Download Where did donors first get the idea to make

Stewardship Kaleidoscope
Presented by
Marc Carmichael
R&R Newkirk Company
Why Launch a Wills Program?
 Majority of planned gifts come from wills
 Simple gifts to understand and promote
 Any church can do it
 Donors more likely to consider major gifts through
their estate plans than during life
 Starting point for a planned giving program
 In the immortal words of Willie Sutton: That’s where
the money is!
The Bequest Prospect
 Is generally a member or
past member of the
congregation
 Has sufficient wealth to
make a bequest
 Is retired or nearing
retirement age – but
younger donors should
be encouraged
What Does a Bequest Prospect
Look Like?
Four Ages of Estate Planning?
 30s-40s are making
their first wills
 50s-60s changing
family situations
 65-75 age group seek
income security,
money management
 75+ reviewing plans
for final dispositions
“Will you include our
Church in your will?”
Where did donors first get the idea to make
charitable gifts by will or trust?
No. 1 answer: Publications received from the
organization.
Wills Emphasis Mailings
Bequest Messages in Various
Church Publications
Obtain a Basic Wills Brochure
Message to Members
 You need a will
 Here’s how to get a will
 Review your will regularly
 Here’s how to name our church in your
will (include your correct legal name
and sample bequest language)
 Please tell us about your bequest
Your Bequest Can Perpetuate Your Annual
Contributions
If Your
$ 500
You Can
$ 12,500
Annual
$1,000
Perpetuate
$ 25,000
Gifts
$1,500
Them with a $ 37,500
Total:
$2,000
Bequest of
$ 50,000
$5,000
at Least:
$125,000
Websites
 Planned giving web
page should tell the
world you are glad to
receive bequests
 Provide your church’s
correct legal name
Estate Planning Seminars
 75% estate planning,
25% gift planning
 Lots of breaks
 Rotating roundtable
discussions
 Individual
Counseling
 Famous estates
Lexington House (859) 277-6135
Train Volunteers to Help You
Ask for Bequests
Bequest Administration
 List matured bequests in a Wills Journal
 Request copy of decedent’s will
 Establish procedures for tracking status of probate
proceedings and anticipated distribution of funds
 Consider bequest tracking software
Registry of Bequest Expectancies
 Name of donor
 Address of donor
 Size of bequest (or
estimate)
 Source of information
about bequest
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.
Goals for Your Program
 Value of gifts or
expectancies
 Number of gifts or
expectancies
 Cash flow average
 Visits to prospects/
seminars/other
marketing/cultivation
Tips from Kim Warner
 Wills poster
 One or two seminars a
 Simple brochure
year
 Bulletin inserts on wills
and bequests
 Mailing reporting on
results of planned gifts
and their impact
 Publicize planned gifts
 Include reports on
endowment in mailings
 Minute for mission
Presbyterian Endowment Education and
Resource Network: www.peernetwork.org
22
Do all this, and . . .
Planning Estate Gifts
 Outright bequests
 Bequests reserving life income to family member
(trust, gift annuity, pooled fund)
 Contingent bequests/disclaimers
 Will “substitutes” – life insurance, living trusts, IRAs,
beneficiary designations on financial and brokerage
accounts
 All are deductible for estate tax purposes
Relieve Charitable Bequests of
“Death Taxes” and Other Costs
Death Is a Tax Shelter…for Capital
Gains Taxes Only
Leave Church “Tax-Burdened
Assets”
 U.S. Savings Bonds
 IRAs and deferred
compensation
 Accounts receivable
 Installment payments
on land sale contracts
 Unpaid commissions
Retirement Accounts:
A $12 Trillion Gift Resource
Taxes on Retirement Accounts
 Federal Estate Tax and State Death
Taxes (some states)
 Federal Income Tax (IRD)
 State Income Tax
Bequests Beat Bonfires
Bequeath
ordinary income
and tangible
personal
property to
church
Ted DeGrazia, artist
Collectibles Make Good Bequests
Outright Bequest Options
 Specific $$ amount
 Specific assets
 Type of asset
 Percentage of net value of
estate
 Residue of estate
 Percentage of residue
Who Was John Beresford Tipton?
Residuary bequests
can be uncertain
Disclaimers Provide Flexibility
 Heirs can have right to
“disclaim” (turn down) all
or part of a bequest and
gift will pass to named
charity
 Possible income tax and
“death tax” savings
Contingent Charitable Bequests
 Church benefits if
original named
beneficiary has already
died
 Possible tax savings to
donor’s estate
“Ultimate Contingent Beneficiary”
“I outlived three
husbands and
everybody else in
my family”
Gifts through Will/Estate Plan
 Outright bequests
 Contingent bequests/disclaimers
 Bequests reserving life income to family member
(trust, gift annuity, pooled fund)
 Will “substitutes” – life insurance, living trusts,
IRAs, beneficiary designations on financial and
brokerage accounts (POD and TOD accounts)
“Deferred Bequests” Are Shared
Between Charity and Family
 Charitable gift annuity
 Charitable remainder annuity trust
 Charitable remainder unitrust
 Charitable lead trust
 Pooled income fund
 Gift of home/farm with lifetime use retained
Charitable Remainder Trusts
Charities
Donor, others
Gifts through Will/Estate Plan
 Outright bequests
 Bequests reserving life income to family member
(trust, gift annuity, pooled fund)
 Contingent bequests/disclaimers
 Will “substitutes” – life insurance, living trusts,
IRAs, beneficiary designations on financial and
brokerage accounts (POD and TOD accounts)
Life Insurance in Gift Planning
 Valuable asset
for giving
 No need to make
or change a will
 Church can
receive just a
portion of policy
Almost Any Financial Account Can
Be “Payable on Death” to Church
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Should a Church Write Wills?
46
For Copies of Slides, E-Mail:
[email protected]