor and use their testimonial.
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Make your ask to people that are typically in the age range of 40-60 – most people
over 65 have already made planned giving decisions.
Planned giving solicitation letter: http://www.plannedgiving.com/afp
This page has a ton of free, very useful downloads:
http://www.plannedgiving.com/resources/freedownloads.php
Frequently Asked Questions: http://www.plannedgiving.com/answers/
Planned giving website services: http://www.virtualgiving.com/