1. © Ashton Associates 2012 Creating a Bequest Program in 60 Days By Debra Ashton May 10, 2012

2. © Ashton Associates 2012 Categories for Estate Gifts Bequests from traditional wills Bequests from traditional wills Provisions in Living Trusts Provisions in Living Trusts Life Insurance Life Insurance Retirement Plans (Beneficiary Designation) Retirement Plans (Beneficiary Designation)

3. © Ashton Associates 2012 Determine Crediting Guidelines Will bequests be credited in a campaign? Will bequests be credited in a campaign? If so, under what conditions? If so, under what conditions? How will they be booked on your gift recording system? How will they be booked on your gift recording system? What are your rules for named endowed funds set up through a bequest? What are your rules for named endowed funds set up through a bequest?

4. © Ashton Associates 2012 Prepare a one-page summary of bequest wording Prepare a one-page summary of bequest wording Make a list of people who have an estate gift (revocable) Make a list of people who have an estate gift (revocable) Select a name for your society Select a name for your society Have the name approved by Board of Trustees Have the name approved by Board of Trustees

5. © Ashton Associates 2012 Sample Bequest Wording “I give and bequeath to [legal name of charity], whose legal address is [address], the sum of $___________ (or, ____% of my residuary estate) for such purposes as [charity] shall determine are in the best interests of [charity].”

6. Board of Trustees Resolution RESOLVED: RESOLVED: Whereas (Charity) wishes to recognize and honor those supporters who have established an estate gift that will one day support (Charity), we hereby create the “_____ Society” in special appreciation of their foresight and generosity. © Ashton Associates 2012

7. Develop a List of Incentives Annual luncheon or dinner Annual luncheon or dinner Recognition certificate Recognition certificate Recognition item Recognition item Listing in Annual Report Listing in Annual Report Special invitation to other donor events Special invitation to other donor events

8. © Ashton Associates 2012 Write to Founding Members Who signs the letter? Chair of Bequest Society Chair of Bequest Society Chairman of the Board Chairman of the Board President President Head of the Development Committee Head of the Development Committee Other Other

9. © Ashton Associates 2012 Announce the new Society in your next newsletter or publication Announce the new Society in your next newsletter or publication Place check-off blocks on reply cards (annual giving, pledge forms, etc.) Place check-off blocks on reply cards (annual giving, pledge forms, etc.) Identify a target market for a bequest mailing Identify a target market for a bequest mailing Plan the inaugural luncheon or dinner Plan the inaugural luncheon or dinner Establish a Bequest Committee Establish a Bequest Committee

10. © Ashton Associates 2012 Targeting your Population % People with% People without % People withwills; open towills; open to % U.S.bequest tomaking a futuremaking a future AgePopulationcharity in placebequest to charitybequest to charity __________________________________________________________________________ 40-5437323865 55-6428282524 65 and over35403711 Source: 2008 Survey by Selzer & Company, Inc. commissioned by Stelter

11. © Ashton Associates 2012 Using Bequest Agents Peer solicitation is always better Peer solicitation is always better Recruit a Chair of the Bequest Committee Recruit a Chair of the Bequest Committee Identify Board Members who have a bequest Identify Board Members who have a bequest Send recruitment letter from Bequest Chair to potential Bequest Agents Send recruitment letter from Bequest Chair to potential Bequest Agents

12. © Ashton Associates 2012 Responsibility of Bequest Agents Must have a bequest or other estate gift Must have a bequest or other estate gift Agree to lend signature to one letter per year Agree to lend signature to one letter per year Allow an article to be written about their bequest Allow an article to be written about their bequest

13. © Ashton Associates 2012 Using Bequest Agents Draft a letter for signature by the Bequest Agents Draft a letter for signature by the Bequest Agents Bequest Agents approve letter or adapt it to their own style Bequest Agents approve letter or adapt it to their own style Charity produces and mails letters Charity produces and mails letters Send thank-you letters from Bequest Agents to people who reply Send thank-you letters from Bequest Agents to people who reply

14. © Ashton Associates 2012 Using Bequest Agents Terms for volunteers Terms for volunteers Bequest Chair:two to three years Bequest Agent:indefinite

15. © Ashton Associates 2012 Stewardship and Marketing 75% of people with a charitable bequest never tell the charity. 75% of people with a charitable bequest never tell the charity. Some people do not want to be bothered even if you learn about a bequest. Some people do not want to be bothered even if you learn about a bequest. Some can be worked with for a current gift. Some can be worked with for a current gift.

16. © Ashton Associates 2012 Some can be worked with for a current gift Combining a bequest with a current gift to create an endowed fund Combining a bequest with a current gift to create an endowed fund Asking a donor to give the bequest during lifetime Asking a donor to give the bequest during lifetime

17. © Ashton Associates 2012 The First Conversation When the donor’s attorney calls you-- When the donor’s attorney calls you-- Upgrading the size of the bequest If the attorney will not disclose the donor’s name When you call the donor to discuss his or her bequest When you call the donor to discuss his or her bequest

18. © Ashton Associates 2012 Gift and Estate Tax Imposed on assets passed during lifetime or death Imposed on assets passed during lifetime or death Exempt from the tax: Exempt from the tax: $13,000 per donee ($26,000 for couples) Assets passing to spouse Medical or tuition payments Assets passing to Charity

19. © Ashton Associates 2012 The Combined Gift and Estate Tax 2012 -$5.12 million exemption per person ($10.24M per couple) -High rate of 35% -Surviving spouse can assume deceased spouse’s unused portion of exemption.

20. © Ashton Associates 2012 The Gift and Estate Tax After 12/31/2012, the exemption reverts to $1 million with a high rate of 55%. After 12/31/2012, the exemption reverts to $1 million with a high rate of 55%.

21. © Ashton Associates 2012 Summary Every organization should have a bequest program Every organization should have a bequest program You don’t need a director of planned giving to run a bequest program You don’t need a director of planned giving to run a bequest program People who make bequests are very good prospects for current gifts People who make bequests are very good prospects for current gifts

22. Debra Ashton Author, The Complete Guide to Planned Giving © 2004 Ashton Associates 24 Robertson Street Quincy, MA 02169 617-472-9316 debra@debraashton.com www.debraashton.com © Ashton Associates 2012