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Women In Development, Mercer County

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Slides from my May 18, 2011 presentation on Planned Giving for Women in Development, Mercer County, New Jersey.

Slides from my May 18, 2011 presentation on Planned Giving for Women in Development, Mercer County, New Jersey.

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  • 1. Demystifying Planned Giving Women In Development Mercer County Delivered by Tony Martignetti, Esq. Martignetti Planned Giving Advisors, LLC May 18, 2011
  • 2. Our Objective
    • You ’ ll be comfortable enough with Planned Giving that you can open a conversation about a planned gift with one good prospect
  • 3. Where We ’ re Headed
    • • What is Planned Giving
    • • How is it done & promoted
    • • Continuing Ed.
  • 4. What is Planned Giving
    • A method of charitable giving that involves the donor ’ s consideration of their retirement plan and family estate plan, and
    • Usually (not always) means cash to a nonprofit at the donor ’ s death
  • 5. How is Planned Giving Done
      • • Revocable gifts (your donor can take it back)
      • -- very valuable to your program
      • -- Charitable bequests
      • -- Beneficiary designations
      • Your stewardship critical
  • 6. Charitable Bequests
    • • Wickedly simple
    • • It ’ s unlikely to be revealed
    • • Done most frequently
    • • My money, I ’ ll control it
    • • Extreme wealth not required
    • • Revocable
    • • Can be property or cash
    • • Estate deduction?
    • • Reassuring to donor, no lifetime cost
  • 7. Beneficiary Designations
    • • Life insurance
    • • Retirement plans
    • -- IRA, 401(k), 403(b), SEP, SIMPLE
    • • Bank & brokerage accounts
    • • Company pension plan
    • • Commercial annuities
    • • Any asset with a death beneficiary
  • 8. Promoting Revocable Gifts
    • • Publicize your legal name & tax ID number
    • • Direct mail for for bequests
    • • Short promo slips for beneficiary designations
    • • Face-to-face meetings
    • • Sidebars & articles in digital and print channels
    • • Website
    • • Mention during events, especially bequests
  • 9. Where We Are
    • √ What is Planned Giving
    • • How is it done & promoted
    • √ revocable gifts
    • -- irrevocable gifts
    • -- pay life income
    • • Continuing Ed.
  • 10. Irrevocable Gifts That Pay Life Income Donor donor ’ s death Nonprofit lifetime income cash, stock, real estate? planned gift
  • 11. The Life Income Gifts (aka love those acronyms)
      • • Charitable Remainder Trust (CRT)
      • Fixed income--Charitable Remainder Annuity Trust (CRAT)
      • Variable income--Charitable Remainder Unitrust (CRUT)
      • • Charitable Gift Annuity (CGA)
  • 12. Charitable Remainder Annuity Trust
      • • Fixed income for life to 1 or more “ income beneficiaries ”
      • -- typical is wife and husband
      • • Based on a fixed percentage of trust assets valued once, at the beginning
      • -- must pay at least 5%
      • • Charitable income tax deduction in year trust created
      • • At the death of income beneficiaries, remainder is a gift to nonprofit(s) & trust closes
  • 13. Charitable Remainder Unitrust
      • • Variable income for life to 1 or more “ income beneficiaries ”
      • -- typical is wife and husband
      • • Based on a fixed percentage of trust assets revalued every year
      • -- must pay at least 5%
      • • Charitable income tax deduction in year trust created
      • • At the death of income beneficiaries, remainder is a gift to nonprofit(s) & trust closes
  • 14. Charitable Gift Annuity
      • • Fixed income for life to 1 or 2 “ annuitants ”
      • -- wife and husband, typical
      • • Income based on a fixed percentage of the initial gift
      • • Charitable income tax deduction in year created
      • • At death of annuitants, remainder is a gift to one nonprofit
      • • Substantial web of state regulation, especially in NJ & NY
  • 15. Promoting Irrevocable Gifts That Pay Life Income
    • • Face-to-face meetings
    • • Seminars
    • • Publications
    • • Website
    • • Testimonials
    • • Emphasize
    • -- love of mission
    • -- gift of a lifetime
  • 16. Where We Are
    • √ What is Planned Giving
    • • How is it done & promoted
    • √ revocable gifts
    • √ irrevocable gifts pay life income
    • Irrevocable gifts don ’ t pay life income
    • • Continuing Ed.
  • 17. Irrevocable Gifts That Don ’ t Pay Life Income
      • • Life insurance ownership
      • • Charitable IRA rollover
  • 18. Life Insurance Ownership
    • • Nonprofit owns policy
    • • Donor pledges to continue premium payments
    • • Donor earns charitable deduction
    • • An increase in net assets for nonprofit
    • -- Your CFO loves you
  • 19. Charitable IRA Rollover
    • • When? This year only
    • • It ’ s for donors over 70 1/2
    • • Donate up to $100,000/person, multi charities
    • • Make that double for couple
    • • Easy to promote
    • • Really, it ’ s a “ qualified charitable distribution ”
    • • Counts toward required minimum distribution
    • • Income tax free
  • 20. Promoting the Charitable IRA Rollover
    • • Prospects who are the right age &
    • -- Have overfunded IRA(s)
    • -- Have multi-year pledges
    • -- Make annual gifts
    • • Include a short promotion with other appeals
    • -- “ if you ’ re over age 70 . . . ”
    • • Sidebar in print and digital channels
    • • Include your legal name and federal tax ID
    • • Direct prospects to their IRA custodian for form
  • 21. Where We Are
    • √ What is Planned Giving
    • • How is it done & promoted
    • √ revocable gifts
    • √ irrevocable gifts pay life income
    • √ Irrevocable gifts don ’ t pay life income
    • Even more on promotion
    • • Continuing Ed.
  • 22. Who Are The Best Prospects
    • • Single, widowed, heirless are ideal
    • • Look to your board for leadership
    • • Review your Major Donor list
    • • Review your Annual Fund donors
  • 23. Who Are The Best Prospects
    • • They love your work
    • • Age and giving history are meaningful
    • -- 55 and over
    • -- consistent donors
    • -- ignore gift size
    • • Women critical, especially to Planned Giving
    • -- don ’ t let sexism lead you—or your office — to ignore women
  • 24. This Sickens Me
    • “ A few female friends and I have let it be known to some of the nonprofit organizations we support financially that we would like to explore planned giving options that include their charity. None of the three organizations I mentioned this to have followed up with me...my women friends have had similar experiences. And each time I share the story at a fundraising training I collect another example of a woman who has dropped hints, left messages, sent emails or boldly said something about estate planning & planned giving and they've been ignored or forgotten.
    • “ The age group I'm referring to is mid-40's to mid-60's. We have disposable income now but will have more to share later. Some of us don't have children to leave our assets to and others of us simply want to leave a legacy gift in addition to anything we'll do for our families. ”
  • 25. How Do You Talk About It
    • • Long-term support of mission, not death
    • • Sensitive
    • • Genuine care
    • • Active listening
    • • Factual
    • • Open the door to the conversation
    • • The elderly are ready to talk about how their estate can help you
  • 26. Our Objective
    • You ’ ll be comfortable enough with Planned Giving that you can open a conversation about a planned gift with one good prospect
  • 27. Continuing Ed.
    • • My blog http://www.mpgadv.com or scan:
    • • Slides are on my blog now: “WID Mercer”
    • • Tony Martignetti Nonprofit Radio
    • -- leave me your card for weekly alerts & quarterly e-newsletter
    • • Planned Giving Design Center
    • --http://www.pgdc.com
    • • Book: Planned Giving Simplified , Robert Sharpe, Sr., published by Wiley