Powerful Planned Giving with a Shoe-String Staff and a Shoe- String Budget! Bryan Clontz, CFP® President, Charitable Solutions, LLC (404)

Agenda Wealth Transfer Overview Planned Giving Defined Two Examples: Appreciated Stock and Charitable Gift Annuities Legacy Motivation of Planned Giving Planned Giving Prospecting 101 Next Steps

Wealth Transfer Realities (55 Years) Havens and Schervish Report Transfer Between $ Trillion (Low End is 2% Growth - High End is 4% Growth) Charitable Bequests $6-25 Trillion Drivers: Asset Appreciation, Depression Era Savers, Self-Perception of Wealth, Social Capital and Legacy Goals

Current State of Planned Giving $304 Billion; Total Individual Giving and Bequest Giving=$ Billion Source: Giving USA, The Annual Report on Philanthropy for 2010 Charitable Remainder Trusts Charitable Remainder Trusts/Lead Trust Value in $125 BILLION Charitable Gift Annuity Value in $15-20 BILLION Life Income Gifts Represent 10-12% of All Planned Gifts Extrapolate to $2 Trillion!!!!!

Definition: Planned giving is a process using tax and financial planning methods allowing the donor to efficiently achieve his/her personal and charitable objectives. Answers:How should I give or what is the best way to give? Solution:Lowers the donor’s real cost of giving.

Donor: Mr. & Mrs. Boardmember Tax Bracket:40% Capital Gains:20% Goal: Improve efficiency of giving. Assumes: Cost $10/share, Value $50/share Cash Gift Stock Gift Total Value $1,000 $1,400 Savings Ordinary Tax Capital Gains Tax Net Cost of Gift $600 $615

Appreciated Stock or Property Federal government effectively matches $1.40 for every $1.00 a donor contributes

Contract providing fixed payments over 1 or 2 lives in exchange for contribution Obligation extends beyond original gift Simple, One-Page Agreement Offered by Public Charities Existed more than 160 years in US Bargain sale calculation: FMV-PV Life Annuity = PV Remainder Interest (Charitable Income Tax Deduction) – Must comply with 10% rule Charitable Gift Annuity Overview

Typical CGA Donor 78 Year-Old Female $44,000 Cash or Publicly-Traded Securities 80-90% of all 2011 life income gifts were CGAs

CGA Heirs Charity Insurance Tax DeductionLifetime Income Optional for Large Gifts

Social Capital: The concept of social capital clearly reveals that you have a choice - and the power - to direct how assets you will not be allowed to keep will ultimately be distributed and used. Involuntary Philanthropist Voluntary Philanthropist Alwin Ernst John Rockefeller, Sr. Estate $12,642,431$557,905,182 Tax $7,124,112 $17,124,988 % Lost 56% 3%

Planned Giving Resources Planned Giving Design Center – free articles, free technical reports and free planned giving calculator – Giftlaw Pro – free articles and technical reports – Planned Giving Council Members Listserve – Gift- Pl, Non-Planned Giving Council – Debra Ashton – The Complete Guide to Planned Giving $95 at

Planned Giving Prospecting 101 Founders and Past/Current Leaders of Your Charity People You “Know” Have Made A Planned Gift “Loyals” – Consistent Givers Opportunistic Development – Listen, Listen and Listen

Next Steps Case Planned Giving Committee Formalize Policies and Procedures Develop Rifle-Shot Approach Plan Solicit and Ask Questions Develop Proposals Consistent Drip Marketing