Iowa Council of Foundations

© 2020 Heaton Smith Group

Gift Planning in Community FoundationsThe Gift Planning Conversation

Iowa Council of Foundations

Carol Golden Sheryl AikmanSenior Consultant Senior Consultant


Introductionsand

Training Overview


What is a planned gift?

A gift the donor needs help to accomplish

Usually from assets, not income

Often structured to take advantage of charitable tax deductions

May integrate family, financial and charitable goals


Assets and tools for planned gifts

● Gifts from assets○ Stocks and bonds○ Real estate○ Business interests

● Bequests

● Beneficiary designations

● Gifts that provide income○ Charitable gift annuity○ Charitable remainder trust


Gift planning readiness

• Strategic plan with clear value proposition

• Board and staff believe in long-term relationships

• Strong sense of stewardship

• Financial stability

• Time and staff resources available


Gift planning in community foundations

• Endowment is natural fit with legacy planning

• Ability to accomodate gifts of all amounts

• “Naming opportunities” are built in to fund structures

• Succession planning is a natural opportunity for legacy ask


Who are your prospects?

● Board members and former board members

● Current fundholders

● Other donors who give regularly

● Professional advisor referrals

● Community leaders (“movers and shakers”)


Talking about death, money and taxes

Death Legacy

Money Good fortune

“What I’ve built”

“What I’ve worked hard to accumulate”

“What will be left after I take care of family”

Taxes Money that stays in my community

Money that I have a say in the use of

Ways to provide more to my children


Top motivations

1. Cause is personally important

2. Belief in organization’s impact

3. Ability to leave a larger gift than during life

4. Desire to give back

5. No spouse / significant other / children

6. Family members are financially comfortable

Only 10 percent of planned giving donors cite tax benefits as the motivating reason for making a planned gift.


• Establish comfort and connection.

• Understand what they need and want from the community foundation.

• Listen to their story.

• Name a next step for follow-up.

Your goals in the conversation


Discovering your donor

How did you learn about the community foundation?

You’ve lived in our community for a long time. What do you love most about it?

You mentioned that your attorney recommended you talk with the community foundation. What brought that up?

I noticed that you are a loyal supporter of the Arts Center. Tell me why it’s important to you.

How do you

use your

donor advised

fund for your

charitable

giving?

Please, tell me your story.


Cues and clues: Family and lifestyle

• Single

• No or few children

• Married, financially mature children

• Concern that children will inherit too much

• Concern that a spouse, child or loved one will need income

• Moved or planning to move

• Retired or planning to retire soon

Cues and clues: Income and assets


• Owns business

• Plans to sell business

• Retirement plan

• Owns collection(s)

• Recently received inheritance

• Personal residence(s)

• Appreciated real estate (commercial, farm, etc.)

• Appreciated stock

• Depreciated stock

• Govt/corporate bonds

• Savings bonds

• Commercial annuities

• Mutual funds

Breakout Groups



Reporting Back


Legacy Society

• Stewardship

• Recognition

• Retention


ConclusionCarol Golden Sheryl AikmanSenior Consultant Senior [email protected] [email protected]

Iowa Council of Foundations

Documents

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