Transcript Resource Development Committee Presentation

Powerful Planned Giving with a
Shoe-String Staff and a ShoeString Budget!
Bryan Clontz, CFP® President, Charitable Solutions, LLC (404) 375-5496
Agenda
• Wealth Transfer Overview
• Planned Giving Defined
• Two Examples: Appreciated Stock and
Charitable Gift Annuities
• Legacy Motivation of Planned Giving
• Planned Giving Prospecting 101
• Next Steps
Wealth Transfer Realities
• 1998-2052 (55 Years) Havens and Schervish
Report
• Transfer Between $41-136 Trillion (Low End
is 2% Growth - High End is 4% Growth)
• Charitable Bequests $6-25 Trillion
• Drivers: Asset Appreciation, Depression Era
Savers, Self-Perception of Wealth, Social
Capital and Legacy Goals
Current State of Planned Giving
$304 Billion; Total Individual Giving and Bequest Giving=$258.96 Billion
Corporations
5.6%
Foundations
10.9%
Bequests
9%
Individuals
74.5%
Charitable Remainder Trusts/Lead Trust Value in 2009 - $125 BILLION
Charitable Gift Annuity Value in 2009 - $15-20 BILLION
Life Income Gifts Represent 10-12% of All Planned Gifts
Charitable Remainder Trusts
Extrapolate to $2 Trillion!!!!!
Source: Giving USA, The Annual Report on Philanthropy for 2010
Definition:
Planned giving is a process using tax and
financial planning methods allowing the
donor to efficiently achieve his/her
personal and charitable objectives.
• Answers:
• Solution:
How should I give or what
is the best way to give?
Lowers the donor’s real
cost of giving.
Donor:
Tax Bracket:
Capital Gains:
Goal:
Assumes:
Mr. & Mrs. Boardmember
40%
20%
Improve efficiency of giving.
Cost $10/share, Value $50/share
Total Value
Savings
Ordinary Tax
Capital Gains Tax
Net Cost of Gift
Cash Gift
Stock Gift
$1,000
$1,400
400
560
0
225
$600
$615
Appreciated Stock or Property
Federal government effectively matches
$1.40 for every $1.00 a donor contributes
Charitable Gift Annuity Overview
• Contract providing fixed payments over 1 or 2
lives in exchange for contribution
• Obligation extends beyond original gift
• Simple, One-Page Agreement Offered by Public
Charities
• Existed more than 160 years in US
• Bargain sale calculation:
FMV-PV Life Annuity = PV Remainder Interest
(Charitable Income Tax Deduction) – Must
comply with 10% rule
Typical CGA Donor
• 78 Year-Old Female
• $44,000
• Cash or Publicly-Traded
Securities
• 80-90% of all 2011 life
income gifts were CGAs
Optional for
Large Gifts
Insurance
Tax Deduction
Lifetime Income
CGA
Heirs
Charity
Social Capital:
The concept of social capital clearly reveals that
you have a choice - and the power - to direct how
assets you will not be allowed to keep will
ultimately be distributed and used.
Involuntary Philanthropist
Estate
Tax
% Lost
Voluntary Philanthropist
Alwin Ernst
John Rockefeller, Sr.
$12,642,431
$7,124,112
56%
$557,905,182
$17,124,988
3%
Planned Giving Resources
• Planned Giving Design Center – free articles, free
technical reports and free planned giving calculator
– www.pgdc.com
• Giftlaw Pro – free articles and technical reports –
www.giftlaw.com
• Planned Giving Council Members Listserve – GiftPl, Non-Planned Giving Council –
[email protected]
• Debra Ashton – The Complete Guide to Planned
Giving $95 at www.debraashton.com
Planned Giving Prospecting 101
• Founders and Past/Current Leaders of
Your Charity
• People You “Know” Have Made A
Planned Gift
• “Loyals” – Consistent Givers
• Opportunistic Development – Listen,
Listen and Listen
Next Steps
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Case
Planned Giving Committee
Formalize Policies and Procedures
Develop Rifle-Shot Approach Plan
Solicit and Ask Questions
Develop Proposals
Consistent Drip Marketing