1. PLANNED GIVING: OPPORTUNITIES, SUCCESS STORIES and THE ROLE OF THE BOARD THE XYZ Charity

2. The XYZ Charity Planned Giving: How Does It Address The XYZ Charitys Needs? zWhat is planned giving? Planned giving the process of best planning a gift which involves: xthe donor xthe donors professional advisors xthe charity zThe planning allows the donor to: xselect the best asset xselect the best method of making the gift xdesign a gift that best meets the charitys needs

3. The XYZ Charity American Association of Fund Raising Counsel Giving USA 99 $143.71 $11.02 $19.81 $15.61

4. The XYZ Charity Giving USA 99 Distribution of Charitable $s Religion: $81.78Health:$17.95 Education: $27.46Art:$11.07 Human Services: $17.36Public Benefit:$10.94

5. The XYZ Charity IRS Statistics and Income Bulletin for Spring, 2000

6. The XYZ Charity Boston College Social Welfare Institute zIntergenerational transfer of wealth from 1998-2052 z$41-$136 trillion in total dollars z$6-$25 trillion in gifts to charity zInteresting observations on giving attitudes and practices of wealthy

7. The XYZ Charity The Case For Endowment zCyclical economic variances impact receipt of annual gifts zIncreased operating costs zNeed for additional research and programs zIncreasing competition for funds zDependency on government or private grants zLosing donors through mortality

8. The XYZ Charity US Trust Study of Richest 1% Assets of $3 million or income of $225,000+ zWhen polled on how wealth had increased happiness 55% said that it allowed them to give money to charity zWhen polled on greatest financial concerns xNext generation will have difficult financial time xInflation xTaxes xLong term investments unpredictable xIncome Level

9. The XYZ Charity Other Vital Info z70% of all Americans make a gift to charity on an annual basis zOnly 5.71% of Americans leave a gift to charity under will zWhen polled by NCPG on reasons they did not leave gift to charity, they responded xNo one asked them to xNo one suggested that they do xDidnt think of it!

10. The XYZ Charity The Size of the Nonprofit Sector: Theres a lot of competition! zIn 1995, 1,235,905 exempt organizations in the United States (does not include churches which add about 300,000) zApproximately 626,226 are true charities z70,000 new applications for tax exempt status were filed in 1995

11. The XYZ Charity What Motivates The Donor? zCommitment to the vital role that your nonprofit services in community zAppreciation of your organization because of its service zUnderstanding of non- profits contribution to quality of life zGratitude for personal economic success z Perception of role in research/development z Interest in facilitating change z Establishing memorial z Personal contact z Recognition/attention z Influence or control z Guilt z Tax incentives

12. The XYZ Charity What Motivates The Donor? zTake care of and maintain their personal lifestyle zTake care of and maintain their familys lifestyle zLeave A Legacy for charity

13. The XYZ Charity The Ugly Truth: The Tax Bite 1999 Figures (Using Full Tax Credit)

14. The XYZ Charity Success In Planning: 3 Scenarios Meet the Normal Family: Dad Mom Tom Tim The 67 65 12 12 Dog $2,000,000 Combined H & W Estate

15. The XYZ Charity Estate Plan With Simple Will Total Assets$2,000,000 At first death in 2018 Deceased Spouses Estate$1,806,111 Net to Survivor$1,805,111 At death of survivor in 2022$4,065,588 Estate Tax$1,531,074 Total To Family$2,534,515

16. The XYZ Charity Estate Plan With Credit Shelter Trust/Marital Distribution Total Assets$2,000,000 At first death in 2018 Deceased Spouses Estate$1,806,111 Credit Shelter Trust$1,000,000 Marital Share$806,111 At death of survivor in 2022$2,032,794 Estate Tax$913,242 Total To Family$3,152,346 Increased Benefit$617,831

17. The XYZ Charity Estate Plan Adding 5% CRUT Total Assets$2,000,000 Gift$100,000 Charitable Deduction$38,419 At first death in 2018$1,729,545 Credit Shelter$1,000,000 Marital Share$729,545 At second death in 2022$1,946,618 Estate Tax$821,895 Total to Family$3,071,340

18. The XYZ Charity The Role of Planned Giving In The Development Plan

19. The XYZ Charity The Role Of Planned Giving In The Development Plan zAnnual giving yMost basic fundraising function yDesigned to raise operating funds yProcess dedicated to identifying and retaining donors yDonors have first contact through annual campaign z Events yCalling, letter writing, company campaigns, direct mail ySpecial events yMembership societies

20. The XYZ Charity The Role of Planned Giving In The Development Plan zMajor Giving ySignificant attention because of payoff yBig priority of The XYZ Charity yArea of great success in many cities z Events include yMembership societies ySpecial events yCapital campaigns yEndowment campaigns z Readiness yPlanning and prep yClear goals and mission ySolid structure

21. The XYZ Charity The Role of Planned Giving In The Development Plan zPlanned Giving yLast element of development plan yRapidly growing as essential yChurches, schools and hospitals lead the way z Characteristics yOngoing, rather than event oriented yRequires a different approach yRequires ongoing donor contact and relationships yMust be staffed to succeed

22. The XYZ Charity Why Does The XYZ Charity Need Planned Giving? zDemands for services and dollars have increased throughout the community zPlanned giving generates currents gifts as well as future gifts zPlanned giving provides a method of closer communication and a way to address needs and goals zPlanned giving will provide substantial long term results

23. The XYZ Charity The Birmingham United Way Success Story z75 Years Old zLast Annual campaign raised $23.5 million z5 County Area zGreatest increases in last five campaigns has been leadership giving

24. The XYZ Charity Growth of Planned Giving z1991 y$1.6 Million in assets yOne part time staff member yPlanned giving committee yPolicies and procedures z 1998 y$7.3 million y3 full time staff members yPlanned giving committee yVolunteers yProfessional asset management

25. The XYZ Charity Strategy zBuild on the volunteer strengths of the organization zIdentify and prioritize prospects zidentify volunteers and staff with relationships with prospects zMakes calls!

26. The XYZ Charity Activities included: zCreating the Covenant Society and setting goals for membership zCreating a special newsletter to focus on the planned giving message zAdd staff! zFocusing on potential donors and making personal calls to ask those donors to participate zLooking for niches

27. The XYZ Charity Advice From Birmingham zBest Advice: yDevelop a written plan of action yBuild the organizations structure yRecruit volunteers yTrain staff and volunteers z Avoid: yFocusing on policy for too long yAssuming best prospects are CEOs and Executives yFailing to set activity goals

28. The XYZ Charity The Role of the Board zMake endowment building a priority zGet an education! zDetermine the types of planned gifts to be offered zSpread the word zInsure support for the effort

29. The XYZ Charity The Importance of Making A Plan zLaunching a planned giving program can be daunting yComplicated issues yTakes time and money zProgram must be introduced in stages, in a way that can be accommodated and managed zProgram should be tailored to fit The XYZ Charitys strengths and goals

30. The XYZ Charity NCPGs Survey of Donors: Selected Findings zBequests Under Will y24% left gift of 1-5% y20% left gift of 6- 10% y11% left gift of 11- 25% y25% were unsure of percentage! z Other bequest findings yDonors initiated majority of bequests (77.1%) yMembership had the highest affiliation with the charity; personal benefit second yOnly 25.5% had notified charity

31. The XYZ Charity NCPGs Survey of Donors: Selected Findings zReasons Charity Was Not Notified yConcern for privacy yDid not want the attention yDid not want to be asked for more yDidnt think about it yDidnt think it was important yNot necessary now yMay change mind yOther

32. The XYZ Charity Myths In Planned Giving zAge ySurvey found high activity in ages 45-69 yMore activity in younger donor giving yCharitable giving peaks in the 55-65 year old age group yMany motivating factors at younger ages z Wealth yWealth alone does not prompt a planned gift yLarge bequests ($100K+) are generally from middle to upper class individuals with history of giving and children yNew wealthy are good potential donors

33. The XYZ Charity Myths in Planned Giving: Selected Findings zSize of Gifts yCharitable remainder trusts and charitable lead trusts are generally larger gifts due to costs. These can be sizeable yPooled income fund gifts range from $10,000 to $50,000. Some are as small as $5,000 yGift annuities average $17,000. These gifts generally range from $10,000 to $100,000

34. The XYZ Charity Developing The Planned Giving Program zStage One yCreate recognition society yDraft written instruction for naming The XYZ Charity - make it widely available yEstablish a method of tracking donors and potential bequests yCreate publications and response cards

35. The XYZ Charity Developing The Planned Giving Program zStage Two: Split Interest Gifts - CRTs, CLTs, Gift Annuities, Pooled Income Funds yAdd educational component to program yCreate marketing plan yAdd technical resources to staff yCreate professional advisory board yPurchase PGCalc, Crescendo or other planning software

36. The XYZ Charity Developing The Planned Giving Program zStage Three: Sophisticated Planning Models yAdd staff yReview marketing plan and expand yConsider direct mail yAdd web site yAdd educational events

37. The XYZ Charity Set Expectations And Measure Success zSet goals related to indirect revenue producing activities yQualify donors on records yIdentify potential donors yMake personal visits yMake calls with volunteers yConduct seminars yMake follow up calls after seminars yMail brochures

38. The XYZ Charity Set Expectations And Measure Success zSet goals related to revenue producing activities yCount current gifts and designations yCount irrevocable split interest gifts yCount revocable gifts