New Innovations In
Fund Development
and Fundraising
Presented by Gail M. Sudore, C.F.R.E.
Association of Fundraising Profe...
Court Judgement Awards
Program
An Innovative Resource/Fund
Development Methodology
WHEN A FINE OR ASSESSMENT IS MADE IN THE
DISPOSITION OF
A COURT CASE
A JUDGE MAKES AN INDIVIDUAL DETERMINATION
AS TO WHERE...
THE COURT JUDGEMENT AWARDS PROGRAM IS
A PRE-DETERMINED
ALLOCATION ARRANGEMENT,
WHEREBY
• A JUDGE ON AN INDIVIDUAL BASIS
OR...
TRANSFER FEE
CHARITABLE GIFT PROGRAM ©®
An Extraordinarily Innovative Resource/
Fund Development Methodology that has the
...
The Transfer Fee Charitable Giving Program
began as a way to raise large amounts of money
in a relatively short period of ...
$600.6 Billion in Charitable Contributions
were given in the USA in 2008 from
foundations, corporations and individuals
Th...
Example:
There are 26,411,239 acres of land in
the State of Ohio
The taxable value of Ohio’s real property is
$173,718,291...
The Transfer Fee Program is a process
of raising money based on the sale- or transferof a valuable asset

(such as a house...
• Voluntary contractual agreement between the donor
and the charitable organization (no statutory/regulatory
approval is r...
-Donor decides the percentage (transfer fee)
contributed to the charity
During calendar year 2009
During calendar year 201...
• The terms of the agreement are incorporated into the
covenants, conditions and restrictions of the deed and
recorded in ...
Tax Benefits/Considerations
Income Tax Deduction/Credit
• Accelerated Income Tax benefits from Gifts
on Basis (I.R.S. 50% ...
A TRANSFER FEE PROGRAM
ENABLES THE DONOR TO
MAKE A MUCH LARGER
GIFT OR GIVE MORE
OFTEN THAN THEY MAY
OTHERWISE BE ABLE
To Implement the Program:
• Negotiation Skills
• Knowledge of the Federal Tax Code/IRS
requirements, applicability and ben...
As with any planned giving program,
the donor should be encouraged to seek advice
from their own legal and financial advis...
Testimonials from Transfer Fee Program Participants
“I established a covenant on the single family lots I owned to permane...
The Transfer Fee Charitable Gift Program is a
copyrighted and patented program developed by
Gail M. Sudore, C.F.R.E.
Copyr...
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Transfer Fee Charitable Giving Program And Fund Raising/Fund Development Methodology

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Transfer Fee Charitable Giving Program And Fund Raising/Fund Development Methodology

  1. 1. New Innovations In Fund Development and Fundraising Presented by Gail M. Sudore, C.F.R.E. Association of Fundraising Professionals International Conference San Diego, California March 30-April 2, 2008
  2. 2. Court Judgement Awards Program An Innovative Resource/Fund Development Methodology
  3. 3. WHEN A FINE OR ASSESSMENT IS MADE IN THE DISPOSITION OF A COURT CASE A JUDGE MAKES AN INDIVIDUAL DETERMINATION AS TO WHERE THE FINE/ASSESSMENT IS ALLOCATED; OFTEN JUDGEMENT AWARDS ARE ALLOCATED TO A NONPROFIT ORGANIZATION(S) (USUALLY THE MOST VISABLE AND WELL KNOWN) THE “GARBAGE BARGE” & THE AMERICAN RED CROSS
  4. 4. THE COURT JUDGEMENT AWARDS PROGRAM IS A PRE-DETERMINED ALLOCATION ARRANGEMENT, WHEREBY • A JUDGE ON AN INDIVIDUAL BASIS OR • ALL JUDGES ON A CIRCUIT COURT WIDE BASIS ALLOCATE THE FINE/ASSESSMENT(S) TO A NONPROFIT ORGANIZATION(S) WHOSE MISSION IS RELEVANT TO THE TYPE OF CASE
  5. 5. TRANSFER FEE CHARITABLE GIFT PROGRAM ©® An Extraordinarily Innovative Resource/ Fund Development Methodology that has the Potential to Revolutionize Fundraising and Planned Giving
  6. 6. The Transfer Fee Charitable Giving Program began as a way to raise large amounts of money in a relatively short period of time; the program was first implemented in South Carolina to build an environmental education center and then in Wyoming, Pennsylvania and Florida to fund land acquisitions for conservation purposes
  7. 7. $600.6 Billion in Charitable Contributions were given in the USA in 2008 from foundations, corporations and individuals The largest gifts made by individuals came from individuals with annual incomes over $250,000; 776,250 households/1.7% of USA’s population $40,956 median household income in USA; 80.2% of households in USA have income of less than $50,000 *Source: Grantmakers Forum ‘State of Philanthropy 2008” Report and 2000 U.S. Census
  8. 8. Example: There are 26,411,239 acres of land in the State of Ohio The taxable value of Ohio’s real property is $173,718,291,865 billion Over the next two to twenty years millions and millions of acres in Ohio are going to change hands *Source U.S. Soil Conservation Service
  9. 9. The Transfer Fee Program is a process of raising money based on the sale- or transferof a valuable asset (such as a house/condo, lot/parcel of land, boat/yacht, vehicle, securities, art, jewelry, antiques/collectables, etc.) Unlike the traditional fundraising scenarios where the donor contributes the asset at its fair market value to charity and simply gets a tax benefit, in a transfer fee arrangement The donor reaps the benefit from the proceeds of the sale of the asset AND the tax benefits from a charitable contribution
  10. 10. • Voluntary contractual agreement between the donor and the charitable organization (no statutory/regulatory approval is required) • Terms of the agreement are negotiated based on the interests, desired goals, value of asset, and the tax considerations of the donor -Length of the agreement (one time or for a period of years) -Recorded Instrument (covenant on deed/title) -Charitable gift to come from seller’s proceeds or buyers price/cost (the donor decides)
  11. 11. -Donor decides the percentage (transfer fee) contributed to the charity During calendar year 2009 During calendar year 2010 During calendar year 2011 During Calendar year 2012 During Calendar year 2013 On or after January 1, 2014 1/7 of 1% 2/7 of 1% 3/7 of 1% 4/7 of 1% 6/7 of 1% 1% Transfer Fee donations can be made by individuals, home owners associations, corporations/business owners, developers, etc.
  12. 12. • The terms of the agreement are incorporated into the covenants, conditions and restrictions of the deed and recorded in the County Clerk’s office • The transfer fee is collected at the closing of the sale by the title company (or other legally recognized transaction agent) from the seller (or the buyer) of the asset and paid to the charitable organization • The fee is based on a percentage of the sale price on a one-time basis or over a period of time specified; the fee can be at a fixed rate or an incremental rate for the term of the agreement
  13. 13. Tax Benefits/Considerations Income Tax Deduction/Credit • Accelerated Income Tax benefits from Gifts on Basis (I.R.S. 50% rule) • Income Tax Deduction for Partial Gift (Bargain Sale) • Reduction of Tax Obligation or Deferred Tax Treatment (Capital Gains or Ordinary Income) • Estate Tax Benefits • Phasing of Charitable Gifts • Carry over tax benefit (similar to a gift of a conservation easement) 5 years; I.R.S. 30% rule)
  14. 14. A TRANSFER FEE PROGRAM ENABLES THE DONOR TO MAKE A MUCH LARGER GIFT OR GIVE MORE OFTEN THAN THEY MAY OTHERWISE BE ABLE
  15. 15. To Implement the Program: • Negotiation Skills • Knowledge of the Federal Tax Code/IRS requirements, applicability and benefits • An understanding of the donor’s interests and goals/desired outcomes for the proceeds from the sale of their asset • Knowledge of cause-related marketing motivations and benefits • Legal counsel
  16. 16. As with any planned giving program, the donor should be encouraged to seek advice from their own legal and financial advisors and the transfer fee agreement should be negotiated via and/or reviewed by both parties legal counsel, as it is a legal contract
  17. 17. Testimonials from Transfer Fee Program Participants “I established a covenant on the single family lots I owned to permanently endow the Land Trust. This method (of charitable giving) should be a model for other landowners.” -Stanley Resor, Owner of Snake River Ranch “The private transfer fee which was implemented by the homeowners association has had no impact on the sale of these lots and homes. None of the buyers ‘batted an eye’ when the transfer fee was mentioned.” -Mercedes Huff, Owner/Associate Broker Jackson Hole Realty “Whenever my firm closes on the sale of a property, it is our responsibility to debit the seller at closing for the contribution to the Land Trust Network. This is practically effortless on our part.” -Joaquin Hanson, President Jackson Hole Title and Escrow
  18. 18. The Transfer Fee Charitable Gift Program is a copyrighted and patented program developed by Gail M. Sudore, C.F.R.E. Copyrighted and patented 2001 All rights reserved For further information on the program and/or to obtain permission to use the program and a licensing fee schedule/agreement, Contact Ms. Sudore at c/o 61 Liberty Street, Dansville NY 14437; Tel: 607-483-5383; E-Mail: SudoreG@gmail.com

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