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January2019 Newsletter

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Planned Giving Mentor

Wayne Olson, JD Consulting Associate (Eastern Division)

S. Renee Brida, JD Senior Associate and Lawyer (Western Division)

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


Quote for the day: What is a legacy? It's planning seeds in a garden you never get to see....Lin- Manuel Miranda from Hamilton "The world was wide enough"

Quickie quiz:.........How many US states have no income tax? 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

To subscribe to this newsletter E-mail and put Subscribe in the subject line


Behavioral Science Principles to Improve Your Fundraising.....Understand the psychology of donor-decision making is important. You can gain deeper insights into your prospects and connect with them in a more effective way. has determined the best way to deliver your fundraising message with an increased return on investment.

Description: People often make decisions on a subconscious level, before they even think about it. These mental shortcuts are often used by people when they are deciding to donate. Nonprofit organizations can tap into these mental shortcuts — but only if they know about them…and how to apply them. The Fundraising Action Pack makes behavioral science easy to understand and apply. 50 actionable cards that will help you:

  • Understand how nonprofit organizations apply behavioral science to fundraising
  • Reflect on your previous business decisions and your target audience
  • Apply psychology to your fundraising campaigns
  • Show how the most persuasive thing we could do is showing other people are doing it also

Note: This is an early first version of the cards with limited quantities available. Take advantage of the discounted version 1 pricing before all the decks are gone.


Copyright © 2019 Barbera Solutions, All rights reserved.
Mailing address is: Barbera Solutions, PO Box 3819, Pinehurst, North Carolina 28374


7 Charitable Strategies to Decrease Taxes and Increase Income.....Is the title of my new educational seminar for prospects and financial advisors. Plan ahead to prepare your prospects for the effect of the 2018 tax laws changes. The seminar covers the recent tax law changes that effect charitable giving, the stages of income and estate planning, reviews good and bad gift assets, and provides 10 examples of gift techniques to increase income and decrease taxes. PowerPoint presentation covered in 49 slides.

The seminar should be scheduled for 1.5 hours to allow sufficient time for discussion and questions.

The cost is $2,500 per presentation day plus a maximum of $500 in travel costs. Individual consultations with prospects may be arranged to follow the presentation or you may secure another consulting day at an additional cost.

To reserve a spring, summer or fall date for this seminar simply send me an E-Mail.


Will or Revocable Living Trust things to consider....Development and planned giving staff frequetly are asked basic questions about estate planning. Many about the structure of charitable gifts and bequests in wills and/or revocable trusts. The question I get often is: "Should I include my bequest in a will or my living trust. My most common answer is "It depends." There may be other alternatives.

Read more here


Marketing Idea #1....Jump start your your IRA rollover promotions? Most fundraisers are aware of the special giving opportunity available to those age 70 1/2 or older. You get a new prospect pool each year as over 10,000 individuals each month become eligible to complete this tax-free gift.

Important: a donor can not make a Qualified Charitable Distribution (QCD) until they are officially age 70 1/2 during the year, otherwise the IRA rollover will be disallowed and taxable.

Duke University started their 2019 IRA rollover promotion in February with a postcard.

See the full postcard here_ ____________________________________________________________________________________________________________

Marketing Idea #2......Personalize your PG newsletter to fit your mission.....There are countless sources of canned publications available to send to your prospects. Avoid them. Take the time to personalize your PG newsletter, postcards and proposals to fit your mission. It is more powerful to tell your story around samples of how to make a legacy commitment.

Two examples of power approaches are the newsletters of MD Anderson for health related missions and North Carolina Symphony for arts related missions.

Don't be afraid of repeating you legacy messages from the newsletter which may be used in other material (see IRA message p.4 of the NC Symphony newsletter). Multiple messages get attention when your prospects are tuned into your mission message.


Create a Virtual Planned Giving Office for less than $10 per day.....Our basic Telephone Lite service provides an Economical service with less Risk and greater Technical expertise from our team's decades of experience identifying, planning, solicitation and completing planned gift agreements.

  • Outsourcing expertly handles the technical side of planning giving while the development staff can concentrate on building donor relationships
  • There is no software to purchase
  • Two hours of telephone support per month
  • Board and volunteer support
  • Uncover your best bequest prospects
  • No risk gift annuity program using gift annuity reinsurance strategies
  • Bequest society brochure and promotional samples
  • IRA rollover gift promotion samples
  • Master marketing pan for first two years
  • Optional donor visit solicitation activities and support at additional discounted on-site support fees
  • Six month minimum engagement at $1,800 payable in advance

Download Virtual Flyer here - Download "What a planned giving consultant can do for you" here


Finding planned gift donors. A Primer - Part 3....

Why would a donor choose a bequest arrangement over a life income agreement which may increase their income and decrease their taxes?

Among the several reasons are the following: ARTICLE CONTINUED


Advisor's guide to donating illiquid assets from Schwab charitable.....Not all gifts are cash, stock, bonds or mutual funds. In fact statistics indicate the bulk of individuals net worth is held in real estate, partnerships, corporations and other illiquid assets.

Schwab's 16 page guide discusses in detail how to evaluate, apprise and structure outright and life income arrangements of illiquid assets. For contributions to the Schwab Donor Advised Fund the assets will be considered on a case by case basis and must be valued at $250,000 or more. This guide is a good resource for your planned giving library.

NOTE: the guide was produced before the new 2018 tax law as it still contains the 50% limit on cash gifts and the lower estate tax exemptions.

Download guide HERE


Gift annuity rate update and laminated gift annuity rate charts.....If you would like a laminated rate chart for the most recent ACGA July 1,2018 rates simply request one using the following E-mail request and put Laminated Rate Chart in the subject line and be sure your signature line has your full address. As of this writing the rates have been announced and the charts will be mailed for use beginning July, 2018.

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.


Rich clients (or your donors) fleeing high-tax states? Saying goodbye isn't so easy....Donors asking about the new tax law effecting their deductions for charitable gifts and state and local taxes (SALT) may be considering fleeing to tax-friendly states like Texas and Florida. By setting a $10,000 cap on SALT how much Americans can deduct in state and local taxes, Washington created a pricey problem for the privileged in some parts of the USA.

The tax courts are taking a hard look and require significant proof that they pass the "Teddy Bear" test,"where you keep the items that are near and dear to you."

Learn how a Kansas resident received a $42.5 million tax bill.

Reprint of article


Quiz Answer....The following 7 states have no income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.


News and Notes....

The Tax Foundation estimates 10% of all taxpayers will be itemizing their deductions in the 2018 tax year (30% itemized in the 2017 tax year).

THE RICHEST FIVE PERCENT - The top 5% of US taxpayers in tax year 2016 (the latest year for which tax data has been released) made at least $197,651 of adjusted gross income (AGI), received 35% of all AGI nationwide and paid 58% of all the federal income tax paid by Americans (source: Internal Revenue Service).

TOP AND BOTTOM - In tax year 2016, the top 10% of taxpayers, i.e., the top 14.1 million tax returns ranked by adjusted gross income (AGI), paid 69% of the total $1.44 trillion paid in federal income taxes by all US taxpayers. The bottom 75% of taxpayers, the bottom 105.7 million returns ranked by AGI, paid 14% of the total $1.44 trillion paid in federal income taxes (source: Internal Revenue Service).

EVERY DAY - An estimated 10,400 Americans will turn 65 years old each day this year (2019). This group represents the 9th year of 19 years of “Baby Boomers” turning age 65. An estimated 11,500 Americans will turn 65 years old each day in the year 2029 (source: Government Accountability Office).

LUCKY – A person 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, i.e., as of 12/31/81. A person with $1 million invested in the S&P 500 as of 1/01/82 withdrawing an inflation-adjusted $100,000 per year would have $4.59 million remaining after 37 years, i.e., as of 12/31/18. 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).

TOP SHELF - To rank in the top 0.1% of US taxpayers in tax year 2016, i.e., top 1 out of 1,000 taxpayers, required an adjusted gross income of $2,124,117 (source: Internal Revenue Service).

NO WORK - 37% of retired Americans report they retired earlier than planned as a result of health problems, buyout packages, layoffs, grandchildren, or caring for an aging parent (source: Health and Retirement Study).

OWNERS AND RENTERS - The 110.7 million households that existed in the United States on 12/31/08 were split 68/32 between 74.7 million owners and 36.0 million renters. The 122.5 million households in the United States on 12/31/18 were split 65/35 between 79.4 million owners and 43.1 million renters (source: Census Bureau).

CONCENTRATED IN A FEW - The wealthiest 10% of the 122 million households nationwide own an estimated 84% of all domestic stock values (source: National Bureau of Economic Research).


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.

Sharon Jones FAHP, Vice President Development, Haven Hospice, Gainsville, FL received a beneficiary designation of a revocable living trust from a decease 91 year old donor in the amount of $2,035,483. The trust benefits two living individuals and upon their death 100% of the residuum will benefit multiple hospice programs.



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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