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October 2017 Newsletter

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Planned Giving Mentor

S. Renee Brida, JD Senior Associate and Attorney

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


Quote for the day: When considering leaving a bequest the most important question donors ask is "What charity is part of my life story." Professor Russell James

Quickie quiz:.... What percent of the USA 326 million citizens are on Medicare? 6%, 12%, 17%, 22% or 28%? (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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Blended gift case study.....$100 grows to $1,000,000. The search for legacy gifts is all about relationships and understanding the needs of donors. Fred was your typical investor/donor. Those individuals who make gift decisions based on the personal financial impact of their philanthropy. His first gift was a $100 memorial, but many years later it blossomed into a $1,000,000 bequest and a major naming opportunity.

READ MORE about the role of gift annuities in cementing Fred’s long term relationship with Chapters Health.


Marketing Idea #1...."IRA Charitable Rollover" promotional wording. It is not to early to begin planting the seeds on the smart giving strategy under the new ”Tax Cuts and Jobs Act,” the Qualified Charitable Distribution (QCD).

Under the new tax law, those taking Required Mimimum Distributions (RMDs) get a tax break even without itemizing by giving to charity. 2018 marks the beginning of a new era in tax planning. Changes in the law mean it’s less likely donors will itemize their deductions. It means rethinking donor strategy as it relates to minimizing their tax bill.

I am seriously considering using the QCD for all my 2018 gifts. This strategy will allow me to take maximum advantage of my increased standard deduction ($25,300). Remember, the standard deduction amount changes depending on the filer’s status, and changes when one or both filer’s are over 65.

Download your complementary copy of "Smart Donations Using your IRA" an easily personalized two-page WORD flyer done for the Hospice of Marion County, Florida.


Marketing Idea #2....Consider CGA reinsurance.....Each time you issue an gift annuity you should evaluate the option of gift annuity reinsurance. While reinsurance will depend on many factors with increasing life expectancy it is becoming a heightened concern for many charities, especially charities who set their immediate CGA policies with a 60 year minimum age for single life agreements.



Here is how CGA reinsurance might work. Based on CGA rates in effect at the time of newsletter.

68 year-old single life female annuitant

Reinsurance quotes - 20 company survey
Gift amount
$35,000 cash
Single premium immediate annuity
Payment rate
Immediate charity use/benefit
Payment amount quarterly
Payment amount annually
Compounted growth of $8,343
Tax free amount
67% till 2034
4% - 16 years LE
Life expectancy - CGA tables
16.0 years
4% - 22.90 years LE*
Charitable deduction


7% - 16 years LE
ACGA expected residuum
7% - 22.90 years LE*
*new Individual Annuity Reserve table which project longer life expectancy

Therefore, if you can be guaranteed a generous return over time with no longevity or investment risk it may be wise to consider CGA reinsurance in select situations.

CONTACT ME for referrals to quality reinsurance resources.


Characteristics of planned gift donors (courtesy of Jerold Panas, Linzy and Partners).....This blog post crossed my desk recently and it is a good summary of where to look for your planned gift prospects.

Here are some characteristics of those who are most likely to think of you in their estate plans.

1. Length of giving to your organization (5 or more years of regular giving)
2. Giving to you over a long period of time (Giving may not be year after year— but gifts have been made over a long, extended period of time). Expect more of this with the new tax law.
3. Frequency of giving (monthly credit card donors, or those who give more than once a year)
4. Is an active volunteer (At one time or now a board member, or a volunteer in some manner)
5. The Family has been involved in some way in the organization (Best if there is a long-time association)
6. Few family obligations (children and grandchildren are appropriately taken care of, no mortgage, no indebtedness)
7. Securely retired (feeling comfortable and confident about future financial situation)
8. No heirs
9. Been kept informed (have been on your mailing or in contact over a period of time)
10. Have been called on regarding Planned Gifts and bequests. Has requested information on making a Planned Gift
11. Sixty-five years of age and over
12. Has an interest in an organization similar to yours (similar mission, service, values)
13. Recognized by your organizations (has received special recognition for volunteer service or past giving)

Keep in mind. It is not high net worth men and women who are necessarily your most likely best prospects. They may be. But pay equal attention to all those who have 7 or more of the characteristics.


Gift Annuity Rate Update and Laminated Gift Annuity Rate Charts.....If you would like a laminated rate chart for the most recent ACGA 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.


Are advisors up to task of legacy building?.....Dave Grant, a financial planning columnist and founder of Retirement Matters recently penned a column that hit home for me. Dave relates working with a couple on legacy planning and was supervised at their answer to three important questions about their mortality. Read this with thoughtful reflection on the conversations you have with prospects, and the roadblocks they may have determining where their life's work will be going. (READ MORE)


Quiz Answer....The 57 million Americans on Medicare (17% of our 326 million citizens) account for 29% of our total national spending on prescription drugs (source: Medicare).


News and Notes....

GREEN ACRES - The average “farm real estate value” is $3,080 an acre in 2017, including land and buildings, an increase of +4.4% per year over the last 10 years (source: Department of Agriculture). Don't overlook real estate assets.

IS A MILLION ENOUGH?- An individual with $1 million invested 100% in the S&P 500 as of 1/01/73 withdrawing an inflation-adjusted $100,000 per year would be out of money in 9 years. A second individual with $1 million invested in the S&P 500 as of 1/01/82 withdrawing an inflation-adjusted $100,000 per year would have $4.46 million remaining after 35 years, i.e., as of 12/31/16. This calculation ignores the ultimate impact of taxes on the account which are due upon withdrawal, is for illustrative purposes only and is not intended to reflect any specific investment or performance. Actual results will fluctuate with market conditions and will vary (source: BTN Research).

DOLLAR CUT-OFFS - For tax year 2015 (the latest year that tax data has been released), it took $480,930 of adjusted gross income (AGI) to rank in the top 1% of taxpayers, $195,778 of AGI to rank in the top 5%, $138,031 of AGI to rank in the top 10%, and $79,655 of AGI to rank in the top 25% (source: Internal Revenue Service).

TOP FIVE AND THE REST - The top 5% of US taxpayers (based upon adjusted gross income) paid more federal income tax ($866 billion) during tax year 2015 (the latest year that tax information has been released) than the federal income tax paid ($588 billion) by the bottom 95% of taxpayers. 141 million tax returns were filed for tax year 2015 (source: Internal Revenue Service).

RETIRE HERE - Social Security benefits are taxed by just 13 US states, i.e., 37 states do not count monthly Social Security benefits as taxable income at the state level (source: Internal Revenue Service).

STARTING DATE - 48% of women and 42% of men begin taking their monthly Social Security retirement benefits at age 62, the earliest age possible. Just 4% of women and just 2% of men delay taking their Social Security retirement benefits at age 70 or later (source: Social Security Administration).

TOP TEN - The top 10% of US taxpayers (based upon 2015 tax data) reported adjusted gross income (AGI) of at least $138,031, received 47% of all AGI and paid 71% of all federal income taxes for the year (source: IRS).

REALLY RICH - When measured in November 2017, the 3 wealthiest Americans (Bill Gates, Jeff Bezos and Warrant Buffett) were worth $249 billion, more than the combined net worth of the bottom half of the US population, i.e., 160 million Americans (source: The Guardian).


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.

(Check back next issue for list of achievements)



James E. Connell and Associates is a national consulting service which has been devoted to increasing

resources for charities using the power of charitable estate and gift planning techniques for over 40 years.

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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