planned giving powerpoint presentation

Planned Giving

Jul 29, 2012

530 likes | 827 Views

Planned Giving. Overview and Magnitude. Russell James, J.D., Ph.D., CFP® Director of Graduate Studies in Charitable Planning Texas Tech University. Planned giving: Any charitable giving other than a simple, immediate gift of money to charity. Often involves tax and legal planning.

Share Presentation

• immediate tax deduction money
• legal planning
• charitable distribution averages

Presentation Transcript

Planned Giving Overview and Magnitude Russell James, J.D., Ph.D., CFP® Director of Graduate Studies in Charitable Planning Texas Tech University

Planned giving: Any charitable giving other than a simple, immediate gift of money to charity. Often involves tax and legal planning. • Gifts where the transfer to charity is deferred. • Gifts where the donor receives income or other financial benefits. • Gifts of appreciated assets.

The U.S. planned giving industry The Partnership for Philanthropic Planning (National Committee on Planned Giving) is the largest professional association. 12,000 members including planned giving fundraisers, lawyers, accountants, and financial planners.

The Canadian planned giving industry The Canadian Association of Gift Planners is the largest Canadian professional association. 1,300 members including planned giving fundraisers, lawyers, accountants, and financial planners.

Example planned giving activity in the U.S. 77,457 private foundations holding $518 billion 123,659 charitable trusts holding $115 billion 122,500 donor advised funds holding $28 billion 120,000 charitable bequests annually $23 billion Private foundation and charitable trust data from “Split interest trusts, filing year 2007”, Lisa Schreiber, IRS Statistics of Income; Donor advised fund data from National Philanthropic Trust; Charitable bequest data from Giving USA 2009.

Planned giving: The characters The employee The company The charity The government

Employees pay income taxes Wages $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Taxes $ $ $ $ $ $

Gifts to charity receive a tax deduction Wages Gift $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Taxes $ $ $ $ $ $ Tax Deduction

The charity Wages Gift $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Taxes Who can be a charity? $ $ $ $ $ $ $ $ $ $ Tax Deduction

The charity • Public charity: 501(c)3 • Operated for charitable purpose • No private benefit • Start with IRS Form 1023 and $750 fee* • Continue with IRS Form 990 annually (no fee)* • *not required for churches Gift $ $ $ Who can be a charity?

Simple creation = More charities 501(c)3 public charities in the U.S. in 2008 974,337 (Excludes all churches choosing not to file tax forms)

974,337 public charities in the U.S. More Charities = More Donation Requests and More Donor Choice More Choice & More Requests = More Giving More Choice & More Requests More Donations

Companies pay taxes and distribute some earnings Reinvested earnings Earnings to shareholders $ Earnings Taxes

Charities pay no taxes and distribute no earnings Reinvested earnings Earnings to shareholders $ Earnings Taxes

If a charity sells appreciated property, it pays no taxes on the sale Reinvested earnings Earnings to shareholders $ Earnings Taxes

Normal Capital Gains Buys for $1,000 Sells for $11,000 Capital Gain of $10,000 $7,070 Profit $2,930 Tax Note: All taxation examples are given based upon a California resident paying the highest marginal tax rates. Other states and incomes will generate less tax.

Giving Property Avoids Capital Gains Tax Buys for $1,000 Gives when worth $11,000 • Charity sells stock • Charity pays no capital gains tax Donor receives income tax deduction of $11,000 reducing taxes paid by as much as $5,516.

Large tax benefit from giving appreciated property • Donor gives property • Charity sells property • Charity pays no capital gains tax • Donor pays no capital gains tax • Donor receives tax deduction for full value of property

Some planned giving devices combine this tax benefit with other benefits • Charitable Remainder Trust • Charitable Leads Trust • Pooled Income Funds

End of Life or Set Years During Donor Life or Set Years Charitable Remainder Trust Gift Payments from income or assets

End of Life During Donor Life Pooled Income Fund Gifts Payments from shared pool of income and assets

End of Life or Set Years During Donor Life or Set Years Charitable Lead Trust Donor’s family Gift Payments from income or assets

Charitable trust types by number Source: Split interest trusts, filing year 2007, Lisa Schreiber, IRS Statistics of Income

Charitable trust types by asset value Source: Split interest trusts, filing year 2007, Lisa Schreiber, IRS Statistics of Income

Charitable Remainder Trusts (US in 2007) Total number: 115,754 Total assets: $97,307,466,000 Annual charitable distributions: $1,547,930,000 Annual share of assets to charity: 1.59% Source: Split interest trusts, filing year 2007, Lisa Schreiber, IRS Statistics of Income

Pooled Income Funds (US in 2007) Total number: 1,528 Total assets: $1,607,555,000 Annual charitable distributions: $81,229,000 Annual share of assets to charity: 5.05% Source: Split interest trusts, filing year 2007, Lisa Schreiber, IRS Statistics of Income

Charitable Leads Trusts (US in 2007) Total number: 6,377 Total assets: $18,690,926,000 Annual charitable distributions: $956,154,000 Annual share of assets to charity: 5.12% Source: Split interest trusts, filing year 2007, Lisa Schreiber, IRS Statistics of Income

Now (Immediate tax deduction) Later (Distribute 5% or more assets per year) Non-operating Private Foundation Gift Tax Deduction

A private foundation may be managed by donor and donor’s friends or family Gift Tax Deduction

Non-operating Private Foundations (US in 2007) Total number: 77,457 Total assets: $518,384,930,000 Annual charitable distributions: $41,267,947,000 Annual share of assets to charity: 7.96% http://www.irs.gov/pub/irs-soi/07pf01ta.xls

Comparative share of total assets held

Comparative share of charitable distributions made

A private foundation is created by the donor and follows his rules Gift Tax Deduction

A donor advised fund is held by a charity to give to other charities with donor’s advice Gift Tax Deduction

Private Foundation (non-operating) Donor advised fund Contributions receive immediate tax deduction Money held by a charity Money later given to other charities on advice of donor Very little expense to create and maintain (.5% annually) Average size $200,000 • Contributions receive immediate tax deduction • Money held by foundation • Money later given to other charities based on board decision and donor’s original rules • Some expense to create and maintain • Average size $6,692,551

New Era in DAFs • 1991 first mutual fund DAF (Fidelity) • Investment advisors earn commissions for managing client’s assets in the DAF, thus have financial incentive for charitable planning • Minimum initial contribution $5,000 • Largest mutual fund DAFs • Fidelity • Schwab • Vanguard

Donor Advised Funds: Fidelity Source: Chronicle of Philanthropy

Donor Advised Funds: Schwab Source: Chronicle of Philanthropy

Donor Advised Funds: Vanguard Source: Chronicle of Philanthropy

Donor Advised Funds Charitable Distributions Charitable distribution averages for mutual fund DAFs (2001-2009) • Fidelity: 25.3% • Schwab: 19.0% • Vanguard: 21.9% Compare distribution averages (2007) • Charitable Remainder Trusts 1.6% • Charitable Leads Trusts 5.1% • Private Foundations 8.0%

Donor Advised Funds (US in 2007) Total number: 122,500 Total assets: $27,700,000,000a Annual charitable distributions: $5,877,940,000b Annual share of assets to charity: 21.22%b a Source: National Philanthropic Trust; bWeighted estimate from three largest DAFs and 19.36% reported for community foundation DAFs by Council on Foundations survey including $8.7 billion in assets

Planned Giving Overview and Magnitude Pictures from istockphoto.com

Help me HERE convince my bosses that continuing to build and post these slide sets is not a waste of time. If you work for a nonprofit or advise donors and you reviewed these slides, please let me know by clicking

If you clicked on the link to let me know you reviewed these slides… Thank You!

For the audio lecture accompanying this slide set, go to EncourageGenerosity.com

• More by User

Getting Started with Planned Giving

Getting Started with Planned Giving - Cathy Mann, CFRE June 8/05. Top five reasons you don't do Planned Giving. I don't know where to start.There is no time in my day to add something new.I don't know how to talk about it with donors.I don't understand the complicated and varied methods of plann

519 views • 32 slides

Planned Giving SIMPLIFIED

Planned Giving SIMPLIFIED. Nancy Beard, CFRE President, United Church Homes and Services Foundation. Inspiration. What we have done for ourselves alone dies with us; what we have done for others and the world remains and is immortal. – Albert Pike. Percentage of Giving.

240 views • 0 slides

Planned Giving. AFSP’s Lifesaver’s Society. Our Lifesavers Society allows you to leave AFSP a planned gift. Planned giving ensures that your donation goes to something meaningful to you: continuing AFSP's work to prevent suicide.

179 views • 0 slides

Planned Giving. Thomas P. Holland, Ph.D., Professor UGA Institute for Nonprofit Organizations Kelly C. Holloway , Attorney Fortson, Bentley & Griffin. What is Planned Giving?.

687 views • 21 slides

How to Do Planned Giving When Planned Giving Isn’t All You Do

How to Do Planned Giving When Planned Giving Isn’t All You Do. Presentation by: John C. Scibek, CSPG Senior Director, Planned Giving Fred Hutchinson Cancer Research Center. What Is Planned Giving?. Gifts that require planning - legal instrument. Giving from wealth not just income.

706 views • 31 slides

Preparing for Planned Giving Ministry

Preparing for Planned Giving Ministry. Jim Murphy, Managing Program Director, ECF July 13, 2013 The Episcopal Network for Stewardship . Episcopal Church Foundation. Empowering Congregations!. Who will be your PG Shepherd??.

337 views • 18 slides

Planned Giving. Frank M Jacobs,CLU, ChFC James M Gambaccini, CFP Acorn Financial Services, Inc. 3600 Chain Bridge Road Fairfax, Va 22030 703-293-3100. Disclosure.

358 views • 20 slides

Planned Giving. AFSP’s Lifesavers Society. Our Lifesavers Society allows you to leave AFSP a planned gift. Planned giving ensures that your donation goes to something meaningful to you: continuing AFSP's work to prevent suicide .

279 views • 13 slides

Planned Giving. AFSP’s Lifesavers Society . Our Lifesavers Society allows you to leave AFSP a planned gift. Planned giving ensures that your donation goes to something meaningful to you: continuing AFSP's work to prevent suicide.

331 views • 13 slides

Gift Development Planned Giving

Gift Development Planned Giving. Presented By. Gift Planning starts with God’s Word.

452 views • 29 slides

Gift Development Planned Giving. Presented By.

107 views • 1 slides

Assessing Your Planned Giving Program

Assessing Your Planned Giving Program. Doug McDaniel JD, CFRE The Salvation Army Eastern Territory 440 West Nyack Road, West Nyack, NY 10994 845-620-7319, [email protected]. Assessing Your Planned Giving Program. Institutional factors

455 views • 27 slides

Planned Giving Design Center

Planned Giving Design Center. Provided by: Rochester Area Community Foundation. What is the Planned Giving Design Center?. The world ’ s largest website on the subject of planned giving with tens of thousands of pages of content Networking community for professional advisors

226 views • 8 slides

Planned Giving Design Center. Planned Giving Design Center. What is the Planned Giving Design Center?. National network of websites dedicated to advancing philanthropy through education via the Internet. The world’s largest website on the subject of planned giving

304 views • 16 slides

Planned Giving Pop Quiz

Planned Giving Pop Quiz. Situation: You’re wrapping up your FY 14 Budget meeting with your Parish Finance Committee and someone walks in and hands you a check from Mary Smith made out to the parish for $530,000

279 views • 14 slides

Congregational Planned Giving Program

Congregational Planned Giving Program. Introduction. $25-45 trillion in wealth will transfer between now and 2052 Only 30% of Americans have developed an orderly plan for the transfer of their estates Of this 30%, only one in three have remembered a charity in their estate plans

397 views • 28 slides

Planned Giving: 2010 and Beyond

Planned Giving: 2010 and Beyond. Presented to Southern Alberta Round Table May 9, 2011. Presented by DeWayne Osborn CGA, CFP Lawton Partners. Planned Giving: 2010 and Beyond. Presentation Overview Discuss significant legislation Discuss trends/possible future Questions.

413 views • 30 slides

PRACTICAL PLANNED GIVING IN CONGREGATIONS

PRACTICAL PLANNED GIVING IN CONGREGATIONS. PLANNED GIVING. ANNUAL GIVING. Planned Giving – in General :. What is it?. Planned Giving. In 2008 bequests to charities totaled $22,600,000,000.

309 views • 16 slides

Planned Giving:

Planned Giving:. “ What are the strategies that work for an advisor ”. Presented By: DeWayne Osborn CGA, CFP Lawton Partners Financial Planning Services Limited [email protected]. Planned Giving:. Need to Build the “Planned Gifts Toolbox”. Understand what charities are

469 views • 26 slides

PLANNED GIVING MADE EASY

PLANNED GIVING MADE EASY. Money for Our Movements Conference August 12, 2012 Stan Yogi Senior Consultant Klein & Roth Consulting. Key Points. Relationships Patience Persistence No need to be an expert Organizational mission. Agenda. Why Planned Gifts? Groundwork

373 views • 16 slides

Planned Giving Basics

Planned Giving Basics. Philip Ellis, Community Foundation Dave Eitland, Grand Traverse Bay YMCA September 22, 2011 12:00 noon – 1:30 pm. Goals for Our Presentation. As you are very busy, we want to: Give you a sense of the what to do when you get your first planned gift.

357 views • 27 slides

To insert your company logo on this slide From the Insert Menu Select “Picture” Locate your logo file Click OK To resize the logo Click anywhere inside the logo. The boxes that appear outside the logo are known as “resize handles.” Use these to resize the object.

824 views • 81 slides

COURSES & PRIMERS

• Courses & Webinars
• Weekly Asset
• About | Why Subscribe?
• Get Published
• For Professional Gift Planners
• For Major Gifts Officers
• For Board and Philanthropists
• Planned Giving Guide for MGOs (Free)
• Planned Giving Gift Comparison Chart
• Endowments — All You Need to Know
• Questions that Unlock Planned Gifts
• Personal Development
• Fundraising Books
• Planned Giving Videos
• Free Downloads
• Premium Downloads

Planned Giving Downloads

Our Planned Giving Weekly Assets now include a large assortment of Free Downloads (see below). Use these resources to jump-start your nonprofit’s planned giving and major gifts programs. Also review our Premium Downloads and documents on wills, trusts and estates and more.

Click here for Client Premium Downloads .

Smaller Charity? Affordable Planned Giving Websites

Educate donors and build instant credibility, authority and trust.

Download as many as you wish! New downloads added on a regular basis.

Strategies for Thoughtful Planning

Weekly Planned Giving Asset

Pocket Guide For Major Gifts Officers (Hard Copy)

Pocket Guide For Major Gifts Officers -(Digital Version)

Age and Wealth-Based Matrix (Infographic)

Employee Bio Questionnaire

Endowment calculator (free).

“But I Already Have a Will”

12 Month Planned Giving Marketing Plan

Donor Characteristics Table

IRA Solicitation Letter

National Make a Will Month (postcard template)

Sample codicil, the perfect question to ask, year-end giving solicitation letter, premium free downloads (weekly assets).

Below is a sampling of some of the premium documents in our Weekly Assets series. And it’s only $19.95 a year!

Planned Giving Social Media Posts

101 Clever Questions that Unlock Planned Gifts

25 Ways to Influence People

CHEAT SHEET: Secure Act 2.0 a/k/a “Legacy IRA” legislation

The Charitable Bequest Planner

Special needs trust.

12-Month Planned Giving Marketing Plan (Calendar Template)

Career Affirmations

Beating Worry and Anxiety

15 Self Discovery Questions

Career Checklists

Finding a Job

How to Make Successful Fundraising Asks

How To Raise More Money Online

Million Dollar Ask Scripts & Templates

Million Dollar Fundraising Workbook

Public Speaking 101

The 10 Best Ways to Raise More Money for Your Non-Profit

The 5-Day Goal Setting Challenge

Donor story form, gift comparison chart.

IRA Rollover In-House Tools

The 25 estate planning documents.

• Giving Tomorrow

Join the top 1% today. We see things through a different lens — and soon, you will, too.

This content is copyrighted . Please use our name somewhere on your document / web page if appropriate. Feel free to make it inconspicuous. © PlannedGiving .com, Inc.

Planned giving marketing downloads and back-office tools.

This website is owned and operated by PlannedGiving.com , your trusted planned giving marketing authority.

• Pocket Guides
• Gift Comparison Charts
• Planned Giving Wiki
• Planned Giving I.Q.
• Major Gifts I.Q.

Education & Outreach

• Planned Giving Boot Camp
• Boot Camp for MGOs
• Boot Camp for Advisors
• Contributors
• Planned Giving Websites
• Direct Mail & Postcards
• Estate Planning Guides
• Legacy Giving in a Box

© 2024, PlannedGiving.com. All rights reserved