Planned Giving

A Guide to Fundraisingand Philanthropy

Fourth Edition

RONALD R. JORDANKATELYN L. QUYNN

WILEYJohn Wiley & Sons, Inc.

Contents

Preface

Acknowledgments

XXVll

xxix

PART I PLANNED GIFTS

CHAPTER 1 What Is Planned Giving?

1.1 Getting Started1.2 Introduction1.3 Planned Giving from the Donor's Perspective1.4 Planned Giving from the Organization's Perspective1.5 Planned Giving from Management's Perspective1.6 A Focus on the Future1.7 Cost Benefit Analysis1.8 Planned Giving and Annual Giving: Partners1.9 Perspectives for Success: Leadership, Resources,

and Staffing1.10 Planned Gifts Now and in the Future1.11 The New Planned Giving Donor1.12 The Young Planned Giving Donor1.13 Planned Giving in a Development Office1.14 Conclusion

CHAPTER 2 Charitable Gift Annuities and Deferred Gift Annuities

2.1 Introduction2.2 Charitable Gift Annuities2.3 State Regulation of Gift Annuities2.4 Charitable Deferred Gift Annuities2.5 Marketing the Deferred Gift Annuity2.6 Administration

CHAPTER 3 Pooled Income Funds

3.1 Pooled Income Funds (PIFs)

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Vlll Contents

CHAPTER 4 Trusts

4.14.24.34.44.54.64.74.84.9

IntroductionParties to a TrustTransferring Title to the Trust CorpusTrust PowersRevocable Inter Vivos Trust (Living Trust)Irrevocable TrustsCharitable Remainder TrustsCharitable Lead TrustsTax Consequences

37

373738383941425153

CHAPTER 5 Endowed Funds 55

5.1 Introduction 555.2 Endowed Naming Opportunities 555.3 Creating an Endowed Fund 565.4 Umbrella Funds 575.5 Scholarship Funds 585.6 Funding Endowed Funds 595.7 Current-Use Awards 595.8 The Fund Description 595.9 The Mechanics of a Fund Description 625.10 Endowed Chairs 635.11 Benefits to the Holder of the Chair and the Charitable

Organization 645.12 Profile of a Donor Who Creates a Chair 645.13 Cost to the Donor 655.14 How Charities Invest Funds for Chairs 665.15 Working with Faculty/Staff to Create a Chair 665.16 Types of Chairs 665.17 Individual versus Multiple Donors to Fund a Chair 675.18 Ways to Fund a Chair 675.19 The Internal Process . 675.20 Drafting the Terms of the Chair 685.21 Recognition 69

CHAPTER 6 Bequests and The Bequest Society

6.1 Introduction6.2 The Will6.3 Suggested Language6.4 Standard Bequest Forms6.5 Legally Binding Documents for Bequests6.6 Targeting Donors for Bequests6.7 Marketing Bequests6.8 Crediting Bequests

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6.9 Recognition Events 786.10 Administering a Nonprofit Bequest Program 816.11 Guide to the Probate Process 826.12 The Planned Giving Office and Bequest Administration 856.13 Typical Problems Encountered with Bequests 916.14 Distribution within the Charity 956.15 Facilitating Bequest Administration: Working

with Donors Today 966.16 Conclusion 97

PART II ASSETS INVOLVED WITH PLANNED GIVING

CHAPTER 7 Gifts of Securities

7.1 Introduction7.2 Securities Held by the Donor's Stockbroker or Banker7.3 Securities Held in the Donor's Possession7.4 The Value of the Gift7.5 The Date of the Gift7.6 The Donor's Charitable Income Tax Deduction7.7 Gifts of Shares of a Mutual Fund7.8 Closely Held Stock

CHAPTER 8 Gifts of Real Estate

8.1 Introduction8.2 Elements Affecting Gifts of Real Estate8.3 Factors Affecting Value and Marketability of Real Estate8.4 Tax Consequences of Gifts of Real Estate8.5 Working Out the Arrangements8.6 Outright Gift of Entire Property or Fractional Interest8.7 Denial of Charitable Income Tax Deduction for a Gift

of a Use of Property8.8 Gifts of Real Estate with a Retained Life Estate8.9 Gifts of Real Estate to Charitable Remainder Trusts8.10 Gifts of Real Estate to Fund Charitable Gift Annuities8.11 Gifts of Real Estate to Pooled Income Funds8.12 Gifts of Mortgaged Property8.13 Gifts of Conservation Easements8.14 Benefits to Donors8.15 Partial Interest Rules8.16 Qualified Donee Organizations8.17 Conservation Purposes8.18 Qualified Real Property Interests8.19 Tax Consequences8.20 Valuation8.21 Conclusion

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119120124125127.127129131131131132133134135137

Contents

CHAPTER 9 Gifts of Tangible Personal Property 139

9.19.29.3

9.49.59.69.79.89.99.10

9.119.12

9.139.14

9.159.169.179.18

IntroductionOverviewGifts of Tangible Personal Property to PlannedGiving VehiclesSubstantiation RequirementsAppraisalsThe Gift Review CommitteeGifts of Major CollectionsIdentifying ProspectsDonor ConcernsNonprofit IssuesDepartmental AssistanceDeaccessioningEvaluating the GiftUnacceptable CollectionsThe Curation AgreementTax ConsiderationsLoaned CollectionsConclusion

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143144145145147148149150151151152152153156156156

CHAPTER 10 Gifts of Life Insurance 157

10.1 Introduction 15710.2 Definitions 15710.3 Life Insurance Agents and Planned Giving 15810.4 Ways to Use Life Insurance to Promote Major Gifts 15910.5 Policy Dividends 16010.6 Short-Term Endowment Policies 16010.7 Student Life Insurance Programs 16110.8 Insurance Used in Asset Replacement Trusts l 6 l10.9 Funding a Charitable Remainder Net Income

Unitrust/Flip Trust with Life Insurance 16210.10 Guidelines for the Planned Giving Officer 16310.11 Conclusion 164

CHAPTER 11 Retirement Planning and Planned Giving 165

11.1 Introduction 16511.2 Gifts of Retirement Plan Assets: IRA Charitable

Rollovers Extended 165

11.3 Tax Consequences of Charitable Gifts of RetirementAccounts at Death 166

11.4 Types of Retirement Plans 16711.5 Ways to Transfer Retirement Assets to a Nonprofit 16711.6 Summary 169

Contents XI

PART III PLANNED GIVING'S FINANCIAL IMPACT 171'

CHAPTER 12 The Tax Consequences ol Charitable Gifts

12.112.212.312.412.512.612.712.812.9

12.1012.1112.12

12.1312.1412.1512.1612.1712.18

12.1912.2012.2112.2212.2312.24

CHAPTER 13 Estate

13.113.213.313.413.513.613.7

13.813.913.1013.11

13.12

IntroductionIncome TaxesFair Market ValueThe Cost BasisDeductibility of Gifts of Tangible Personal PropertyAcceleration of DeductionDeduction Reduction ProvisionPledge and Promissory NoteDeductions and Recognition for Out-of-PocketExpenses and Gifts of ServicesThe Ordinary Income Reduction RuleIncome in Respect of a DecedentDeductibility of Charitable Contributions for BusinessOrganizationsDepreciationCapital Gains TaxesFederal Estate and Gift TaxesGift Tax Annual ExclusionPayments for Tuition and Medical BillsGifts by Husband and Wife—the UnlimitedMarital DeductionStreams of Income and Gift Tax ConsequencesSale of a Personal ResidenceGifts of Real Estate Subject to a MortgageTax Implications of a Bargain SalePartial InterestsConclusion

Planning and Planned Giving

IntroductionRelated DisciplinesIntestacyThe Will: A Road MapParts of a WillCoordinating Title to Property with the Estate PlanPlanning Considerations: Per Stirpes versusPer CapitaProbatePower of Attorney and Durable Power of AttorneyHealth Proxies and Living WillsTalking with a Prospect about Estate Planningand WealthConclusion

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CHAPTER 14 Financial Planning for the Development Professional

14.1 Introduction14.2 Achieving Financial Objectives through

Charitable Giving14.3 Risk-and-Reward Theory14.4 Evaluation of Investment Alternatives14.5 Cash Investments14.6 Stocks14.7 Income Investments14.8 Mutual Funds14.9 Real Estate14.10 Portfolio Management and Planning14.11 Conclusion

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PART IV PLANNED GIVING PROGRAMS ON LOCATION 217

CHAPTER 15 What Charities Can Learn about Fundraising and PlannedGiving from Other Charities 219

15.1 Introduction 21915.2 Faith-Based and Religious Organizations 22015.3 Hospitals and Healthcare Organizations 22115.4 Educational Institutions 22215.5 Political Fundraising 22315.6 Community and Civic Organizations 22415.7 Arts and Cultural Organizations/Aquariums and Zoos 22515.8 Single-Illness Organizations 22615.9 Social Service/Humanitarian Organizations 22615.10 Conclusion 227

CHAPTER 16 Planned Giving in a Small or One-Person Organization 229

16.1 Introduction 22916.2 Education 23016.3 Support Network and Administration 23116.4 Legal Issues • 23116.5 Use of a Consultant 23216.6 Management Plan 23216.7 Establishment of Gift Vehicles 23316.8 Marketing 23316.9 Identifying and Soliciting Planned Giving Prospects 23616.10 Stewardship 23616.11 Creating or Restructuring Financial Support Areas 23716.12 Software 23716.13 Gift Crediting 23816.14 Conclusion 238

Contents Xlll

CHAPTER 17 Planned Giving at Educational Institutions 239

17.1 Introduction 23917.2 Types of Educational Institutions 24017.3 Centralized and Decentralized Programs 24117.4 Alumni: Ownership Issues at Educational Institutions 24217.5 The Planned Giving Officer: Fundraiser or Consultant? 24217.6 Preventing Conflicts: Working with Development Staff 24317.7 Developing Internal Relationships 24417.8 Constituents 24517.9 Managing Constituents 24617.10 Planned Giving Program Activities 24717.11 Gift Opportunities 24817.12 Conclusion 249

CHAPTER 18 Planned Giving in Healthcare Organizations 251

18.1 Introduction 25118.2 The Hospital Environment 25118.3 The Players 25418.4 The Patients 25618.5 Staffing the Development Office 26018.6 Priorities and Expectations 26l18.7 .Grateful Patients 26318.8 Working the Gift through the Organization 26518.9 An In-Depth Look at Planned Giving in a Healthcare

Setting 26518.10 Soliciting Patients Who Are Donors 26518.11, Working with the Donor's Physician 26618.12 From the Donor's Perspective 26818.13 Working with a Patient's Outside Advisor

to Complete the Gift 26918.14 Working with a Relative or Guardian to Make a Gift 27018.15 Patients with Terminal Illnesses, Including AIDS 27018.16 Stewardship 27218.17 Conclusion 272

CHAPTER 19 Planned Giving in Large, Established Arts Organizations

191 Introduction19.2 Donor Profile19-3 Relationship Building19.4 Gifts-in-Kind19.5 Tax Deductibility19.6 Form 828319-7 Use of Planned Giving Vehicles19.8 Marketing19-9 Boards and Volunteers

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19-10 Special Challenges Unique to Arts Organizations19-11 Conclusion

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PART V MANAGING DONORS AND PROSPECTS 285

CHAPTER 20 The Planned Giving Prospect-

20.1 Introduction20.2 Motivations20.3 Profile of a Planned Giving Prospect20.4 Finding the Planned Giving Prospect20.5 Working with the Planned Giving Prospect20.6 Conclusion

CHAPTER 21 Refocusing on Philanthropy

21.1 Introduction21.2 Fundraising from the Nonprofit's Perspective:

Development, Advancement, or Philanthropy?21.3 Changing the Focus to Philanthropy21.4 Activating Donors21.5 Getting Started21.6 Strategies to Promote Philanthropy21.7 Opportunities for All Types of Charities21.8 Conclusion

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CHAPTER 22 Working with Donors

22.1 Introduction22.2 A Planned Giving Office as a Service Center22.3 Management22.4 Educating Donors

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CHAPTER 23 Women as Planned Giving Donors

23.1 Introduction23.2 Gender-Based Differences in Giving23.3 Women's Access to Wealth23.4 Financial Challenges for Women23.5 Types of Donors

. . 23.6 Motivations for Giving23.7 Gift Planning Implications23.8 Types of Planned Gifts to Consider for the

Female Donor23.9 Women and Children: Their Philanthropy23.10 Working with Advisors23.11 Conclusion

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Contents xv

CHAPTER 24 Family

24.124.224.324.424.524.624.7

24.8

24.924.10

Philanthropy: Issues and Solutions

IntroductionRole of the Planned Giving OfficerBefore Meeting with the DonorFamilies in Sync/HarmonyFamilies Out of Sync/HarmonyDonors without ChildrenPositive Outcomes for Children from FamilyPhilanthropyTools for Continuing and Maintaining FamilyPhilanthropyGift Options for Family PhilanthropyConclusion

CHAPTER 25 Solicitation Strategies

25.125.225.325.425.525.625.725.8"25.925.10

CHAPTER 26 When

26.126.226.326.426.526.626.7

IntroductionThe Planned Giving Officer's MindsetPreparationThe Planned Giving ParticipantsThe DonorTypes of SolicitationsThe Solicitation ProcessThe Size of the GiftNegotiationsFollow-up

to Walk Away

IntroductionTypes of Problematic Gift SituationsWarning SignsPotential RemediesKnowing When to Walk AwayKeeping the Door OpenConclusion

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. 356357358

CHAPTER 27 Fundraising Etiquette: Do's and Don'ts for Successful Businessand Social Interactions with Donors and Prospects

27.127.227.327.427.527.627.7

IntroductionWorking a RoomWhen It Is Time to Move OnTelephone EtiquetteE-Mail EtiquetteIssues/ComplaintsThe Difficult Donor

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XVI Contents

27.827.927.1027.1127.12

27.1327.14

27.1527.16

Donor VisitsRestaurant ProtocolOvernight Stays at Donor's HomeSocial InvitationsVisiting a Donor in the HospitalPlanned Giving Officer as a Third WheelFamily SquabblesIn SummaryConclusion

CHAPTER 28 Negotiating the Gift of a Lifetime

28.128.2

28.328.4

28.528.628.728.8

28.928.1028.1128.12

28.1328.14

28.15

IntroductionDefinitionMarketingPreparationCapacityQualifying ProspectsPropensityTriggersWorking the Gift Through the Nonprofit OrganizationDealing with the DonorCharitable Giving and Family DynamicsDealing with a Donor's Advisors and FamilyFundingTerms of the GiftConclusion

CHAPTER 29 Donor's Remorse

29.129.2

29.329.4

29.529.629.7

IntroductionWhat Is Donor's Remorse?Causes of Donor's RemorsePreventing Donor's RemorseThe Charity's ResponseLegal ConsiderationsConclusion

CHAPTER 30 Combating Donor Fatigue and Overcoming OrganizationalComplacency

30.130.2

30.330.4

30.530.6

IntroductionRecognizing the SymptomsDonor DisconnectsFixing the ProblemTreating the SymptomsMake the Charity Stand Out/Distinguish the Charityfrom Others

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Contents xvii

30.7 The Role of Planned Giving30.8 Conclusion

399400

PART VI MANAGING A PLANNED GIVING PROGRAM 403

CHAPTER 31 Inside the Development Office 405

31.131.231.331.431.531.631.731.831.931.1031.1131.12

IntroductionAnnual GivingMajor GiftsFoundations and CorporationsStewardshipProspect ManagementInformation Systems and Computer OperationsGift Reporting and ProcessingResearchCommunications and Public AffairsAlumni RelationsConclusion

An Operational Plan for a Planned Giving Program

32.132.232.332.432.532.6

32.7

32.8

32.9

32.1032.1132.1232.13

IntroductionPerspectivePurpose of the Planned Giving ProgramGoals of the ProgramDonor ContactIdentify New Prospects and Solicit Existing PlannedGiving ProspectsEstablish a Strong Marketing Communications Effort toPromote Planned GiftsRaise the Visibility of the Planned Giving ProgramInternally and ExternallyRestructure Support Areas to Provide Services for thePlanned Giving ProgramInventory Existing Planned Giving TotalsPlanned Giving DatabasePlanned Giving BudgetConclusion

405405409409410410411411411411412412

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CHAPTER 33 Working as a Successful Planned Giving Officer to RaiseCharitable Funds 423

33-1 Introduction 42333.2 Types of Roles for the Planned Giving Officer 42333-3 Attributes of a Successful Planned Giving Officer 42433.4 Top-10 List for Closing Large Planned Gifts: How to

Work with Planned Giving Donors 42533.5 Conclusion 428

XV111 Contents

CHAPTER 34 Planned Giving and Major Gifts

34.1 Introduction34.2 Definition34.3 Planned Giving and Major Gift Profiles34.4 Identifying Major Gift and Planned Giving Prospects34.5 Mobilizing the Nonprofit Organization to Produce

Planned and Major Gifts

CHAPTER 35 Hiring Staff

35.1 Introduction35.2 The Changing Marketplace35.3 Attributes of Successful Planned Giving Professionals35.4 The Process of Hiring a Planned Giving Officer35.5 The Planned Giving Assistant

CHAPTER 36 Increased Management Responsibilities in the DevelopmentOffice

36.1 Introduction36.2 New Skills, Abilities, and Thought Processes36.3 Is the New Position a Good Match?36.4 Advance Preparation36.5 Transferable Skills: Motivation, Team Building, and

Stewardship36.6 Working with a Management Consultant36.7 Establish Mutual Expectations with the Consultant36.8 Conclusion

CHAPTER 37 Managing Time in Planned Giving

37.1 Introduction37.2 Getting Organized37.3 Control the Office Environment37.4 Meetings37.5 Travel Time37.6 Working at Home37.7 Technology37.8 General Tips for Saving Time37.9 Conclusion

CHAPTER 38 Leadership and Management for a Development Team

38.1 Introduction38.2 Characteristics of Successful Leaders and Managers38.3 Leadership in a Development Office38.4 Leadership Rules to Live By38.5 Tools to Help Manage38.6 Educational Methods for Becoming a Better Manager38.7 Conclusion

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Contents xix

PART VII MANAGING OUTSIDE THE OFFICE 483

CHAPTER 39 Mobilizing the Nonprofit's Leadership

39-1 Introduction39-2 Vice President for Development39.3 President or Chief Executive Officer of the

Organization39.4 Role of the Board of Trustees39-5 Development Staff39-6 Volunteers39-7 Volunteer Fundraisers: Doctors and Deans39-8 Supporting Offices within the Organization39-9 Planned Giving Training Program39.10 Conclusion

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CHAPTER 40 Creating a Volunteer Society for a Development and PlannedGiving Program 497

40.1 Introduction 49740.2 Rationale for Creation of a President's Society 49840.3 Defining the President's Society ' 49940.4 Benefits of Creating a Volunteer Society 50040.5 Goals ' 50140.6 Modeling the Organization 50240.7 The Chairperson 50340.8 Profile of the Society 50540.9 The Recruitment Process ' 50540.10 Subcommittees 50640.11 Creating a President's Society Fund 50740.12 Role of the Chief Development Officer 50840.13 Timeline for Creation 50940.14 Challenges . 50940.15 Conclusion 511

CHAPTER 41 Working with Nondevelopment Staff

41.1 Introduction41.2 Putting Development into Context for

Nondevelopment Staff41.3 Collaborative Efforts41.4 Development Communications41.5 Evaluation and Assessment41.6 Identification of Development Constituents41.7 Cultivation of Constituents41.8 The Solicitation41.9 Raising Funds from Individuals41.10 Raising Donors' Sights41.11 After the Gift—Stewardship

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41.12 Dealing with the Downside41.13 Conclusion

526527

PART VIII EVALUATING PERFORMANCE

CHAPTER 42 Evaluating a Planned Giving Program

42.1 Introduction42.2 Analyze and Assess42.3 Take Inventory42.4 Establishing Programmatic Goals42.5 Identifying Planned Giving Donors and Prospects42.6 Administration42.7 Evaluation of Staff Functions42.8 Marketing42.9 Staffing42.10 Technology42.11 Budget/Education42.12 Policies/Procedures42.13 Stewardship42.14 Outside Support

CHAPTER 43 Measuring Performance for Planned and Major Gift Staff

43.1 Introduction43.2 Reaching Goals and Objectives43.3 Moves Management43.4 Other Moves Related to Securing the Gift43.5 Additional Ways to Reach Goals and Objectives

Exclusively for Planned Giving Officers43.6 Team Consideration43.7 Frequency of Accountability and Tracking Prospects

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PART K MARKETING 555

CHAPTER 44 Drafting Planned Giving Documents

44.1 Introduction44.2 Types of Documents44.3 Communicate a Message for a Purpose44.4 Know the Audience and Be Responsive to It44.5 Use Outlining44.6 Develop a First Draft44.7 Bring Others into the Process44.8 Manage Documents to Meet Deadlines44.9 Design an Effective Document44.10 Take Advantage of Desktop Publishing

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Contents xxi

44.11 Use Language Correctly and Effectively44.12 Recipe for a Document44.13 Conclusion

CHAPTER 45 Printed Materials and Publications for Donors and Prospects

45.1 Introduction45.2 Marketing Fundamentals45.3 The Case Statement45.4 Guide to Charitable Gift Planning45-5 Response Form45.6 Newsletters45.7 Columns in Nonprofit Publications45.8 Planned Giving Advertisements45.9 Buckslips45.10 Testimonial Advertisements45.11 Letters45.12 Pieces in Local Newspapers45.13 Conclusion

CHAPTER 46 Marketing the Noneconomic Benefits of Philanthropy

46.1 Introduction46.2 The Changing Financial and Tax Climates46.3 Noneconomic Benefits46.4 Articulating the Noneconomic Benefits46.5 Enrichment Brochure46.6 Enrichment Programs46.7 Enrichment. Brochure Illustrations46.8 Disseminating Enrichment Brochures46.9 Conclusion

CHAPTER 47 Making Planned Giving Presentations

47.1 Presentations

CHAPTER 48 Marketing Planned Giving to Professional Advisors

48.1 Introduction48.2 Ways to Begin48.3 Planned Giving Presentations for Outside Audiences48.4 Mailings to Professional Advisors48.5 Publication in a Trade Paper48.6 Technical Outreach Program48.7 Nontechnical Outreach Program48.8 Ambassador Program48.9 Planned Giving Manual48.10 The Professional Advisory Committee48.11 Establishing a Professional Advisory Committee48.12 Purpose of the Committee

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48.13 What to Expect48.14 Conclusion

610610

PART X POLICIES AND PROCEDURES 613

CHAPTER 49

CHAPTER 50

CHAPTER 51

CHAPTER 52

Gift Acceptance Policies

49.149.249.349.449.549.649.749.849.949.1049.11

IntroductionCashSecuritiesLife Income GiftsBequestsGifts of Tangible Personal PropertyGifts of Real EstateLife InsuranceNaming OpportunitiesAdministrative IssuesEthics

Nonprofit Organizations: Development Practices and Problems

50.150.250.350.450.550.650.750.850.950.1050.1150.12

IntroductionSymptoms of DisinterestIncident ReportAcknowledgmentsAccounting/Payments to Donor/BeneficiaryInclusion in Charity EventsDonor-Initiated ProposalsGift AgreementsProspect Control/Prospect ManagementStewardshipInsulation and IsolationConclusion

Policies and Procedures for Naming Opportunities

51.151.251.351.451.551.6

Nonpr

IntroductionPolices and ProceduresNaming CommitteePricing Naming OpportunitiesBackground CheckConclusion

ofit Investment Policies and Procedures

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653

52.1 Introduction: Nonprofit Investment in Context for

52.2Planned Giving OfficersNonprofit Investment Issues

653655

Contents XXlll

52.3 Endowment Management 65852.4 Investment Strategies 66252.5 Portfolios for Planned Giving Options 66952.6 Donor Relations 67552.7 Investment Guidelines 68052.8 Conclusion 681

CHAPTER 53 Raising the Bar: Increasing Endowed Fund Minimums 683

53.1 Introduction 683532 Assessing the Charity's Current Minimums

for Endowed Funds 685533 Pegging the Minimum Based on a Good or

Service/Formulaic Approaches 68553-4 Setting Realistic Minimums 68653-5 Escalator Provisions 68853.6 Selling the Concept 68953.7 Political Fallout—Impact on Prior Gift Agreements

and Prior Relationships 68953-8 Conclusion 690

PART XI PLANNED GIVING IN CONTEXT 693

CHAPTER 54 Ethics and Planned Giving 695

54.1 Introduction 69554.2 ! Donor Rights and Nonprofit Responsibilities 69554.3 , Truth in Philanthropy 69654.4'' Donor Rights 69654.5 Nonprofit Responsibilities 70054.6 Donor's Representatives 70254.7 Payment of Professional Advisors' and Lawyers' Fees 70354.8 Prior Existing Agreements 70454.9 Fiduciary Role of the Nonprofit 70454.10 Ethics in Marketing 70554.11 Planned Giving Officer as Salesperson 70554.12 Ethical Dilemmas in Relation to Other

Development Officers 70654.13 Model Standards of Practice for the Charitable

Gift Planner 70654.14 Conclusion 708

CHAPTER 55 Planned Giving and Capital Campaigns

551 Introduction552 Campaign Counsel55.3 Advantages of Entering a Major Campaign

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XXIV Contents

55.4

55.555.655.755.8

55.955.1055.11

Disadvantages of Entering a CampaignTypes of Capital CampaignsThe Nucleus FundTypes of Campaign GiftsPlanned Giving TrainingProfessional AdvisorsPlanned Giving and the Case StatementConclusion

CHAPTER 56 Stewardship and Planned Gifts

56.156.2

56.356.456.556.6

56.756.8

IntroductionCreate a Stewardship PlanGift AcknowledgmentGift AdministrationDonor RecognitionContinued Cultivation and Solicitation forAdditional GiftsEndowed FundsConclusion

CHAPTER 57 Institutionally Related Foundations

57.157.257.357.457.557.657.757.857.9

IntroductionBenefits of Institutionally Related FoundationsConsiderations in Establishing a FoundationThe Charity and the FoundationThe Foundation's Organizational FrameworkCommittees and Their FunctionsFundraisingManaging and Investing AssetsConclusion

CHAPTER 58 Outside Asset Managers: Policies and Procedures

58.158.258.3

58.458.5

58.658.758.858.958.1058.11

IntroductionWhen to Hire an Outside Asset ManagerWhat the Asset Manager Can Bring to the PlannedGiving ProgramSelecting the Asset ManagerFrom the Asset Manager: What the Planned GivingProgram Wants and NeedsResponsibilities of the Outside Asset ManagerConversion from In-House to Outside ManagerThe Nonprofit and Outside Manager RelationshipRecurring IssuesEvaluating the RelationshipConclusion

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CHAPTER 59 Funding the Cost of Charity

59.1 Introduction59-2 Impact on the Charity59.3 Impact on Development Staff59.4 Impact on the Donor Base59.5 Donors Likely to Sympathize with Charity's Predicament59-6 Insiders59-7 Increasing the Management Fee on Endowed Funds59.8 Surcharges59-9 Traditional Giving Patterns5910 Restricted Gifts, Planned Gifts, and Life Income Gifts59.11 Implications on Minimum Gift Thresholds59-12 Implications on Planned Gift Options59-13 Campaign Gifts and Surcharges59.14 Disclosure59-15 Making the Case59-16 Conclusion

APPENDIX

Index

CD-ROM Documentation

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