May 29, 2009, Forbes.com — So how has the current recession affected your philanthropy? For many donors, a reduced asset base has meant refocusing their charitable giving. Some are shifting priorities, choosing to focus on the communities and issues hit hardest by the economic downturn; others are adjusting gift amounts to reflect changes in their finances and still others see the recession as an opportune time to revisit their legacy plan and review and rethink the question of what kind of legacy they hope to leave. They are taking a hard look at the charitable designations named in their estate plans, which, for many, is a long overdue exercise, since interests, intent and financial circumstances will have changed since the estate plan was first drafted.
Planned Giving
May 12, 2009, The Wall Street Journal — It sounds good on paper: You make a donation to a worthy cause and, in return, receive regular lifetime payments. But so-called charitable gift annuities don't always deliver what they promise -- a risk that could intensify if the recession persists.
New Orleans, April 1, 2009, Chronicle of Philanthropy — In contrast to individual, foundation, and corporate giving, which tend to drop or remain flat during tough economic times, giving through charitable bequests usually grows during a recession, according to fund raisers.
In a webinar last month titled "Positioning for Wealth Transfer," Campbell & Company Vice President Bruce Matthews talked about the need for organizations to prepare programs that take full advantage of this boon.
So you've probably heard talk here or there about "wealth transfer," the prediction that over the next few decades, an estimated $40 trillion or so will change hands as baby boomers and their parents pass on their accumulated assets to their children. But what does it mean for your organization, and how can you prepare for it?
Investors aren't in a giving mood these days. But the deepening recession presents a rare opportunity for some people: By setting up a special trust, wealthy donors can seed favorite charities, pass money to heirs and shelter potential growth from taxes.
We all know how important recognition is — it’s an opportunity to acknowledge, thank and celebrate donors for their trust in, and commitment to, your organization’s mission. But recognition of planned-giving donors often won’t happen through conventional donor-recognition channels. That is where a heritage society comes in.
From time to time, the worlds of charitable and private enterprise join forces to create financial strategies that result in success for all parties. You can find one such example in the formation of Charitable Remainder Trusts (CRTs). Besides the charitable benefit to the nonprofit organization and the financial benefit to the donor and the donor’s family, the impact of a CRT is greatly enhanced by the use of an Irrevocable Life Insurance Trust (ILIT). ILITs are funded by life insurance policies, which offsets the loss of the CRT’s corpus asset upon the death of the donor.
No area of fundraising intertwines development staff and donors in more personal relationships than planned giving.
In many cases, all a prospective donor asks is that a development executive supply generic information about how a particular gift plan might function, what the payment rates or tax deduction might be, or whether an organization can serve as a trustee.
The wonders of online marketing give nonprofits the ability to reach out to millions of potential donors. But organizations seeking major and planned gifts often struggle with prioritizing the large amounts of data that result. It’s no great surprise that, after a while, all that data starts to run together and all those donors start to look alike.
