© Ashton Associates 2012 Creating a Bequest Program in 60 Days By Debra Ashton May 10, 2012

© Ashton Associates 2012

Creating a Bequest ProgramCreating a Bequest Programin 60 Daysin 60 Days

By Debra AshtonBy Debra Ashton

May 10, 2012May 10, 2012


Categories for Estate GiftsCategories for Estate Gifts

Bequests from traditional willsBequests from traditional wills Provisions in Living TrustsProvisions in Living Trusts Life InsuranceLife Insurance Retirement Plans (Beneficiary Retirement Plans (Beneficiary

Designation)Designation)


Determine Crediting GuidelinesDetermine Crediting Guidelines

Will bequests be credited in a campaign?Will bequests be credited in a campaign? If so, under what conditions?If so, under what conditions? How will they be booked on your gift How will they be booked on your gift

recording system?recording system? What are your rules for named endowed What are your rules for named endowed

funds set up through a bequest?funds set up through a bequest?


Prepare a one-page summary of Prepare a one-page summary of bequest wordingbequest wording

Make a list of people who have an Make a list of people who have an estate gift (revocable)estate gift (revocable)

Select a name for your societySelect a name for your society Have the name approved by Board of Have the name approved by Board of

TrusteesTrustees


Sample Bequest WordingSample Bequest Wording

““I give and bequeath to [legal name I give and bequeath to [legal name of charity], whose legal address is of charity], whose legal address is [address], the sum of $___________ [address], the sum of $___________ (or, ____% of my residuary estate) (or, ____% of my residuary estate) for such purposes as [charity] shall for such purposes as [charity] shall determine are in the best interests of determine are in the best interests of [charity].”[charity].”

Board of Trustees ResolutionBoard of Trustees Resolution

RESOLVED:RESOLVED:

Whereas (Charity) wishes to recognize and Whereas (Charity) wishes to recognize and honor those supporters who have honor those supporters who have established an estate gift that will one day established an estate gift that will one day support (Charity), we hereby create the support (Charity), we hereby create the “_____ Society” in special appreciation of “_____ Society” in special appreciation of their foresight and generosity.their foresight and generosity.



Develop a List of IncentivesDevelop a List of Incentives

Annual luncheon or dinnerAnnual luncheon or dinner Recognition certificateRecognition certificate Recognition itemRecognition item Listing in Annual ReportListing in Annual Report Special invitation to other donor Special invitation to other donor

eventsevents


Write to Founding MembersWrite to Founding Members

Who signs the letter?Who signs the letter?

Chair of Bequest SocietyChair of Bequest Society Chairman of the BoardChairman of the Board PresidentPresident Head of the Development CommitteeHead of the Development Committee OtherOther


Announce the new Society in your Announce the new Society in your next newsletter or publicationnext newsletter or publication

Place check-off blocks on reply cards Place check-off blocks on reply cards (annual giving, pledge forms, etc.)(annual giving, pledge forms, etc.)

Identify a target market for a bequest Identify a target market for a bequest mailingmailing

Plan the inaugural luncheon or dinnerPlan the inaugural luncheon or dinner Establish a Bequest CommitteeEstablish a Bequest Committee


Targeting your PopulationTargeting your Population% People with% People with % People without% People without

% People with% People with wills; open towills; open to wills; open towills; open to

% U.S.% U.S. bequest tobequest to making a futuremaking a future making a futuremaking a future

AgeAge PopulationPopulation charity in placecharity in place bequest to charitybequest to charity bequest to charitybequest to charity

____________________________________________________________________________________________________________________________________________________

40-5440-54 3737 3232 3838 6565

55-6455-64 2828 2828 2525 2424

65 and over65 and over 3535 4040 3737 1111

Source: 2008 Survey by Selzer & Company, Inc. commissioned by StelterSource: 2008 Survey by Selzer & Company, Inc. commissioned by Stelter


Using Bequest AgentsUsing Bequest Agents

Peer solicitation is always betterPeer solicitation is always better Recruit a Chair of the Bequest Recruit a Chair of the Bequest

CommitteeCommittee Identify Board Members who have a Identify Board Members who have a

bequestbequest Send recruitment letter from Bequest Send recruitment letter from Bequest

Chair to potential Bequest AgentsChair to potential Bequest Agents


Responsibility of Bequest AgentsResponsibility of Bequest Agents

Must have a bequest or other estate Must have a bequest or other estate giftgift

Agree to lend signature to one letter Agree to lend signature to one letter per yearper year

Allow an article to be written about Allow an article to be written about their bequesttheir bequest



Draft a letter for signature by the Draft a letter for signature by the Bequest AgentsBequest Agents

Bequest Agents approve letter or adapt Bequest Agents approve letter or adapt it to their own styleit to their own style

Charity produces and mails lettersCharity produces and mails letters Send thank-you letters from Bequest Send thank-you letters from Bequest

Agents to people who replyAgents to people who reply



Terms for volunteersTerms for volunteers

Bequest Chair:Bequest Chair: two to three two to three yearsyears

Bequest Agent:Bequest Agent: indefiniteindefinite


Stewardship and MarketingStewardship and Marketing

75% of people with a charitable 75% of people with a charitable bequest never tell the charity.bequest never tell the charity.

Some people do not want to be Some people do not want to be bothered even if you learn about a bothered even if you learn about a bequest.bequest.

Some can be worked with for a current Some can be worked with for a current gift.gift.


Some can be worked with for a Some can be worked with for a current giftcurrent gift

Combining a bequest with a current Combining a bequest with a current gift to create an endowed fundgift to create an endowed fund

Asking a donor to give the bequest Asking a donor to give the bequest during lifetimeduring lifetime


The First ConversationThe First Conversation

When the donor’s attorney calls you--When the donor’s attorney calls you--

Upgrading the size of the bequestUpgrading the size of the bequest

If the attorney will not disclose the If the attorney will not disclose the donor’s namedonor’s name

When you call the donor to discuss his When you call the donor to discuss his or her bequestor her bequest


Gift and Estate TaxGift and Estate Tax Imposed on assets passed during Imposed on assets passed during

lifetime or deathlifetime or death Exempt from the tax:Exempt from the tax:

$13,000 per donee ($26,000 for $13,000 per donee ($26,000 for couples)couples)

Assets passing to spouseAssets passing to spouseMedical or tuition paymentsMedical or tuition paymentsAssets passing to CharityAssets passing to Charity


The Combined Gift and Estate TaxThe Combined Gift and Estate Tax

20122012

-$5.12 million exemption per person ($10.24M -$5.12 million exemption per person ($10.24M per couple) per couple)

-High rate of 35%-High rate of 35%

-Surviving spouse can assume deceased spouse’s -Surviving spouse can assume deceased spouse’s unused portion of exemption.unused portion of exemption.


The Gift and Estate TaxThe Gift and Estate Tax

After 12/31/2012, the exemption After 12/31/2012, the exemption reverts to $1 million with a high rate reverts to $1 million with a high rate of 55%.of 55%.


SummarySummary

Every organization should have a bequest Every organization should have a bequest programprogram

You don’t need a director of planned giving You don’t need a director of planned giving to run a bequest programto run a bequest program

People who make bequests are very good People who make bequests are very good prospects for current giftsprospects for current gifts

Debra AshtonDebra Ashton

Author, Author, The Complete Guide to Planned The Complete Guide to Planned Giving © Giving © 20042004

Ashton AssociatesAshton Associates

24 Robertson Street24 Robertson Street

Quincy, MA 02169Quincy, MA 02169

617-472-9316617-472-9316

[email protected]

www.debraashton.com© Ashton Associates 2012

mailto:[email protected]

http://www.debraashton.com/

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© Ashton Associates 2012 Creating a Bequest Program in 60 Days By Debra Ashton May 10, 2012