Planned giving for small nonprofits / Ronald R. Jordan and Katelyn L. Quynn.

Format:

Book

Author/Creator:

Jordan, Ronald R., 1950-

Contributor:

Quynn, Katelyn L.

Language:

English

Subjects (All):

Nonprofit organizations--Finance.

Nonprofit organizations.

Deferred giving.

Physical Description:

xxiv, 323 pages ; 24 cm

Place of Publication:

New York : Wiley, 2002.

Summary:

Planned giving programs play an increasingly significant fundraising role at most nonprofit organizations. As a result, donors are becoming more and more familiar with planned giving and expect to find such programs in place at their charities of choice. Now small nonprofits must implement planned giving programs and expand existing ones, yet most development directors are not trained in planned giving, nor do they have access to expertise in the field. Unlike outright gifts, planned gifts often take time to materialize, and, once they occur, they must be administered for years. Planned Giving for Small Nonprofits shows directors and boards of small charities precisely how to promote planned giving within the framework of their available resources, step by step. Written by two of the most recognizable names in planned giving, this easy-to-follow guide demonstrates how organizations with understaffed development programs can manage the careful analysis, commitment, and employee and volunteer support necessary to execute a successful planned giving campaign. Jordan and Quynn include plenty of examples and case studies from nonprofits in all sectors -- educational and religious institutions, healthcare organizations, and cultural associations -- illustrating how to develop, implement, and manage a program.

Contents:

Chapter 1 Planned Giving in a Small Charity: The First Year 3

Management Plan 5

Education 5

Mobilizing the Small Charity's Administration 7

Board of Trustees and Planned Giving 8

Creating or Restructuring Financial Support Areas 9

Legal Issues 10

Use of a Planned Giving Consultant 10

Establishment of Gift Vehicles 11

Marketing 13

Events 14

Software 14

Gift Crediting 15

Chapter 2 Planned Giving and the Charity 17

Planned Giving from the Organization's Perspective 17

Planned Giving Provides Five Decades of Support 18

Planned Giving Programs Are Cost Effective 19

Eliminate Competition Among Planned Giving, Annual Giving, and Major Gifts 20

Champion the Planned Giving Program 20

Clarify Administrative Responsibilities 21

Train and Challenge the Nonprofit Staff 21

Budget and Staffing 22

The Bottom Line 22

Chapter 3 Mobilizing the Nonprofit Organization's Leadership, Boards, and Volunteers 27

President and Chief Executive Officer of Organization 27

Vice President for Development 28

Role of the Board of Trustees 29

Volunteers 30

Working with Deans 31

Working with Physicians 32

Supporting Offices Within the Organization 32

Planned Giving Training Programs 34

Chapter 4 An Operational Plan for a Small Nonprofit Organization's Planned Giving Program 43

Planned Giving as a Start-up Business 43

Purpose of the Planned Giving Program 44

Goals of the Program 44

Donor Contact 45

Identify New Prospects and Solicit Existing Planned Giving Prospects 45

Establish a Strong Marketing Effort to Promote Planned Gifts 46

Raise the Visibility of the Planned Giving Program Internally and Externally 48

Restructure Support Areas to Provide Services for the Planned Giving Program 49

Inventory Existing Planned Giving Totals 50

Planned Giving Database 51

Planned Giving Budget 51

Chapter 5 Gift Acceptance Policies for a Planned Giving Program 55

Cash 58

Securities 58

Bequests 66

Gifts of Tangible Personal Property 67

IRS Form 8283 69

Gifts of Real Estate 69

Deciding to Accept the Gift 69

Life Insurance 70

Administrative Issues 71

Chapter 6 Managing Time: Planned Giving in a Small Charity 74

Get Organized 75

Organize the Day and Week 75

Block Off Hours 75

Managing the Calendar 76

Know Thyself 76

Do the Most Difficult Tasks First 76

Control the Office Environment 77

Organize the Planned Giving Staff 79

Meetings 79

Travel Time 80

Working from Home 80

General Tips for Saving Time in the Office 83

Part 3 Planned Gifts 85

Chapter 7 Bequests and the Bequest Society 87

How a Bequest Works 87

Tax Law and Charitable Gift Planning 88

The Will 89

Parts of a Will 90

Suggested Language for Charitable Bequests 91

Bequests to Charity/Sample Provisions 92

Standard Bequest Forms 93

Legally Binding Documents for Bequests 94

Targeting Donors for Bequests 95

Marketing Bequests 95

Crediting Bequests 100

Recognition Events 102

Chapter 8 Endowed Funds and Current Use Awards 109

Unrestricted Gifts 110

Restricted Gifts 110

Endowed Funds 111

Creating an Endowed Fund 111

Scholarship/Fellowship Funds 112

Other Endowed Funds 113

Current Use Awards 115

Financing an Endowed Fund 115

Fund Description 115

Mechanics of a Fund Description 116

Chapter 9 Basic Life Income Gifts: Charitable Gift Annuities, Deferred Gift Annuities, and Pooled Income Funds 120

Charitable Gift Annuities 121

Deferred Gift Annuities 126

Pooled Income Funds 128

Chapter 10 Trusts 134

Parties to a Trust 134

The Revocable InterVivos Trust (Living Trust) 135

Charitable Remainder Trusts 136

Qualified Terminable Interest Property (QTIP) with Remainder to a Nonprofit 148

Charitable Lead Trusts 148

Nongrantor Charitable Lead Trusts 149

Nongrantor Charitable Lead Annuity Trusts 150

Nongrantor Charitable Lead Unitrust 150

Part 4 Gifts of Assets Other Than Cash 151

Chapter 11 Gifts of Securities 153

Securities Held by the Donor's Stockbroker or Banker 154

Securities Gifted Via the Depository Trust Company 154

Securities Held in the Donor's Possession 156

Donor Wishes to Give Part of a Stock Certificate 156

Value of the Gift 157

Date of the Gift 157

Donor's Charitable Income Tax Deduction 158

Series EE and HH Bonds 159

Zero Coupon Bonds 159

Gifts of Shares of a Mutual Fund 160

Gifts from Dividend Reinvestment Plans 160

Closely Held Stock 161

Valuation of Closely Held Stock 162

Restrictions on Transfer 162

Gift of Closely Held Stock Must Be An Arm's-Length Transaction 162

Closely Held Stock and Debt 163

Transfer to a Charitable Remainder Unitrust 163

S Corporation Stock 164

Preferred Stock

Section 306 Stock 165

Chapter 12 Gifts of Real Estate 167

Outright Gifts of Entire Property or Fractional Interest 169

Gift of a Personal Residence or Farm with a Retained Life Estate 169

Gifts of Real Estate to Fund Charitable Gift Annuities 171

Charitable Deferred Gift Annuity 172

Gift of Real Estate to a Charitable Remainder Unitrust 172

Conservation Easements 175

Tax Consequences 177

Chapter 13 Gifts of Tangible Personal Property 180

Tangible Personal Property 180

Definition of Tangible Personal Property 181

Transfer of Personal Property 181

Related Use 183

Gift of a Future Interest in Tangible Personal Property 183

Unrelated Use 184

Tax Considerations for Gifts of Noncash Assets 184

Substantiation Requirements 185

Appraisals 186

Art Worth $20,000 or More 187

Tax Deductibility of Appraisal 187

Form 8282 187

Gift Review Committee 187

Procedures 189

Restricted Gifts 189

Gifts of Real Estate 190

Chapter 14 Gifts of Life Insurance and Retirement Plan Assets 191

Gifts of Life Insurance 192

Ways to Use Life Insurance 192

Charitable Income Tax Deduction for an Outright Gift of a Paid-up Policy 192

Outright Gift of a Partially Paid-up Life Insurance Policy 193

Charitable Income Tax Deduction for a Partially Paid-up Policy 193

Charitable Income Tax Deduction When Donor Makes Premium Payments 194

Short-term Endowment Policies 194

Insurance Used in Asset Replacement Arrangements 195

Funding a Charitable Remainder Net Income Unitrust/Flip with Life Insurance 196

Reporting Requirements 196

Gifts of Retirement Plan Assets 196

Tax Consequences of Charitable Gifts of Retirement Accounts at Death 198

Types of Retirement Plans 198

Ways to Transfer Retirement Assets to a Nonprofit 200

Part 5 Working with Donors 205

Chapter 15 The Planned Giving Prospect 207

Profile of a Planned Giving Prospect 207

Planned Giving from the Donor's Perspective: Donor Motivations 208

Identifying the Planned Giving Prospect 213

Chapter 16 Solicitation Strategies 217

Solicitation From the Perspective of the Planned Giving Staff Member 218

Solicitation Process 223

Negotiations 230

Chapter 17 Ethics and Planned Giving 234

Whom Does the Planned Giving Officer Represent? 234

How to Avoid Donor-Related Conflicts 235

How Much Money Is Too Much? 236

How Friendly Should a Planned Giving Officer Become with a Donor? 237

Complete Disclosure 237

Philanthropy Protection Act of 1995 238

Gift Brokers and Finders' Fees 239

Commissioned Real Estate Agents or Brokers 240

Commissioned Stockbrokers 240

Payment of Professional Advisors' and Lawyers' Fees 241

Prior Existing Agreements 242

Nonprofit Organization Serving as Trustee 242

Nonprofit Serving as Executor or Personal Representative 243

Ethics in Marketing 243

Planned Giving Staff Member as Salesperson 243

Ethical Dilemmas with Other Development Officers 244

Model Standards of Practice for the Charitable Gift Planner 244

Donor's Bill of Rights and AFP Code of Ethical Principles 244

Part 6 Marketing 251

Chapter 18 Marketing Planned Giving in Small Nonprofit Organizations 253

The Message, the Audience, and the Medium 254

Marketing Fundamentals 254

Marketing through Printed Materials 255

Programs 265

Electronic Communications 267

Chapter 19 Marketing to Professional Advisors 269

Ways to Begin 270

Professional Advisory Committee 271

Planned Giving Presentations for Outside Audiences 274

Mailings to Professional Advisors 274

Publication in Trade Papers 276

Nontechnical Outreach Program 279

Part 7 Planned Giving and Taxes 281

Chapter 20 Tax Consequences of Charitable Gifts 283

Federal and State Income Taxes 284

Fair Market Value 286

Cost Basis 286

Deductibility of Gifts of Tangible Personal Property 287

Acceleration of Deduction 288

Deduction Reduction Provision 289

Pledge and Promissory Note 290

Benefits to Donors 290

Ordinary Income Reduction Rule 291

Income in Respect of a Decedent 292

Deductibility of Charitable Contributions for Business Organizations 294

Depreciation 295

Capital Gains Taxes 296

Federal Estate And Gift Taxes 296

Gift Tax Annual Exclusion 298

Payments for Tuition and Medical Bills 299

Gifts by Husband and Wife/Unlimited Marital Deduction 299

Streams of Income and Gift Tax Consequences 300

Sale of a Personal Residence 301

Gifts of Real Estate Subject to a Mortgage 302

Tax Implications of a Bargain Sale 302

Substantiation Requirements 302

Appraisals 303

Partial Interests 304.

Notes:

Includes index.

ISBN:

0471212091

OCLC:

49206105