3 Donor Responses to Recession “Let’s postpone this (gift) discussion until the economy looks better”Reluctance to make ANY decisionsWillingness to consider revocable, testamentary contributions
4 Bequests Remain Popular with Donors Why are donors more receptive to making major gifts at death?What special motivations are there for making gifts through estate plans?“If I had known I was going to live this long, I would have taken better care of myself.”
5 “In this time of recession and uncertainty, we need to take VERY good care of our money” - Bequest Donors
6 Bequests = 90% of Planned Gifts Why are donors more receptive to making major gifts at death?What special motivations are there for making gifts through estate plans?“If I had known I was going to live this long, I would have taken better care of myself.”
7 Gifts Through Estate Plans Enable Donors to Accomplish Goals: Plan a significant, future gift that doesn’t jeopardize current financial securityLeave a legacy for goodProvide a level of support that seemed impractical during life (e.g., tithing at death: “I bequeath 10% of my estate to XYZ charity”)Perpetuate their annual givingReduce taxes on their estates
8 Your Bequest Can Perpetuate Your Annual Contributions* If Your $ You Can $ 12,500Annual $1,000 Perpetuate $ 25,000Gifts $1,500 Them with a $ 37,500Total: $2,000 Bequest of $ 50,000$5,000 at Least: $125,000*Leaving 25 times a donor’s annual gifts can “endow” the donor’s annual contributions forever, assuming a 4% annual rate of interest.
9 Charitable Bequests are 100% Deductible against Estate Tax
10 The Ideal Bequest Prospect Likes the organization, and may already be a donorHas sufficient wealth to make a bequestIs retired or nearing retirement ageDoesn’t have kids (50% more likely to make charitable bequest)
11 But…there is no database on people who never had kids “Do I have any children? Well, (giggle), none that I know about!”--Bette Midler
13 Four Ages of Estate Planning? 30s-40s are making their first wills50s-60s changing family situations65-75 age group seek income security, money management75+ reviewing plans for final dispositions
14 It’s a Matter of ASKING… “Will you include our organization in your will?”
15 NCPG Survey of Donors 2000Where did donors first get the idea to make charitable gifts by will or trust?No. 1 answer: Publications received from the organization.
16 Wills Emphasis Mailings Six-brochure program mailed to target groups over 14-year time span$34 million in bequests53% came from donors who received mailings (419 matured bequests)Only 13% of bequest donors who received mailings sent back cards
17 The “Iceberg Effect” in Wills and Bequests Programs Many planned giving officers say only 25% of donors disclose bequest expectancies in advance. Anticipate that 75% of matured bequests will arrive unannounced.
18 Free Marketing: All Your Other Publications Newsletters to your members/alumni/ users of your servicesAnnual reportsJournals and magazinesProgram guidesAnything that goes out of your office
22 Media AdvertisingWe advertised our new Heritage Society in a weekly paper. We had only one response, but she informed us of a $5 million bequest. – Marty MatulaWe advertise our wills seminars in the local obituary pages! – Dale Burgeson
24 Arthritis Foundation Found Gold with Wills Coupon in “Modern Maturity”
25 Salvation Army TV Commercials 1,600 requests for wills booklet after running TV ads in Pittsburgh areaCommercials featured soap opera star discussing need for estate plans$25,000 cost
26 Telemarketing Success Story Telemarketing firm calls older supportersProspects asked if they have wills/estate plansWills booklet offeredWould you consider a bequest to (charity)?Would you like a visit?
27 Message to Donors You need a will Here’s how to get a will Review your will regularlyHere’s how to name us in your will (include your correct legal name and sample bequest language)Please tell us about your bequest
28 Why Review Estate Plans Now? Meltdown in stock market and housing prices may have “disinherited” some beneficiariesChanges in federal estate tax rules
29 Parent Makes Estate Plan in 2007 $100,000 stock portfolio to child #1$100,000 IRA to child #2$100,000 life insurance policy to child #3Who wins? Who loses?
30 Why Review Estate Plans Now? Meltdown in stock market and housing prices may shrink bequests to some heirs but not othersAnticipated 2009 changes in federal estate tax rules
31 Beneficiary Designations Are Easy – and There Are No Legal Fees Life insurance beneficiaryIRA and other retirement account beneficiary designationsPOD (“pay on death” accounts (C.D.s and most other financial accounts)TOD (“transfer on death”) designations on brokerage accounts
32 Life Insurance in Gift Planning Valuable asset for givingNo need to make or change a willChurch can receive just a portion of policy
33 Almost Any Financial Account Can Be “Payable on Death” to Church
35 “Deferred Bequests” Can Help Charity and Family Members Charitable gift annuity in donor’s willTestamentary charitable remainder trustTestamentary charitable lead trustBequest of remainder interest in farm/homeQTIP trust for married donors
36 Charitable Planning for Spouses Charitable remainder trusts avoid taxesQTIP trust can take place of CRT – more flexible arrangementQTIP can empty into CRT for children
47 Care & Feeding of Past Donors Heritage SocietiesInvitations to dinners and functionsTours of campus or facilitiesThank-you letters to families of deceasedTangible recognition
48 Care and Feeding . . .We send birthday cards to donors with the note: Is this the year to have your driver’s license renewed? They appreciate it! Also, we’ve switched from Christmas to Thanksgiving cards – Nancy PerazelliOne benefit of joining our Heritage Society: Members receive valet parking.
50 Professional Advisers Personal contactsDirect mail newslettersAdvisory councilsWebsite resources andAdviser seminars
51 Goals for Your Program Value of gifts or expectancies Number of gifts or expectanciesCash flow averageVisits to prospects/ seminars/other marketing/cultivation
52 If It’s Just You . . . Get a wills brochure Promote bequests every- where, including webStart wills societyChange stationerySend out survey cardTrain volunteers to helpMake your own bequestRemember the legend of Wilko Schoenbaum