Presentation by: John C. Scibek, CSPG Senior Director, Planned Giving Fred Hutchinson Cancer Research Center How to Do Planned Giving When Planned Giving.

Presentation by:

John C. Scibek, CSPGSenior Director, Planned Giving

Fred Hutchinson Cancer Research Center

How to Do Planned Giving When Planned Giving

Isn’t All You Do

What Is Planned Giving?

• Gifts that require planning - legal instrument.• Giving from wealth not just income.• Gifts include:

− Appreciated securities bonds.− Bequests from wills and trusts.− Beneficiary designations in life insurance

policies, investment, retirement, and banking accounts.

− Real estate and business ownership interests.

What Planned Giving Isn’t

• Not only for those with wealthy donors - “millionaire next door.”

• Doesn’t require staff with tax and legal credentials.

• Don’t have to offer the full “menu” of planned giving.

2011 contributions: $298.42 billion by source of contributions

(in billions of dollars – all figures are rounded)

Individuals$217.79

73%

Foundations$41.67

14%

Bequests$24.41

8%

Corporations$14.55

5%

Source: Giving USA 2012

2011 contributions: $298.42 billion by type of recipient organization

(in billions of dollars – all figures are rounded)

Religion $95.88

32%

Education $38.87

13%

Human services $35.39

12%

Health$24.75

8%

Public-society benefit $21.37

7%

Arts, culture, and humanities

$13.12

4%

International af-fairs

$22.68 8%

Environment/animals

$7.813% Foundations

$25.83 9%

To individuals$3.751%

Unallocated* $8.97

3%

Source: Giving USA 2012

“It would be great if I could increase my current income.”

“I receive no income from some of my assets. Can I make them more productive?”

“Are there methods to avoid probate without a complex estate plan?”

“I’m worried about running out of money after I retire.”

AGE AND WEALTH-BASED MATRIX

-50 YOUNGER

50-70 MIDDLE-AGED

70+ OLDER

WEALTHY

Gifts of Cash Appreciated Property

Charitable Lead Trusts Term of Years Trusts

Lifelong CRT’s for Others

Gifts of Cash Appreciated Property

Charitable Lead Trusts Term of Years Trusts

Lifelong CRT’s for Others

Gifts of Cash

Gifts of Appreciated Property Charitable Lead Trusts Term of Years Trusts

Lifelong CRT’s for Others Testamentary Lead Trusts

Retirement Plans & Insurance CRT for Donor’s Life

Bequests Gift Annuities

PERSONAL VISITS

SEMINARS MAIL

INTERNET ARTICLES

ADVERTISING

MODERATE MEANS

Gifts of Cash

Gifts of Cash Appreciated Property Term of Years Trusts

Charitable Trusts for Life Pooled Income Fund

Gifts of Cash

Appreciated Property Bequests

Charitable Trusts for Life Term of Years Trusts Pooled Income Funds

Gift Annuities Retirement Plans & Insurance

MAIL

SEMINARS INTERNET PERSONAL

VISITS ARTICLES

ADVERTISING

LIMITED MEANS

Gifts of Cash

Gifts of Cash

Gifts of Cash Bequests

Gift Annuities Retirement Plans & Insurance

MAIL

ARTICLES ADVERTISING

SEMINARS PERSONAL

VISITS

Annual Giving Membership/Direct Mail

Major/Planned Gifts Annual/Member/Direct

Planned/Major Gifts Annual/Member/Direct

Adapted from Robert F. Sharpe, Jr.

“The Presence and Timing of Charitable Estate Planning: New Research Findings”

Russell N. James, III, JD, PhD, CFP®Director of Graduate Studies in Charitable Planning at Texas Tech University

Total Estate Value Annual Giving Multiple

<$100,000 0.15

$100,000 - <$500,000 1.89

$500,000 - <$1,000,000 3.73

$1,000,000 - <$5,000,000 8.12

$5,000,000+ 11.65

TOTAL 5.07

Segment your hottestplanned giving prospects

• Select those with the highest loyalty.

• Refine by financial engagement:– High annual giving, low cumulative.– High cumulative giving, low annual– High annual giving and high cumulative.

John C. Scibek, CSPGSenior DirectorPlanned Giving

Fred Hutchinson CancerResearch Center

Mail Stop J5-200PO Box 19024Seattle, WA 98

(206) 667-2878 [email protected]

Thank You!