The Biggest Mistakes to Avoid when Starting a Planned Giving & Endowment Program- Part Three
By Lorri M. Greif, CFRE, President Breakthrough Philanthropy, Inc
- Lack of Knowledge. Even with commitment from the board and a well financed campaign, it’s imperative that the development professional have knowledge about planned giving vehicles, state rules and regulations, IRS code, and how to correctly and effectively communicate with prospects to market a comprehensive planned giving program. Without the proper guidance and training, how would most development professionals know the following:
- Some states will not allow reinsurance on charitable gift annuities,
- Some States require a permit for charitable gift annuities while others require only notification and others have no requirements at all
- Charitable gift annuities are contractually backed by all the assets of the charity
- Charitable remainder trusts come in many "shapes and sizes" and are very flexible in meeting both donor and charitable goals
- Not all bequests are beneficial to all charities’ missions
- Gifts of real estate and art have different pre-requisites of acceptability and may not work as well for some life-income gifts
- How the Pension Protection Act of 2006 effects charitable giving
- There are all sorts of requirements and protections that go into establishing a charitable gift annuity program
- There is so much they don’t even know that they need to know.
Separately, these mistakes may eventually be turned around. Together, they are a recipe for failure. But, by addressing each situation early on, and seeing them as steps to climb in a workable process, the outcome could be a more secure financial future for your nonprofit, supported by a comprehensive planned giving and endowment program.
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