Planned Giving Commentary

Interesting opportunities as a result of the new tax law

Image result for Interesting opportunities cartoon Slowly, we are starting to realize there are interesting opportunities as a result of the new tax law. Many will take months or longer to come out.

Here is one – in addition to the most obvious that people with estate planning attorneys are likely going back to them as we speak:

No longer needed life insurance!

Yes, many life insurance policies were created specifically to pay any federal estate tax liability – saving the principal of the estate for the family.

But now the estate tax exemption just jumped to $11.2 million per person from $5.6 million per person. In other words, anyone who had such a life insurance policy should be talking to their insurance/financial planner. Why not do something charitable with that policy?

Want to get up to speed on the new tax law and various planned giving options?

CLICK HERE TO SEE MORE ON OUR NEXT PLANNED GIVING BOOT CAMP

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Largest Single Gift – $6.24 Million – to Henry Street Settlement

This very nice woman was a legal secretary until age 96 – probably never someone who stood out for fundraisers to fawn over. (CLICK HERE OR THE PICTURE TO SEE THE STORY IN THE NEW YORK TIMES)

Yet, she just left close to $9 million to fund scholarships, with the Henry Street Settlement receiving $6.24 million, their largest single gift (probably by far) via a charitable bequest (i.e. one of the many unknown planned giving donors who quietly make a huge impact after their lives).

Check your nonprofit org’s records. Who’s made the 5 largest gifts to the institution?

I would be surprised if bequests or other planned giving options don’t comprise at least 4 out of your top 5.

Fundraisers and heads of nonprofits – take note! Sylvia Bloom – the woman in the picture – actually left most of her estate to be used for scholarships at the discretion of her niece (who happens to be on the board of the Henry Street Settlement)!

Sylvia and her niece are both incredible people. But, just think about this. What if Sylvia had been one of your long term direct mail donors – I am guessing that she supported plenty of charities during her life.

Imagine if your org had any planned giving efforts – maybe planned giving newsletters or other marketing that encouraged Sylvia to consider your organization as a recipient of her legacy giving. Then image if your organization didn’t do anything in planned giving.

Think about the missed opportunity. Sylvia probably didn’t receive much direct planned giving content and opted to allow her niece full discretion over her legacy.

For nonprofits in America who been around awhile (15 or more years) to not engage in any meaningful planned giving efforts is just irresponsible.

The country is aging fast. Your data base is probably aging faster. Planned giving is really the only sensible way to make sure your institution has a decent chance to share in estates like Sylvia’s.

So where do you start? Check out our Planned Giving Boot Camp 6-part webinar crash course by CLICKING HERE.

Or, our Summer 2018 line up of training programs! CLICK HERE TO SEE MORE

Ok, so I have to plug more courses at any chance I have. Seriously, these courses are all designed to put immediately useful tools and ideas into your hands. You’ll learn about creating your own Legacy Opener (patent pending;). I’ll tell you which planned giving marketing options work and which don’t! Which vehicles are appropriate and which are not! And, not too much on the technical end!

Thank you for making it to the end of this post! I wonder how many readers actually get this far!

Boomers Never Get Old

Look up “baby boomers getting old” on Google and you might see headlines like:

Old Age Is a Myth We Need to End as Baby Boomers Retire | Time

Why Baby Boomers May Never Get Old | Fox Business

Growing Old, Baby-Boomer Style – WebMD

Clearly pieces written by Boomers not interested in admitting their own mortality.

Click the picture above for a more realistic discussion from the New York Times this weekend (not that I ever buy a newspaper anymore!).

We are all getting older – including me (turning 50 in a few weeks) – by the day! For my 5-year-old, it’s exciting, new adventures, rapid growth. For those turning a different corner, it is all about addressing one’s (my own, too) mortality!

And, for Baby Boomers – probably trying to hold on to that “top of their game” attitude for just a few more years – the situation is going to get acute very quickly. Just ask the insurance industry what happens in general to people in their early to mid-seventies?

So, what does this have to do with Planned Giving? Everything. Donor bases are getting old rapidly. Annual and major giving eventually subsides. Planned gifts can more than replace the revenue, if your org has invested at all in Planned Giving!

Click here for upcoming affordable webinar training opportunities for your team!

Take a look at the below chart. The mountain is moving into Planned Giving territory!

Time to get your planned giving act together!

Related image Baby boomers getting older….

The wealth transfer is coming….

Blah, blah, blah. The same old, same old and no real difference in the numbers for planned giving. Right?

I know what I am about to say is self-serving (this is a blog and I’m constantly promoting myself and my services) but if you have a minute, read what I am about to write carefully.

The estate tax exemption just doubled (i.e. people can leave more to family estate tax free). Bad for planned giving?

Wrong. Amazing for planned giving!!!

Why?

People with means are going to their estate planning attorneys. Considering options. Redoing their estate plans.

How often does this happen with your typical planned giving prospect? You usually have no idea unless someone tells you.

So, I am telling you this (from my estate planning practice – more than half of my business): your wealthier donors are meeting with their estate planning attorneys NOW.

That means NOW is the time to make sure they are considering YOUR institution for some sort of planned gift!

In other words, you need to wake up your sleeping planning giving program. You need to train your staff (click here to see more on my upcoming training!). You need to put some budget towards planned giving.

Meaning: it’s time to get your planned giving act in order! The boomers will start moving on. There are a lot more of them than their predecessors and they actually have a lot of money. Planned Giving will grow dramatically in the next few years. You and your organization need to get ready!