1. Marketing Testamentary Gifts in Tough Times
Minnesota Planned Giving Council
33rd Annual Conference
Marketing Testamentary Gifts in Tough Times
Presented by
Marc Carmichael
R&R Newkirk Company

3. Donor Responses to Recession
“Let’s postpone this (gift) discussion until the economy looks better”
Reluctance to make ANY decisions
Willingness to consider revocable, testamentary contributions

4. Bequests Remain Popular with Donors
Why are donors more receptive to making major gifts at death?
What special motivations are there for making gifts through estate plans?
“If I had known I was going to live this long, I would have taken better care of myself.”

5. “In this time of recession and uncertainty, we need to take VERY good care of our money”
- Bequest Donors

6. Bequests = 90% of Planned Gifts
Why are donors more receptive to making major gifts at death?
What special motivations are there for making gifts through estate plans?
“If I had known I was going to live this long, I would have taken better care of myself.”

7. Gifts Through Estate Plans Enable Donors to Accomplish Goals:
Plan a significant, future gift that doesn’t jeopardize current financial security
Leave a legacy for good
Provide a level of support that seemed impractical during life (e.g., tithing at death: “I bequeath 10% of my estate to XYZ charity”)
Perpetuate their annual giving
Reduce taxes on their estates

8. Your Bequest Can Perpetuate Your Annual Contributions*
If Your $ You Can $ 12,500
Annual $1,000 Perpetuate $ 25,000
Gifts $1,500 Them with a $ 37,500
Total: $2,000 Bequest of $ 50,000
$5,000 at Least: $125,000
*Leaving 25 times a donor’s annual gifts can “endow” the donor’s annual contributions forever, assuming a 4% annual rate of interest.

9. Charitable Bequests are 100% Deductible against Estate Tax

10. The Ideal Bequest Prospect
Likes the organization, and may already be a donor
Has sufficient wealth to make a bequest
Is retired or nearing retirement age
Doesn’t have kids (50% more likely to make charitable bequest)

11. But…there is no database on people who never had kids
“Do I have any children? Well, (giggle), none that I know about!”
--Bette Midler

12. What Does a Bequest Prospect Look Like?

13. Four Ages of Estate Planning?
30s-40s are making their first wills
50s-60s changing family situations
65-75 age group seek income security, money management
75+ reviewing plans for final dispositions

14. It’s a Matter of ASKING…
“Will you include our organization in your will?”

15. NCPG Survey of Donors 2000
Where did donors first get the idea to make charitable gifts by will or trust?
No. 1 answer: Publications received from the organization.

16. Wills Emphasis Mailings
Six-brochure program mailed to target groups over 14-year time span
$34 million in bequests
53% came from donors who received mailings (419 matured bequests)
Only 13% of bequest donors who received mailings sent back cards

17. The “Iceberg Effect” in Wills and Bequests Programs
Many planned giving officers say only 25% of donors disclose bequest expectancies in advance. Anticipate that 75% of matured bequests will arrive unannounced.

18. Free Marketing: All Your Other Publications
Newsletters to your members/alumni/ users of your services
Annual reports
Journals and magazines
Program guides
Anything that goes out of your office

19. Obtain a Basic Wills Brochure

22. Media Advertising
We advertised our new Heritage Society in a weekly paper. We had only one response, but she informed us of a $5 million bequest. – Marty Matula
We advertise our wills seminars in the local obituary pages! – Dale Burgeson

24. Arthritis Foundation Found Gold with Wills Coupon in “Modern Maturity”

25. Salvation Army TV Commercials
1,600 requests for wills booklet after running TV ads in Pittsburgh area
Commercials featured soap opera star discussing need for estate plans
$25,000 cost

26. Telemarketing Success Story
Telemarketing firm calls older supporters
Prospects asked if they have wills/estate plans
Wills booklet offered
Would you consider a bequest to (charity)?
Would you like a visit?

27. Message to Donors You need a will Here’s how to get a will
Review your will regularly
Here’s how to name us in your will (include your correct legal name and sample bequest language)
Please tell us about your bequest

28. Why Review Estate Plans Now?
Meltdown in stock market and housing prices may have “disinherited” some beneficiaries
Changes in federal estate tax rules

29. Parent Makes Estate Plan in 2007
$100,000 stock portfolio to child #1
$100,000 IRA to child #2
$100,000 life insurance policy to child #3
Who wins? Who loses?

30. Why Review Estate Plans Now?
Meltdown in stock market and housing prices may shrink bequests to some heirs but not others
Anticipated 2009 changes in federal estate tax rules

31. Beneficiary Designations Are Easy – and There Are No Legal Fees
Life insurance beneficiary
IRA and other retirement account beneficiary designations
POD (“pay on death” accounts (C.D.s and most other financial accounts)
TOD (“transfer on death”) designations on brokerage accounts

32. Life Insurance in Gift Planning
Valuable asset for giving
No need to make or change a will
Church can receive just a portion of policy

33. Almost Any Financial Account Can Be “Payable on Death” to Church

35. “Deferred Bequests” Can Help Charity and Family Members
Charitable gift annuity in donor’s will
Testamentary charitable remainder trust
Testamentary charitable lead trust
Bequest of remainder interest in farm/home
QTIP trust for married donors

36. Charitable Planning for Spouses
Charitable remainder trusts avoid taxes
QTIP trust can take place of CRT – more flexible arrangement
QTIP can empty into CRT for children

37. QTIP Trust to CRT at Death

38. Leave Us “Tax-Burdened Assets”
U.S. Savings Bonds
IRAs and deferred compensation
Accounts receivable
Installment payments on land sale contracts
Unpaid commissions
I.R.D.

39. Death Is a Tax Shelter…for Capital Gains Taxes Only

42. Taxes on Retirement Accounts
Federal Estate Tax and State Death Taxes (some states)
Federal Income Tax (IRD)
State Income Tax

43. Websites
Planned giving web page should tell the world you are glad to receive bequests
Provide bequest phrases, including your organization’s correct legal name

44. Estate Planning Seminars
75% estate planning, 25% gift planning
Lots of breaks
Rotating roundtable discussions
Individual Counseling
Famous estates

45. Lexington House (859)

46. Train Volunteers to Help You Ask for Bequests

47. Care & Feeding of Past Donors
Heritage Societies
Invitations to dinners and functions
Tours of campus or facilities
Thank-you letters to families of deceased
Tangible recognition

48. Care and Feeding . . .
We send birthday cards to donors with the note: Is this the year to have your driver’s license renewed? They appreciate it! Also, we’ve switched from Christmas to Thanksgiving cards – Nancy Perazelli
One benefit of joining our Heritage Society: Members receive valet parking.

50. Professional Advisers
Personal contacts
Direct mail newsletters
Advisory councils
Website resources and
Adviser seminars

51. Goals for Your Program Value of gifts or expectancies
Number of gifts or expectancies
Cash flow average
Visits to prospects/ seminars/other marketing/cultivation

52. If It’s Just You . . . Get a wills brochure
Promote bequests every- where, including web
Start wills society
Change stationery
Send out survey card
Train volunteers to help
Make your own bequest
Remember the legend of Wilko Schoenbaum

53. Do all this, and . . .