100 Great Meadow Road | Suite 103 | Wethersfield, CT 06109 | 800.397.0872| 860.882.0074 www.plannedgivingstrategies.com
The
Planned Giving Toolbox
Communications Ideas to Spark Conversations
Strategies Focusing on Donor Concerns
Hypothetical Donor Situations
Planned Giving Options
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Sharing
Your goals for Planned Giving
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How to explain Planned Giving to your donors
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What are your biggest concerns about implementing Planned Giving?
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What has worked or not worked in the past?
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Takeaway: Revisit your organization’s core values, mission and vision – for yourself. Then
communicate them to your donors stressing how these values are even more valuable in an
economic downturn.
Takeaway: get in front of as many donors as you can. Use donor events to tell your story.
Takeaway: Interview your top donors and ask for lessons learned . . . then compile the lessons
and send them to your donors.
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5 Planned Giving Myths
• Difficult
• Need to be an expert
• All gifts are deferred
• Focus on organizational needs
• Planned giving is not fundraising
Source: Donor-Centered Planned Gift Marketing by Michael J. Rosen, CFRE
3 Stages of Planned Giving
1. Bequest and Beneficiary Designation
2. Life Income Gifts
3. Charitable Gift and Estate Planning Phase
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To download The 5 Principles for
Planned Giving Success please visit
www.plannedgivingstrategies.com
4
Tax Advantaged Gifts
Would you like to save twice on your taxes with one donation?
Remind donors to consider donating appreciated investments.
Many donors only think gift = cash or check.
Donated appreciated investments saves on income taxes and capital gains taxes.
Make sure the investment was owned for more than a year! Otherwise the donor
will only be able to deduct the cost basis of the investment.
Example stock gift:
Stock purchased May 5, 2009 $10,000
Stock value on March 30, 2011 $20,000
Donor charitable deduction = $20,000
Additional tax savings of $1,500 on potential capital gains tax ($20,000 - $10,000 x 15%)
Based on 2012 capital gains tax rate for donor in the 25% federal income tax bracket.
IRS IRA Gift Matching Program
Name a non-profit organization as beneficiary on a retirement account and the
non-profit receives 100% of the funds. In essence, the IRS and the State contribute
a match for every dollar donated 20% to 50%.
This is an option for planned gifts of any size!
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A Simple Solution: Donor Advised Fund • Eliminates the need to collect multiple gifting letters.
• Donors can make a single donation to the Donor Advised Fund.
• Donors can make larger donations in higher income years.
• Funds can be carried over to future year donations.
• Establishes a charitable fund that can be passed on to future generations.
• Can be invested in a variety of investments to grow without taxation.
John & Jane
• Very Charitable
• Annually made
donations to 15
organizations
• Frustrated by
having to gather
and collect gift
letters
• Asked if there is
a way they
could simplify
their giving
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A couple that wants to provide a gift to
charity but is concerned about leaving an
inheritance to their children. Here is the
typical charitable lead annuity trust…
Charitable Lead Annuity Trust (CLAT)
Donor receives charitable deduction and makes a taxable gift.
Non-profit organization receives an annual income.
At the end of Trust, beneficiaries receive the remaining trust assets.
Jerry & Martha
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We can create a more significant impact and legacy to the family and
non-profit by enhancing the trust.
Enhanced Charitable Trust (ECLAT)
By adding life insurance inside of the charitable trust Jerry & Martha
leverage their donation to create a larger benefit to the non-profit(s)
and their family.
Donor receives charitable deduction and makes a taxable gift.
Trust purchases income-producing investment and life insurance.
Non-profit receives an annual income.
Upon a donor’s death, trust makes final payment to non-profit and beneficiaries receive
remaining Trust assets.
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Charitable Remainder Trust
Ken is 68 years old. He wants to
create a legacy to pass on a
significant amount to his favorite
non-profit and reduce his taxable
estate while planning to create a
retirement income for himself.
Ken Funds a Charitable Remainder Trust with $1 million.
He receives an income tax deduction, reduces his taxable estate, and potentially receives income
for life.
Upon Ken’s death the Trust assets are paid out to non-profit(s).
Two problems: Depending on the performance of the investments, the income may not last and
in a typical Charitable Remainder Trust, the non-profit unfortunately never knows how much it
will receive.
Charitable Use of a Commercial Annuity
These concerns can be addressed by using a commercial annuity within the Charitable
Remainder Trust.
Solution: The Charitable Remainder Trust purchases a $1 million annuity with a living income
benefit and a premium guarantee death benefit. The living benefit provides a lifetime income to
Ken backed by the financial strength of the insurance company; the death benefit provides the
opportunity to make sure the non-profit(s) receive at least what the donor contributes.
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Wealth Replacement with Annuity
If Ken is concerned about leaving a legacy to his family, we can add in a wealth replacement
component to this planning to replace the million dollars that he donated to the Charitable
Remainder Trust by using some of the income generated by the Charitable Remainder Trust to
purchase life insurance. This can be protected from estate taxes by using an insurance trust to
own the policy.
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Tax Free Wealth Replacement
Arthur & Michele are both 72 years old.
Arthur has a $1 million IRA. After reaching age 70½ he has
started to take his required minimum distributions, but they
do not need the funds for income.
They are concerned about how they can leave a legacy to their family and the non-profits that
they care about. With an IRA of this size, income taxes are going to be a concern and need to be
addressed.
We can address all of their concerns through a Tax Free Wealth Replacement Plan.
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Ideas to Spark More Planned Giving Conversations
Create a Gift Planning Council
Small Group of Professional Advisors –
Include Financial Advisors, Attorneys, Accountants and Insurance Agents. They can review your
planned giving materials and provide feedback and answers or assist with gift planning
questions. It’s important to determine what the members would like to gain from the Council.
Your Council can help the advisors build a network of charitable planning professionals to assist
their businesses.
Create a Professional Advisors Network
Broad group of professional relationships
Provide information about your mission and on gift planning
Make two-way referrals
Remember, professionals are potential supporters themselves.
Concentrate on Topics that are Donor Focused such as: • Maximizing Your Children’s Inheritance
• Increasing your Retirement Income
• Crafting Your Legacy
• Creating a Family Vision and Plan
Educate Donors Make planned giving information widely available
Avoid using the term “Planned Giving”
• E-brochures
• Newsletters
• Envelope Stuffers
• Educational Seminars
• Message on Hold
• Radio Spot
• Website
100 Great Meadow Road | Suite 103 | Wethersfield, CT 06109 | 800.397.0872| 860.882.0074
www.plannedgivingstrategies.com
Create a Marketing Plan of all Scheduled Communication to Donors • Are you communicating a planned giving message throughout your plan?
• Keep the message consistent; you can use the same example or story in various types of
communications.
• By incorporating planned giving in your communications, you can gradually build a
budget for planned giving over time.
Use Postcard Mailings Highlight your mission, impact and outcomes
• Drive traffic to your website, phone number or have a response card
• Focus on Donor Needs throughout the year
Jan 15 – Retirement Plan Designations
Mar 1 – Increasing Retirement Income
May 1 – Estate Intentions
Sep 1 – Increasing Retirement Income
Nov 1 – Unlocking Value in Your Assets
• Send an e-mail follow-up
• Track each mailing for results
• Segment List for focused mailings Source: Brian M. Sagrestano, JD, CFRE, giftplanningdevelopment.com
Use an E-mail Signature Tagline that promotes legacy giving and use a Tagline in general to convey your organization’s or program’s impact or value-
Must be authentic, memorable and avoid using jargon and acronyms
Must be specific to your organization
Must be eight words or less
Must be highly visible throughout all communication
Must make an emotional connection
Must capture the spirit or promise of your organization
Must clearly complement and/or clarify your organization’s name without duplicating it.
Must take the tone that will connect with your audience Source: www.gettingattention.org
Examples:
“Giving to the Future” – PGS
“A Mason for Life; a Gift for Eternity” - California Masons
“Be Remembered for Your Passion” - Houston Grand Opera
“Your Lake. Love it or Smell it” - Tippecanoe Watershed Foundation
100 Great Meadow Road | Suite 103 | Wethersfield, CT 06109 | 800.397.0872| 860.882.0074
www.plannedgivingstrategies.com
Summary . . . Focus on the donor’s needs
You can help donors reduce taxes, simplify their giving and guarantee their gifts and
inheritances
You do not need to know all of the details
Develop relationships with advisors who can assist you
Consistently strive to start conversations
Planned Giving Action Steps
The NonProfit Times Survey of Planned Giving Vehicles showed the following:
1. Donors with a planned gift give a greater percentage of their income currently.
2. Donors who give currently are twice as likely to have a planned gift.
3. Since 3 out of 5 donors do not have a planned gift, the opportunity is huge.
4. A donor with one planned gift is likely to complete another planned gift.
5. Almost 6 out of 10 donors who consulted a professional completed a planned gift.
Ideal Year
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Actions to Take by Year End
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Actions to Take in the Next 90 Days
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100 Great Meadow Road | Suite 103 | Wethersfield, CT 06109 | 800.397.0872| 860.882.0074
www.plannedgivingstrategies.com
100 Great Meadow Road | Suite 103 | Wethersfield, CT 06109 | 800.397.0872| 860.882.0074
www.plannedgivingstrategies.com
100 Great Meadow Road | Suite 103 | Wethersfield, CT 06109 | 800.397.0872| 860.882.0074
www.plannedgivingstrategies.com
100 Great Meadow Road | Suite 103 | Wethersfield, CT 06109 | 800.397.0872| 860.882.0074
www.plannedgivingstrategies.com
Notes
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100 Great Meadow Road | Suite 103 | Wethersfield, CT 06109 | 800.397.0872| 860.882.0074
www.plannedgivingstrategies.com
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100 Great Meadow Road | Suite 103 | Wethersfield, CT 06109 | 800.397.0872| 860.882.0074
www.plannedgivingstrategies.com
Who We Are
Since 1995, we have used our skills to listen to non-profits and their donors and take what we’ve heard to
build and perfect a proactive planned giving system that is the bridge between organizations and their
donors.
Through The Donor Motivation Program™
and an international network of trained professionals, we have
helped North American charities, large and small, “motivate planned giving!” More than 15,000 donors
have engaged in our educational Donor Presentation Experience and rated it either “one of the finest” or
“absolutely the best” of its type. Why? Because it “speaks donor!”
At PGS, our mission is to secure the continuity of non-profit organizations through the creation and
development of successful planned giving programs that add financial stability for future generations.
We work in a close, consultative role with your organization to help implement proven planned
giving strategies, provide necessary training and the support required for continued success.
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