Posts tagged ‘Charitable Bequest Potential Worksheet’

December 21, 2015

Breaking News: Charitable Giving Incentives Made Permanent!

The US Congress has approved and President Barack Obama has signed the so-called Tax Extenders package that not only includes a number of charitable giving incentives, such as the IRA Charitable Rollover, it has made those incentives permanent.

An article in Forbes, prior to passage of the legislation, nicely outlines the measure’s major provisions including the key charitable giving incentives:

  • deduction allowed for charitable contribution of real property for conservation purposes,
  • taxpayers over age 70 1/2 may make donations directly from an IRA and will not be taxed on the amounts (up to $100,000),
  • a shareholder in an S corporation will be required to reduce his basis in the S corporation’s stock under Section 1366 only for his share of the basis of property contributed by the S corporation; not the fair market value.

This is a tremendous moment for the nonprofit sector. Not only have these important giving incentives been renewed, they have been made permanent!

We all owe thanks to the staff and volunteers of the Association of Fundraising Professionals, particularly General Counsel Jason Lee. AFP has taken the lead in fighting to get these giving incentives and making them permanent.

Santorum and MJR

Sen. Rick Santorum (R-PA) and Michael J. Rosen on Capitol Hill.

For more than a decade, I’ve worked with my AFP colleagues, first as a member of the US Government Relations Committee, then founding Board Member of the AFP Political Action Committee, and then as Board Chairman of the AFP PAC.

Our efforts date back to assisting with the drafting of the CARE Act with then-Sen. Rick Santorum (R-PA). The bill was co-sponsored by then-Sen. Joe Lieberman (D-CT). Despite the bipartisan effort, the CARE Act failed to pass. However, certain charitable giving incentives that were part of the CARE Act were adopted, on a year-to-year basis, including the IRA Charitable Rollover. It took a decade but, finally, the incentives are now permanent!

I’m proud to have been able to play a significant role on this issue. I’ve enjoyed working with other passionate volunteers and staff.

We also need to take this opportunity to thank The Charitable Giving Coalition and its member organizations along with every individual who has worked for this legislation.

Let’s take a much deserved victory lap! Let’s do an end-zone dance! Let’s toast this achievement! Then, let’s get back to work. There’s much to be done to promote the giving incentives.

To help you promote the IRA Charitable Rollover, The Council on Foundations has put together an excellent free, downloadable toolkit that includes:

  • Talking points, a fact sheet, and web content;
  • An event presentation;
  • Tools that explain which available options might best serve donors;
  • Donor and professional advisor advertisements.

You can download the Council’s “Charitable IRA Worksheet” for donors by clicking here. You can find the full toolkit by clicking here.

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September 16, 2011

Charitable Gift Annuities: How Much Are You Leaving on the Table?

Does your nonprofit organization already offer donors the opportunity to give through Charitable Gift Annuities? If so, is your organization realizing its full CGA potential or are you leaving a lot of money on the table? If you’re currently not offering CGAs, is your organization’s CGA potential sufficient to justify making this giving instrument available to donors and prospective donors?

In my book, Donor-Centered Planned Gift Marketing, I wanted to help development professionals answer those questions. So, I developed a “CGA Potential Worksheet” after getting some terrific insight from the legendary Frank Minton, Senior Advisor at PG Calc and former Board Chair of the American Council on Gift Annuities. In a previous post, I shared my “Charitable Bequest Potential Worksheet.” In this post, I’ll share my “CGA Potential Worksheet” with you.

First, let me very briefly explain what a CGA is. A CGA is a gift planning instrument that allows older donors to make a current gift to a nonprofit organization and, in return, receive an income for life and a tax deduction on a portion of the gift.

While an initiative to secure CGAs will enjoy greater success or less success from time to time depending on a number of variables including the state of the economy and interest rates, we can estimate what an organization’s potential is over time. To truly project how much a CGA initiative can produce, one must understand as many of the variables as possible including the nature of the prospect pool, the wealth of prospects, the age of prospects, the passion of prospects, the history of the organization, past service performance, the purpose of the fundraising effort, the nature of the cause, the community, past philanthropic performance, the marketing effort, and so on. Collectively, this makes it difficult to forecast actual results. However, one can fairly easily gauge an organization’s estimated potential given a mythical, ideal set of circumstances. The following worksheet is meant to provide development professionals with an understanding of the broad potential impact of a CGA initiative for their organizations.

While this is not a scientific forecasting tool, it can nevertheless help with forecasting by outlining aspirational targets. This worksheet looks at one of the most common, easy-to-market types of planned gifts.

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March 3, 2011

How Much Could Your Planned Giving Program be Worth?

If your organization already has a gift planning program, is it worth investing more money to promote it?

If your organization is contemplating starting a gift planning program, will it really be worthwhile to do?

In my book, Donor-Centered Planned Gift Marketing, I wanted to help development professionals answer those questions. So, I developed a worksheet that looks at the most common planned gift instrument: charitable bequests. Of course, bequests are just one facet of a planned giving program. Charitable gift annuities, trusts and, some would even say, gifts of stock can also be part of a robust planned giving program. However, since most planned gifts will be in the form of bequests let’s look more closely at what your organization’s potential is for this type of gift.

To truly project how much a planned giving program can produce, one must understand as many of the variables as possible including the nature of the prospect pool, the wealth of prospects, the passion of prospects, the history of the organization, past service performance, the purpose of the fundraising effort, the nature of the cause, the community, past philanthropic performance, the marketing effort, and so on. Collectively, this makes it difficult to forecast planned giving results. However, one can fairly easy gauge an organization’s potential given a mythical, ideal set of circumstances. The following worksheet is meant to provide development professionals with an understanding of the broad potential impact of planned giving for their organizations.

While this is not a scientific forecasting tool and while the worksheet only addresses one type of gift, it can still help with forecasting by outlining aspirational targets. This worksheet looks at the most common, easy-to-market type of planned gift while my book also includes a worksheet for projecting charitable gift annuity potential.

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