When They’re Not Your Job

 Mine Your Data Base  Consistent Donors  Largest Donors

 Planned Gifts  Major Gifts  Annual Gifts  Event Participants Where is the money? Where do you spend your time?

 Investment  Involvement  Interest  Information  Identification

 Frequent Communications ◦ Newsletters ◦ Articles of Interests -Personal Testimonials

Giving Begins at Home  Board of Directors  Staff  Volunteers

 Develop “A” Prospect List  Prepare Case for Support  Identify and Train Team

 Think Like a Major Gift/Planned Giving Officer ◦ Build Relationships ◦ Build Trust ◦ Build Knowledge

 Asking Questions (or at least find out) ◦ What is your connection to our cause? ◦ Why are we a priority? ◦ Tell me about your family ◦ Tell me about your career

 Compelling Reasons to Give  Urgent Needs ◦ Program ◦ Projects

 Bequests  Life Income Gifts  Retirement Plan Gifts  Other Stuff to Give Away

In 2010 Americans gave $291 billion to charity

 Bequests can be fixed amount or a percentage  Pecking order can be set  Must be assets left  You’re done with it anyway  If you designate, do it carefully!  Tax advantages to a bequest are minimal for most of us

 Publicize Those You Receive ◦ But not from Bill Gates  Mailings  Educational Seminars  Have a Gift Acceptance Policy

 Most Loyal Donors ◦ Number, not amount  “I Wish I Could Give More”  Those Why Worry About Your Future

 Donor Establishes Gift  Receives an Immediate Tax Deduction  Guaranteed Income ◦ For life ◦ For a number of years  Charity gets balance when annuity matures  Benefits improve with age

 Gift Annuities ◦ Easiest, least expensive to administer ◦ Very little flexibility  Charitable Remainder Trust ◦ Greatest degree of flexibility ◦ Requires trust accounting  Tax return, etc.  Charitable Lead Trust ◦ Works in reverse

Remaining Value Left to Charity Gift Portion $3,576 Both earn Income $132 per year Pays $518 per year from principal Total Income $650

 “I wish I could give more…”  Lapsed donors with some history  Alternatives to bequests  Existing annuitants

 Distributing Checks  Issuing Tax Forms  Investing the Fund *Will your organization shine or stumble?*

 Make your charity a beneficiary or POD designation through donor’s IRA Administrator ◦ Proceeds would not be taxed ◦ If their estate is the beneficiary and the charity is paid from your estate (through the will) the proceeds are taxed. ◦ Tax-wise, the IRA will be the most expensive thing for anyone other than charity to inherit.

$100,000 Account - 28,000 Federal Income Tax - 3,070 Pennsylvania Income Tax - 1,000 Local Income Tax $67,930 Paid to estate - 3,057 Pennsylvania Inheritance Tax $64,873 Paid to heirs Charities would receive the full amount!

 Those close enough to hear the story  Use professional advisor network  Highlight in educational opportunities

 Life Insurance ◦ Should an agent be your planned giving officer?  Real Estate ◦ Use it or sell it ◦ Be aware of environmental issues  Be Open to Bargain Sales  Anything you want to, as long as: ◦ Appropriate for your mission ◦ Benefits exceed cost

< 50 Years Old50-70 Years> 70 Years Old Wealthy Cash Appreciated Assets Bequests Cash Appreciated Assets Deferred Life Income Lead Trusts Retirement Bequests Cash Appreciated Assets Life Income Lead Trusts Retirement Bequests Insurance Moderate Means Cash Bequests Cash Deferred Life Income Bequests Cash Appreciated Assets Bequests Gift Annuities Retirement Insurance Limited Means Cash Bequests Cash Bequests Cash Bequests Gift Annuities Retirement Insurance

 Million dollar gifts don’t come in the mail  Dead people give more than corporations  People give to people  There is no money hiding behind your desk

Karen Petrucelli KP Consulting Brian Sheetz East Ohio United Methodist Foundation