Planned Giving Programs INT1358 - Print

Planned Giving Programs INT1358 - Print

PLANNED GIVING PROGRAMS

INSTITUTIONAL

Planned Giving Programs

Integrating a planned giving strategy into an overall strategic plan can be one of the most impactful actions taken to further an organization’s success. Planned giving focuses on the long-term sustainability of an organization. While day-to-day operations and funding are often the priority, by establishing a planned giving program, an organization has the opportunity to secure its future success and viability. Planned gifts can take many years of cultivating donor relationships before financial benefits are seen. However, this makes it all the more important to start now. A planned gift is a process of charitable, legal, financial and tax planning that enhances your philanthropy and enables you to address other financial and/or estate planning issues while making a gift. PLANNED GIVING TECHNIQUES There are four general categories of planned gifts: 1. Outright gifts that require enhanced planning. Examples include gifts of appreciated assets, gifts of life insurance policies, or lifetime gifts from retirement plans. Donors often receive tax benefit during lifetime. 2. Gifts that create an income stream to the donor during lifetime, but at death pass to a nonprofit organization. Examples include Charitable Gift Annuities and Charitable Remainder Trusts. Donors may receive tax benefits during lifetime and/or to the estate of the donor upon death. 3. Gifts that create an income stream for the nonprofit organization for a period of years and then pass to the family or other non-charitable beneficiaries. An example would include a Charitable Lead Trust. Donors may receive tax benefits during lifetime and/or to the estate of the donor upon death. 4. Gifts that become payable to the organization upon a donor’s death. Examples include a simple bequest within a will or trust, a beneficiary designation within a life insurance trust or retirement plan, or a continuing trust for the benefit of nonprofit organization. The estate of the donor typically receives tax benefits after the donor is deceased. DEVELOPING A PLANNED GIVING PROGRAM Planned giving programs are not all created equal. However, the backbone of a successful program is to have well-defined gift acceptance policies. It is important for the board to consider which types of gifts are a good fit for the nonprofit and develop strategies to receive and manage these assets. Many organizations may hesitate to approach planned giving due to the perceived complexity of the subject. To overcome this hurdle, it is critical to have partners in place to assist with the education elements of planned

giving conversations. You may have this type of expertise on your board, or often you can bring external partners in by forming a Planned Giving Committee to support your efforts. It is also important to understand that if you focus your conversation on the importance of your mission, the planning aspects can follow. The next step of developing your program is to determine how you will market the plan and recognize the donors that participate. Starting with full commitment from the Board is crucial. Once they are involved, they become the best proponents for gaining support from other donors. It is also important to capture the stories of why donors decide to make a gift, share those stories, and celebrate the success! Finally, you cannot get discouraged. The conversations that you are having today regarding planned giving may not create gifts for years to come. However, it is important to understand that you are planting seeds today that will benefit your organization into the future.

AT COMMERCE TRUST COMPANY, OUR GOAL IS TO WORK WITH OUR NONPROFIT CLIENTS TO MAKE GIVING UNDERSTANDABLE AND AS SIMPLE AND EFFICIENT AS POSSIBLE FOR DONORS. WE BELIEVE THIS CREATES HIGHLY SATISFIED DONORS, WHICH CAN LEAD TO FURTHER GIFTS TO SUPPORT YOUR MISSION.

Commerce recognizes that planned giving is extremely important to our nonprofit clients. In addition to providing donor education support to your board, staff, and donors, we have developed tools that can assist your organization with the administration of planned gifts, many of which require ongoing service.

 Unique Asset Management  Education Regarding Planned Giving Techniques  Comprehensive Investment Management Services

 Charitable Trust Administration  Charitable Gift Annuity Administration  Unitized/Fund Accounting  Marketable Securities Gift Processing

For more information, please contact the Nonprofit Services team at Commerce Trust Company. 1-892-7100 x22883 | commercetrustcompany.com

Commerce Trust Company is a division of Commerce Bank. INT1358

NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE