Changes Ahead for Planned Giving?

Changes Ahead for Planned Giving?. I recommend that you check out  –  “Wills That Won’t – What the Decline of Wills and Estate Plans Means for Planned Giving Marketing” Some startling facts –

will1) According to national studies examined by Dr. Russell James of Texas Tech, people are using Wills less and less as their vehicle of choice for charitable estate gifts – and the actual amount actually distributed to charities through Wills is sharply lower than the amount that was predicted.

2) According to the 2012 Bank of America Study on high-net-worth philanthropy, more wealth families are using giving vehicles such as donor advised funds and private foundations

3) more than 20 states now allow for Transfer on Death deeds – in 1995, only ONE state allowed that.  This means that real property can be distributed to others without a Will

4) For many people entering their 60s and 70s, their Wills are only the BACK-UP document.  They use Living Trusts and beneficiary designations on an increased basis.  This is true even for those who will have a gross estate under $5 million / $10 million.

So if you are a non-profit building a Bequest Program or Planned Gift Program, you need to consider how you approach donors.  By focusing only on Wills and charitable bequest language for that specific type of estate planning vehicle, you may be leaving a lot of money on the table.

Dr. James recommends making sure that conversations include a discussion of beneficiary designations for retirement plan assets, life insurance, annuities etc.  Donors should also be aware that they can make payable on death (POD) or transfer on death(TOD) designations for bank accounts, investment accounts, and real property.

Donors should consult with their financial planners and legal advisors about their specific estate plan arrangements.  However, a nonprofit fundraiser can open up an opportunity for future increased revenue by taking gift planning discussions beyond Will bequests.  Check out MarketSmart’s blog and Dr. James’ video on the topic (link is above).

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Posted on March 28, 2014, in Uncategorized. Bookmark the permalink. 2 Comments.

  1. Bradley Reiners

    So true! We need to incorporate discussions of TODD, POD, TOD, and beneficiary designations into our estate planning discussions.

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