Planned Giving Commentary

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!Planned Giving Virtual Boot Camp - Session 1 Introduction to planned giving

Time to get your planned giving act together!

Related imageBaby 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!

Pease is gone!! What was that anyway?

The new tax plan eliminates the Pease limitations!  Did you even know it existed? Was it important?

“This provision, named after the late Congressman Donald Pease, reduceD the value of itemized deductions for high income taxpayers. It worked by reducing the value of a taxpayer’s itemized deductions by 3 percent for every dollar of taxable income above a certain threshold ($254,200 single; $305,050 married). The phase-out of the value of itemized deductions is capped at 80 percent of the total value of itemized deductions.”  Click here if you want to see a good blog post on it. (I made the quote in past tense)

Basically, Pease was a surtax on charitable giving for those around $250,000 and up!  (it impacted all deductions but the charitable deduction is the most discretionary of the deductions – the one someone at that income level may think twice about a larger gift (if notified by their accountant of the surtax).

Yes, it is so complex that I can’t remember how it was calculated (why bother figuring it out again now that it is gone!) BUT this change, as well as a bunch of other “goodies” in the new tax bill, may be big opportunities!!!

Want to learn more about opportunities for nonprofits (and some challenges) due to the new law?  THIS MONDAY AT NOON est, I AM GIVING A BRIEFING ON THE NEW LAW!!! CLICK HERE TO REGISTER – WE WILL BE GOING OVER 20 IMPORTANT CHANGES TO THE LAW THAT MAY HELP YOUR ORG RAISE MORE MONEY.

 

 

 

 

2018 Tax Plan Briefing for Nonprofit Fundraisers

Image result for tax plan hysteria cartoonIn response to the demand for help on this topic, we are offering a webinar briefing this Monday (Jan. 8th at 12 pm) on the new tax bill’s impact on fundraising.

CLICK HERE TO REGISTER!

This session will review the relevant points in the new tax plan that may impact nonprofits and fundraising.

Our approach will be for laymen (i.e. not accountants or tax lawyers). We will keep it simple, understandable, and will focus on practical steps you can take to raise more money in 2018 and beyond as a result of the new tax law.

You should also gain in your confort level with some basic financial concepts should any of these tax items come up in discussions with donors.

Fundraisers and nonprofit leaders – yes – this session is designed for you.

Accountants and tax lawyers – no – join the advanced webinars going around – this one is for the regular folks.