Don't Fear Planned Giving: Just Talk About Assets, Not Cash

I’ve spent the better part of the last 35 years meeting with families to help them with their charitable giving.?My goal has always been to help them before all else.?In most cases the best way to do that is to focus first on giving assets, not cash.?

I can confirm that most people keep less than $10,000 in their checkbook.?As I’ve worked with families, I see again and again that they keep well over 90% of their wealth in assets somewhere other than a savings or checking account.?Their wealth is in their assets: earning interest, making profit, and generating income.

If you meet with a donor and ask for a check, rest assured, in most cases you will get a check, but it will have a zero or two missing from the gift you could have gotten.?You should focus on giving vehicles that helps the donor first.

What kind of gifts am I talking about??Business inventory, Life insurance, Real Estate, Professional services, Stock gifts… Giving any appreciable asset or stock helps the donor to first avoid capital gains taxes as well as receiving tax deductions. Many non-profit leaders avoid these subjects because they fear they are moving into planned giving or estate planning.?Asset giving may be a form of planned giving, but if it is the right thing for the donor, it is the right thing for your organization.

I am reminded of one of the meetings I had when I spoke of appreciable assets to avoid capital gains taxes, the lady simply leaned over to her husband and said, “we should do that…”?Over the next six months they arranged to make a 7-figure gift through the donation of gold investments.?Over the years I’ve done the same with real estate: homes, rental properties, land, and office buildings.?I’ve helped donors with stock donations hundreds of times.

Of course, the most fun I have is helping people on fixed incomes, not the mega-wealthy, with gifts of life insurance and charitable gift annuities.?A charitable gift annuity pays them a guaranteed interest rate for life depending on their age, and when the Lord takes them home the nonprofit organization gets the remainder.??That is right, we write the donor a check for life.

The other thing I have seen is that many of people are able to give to reduce significant tax burdens because of inheritance, court settlements or the liquidation of a business… I still tear up when I think about one dear lady.?She had been through a very difficult divorce proceeding that resulted in the sale of a business and a painful court settlement. Candidly, I was hesitant to talk to her because of what she had been through.?As we talked about her life and what her needs were today, she suddenly blurted out, “I can help with a million dollars.”?God used her personal pain and heartache to birth a new vision. Spinning out of a family crisis, she asked God to allow her to be part of a miracle.

Focusing on the donor first and looking for how they can have the biggest impact is at the heart of asset giving.?Our goal is serve the donor so they can serve your cause or nonprofit. #legacygiving #plannedgiving #FitFundraising @royjones.org