CFRE Exam Prep
Uses for Planned Gifts -
operations, capital improvements, endowments, mission furthering projects
Benefits of Planned Gifts -
allows the donor a tax deduction, minimizes capital gains taxes, reduces estate taxes, or
provides donors with annual incomes.
Other facts about planned giving -
used in the future, in some form other than cash, not an annual gift=not repeatable,
relatively large for the organization and the donor.
Where do planned gifts typically come from? -
donor's assets and not current income
What is the process of soliciting planned gifts -
working with donors and their advisors until the planned gifts are defined, understood and
realized. Donors and their financial advisors, the organization planned giving staff member.
Acquiring New Donors -
Identify loyal donors who have been giving for a long time or make small, recurring gifts.
Reach out to them through writing articles in organization's newsletter (gift planning subjects I.e.
writing a will. Also you can send letters with information about estate planning to targeted
donors.
Easiest form form of planned giving -
Bequests and Wills
Definition of a Bequest -
is a way for an individual to transfer ownership of a specific asset to another person or
charitable organization upon death. The will is the document through which the transfer is
accomplished.
*Requires minimum start-up funds.
Outright gift of appreciated stocks or bonds -
the donor saves taxes three ways 1. through charitable deduction. 2. avoidance of capital
gains tax 3. and reduction of real estate tax
Life Income Gifts -
funded through appreciated stock, bonds or real estate. Saves taxes and also allows donor
to receive an income for their life time
Should everyone have a will? -
