THE BENEDICT FOUNDATION
INTRODUCTION TO PLANNED GIVING

Purpose: to introduce nonprofit board members and staff to the concept of Planned Giving: what it is and why it is important for both board members and staff to have this information to pass along to donors as part of their nonprofit’s fund raising efforts.

I. Planned Giving: what it is and what it is not.

1. What Planned Giving is not: it’s not just for the very wealthy and it’s not the same as Estate Planning.
2. Some other names for Planned Giving: Informed Giving, Purposeful Giving; can include Shared Giving, or “Giving Circles,” but does not necessarily have to.
3. Planned Giving is pro-active rather than re-active giving. Planned Giving is in response to a societal problem, a need, or something that is lacking.
4. Advantages of Planned Giving for individual donors: (a) more effective use of money and other donations; (b) can budget charitable spending; (c) better able to take advantage of tax incentives, (d) an opportunity to support local and/or under-funded organizations; (a) an opportunity for individuals to see their gifts to charity put to good use during their own lifetimes.

II. Tangibles: conveying financial and investment instruments and property.

1. Probably the best means of taking advantage of tax incentives.
2. Financial and investment instruments can include: stocks, bonds, annuities, insurance, and retirement plans.
3. Property can include, but is not limited to, real estate, antiques, jewelry, cars, boats, airplanes, almost anything of any value.
4. Donors should consult financial advisors and tax attorneys before donating tangibles of any worth.
   

III. Pro Bono Work and Intagibles.

1. Intangibles include volunteerism. (a) Often the time and talents an individual gives to a cause can be as valuable, or even more so, than any monetary contribution. (b) There are countless ways an individual can make a significant contribution in terms of time, talent, and ideas.
2. Many organizations of licensed, certificated professionals encourage their members to donate pro bono a portion of their time in a professional capacity; nonprofit boards and staff should be cognizant of this fact in seeking professional assistance.
3. A provision for volunteerism and/or pro bono work can be an integral part of any Giving Plan.
   

IV. Giving Circles and Shared Giving.

1. Shared giving groups can take any number of organizational structures, large, small, formal, informal, and so on.
2. Financial considerations can include monetary donations from members or from fund-raising events, or both; many groups employ both.
3. Normally groups investigate nonprofits and make decisions as to whom and how much to donate; groups can require written requests and/or individual presentations.
4. Most groups provide educational and informational opportunities, as well as a chance to socialize, as part of their regular meetings.
5. A new trend is for shared giving groups to consider making micro-loans to deserving individuals and groups.

For more information on Giving Circles, click here.

V. Developing Written Giving Plans.

1. Plans can be elaborate--and lengthy--inventories and budgets, or simple written statements of how much money and time an individual plans to donate and to whom. In many respects, a written plan can represent a commitment.
2. Board members and staff might consider having written plans themselves and are encouraged to develop forms for their organizations as part of fund-raising efforts.
3. Some additional thoughts on Giving Plans: (a) Individuals should think of themselves as investors rather than donors and should consider whatever they are giving to be a grant not a donation.
   (b) To elaborate: grant-makers, organizations that make grants to other organizations, expect a return on their investment, i.e., that the monies they grant will be used to bring about some desirable change. Individuals should expect a similar return on their investment as well.
   (c) In many respects, it is the desire to bring about some sort of social change—rather than the amount of money involved or the value of gifts—that distinguish a philanthropist from a donor.

VI. Wrap-up and Q & A.

Copyright © 2007 The Benedict Foundation. All rights reserved.

If your organization or business would be interested in co-sponsoring a Planned Giving Seminar, please contact the Benedict Foundation at 910 200-2244 or e-mail them at benedictfoundation@att.net