Breaking News: Big Planned Giving Myth Busted!


Thank you to Michael Rosen, Russell James and Greg Warner for this interesting piece. Take a look at that chart!

Originally posted on Michael Rosen Says...:

Many nonprofit professionals have long believed that those who make charitable bequest commitments will be less likely to make an annual fund gift. The fear, held by CEOs and CFOs in particular, is that legacy gift donors will feel they have already done their part and, therefore, will no longer be receptive to annual appeals.

Now, new evidence busts that planned giving myth once and for all!

As researcher Russell James, JD, PhD, CFP will explain in an upcoming  free webinar hosted by MarketSmart, not only will legacy donors continue to support their favorite charities on an annual basis, their support will actually increase once they have made their planned gift commitment, as indicated in the following graph:

Current Giving Before and After Adding Charitable Estate Beneficiary

Among those who have added a charitable beneficiary to their estate plan, the average annual charitable giving before making the estate gift commitment was $4,210. After making the estate gift commitment…

View original 468 more words

New Year’s Solutions?

If you are a planned giving pro, I hope you are working today!  Someone has to be there to help last minute gifts!

So, the year is over.  The gifts are hopefully coming in as we speak.  IRA rollover was here for a few days and now it’s gone again.  What’s the planned giving take going into 2015?

Here’s my “last day of the year” thoughts:

  • IRA rollover giving in 2015?  I have always discouraged clients from touting IRA giving while the law is still expired.  Of course, those who did it anyway made out well.  Should I be rethinking my position?  Yes, as long as you clearly explain in writing that should the law not be reenacted, that you (the donor) will be charged with a taxable IRA withdrawal but will also receive an equivalent income tax deduction for the gift.  And, talk to  your accountant before taking this risk!
  • Anything else new for gift planners in 2015?  Nothing on the horizon. I have completely ignored the President’s budget/tax proposals for 2015. Besides almost certainly being ridiculous proposals, Congress will NEVER agree to anything on this front with this President.  At least not with this incoming Congress. So, let’s not waste our time over proposals that are going nowhere.
  • Will CGAs and CRTs make a comeback in 2015?  If the economy keeps moving along well, YES, get ready for more life income gifts.  Financial comfort and confidence along with avoiding capital gains – that a good recipe for these gifts.

Thank you as always to our readers for a great year.  We topped 1,000 subscribers and exceeded 76,000 viewers (since that start of this blog in 2010), and we have launched several very successful training programs, so stay tuned for more from the Planned Giving Blog!