Let’s go back to the story above about the
$160,000,000 gift. The most ironic part of story is that
the donor was “not charitable.” To this day, he has not
chosen who will receive the gift because he has never
been involved with charities before. The mistake charities
often make in planned giving is to only approach the peo-
ple they determine are sufficiently wealthy and charitable
and try to get a planned gift. A very successful approach
is to show these same donors how to make their next gift
less expensive and to show “non-charitable” people that
planning a gift makes mathematical sense. Philanthropy
International teaches these techniques with their partner
charities successfully, everyday.
Conclusion
Your charity may receive the benefits of a planned gift by
using the resources of your board. However, on its own,
it may never reach its planned giving potential. The pro-
fessional advisor is one of your greatest resources if you
could learn how to manage, assist and work with them.
310 N. Indian Hill Blvd. #521
Claremont, CA 91711
909-625-4511
909-624-4050 fax
www.picharity.org
Our program will allow you to maximize your planned
giving efforts by utilizing a “staff ” that has far greater
expertise at a fraction of its cost.
Every time an advisor (CPA, Attorney, Financial Ad-
visor) attends one of our training events, we often hear
that the advisor has clients who they believe and never
knew before are candidates for tax-exempt planning. The
advisors begin thinking like your volunteer planned giv-
ing officer. Remember the important part, the only place
they know to go for information is where they learned it
originally. That place is your charity.
Charities sometimes dismiss planned giving because
donors tell them that they have no more to give. What
you will discover is that they are not tapped out in terms
of ways to avoid paying a tax. The tax is an involuntary,
uncontrollable charitable donation. We help you teach
people how to redirect those tax dollars to your charity
and in many cases, increase their family’s net worth and
lifetime income.
Reinventing Planned Giving
Why Should a Charitable If you are not asking for these gifts, you are
missing out on most of the economic value of your
Organization Pursue donors. Why work hard to acquire new donors and
Planned Gifts? renew them every year, only to miss out on the largest
gift they can give your organization? It is an unpleas-
Surprisingly, many charitable organizations do not
seek planned gifts from their supporters. Perhaps they
ant wake up call when you learn that one of your
most loyal donors left her entire estate to some other
view planned giving as a highly-technical option that
is beyond their ability. Or they may feel
that planned giving has little relevance
for them, since their donors are not
wealthy. Nothing could be further from
the truth. These common misconcep-
tions are preventing many charities
from using the one tool that can gener-
ate significant future revenue.
Planned gifts, which average about
$50,000, can truly have a transforma-
tional effect on a charity that has been
struggling from month to month, barely
meeting the budget. Over time, planned
giving can build an endowment for
your organization, providing a grow-
ing and dependable stream of revenue,
year after year. Planned giving ensures
the long-range financial health of your
organization.
Planned gifts are not just for the wealthy. In fact, charity. Why weren’t you included in her plans? It is
the beauty of planned giving is that it enables your because you did not ask!
average, middle class supporter to become a major gift
donor. Many of your loyal donors, especially retirees,
Advanced Charitable Planning
live on modest fixed incomes. They worry about run- Concepts
ning out of money and the cost of huge medical bills. In the area of advanced planned giving, it takes knowl-
So they make small donations while they are alive, edgeable professionals specifically trained in this area
carefully protecting their savings. Yet these same do- to get the job done right for the donor and the charity.
nors are often willing and able to leave large five and
• The IRS, in 1969, put into code rules that clearly de-
six figure estate gifts in their estate plans.
fine the parameters involving tax-exempt planning
These donors usually give through a bequest in a which creates planned giving.
will, or a beneficiary designation on an IRA or a life
insurance policy. These gifts are easy to understand, • The IRS may forgive a tax if an individual is willing
and they are easy for your donors to arrange. They are to plan a gift to charity.
revocable, so your donor does not have to worry about • A major component of a planned gift can be to re-
tying up assets that may be needed later in life.
duce or eliminate one of three taxes—income taxes,
1

“In fundraising it is not the dollars raised, but the outcomes in
human terms. Oh, we must measure ourselves in terms of dol-
lars raised, but let’s never forget the lives that are touched. Our
donors are making a difference, and our satisfaction should
come from being a part of that enterprise.”
—The Artful Journey by William T. Sturtevant
Capital Gains Taxes or Estate Taxes. An effective
plan can do those things in many different ways.
A charity needs qualified, professional advi-
sors involved in their planned giving efforts for one
simple reason. They can find the gifts and are often
the source of most gifts. The National Committee on
Planned Giving, in a recent survey, discovered that
68% of all charitable remainder trusts were gener-
ated by professional advisors, not the charities directly.
That number exists in a world where charities are not
generally open to building relationships with advisors.
Imagine the possibilities if a charity were to grasp onto
and embrace the fact that advisors can bring planned
gifts and took the necessary steps to maximize those
relationships.
Setting Up a Planned Giving Campaign
The March of Dimes recognized the need to have giving. Legal advice and mission development was
an extensive field force of planned giving officers po- developed with the attorney that put into operation
sitioned throughout the country, soliciting and accept- the planned giving department for BYU as it is known
ing planned gifts on their behalf. However, the costs currently -- and now the Mormon Church as a whole.
involved in hiring and staffing a field force was holding The minds behind the organization, not only at the
them hostage. time of inception, but currently as well, are far beyond
most others in the area of planned giving. Philan-
An Planned Giving thropy International knows what it takes to cultivate
Outsource Model planned gifts and is defined by mission to help their
partner charities do just that.
The Opportunity Recently, one advisor was asked by an attorney
to develop a plan for an extremely wealthy client who
Philanthropy International is positioned to become the
was looking at a $100 million tax bill. With the help
most effective and organized resource for “outsourced
of Philanthropy International the end result was the
planned giving” in the country. The structure that
The Volunteer Model Philanthropy Interna-
elimination of the tax and a gift to charity of ap-
proximately $160,000,000
The board member planned giving committee is the tional has built involves
one that is always difficult to manage and motivate. an Enterprise Model of “March of Dimes has partnered with over a number of years
with the donor’s fam-
Conceptually there is merit, but practically it is nearly “outsourced staffing” as
impossible to succeed, unless you have the absolute opposed to an Internal Philanthropy International to identify ily receiving a projected
$900,000,000 approxi-
right board members on the committee. The com-
mittee usually ends up being avoided by other board
Model of “staffing.”
and train professional advisors in the mately, after the same
Since it’s inception number of years. This is
members in fear that they will be asked again to give
a “planned gift.” The world of planned giving is a
in 1999, Philanthropy In- design and effective use of tax-exempt a very extreme example
ternational has success- of planned giving but it
unique world, with both complexity and flexibility. fully partnered in gener- planning solutions. This national illustrates Philanthropy
It is impractical to believe that a board made up of ating over $300,000,000
individuals from varying backgrounds and industries in planned gifts. They are network of volunteer planned giving International’s ability to
handle very large and
could effectively, comfortably and ethically obtain any also equipped to open
substantial planned gift on an ongoing basis. This is and maintain self direct- officers has been instrumental in the complex financial situa-
tions. Remove a couple of
where most planned giving efforts usually begin and
end for “local” or even small regional charities.
ed donor advised funds
which are a much less
growth of March of Dimes and is zeros from the numbers
above and this becomes

Traditionally a charity has one of two options to

obtain planned gifts. The first is to hire a planned giv-
ing officer or staff who is trained and experienced in
obtaining planned gifts. The second is to put together
a committee, usually made up of board members to
“go out and get planned gifts.” Unfortunately, in most
cases, both options prove to be unsuccessful, except
for a few select organizations.
The Staff Model
Hiring staff is usually not feasible for most charitable
organizations because it could cost anywhere from
$75K to $250K to get qualified people. Even if the
money was well spent, you are still limited with this
type of arrangement as it will depend on the ability,
drive and relationships of the planned giving staff.
Many planned giving departments are not ultimately
successful. The ones who are successful are recognized
in a “community” as a place to go to solve a problem,
usually involving taxes.
The Need to Reinvent Planned Giving
A key solution is learning how to include the advisor
community on your team. Your charity can become
the place to go to solve tax problems. You must be
able to effectively help advisors assist individuals with
their planning and promote your true charitable mis-
sion. Most importantly, you need to be able to educate
the community, as a whole, about the benefits of
planned giving and deliver that message regularly in
many different forums. Remember, the IRS may for-
give a tax if you are willing to plan a gift. Most people
do not realize this. Many, if not most advisors do not
understand this either. The charity who effectively
teaches these simple truths to their donors and advi-
sors will benefit greatly.
However, the charity staff is unable to function
independently in this role. Philanthropy International,
along with its key Partner Charity, March of Dimes,
has been working for years to change the way America
does planned giving.
expensive and substan-
tially easier to maintain
changing the way planned giving will be a very real scenario that
your charity can be ready
alternative to a private done in the future.” to help with regularly.
foundation. These funds
—Joel Preston, Vice President of Major Gifts, Philanthropy Interna-
give specific attention to
tional can work with the
the family’s wishes and March of Dimes charity to set up seminars
are named by the family
to educate the public and
making the gift.
our community’s profes-
Why is Philanthropy International sional advisors about the
effective? opportunities presented with tax-exempt planning.
Imagine the possibilities if we were to teach many of
Because planned giving is the mission of Philanthropy the top real estate agents in your community how to
International. They are not an organization trying to sell more homes by showing their clients how to sell
cure diseases or help families while trying to raise gifts appreciated investment real estate and avoid the capital
on the side. They are not a charity feeding the hun- gains tax. These techniques teach that if people are
gry and sheltering the homeless. It is the mission of willing to plan a gift, we can take money that otherwise
Philanthropy International to assist those charities in would have gone to tax, and redirect it to their favorite
carrying out their mission, by enhancing their funding charity. We encourage the recipient of these tax bene-
resources. fits to name your charity for a gift since it was through
your program that they received this knowledge.
Philanthropy International was founded by one of
the top advisors in the country in the area of planned

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