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May 2016 Newsletter

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Planned Giving Mentor

Professional Partnerships: Hospice Philanthropy Group L.L.C.

"There’s no such thing as a person without an estate plan." The state where you live has written one for you. Lesson from the no plan Prince Estate

Quickie quiz:.....In the new Gallup poll what percentage of American adults surveyed in May 2016 have executed a will. (Answer below)

Senior Spirit.....Click the Senior Spirit link (below left) for a copy of the latest articles from Certified Senior Advisors

Past issues of the Newsletter are available in the Newsletter Archives

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Join me..... at the 2016 Crescendo Practical Planned Gift conference on September 26th Chicago and hear a presentation on "Building a Professional Advisory Committee"


5 estate planning facts you need to know now.....As you work with your probabal donors be sure they have a good estate plan. A goal without a plan is just a wish. Tell them they should not wish their assets away—encourage them to make a plan to ensure their life savings are properly distributed after death.

Yes, they do have an estate. (So yes, they need an estate plan.)

You don't have to be wealthy or retired to have an estate. In fact, if they own anything, they have an estate.

An estate includes both tangible and intangible personal possessions and real property—like a home, rental property, or land. Possessions you can touch (like a car, clothes, or a stamp collection) are tangible property, and assets you can't touch (like a checking account or an IRA) are intangible property.

An estate plan is a collection of legal documents that come into play if they become incapacitated or pass away. These documents are a way to voice their wishes when they are not able to communicate on their own behalf.

An estate plan typically contains:

1. A will, which dictates who gets your assets and how (and when) they get them.
2. A general power of attorney, which appoints somebody to take care of your financial needs in case you become incapacitated or are otherwise unable to act.
3. A healthcare power of attorney, which designates someone to make healthcare decisions for you if you become incapacitated or are otherwise unable to do so yourself.
4. An advance directive for healthcare, which communicates your wishes if you can't make decisions for yourself.

When drafting an estate plan, it's important to consider the whole picture—including both assets and liabilities.

They must do their homework before meeting with an attorney. A personal financial inventory (available from many PG vendors) that includes details about bank accounts, credit union, and investment accounts, as well as liabilities, like loans and credit cards, can help prospects stay organized and ensure they are disclosing everything to their attorney.

5. If they don't have a plan, the state they live in will give them one.

If propsects don't take the time to create an estate plan, their residence state will take care of it for them —on its terms. For example, if they become disabled and aren't capable of making their own decisions, their loved ones will have to go through the legal process of appointing a guardian or conservator, which can be lengthy and potentially costly. If there's too much conflict around who should be chosen or there aren't appropriate options, the court may appoint a third party to control how their assets are used to cover medical and living expenses.

If a prospect pass away before making an estate plan, their assets will be distributed according to their state's intestate laws, which determine who's entitled to property from an estate in which the decedent had no will. Charity is never included. If they have minor children, the court will decide on the parameters of their inheritance. If they leave behind a minor child who has no alternate legal guardian, the court will appoint a guardian on their behalf.

While state laws are designed to accommodate most people's wishes, the best way to ensure that the prospect's wishes are carried out is to have them create a customized plan which includes a bequest to your charity. All states operates under certain assumptions—for example, they want their assets to be distributed evenly among their next of kin—but that may be too simplistic. Make their voice heard about who they want to care for their children and receive their assets.

Updating a plan is almost as important as creating it.

There's one caveat to an estate plan that everyone should understand—it's not final unless you become incompetent or pass away. Prospects may change their mind, and their estate plan, throughout their lifetime. So it may not be too late to have your charity included in an admenment or codicle to their will or living trust agreement.

Encourage your donors to review their estate plan regularly, especially their beneficiary designations, about every three to five years. Many prospects and donors have the best intentions to make adjustments after a major life event—like a marriage, a divorce, a death, or a birth—but it's easier said than done. Nothing is final for a charity until the forms are signed and sealed.

An estate plan should be dynamic, not a once-and-done document. If their plan is keeping pace with life changes and accounting for accumulation of wealth and changes in their family structure and living arrangements, expect the plan they have when they are 80 to look different from the plan they had when they were 40. Estate planning isn't the place for self-sufficiency.

To save money, prospects may be tempted to turn to a software program to draft their will. Many of these do-it-yourself options use generic language that may not be appropriate for their personal situation. The least costly route right now may end up having an unfavorable financial impact on their loved ones and your charity in the long term.


Marketing Idea #1.....Will matching planned gifts increase your legacy society?

The Community Foundation of Holland/Zeeland, Michigan certainly thinks so.

The Chronicle of Philanthropy, June 2016, page 50 has a detailed article on how this approach is helping the foundation increase support to its “Today.Tomorrow.Forever” campaign.

The campaign goal is to create a pipeline of 100 “Tomorrow” gifts. Each of the first 100 “Tomorrow” gift will be matched by a current cash gift of $20,000 if the estate commitment represents at least $50,000 or 5% of the fair market value of the donor’s estate.

Comment: I have no doubt that a current gift to charity will help to incentive those who have charitable intent but have not made their estate plans concrete to finally determine what they are going to do with their life work. A key question may be how large must the current match be to stimulate action. For some communities it may be a minimum of $10,000 whereas for other it may be $25,000 or more.

The campaign case statement is available at

Marketing Idea #2.....IRA Rollover post card promotion.....Will you be the first one to promote the permanent IRA rollover opportunity to your donors? The sample in the link below is what I received in early June from MD Anderson. I suspect I will receive another one near the end of the year as a reminder to use the IRA rollover option as part of my end of year giving.

I am not a large donor mostly memorials gifts for relatives who have suffered from cancer. I wonder how they did the list selection? Take note of what I believe to be the mailing list coding in the BRE address line. The post card developed by Crescendo and used with permission was in an 8" x 6" format, large enough to catch your attention.

It will be interesting to see if my undergratuate (LaSalle University) or graduate school (University of Maryland Foundation) since they have my age and graduating class and knowledge that I completed an IRA rollover for each one in 2015 will be promoting this opportunity.

MD Anderson Cancer Center IRA Roolover promotion

PG recognition events.....Everyone likes to be recognized for their support and it is very important to recognize Legacy Cirlce individuals. Recognition events should be a stimulus to grow your planned gift support. Pictured here is the May Charter Member recognition event for the Gwinnett Medical Center Foundation. Collectively, 40 people representing 21 gift commitments were recognized.

In June the Foundation was notified it was one of two charities in the estate plan of one of its Charter Member. The Foundation expects to receive close to $3.0 million from the estate which will double its endowment. ____________________________________________________________________________________________

Gift Annuity Rate Update and Laminated Gift Annuity Rate Charts..... At its semiannual meeting on April 5, 2016, the Board of Directors of the American Council on Gift Annuities (ACGA) reaffirmed the existing schedule of suggested maximum rates for charitable gift annuities which was originally published on January 1, 2012.

Rate Chart....... If you would like a laminated rate chart for the most recent rates simply request one using the following E-mail request and put Laminated Chart in the subject line and be sure your signature line has your full address..

Download a PDF chart of single life $10,000 cash gift and two-life $100,000 security gift for ages 60,65,70,75,80 here.


Charitable Trust Review?.....For a quick review of Charitable Trusts check out the following guide that is being distributed to financial professionals "Giving Today to Guarantee Tomorrow: A Charitable Trust Review." While the guide was developed for professional advisors and agents, it is an excellent review of various charitable trust techniques.

If you have a professional advisory group it makes an excellent handout for your next meeting.


Median Household Net Worth?.....The chart at left courtesy of Give and Take by Sharp Group indicates that household net worth increased by age groups from 2000 vs 2011. With housing units representing the major component of an individuals net worth and as prospects age the cohort of both the 70-74 and 75+ are significant potential charitable gift annuity donors. If you do not have a CGA program consider investigating the information below.


Charitable Giving Resource Center establshed a national gift annuity program.....The National Gift Annuity Foundation (NGAF), headed by Bryan Clontz, has developed a viable option for charities to offer Charitable Gift Annuities by partnering with Charitable Giving Resource Center (CGRC). The liability for CGA payments to donors reside on the NGAF's balance sheet, not your charity. For more information see their website which is also on my Helpful Links page


Quiz Answer.....PLAN AHEAD - 44% of American adults surveyed in early May 2016 have executed a will. 68% of American adults at least age 65 have executed a will (source: Gallup).

Comment: Therefore, it is important to promote all of the methods to include charity as beneficiaies in estate plans.


Renaissance changes to RenPSG..Philanthropic Soultions Group.....Renaissance with a strong presence in the charitable trust administration marketplace since 1987 has changed its name to reflect its enhanced capabilities delivering custom solutions for donor-advised funds, private foundation, pooled income funds and pooled special needs trusts. RenPSG has a new address: 8910 Purdue Rd., Suite 500, Indianapolis, IN 46268, Phone 800-843-0050.


New and Returning Clients.....I am please to welcome as a new client St. Elizabeth Foundation, Edgewood, Kentucky, Larry Warkoczeski, Vice President to my client services.

Welcome back Roper St Francis Foundation, Charleston, South Carolina, Ashley Redmond, Executive Director after an executive change, Keystone College, La Plume, Pennsylvania, Heather A. Schield, CFRE, Associate Vice President for Institutional Advancement as they expand their charitable gift annuity program, and Bayhealth Foundation, Dover, Delaware, Lindsay Rhodenbaugh, D. Min., President, to incorporate gift planning into capital campaign for new medical center buildings.


News and Notes....PPP or Partnership for Philanthropic Planning changes it name to ationa Association of Gift Planners, will soon put new link on the helpful links site.

HAVE MONEY, LIVE LONG - From 2001 to 2014, the richest 5% of American taxpayers (based upon adjusted gross income) saw their life expectancy increase by +3 years. Over the same 14 year time period, the poorest 5% of American taxpayers saw no increase in their life expectancy (source: Raj Chetty, Stanford University)

CALL MY CELL PHONE - 48% of the 118 million households in the USA have only wireless phones, i.e., they do not maintain a landline telephone (source: National Center for Health Statistics). Comment: I wonder if they still get charity solicitations.

VERY LITTLE - 54% of 1,500 American adults surveyed have accumulated less than $25,000 of savings and investments (in both pre-tax and post-tax accounts), a total that does not include the value of personal possessions, any real estate or the present value of a defined benefit pension plan or Social Security benefits (source: Employee Benefit Research Institute).

TAXES - 90% of American taxpayers pay more in payroll taxes (that support Social Security, Medicare and unemployment benefits) than they pay in federal income tax (source: Peter G. Peterson Foundation).

THE REALLY RICH - The top 0.1% of US taxpayers (i.e., top 1 out of every 1,000 taxpayers) paid 18.5% of all federal income tax for the 2013 tax year (source: Internal Revenue Service).

NO WIGGLE ROOM TO SPARE - 46% of 5,700 Americans surveyed do not have $400 set aside in cash to cover an emergency expense and would have to sell an asset or borrow the $400 to cover the expense (source: Federal Reserve).

BUY A HOUSE - The average interest rate nationwide on a 30-year fixed rate mortgage is 3.60% today, just above the record low average of 3.31% set on 11/22/12 (source: Freddie Mac).


Kudos Corner - Celebrating gifts of all types and sizes

In this section I periodically highlight some recent gift expectancies and gift program elements I think will be helpful and informative, not all gifts are included. Stop back next month for a gift update.


James E. Connell and Associates is a national consulting service devoted

to increasing resources for charities using the power of charitable estate and gift planning techniques.

Pinehurst office: PO Box 3335, Pinehurst, NC 28374
Phone: 910-295-6800

Northeast office: 20982 Bayside Avenue, Rock Hall, MD 21661

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