Demystifying  Planned Giving Rabbinical Assembly Delivered by Tony Martignetti, Esq. Martignetti Planned Giving Advisors, ...
Where We’re Headed <ul><li>•  What is Planned Giving </li></ul><ul><li>•  How is Planned Giving done </li></ul><ul><li>•  ...
What is Planned Giving <ul><li>A method of charitable giving that involves the donor’s consideration of their retirement p...
How is Planned Giving Done <ul><ul><li>•  Revocable gifts (your donor can take it back) </li></ul></ul><ul><ul><li>-- very...
Charitable Bequests <ul><li>•  Revocable </li></ul><ul><li>•  Any property or cash </li></ul><ul><li>•  By far most popula...
Living Trusts <ul><li>•  Sans deduction </li></ul><ul><li>•  Hushed donor who won’t tell you </li></ul><ul><li>•  Uh, it’s...
Beneficiary Designations <ul><li>•  Life Insurance </li></ul><ul><li>•  Retirement plans </li></ul><ul><li>IRA, 401(k), 40...
Where We Are <ul><li>√  What is Planned Giving </li></ul><ul><li>√  How is Planned Giving done </li></ul><ul><li>√  Revoca...
Irrevocable Gifts That Pay Life Income Donor donor’s death Shul lifetime income cash, stock, real estate (?)  planned gift
The Life Income Gifts (a/k/a love those acronyms) <ul><ul><li>•  Charitable Remainder Trust (CRT) </li></ul></ul><ul><ul><...
Charitable Remainder Annuity Trust <ul><ul><li>•  Fixed income for life to donor or any “income beneficiaries” </li></ul><...
Charitable Remainder Unitrust <ul><ul><li>•  Variable income for life to donor or any “income beneficiaries” </li></ul></u...
Charitable Gift Annuity <ul><ul><li>•  Fixed income for life to donor and another, or any 2 “annuitants” </li></ul></ul><u...
Where We Are <ul><li>√  What is Planned Giving </li></ul><ul><li>√  How is Planned Giving done </li></ul><ul><li>√  Revoca...
Irrevocable Gifts That Don’t Pay Life Income <ul><ul><li>•  Charitable Lead Trust (CLT) </li></ul></ul><ul><ul><li>•  Char...
Charitable Lead Trust Heirs income for period of years or life Shul close of trust cash, stock, real estate from Donor Lea...
Charitable Lead Trusts Fixed or Variable Income To Shul <ul><li>Charitable Lead Annuity Trust (CLAT) </li></ul><ul><li>•  ...
Charitable IRA Rollover <ul><li>•  This year only  </li></ul><ul><li>•  Donors over 70 1/2 </li></ul><ul><li>•  Up to $100...
Where We Are <ul><li>√  What is Planned Giving </li></ul><ul><li>√  How is Planned Giving done </li></ul><ul><li>√  Revoca...
Who Are The Best Prospects- Where To Look <ul><li>•  Board for leadership gifts </li></ul><ul><li>•  Annual giving </li></...
Who Are The Best Prospects- Bequests <ul><li>•  Age 55 and over  </li></ul><ul><li>•   Giving consistency is key </li></ul...
Who Are The Best Prospects- Living Trusts <ul><li>•  Anybody who has one </li></ul><ul><li>•  Look closely at checks you r...
Who Are The Best Prospects- Beneficiary Designations <ul><li>•  Any age, these assets are common </li></ul><ul><li>•  Any ...
Who Are The Best Prospects- Charitable Remainder Trusts <ul><li>•  Age 55 and over </li></ul><ul><li>•  Major donor </li><...
Who Are The Best Prospects- Charitable Gift Annuities <ul><li>•  Age 65 and over </li></ul><ul><li>•  Any giving level </l...
Who Are The Best Prospects- Charitable Lead Trusts <ul><li>•  Age 50 and over </li></ul><ul><li>•  Children or grandchildr...
Who Are The Best Prospects- Charitable IRA Rollover <ul><li>•  Over 70 </li></ul><ul><li>•  Overfunded IRA </li></ul><ul><...
Where We Are <ul><li>√  What is Planned Giving </li></ul><ul><li>√  How is Planned Giving done </li></ul><ul><li>√  Revoca...
Continuing Ed. <ul><li>•  Me: </li></ul><ul><li>•  Tony Martignetti Nonprofit Radio,   The Martignetti Report , blog, Link...
Next Thursday, Part Deux <ul><li>•  Two advanced gifts: real estate & life insurance ownership </li></ul><ul><li>•  Market...
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Demystifying Planned Giving, Part I. Presented to the Rabbinical Assembly.

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My presentation on Demystifying Planned Giving given on January 27, 2011 to the Rabbinical Assembly.

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Demystifying Planned Giving, Part I. Presented to the Rabbinical Assembly.

  1. 1. Demystifying Planned Giving Rabbinical Assembly Delivered by Tony Martignetti, Esq. Martignetti Planned Giving Advisors, LLC January 27, 2010
  2. 2. Where We’re Headed <ul><li>• What is Planned Giving </li></ul><ul><li>• How is Planned Giving done </li></ul><ul><li>• Who are the best prospects </li></ul><ul><li>• Continuing Ed. </li></ul>
  3. 3. What is Planned Giving <ul><li>A method of charitable giving that involves the donor’s consideration of their retirement plan and family estate plan, and </li></ul><ul><li>Usually (not always) accrues cash to a non-profit at the donor’s death </li></ul>
  4. 4. How is Planned Giving Done <ul><ul><li>• Revocable gifts (your donor can take it back) </li></ul></ul><ul><ul><li>-- very valuable to your program </li></ul></ul><ul><ul><li>Charitable bequests </li></ul></ul><ul><ul><li>Living trusts </li></ul></ul><ul><ul><li>Beneficiary designations </li></ul></ul>
  5. 5. Charitable Bequests <ul><li>• Revocable </li></ul><ul><li>• Any property or cash </li></ul><ul><li>• By far most popular </li></ul><ul><li>• But, unlikely you’ll be told </li></ul><ul><li>• It’s an easy gift to make </li></ul><ul><li>• Residual estates hold a lot of wealth </li></ul><ul><li>• A deduction for estate? </li></ul><ul><li>• Beautiful for modest income members </li></ul><ul><li>• Bye-bye lifetime cost </li></ul><ul><li>• It’s the place to start your Planned Giving program </li></ul>
  6. 6. Living Trusts <ul><li>• Sans deduction </li></ul><ul><li>• Hushed donor who won’t tell you </li></ul><ul><li>• Uh, it’s revocable </li></ul><ul><li>• Lawful way to avoid probate </li></ul><ul><li>• Shul gets the money fast </li></ul><ul><li>• Hard to do? No, easiest trust </li></ul><ul><li>• Understand, it’s cash or property </li></ul><ul><li>• Likely to see in start-up program </li></ul>
  7. 7. Beneficiary Designations <ul><li>• Life Insurance </li></ul><ul><li>• Retirement plans </li></ul><ul><li>IRA, 401(k), 403(b), Small Employer Pension (SEP), SIMPLE IRA </li></ul><ul><li>• Commercial annuities </li></ul><ul><li>• Bank and brokerage accounts </li></ul><ul><li>• Any asset with a beneficiary designation </li></ul><ul><li>• Another good place to start your Planned Giving </li></ul>
  8. 8. Where We Are <ul><li>√ What is Planned Giving </li></ul><ul><li>√ How is Planned Giving done </li></ul><ul><li>√ Revocable gifts </li></ul><ul><li> Irrevocable gifts </li></ul><ul><li>pay life income </li></ul>
  9. 9. Irrevocable Gifts That Pay Life Income Donor donor’s death Shul lifetime income cash, stock, real estate (?) planned gift
  10. 10. The Life Income Gifts (a/k/a love those acronyms) <ul><ul><li>• Charitable Remainder Trust (CRT) </li></ul></ul><ul><ul><li>Fixed income--Charitable Remainder Annuity Trust (CRAT) </li></ul></ul><ul><ul><li>Variable income--Charitable Remainder Unitrust (CRUT) </li></ul></ul><ul><ul><li>• Charitable Gift Annuity (CGA) </li></ul></ul>
  11. 11. Charitable Remainder Annuity Trust <ul><ul><li>• Fixed income for life to donor or any “income beneficiaries” </li></ul></ul><ul><ul><li>--husband and wife is typical </li></ul></ul><ul><ul><li>• Based on a fixed percentage of trust assets valued once, at the beginning </li></ul></ul><ul><ul><li>-- must pay at least 5% </li></ul></ul><ul><ul><li>• Charitable income tax deduction </li></ul></ul><ul><ul><li>• No additional contributions to trust </li></ul></ul><ul><ul><li>• At death of income beneficiaries, remainder is a gift to shul (& other nonprofits?) & trust closes </li></ul></ul><ul><ul><li>• Can also be for set number of years rather than lifetime </li></ul></ul>
  12. 12. Charitable Remainder Unitrust <ul><ul><li>• Variable income for life to donor or any “income beneficiaries” </li></ul></ul><ul><ul><li>--husband and wife is typical </li></ul></ul><ul><ul><li>• Based on a fixed percentage of trust assets revalued every year </li></ul></ul><ul><ul><li>-- must pay at least 5% </li></ul></ul><ul><ul><li>• Charitable income tax deduction </li></ul></ul><ul><ul><li>• Additional contributions allowed </li></ul></ul><ul><ul><li>• At death of income beneficiaries, remainder is a gift to shul (and other non-profits) & trust closes </li></ul></ul><ul><ul><li>• Can also be for set number of years rather than lifetime </li></ul></ul>
  13. 13. Charitable Gift Annuity <ul><ul><li>• Fixed income for life to donor and another, or any 2 “annuitants” </li></ul></ul><ul><ul><li>--husband and wife is typical </li></ul></ul><ul><ul><li>• Based on a fixed percentage of initial gift </li></ul></ul><ul><ul><li>• Charitable income tax deduction </li></ul></ul><ul><ul><li>• At death of annuitants, remainder is a gift to shul only </li></ul></ul><ul><ul><li>• Deferred Charitable Gift Annuity: income starts in future </li></ul></ul><ul><ul><li>• Substantial web of state regulation in CA, NJ, NY, others </li></ul></ul>
  14. 14. Where We Are <ul><li>√ What is Planned Giving </li></ul><ul><li>√ How is Planned Giving done </li></ul><ul><li>√ Revocable gifts </li></ul><ul><li> Irrevocable gifts </li></ul><ul><li>√ pay life income </li></ul><ul><li>don’t pay life income </li></ul>
  15. 15. Irrevocable Gifts That Don’t Pay Life Income <ul><ul><li>• Charitable Lead Trust (CLT) </li></ul></ul><ul><ul><li>• Charitable IRA rollover </li></ul></ul>
  16. 16. Charitable Lead Trust Heirs income for period of years or life Shul close of trust cash, stock, real estate from Donor Lead Trust
  17. 17. Charitable Lead Trusts Fixed or Variable Income To Shul <ul><li>Charitable Lead Annuity Trust (CLAT) </li></ul><ul><li>• Donor cannot add to it </li></ul><ul><li>• Fixed rate (percentage) for income to shul </li></ul><ul><li>• Fixed dollar amount of income each year </li></ul><ul><li>Charitable Lead Unitrust (CLUT) </li></ul><ul><li>• Donor can add freely </li></ul><ul><li>• Fixed rate (percentage) for income to shul </li></ul><ul><li>• Variable dollar amount of income each year due to annual revaluation </li></ul>
  18. 18. Charitable IRA Rollover <ul><li>• This year only </li></ul><ul><li>• Donors over 70 1/2 </li></ul><ul><li>• Up to $100,000/person, multiple charities </li></ul><ul><ul><li>--Double for couples </li></ul></ul><ul><li>• Really, it’s a “qualified charitable distribution” </li></ul><ul><li>• Refer donor to IRA custodian for form </li></ul>
  19. 19. Where We Are <ul><li>√ What is Planned Giving </li></ul><ul><li>√ How is Planned Giving done </li></ul><ul><li>√ Revocable gifts </li></ul><ul><li>√ Irrevocable gifts </li></ul><ul><li>√ pay life income </li></ul><ul><li>√ don’t pay life income </li></ul><ul><li>• Who are the best prospects </li></ul>
  20. 20. Who Are The Best Prospects- Where To Look <ul><li>• Board for leadership gifts </li></ul><ul><li>• Annual giving </li></ul><ul><li>• Other giving </li></ul><ul><li>• Exclude events </li></ul>
  21. 21. Who Are The Best Prospects- Bequests <ul><li>• Age 55 and over </li></ul><ul><li>• Giving consistency is key </li></ul><ul><li>• Ignore gift size </li></ul><ul><li>• Any wealth level </li></ul><ul><li>• Any asset portfolio </li></ul>
  22. 22. Who Are The Best Prospects- Living Trusts <ul><li>• Anybody who has one </li></ul><ul><li>• Look closely at checks you receive </li></ul><ul><li>-- “Trustee,” “Revocable Trust,” etc. </li></ul><ul><li>• Listen closely to your donors </li></ul><ul><li>• Generally not created for charitable purpose or at suggestion of a charity </li></ul>
  23. 23. Who Are The Best Prospects- Beneficiary Designations <ul><li>• Any age, these assets are common </li></ul><ul><li>• Any wealth level </li></ul><ul><li>• Any asset mix </li></ul>
  24. 24. Who Are The Best Prospects- Charitable Remainder Trusts <ul><li>• Age 55 and over </li></ul><ul><li>• Major donor </li></ul><ul><li>• Concerned about income </li></ul><ul><li>• Upper-middle or high wealth level </li></ul><ul><li>• Appreciated assets in portfolio especially good; cash works </li></ul>
  25. 25. Who Are The Best Prospects- Charitable Gift Annuities <ul><li>• Age 65 and over </li></ul><ul><li>• Any giving level </li></ul><ul><li>• Concerned about income </li></ul><ul><li>• Middle or high wealth level </li></ul><ul><li>• Appreciated assets in portfolio especially good; cash works </li></ul><ul><li>• Remember, need approval for these in many states </li></ul>
  26. 26. Who Are The Best Prospects- Charitable Lead Trusts <ul><li>• Age 50 and over </li></ul><ul><li>• Children or grandchildren </li></ul><ul><li>• Concerned about transferring assets </li></ul><ul><li>• Can sacrifice current & future income </li></ul><ul><li>• Major donor </li></ul><ul><li>• Upper wealth level </li></ul><ul><li>• Appreciated assets in portfolio especially good; cash works </li></ul>
  27. 27. Who Are The Best Prospects- Charitable IRA Rollover <ul><li>• Over 70 </li></ul><ul><li>• Overfunded IRA </li></ul><ul><li>• Multi-year pledge & willing to accelerate payments </li></ul><ul><li>• Annual donor </li></ul><ul><li>• Any wealth level </li></ul><ul><li>• Has IRA(s) </li></ul><ul><li>--Traditional or Roth; traditional more likely to work </li></ul>
  28. 28. Where We Are <ul><li>√ What is Planned Giving </li></ul><ul><li>√ How is Planned Giving done </li></ul><ul><li>√ Revocable gifts </li></ul><ul><li>√ Irrevocable gifts </li></ul><ul><li>√ pay life income </li></ul><ul><li>√ don’t pay life income </li></ul><ul><li>√ Who are the best prospects </li></ul><ul><li>• Continuing Ed. </li></ul>
  29. 29. Continuing Ed. <ul><li>• Me: </li></ul><ul><li>• Tony Martignetti Nonprofit Radio, The Martignetti Report , blog, LinkedIn, Twitter, Facebook </li></ul><ul><li>-http://www.mpgadv.com or scan: </li></ul><ul><li>-slides are there now: “RA I” post </li></ul><ul><li>• American Council on Gift Annuities (acga-web.org) </li></ul><ul><li>• Book: Planned Giving Simplified , Robert Sharpe, Sr., pub by Wiley </li></ul>
  30. 30. Next Thursday, Part Deux <ul><li>• Two advanced gifts: real estate & life insurance ownership </li></ul><ul><li>• Marketing & promotion to start your PG program </li></ul><ul><li>• How to talk about this with your board </li></ul><ul><li>• How to talk about this with your congregants </li></ul><ul><li>• Working with donors’ professional advisors </li></ul><ul><li>• Stewardship & recognition </li></ul><ul><li>-what to do after you get a gift </li></ul><ul><li>• February 3, 12:30 to 1:45 </li></ul><ul><li>• Sign up? </li></ul>

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