Description of a Planned Giving Volunteer

Thursday, August 13th, 2009

When you talk to existing planned giving volunteers, you would find out a lot of things about the association.  Typically, these planned giving volunteers are well-read, they understand the non-profit’s strategic goals, and they’re educated in finance administration.  Attracting good volunteers is always an on-going task in any nonprofit organization.  In fact, the main task of the organization could be to determine what specific things they can offer to the volunteers in their area.

When a volunteer speaks from the heart and from experience, and he or she has already given a planned gift to the institution, then you have a very powerful spokesperson.  This planned giving volunteer realizes the substantial donation value and understands the gift’s gravity.  Based on personal success, they’re emphatic and inquisitive without being forceful.  They’re able to communicate excellently to the benefiting community as well as to the potential donors.

Planned giving volunteers are powerful advocates that you can find for your organization.  They’re the best way to exhibit humility and grace as they work with donors that make monumental gifts.  These gifts will in turn continue the vital services of your nonprofit and provide you with a steady support source. 

Tags: advocates, association, donors, finance, goals, nonprofit, organization, Planned Giving, support, volunteer
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Planned Giving Marketing Impacts Legal Ruling

Wednesday, August 5th, 2009

There was an opinion issued by U.S. Court of Appeals involving Robert Dillie in a case that charged him with operating a fraudulent foundation from 1996 to 2001.  The foundation was actually in a ponzi scheme issuing $55 million gift annuities to more than 400 donors - these were sold through investment advisers receiving commissions on each sale.  The opinion was issued this past June and M. Dillie is now serving a prison sentence of 121 months.  However, the legal fallout from the operation lives on.

Due to return of commissions ruled by the lower court, investment advisors sued the receiver who’s assigned to recover the remaining funds and repay defrauded donors.  However, Federal Court of Appeals concurred with the rulings of the lower court and rejected the arguments of the investment advisers’ lawyer.

Truly, the underlying facts of this case were unique.  And the ruling’s significance is how the gift annuities were viewed by the Court in light of marketing techniques used.  When the court looked at various promotional advertisements used, it was clear that the gift annuities were actually investment contracts.  Therefore, charities should be careful in marketing their gift annuities or other life income vehicles.  Make sure to emphasize that these are gifts first and foremost.

Tags: commissions, court, donors, foundation, gift annuities, lawyer, Planned Giving, Robert Dillie, U.S. Court of Appeals
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New Head of Community Foundation Named

Friday, July 31st, 2009

Over the years, Lynne Berry has been very much involved with several philanthropic groups.  Now, she has been named as the Huntsville/Madison County Community Foundation’s first executive director.  This means she’s heading an organization that’s serving all nonprofits.  She said, “There’s a lot of challenges and work in this new job but I have the opportunity to be in an umbrella organization to benefit all nonprofits and I like to learn new things.”

One of the first jobs of Berry is to educate the people about all benefits (especially tax) as well as give and educate potential donors about other community needs that would be good for them.  Community foundations can work with other donors to create funds or meet a specific community need.  These funds can either be given immediately, pooled with others, or held indefinitely.

The foundation’s chairman, Chris Russell, said that the role of the foundation is to make sure that people find it easier to make a donation or charitable gift.  Russell, who work with Huntsville Wachovia Bank in wealth management said, “There’s a difference in planned giving and annual giving.  For planned giving, what we’re focusing on has always been to raise the bar and look for more opportunities.”

Tags: charitable gift, Chris Russell, community foundation, donors, Lynne Berry, nonprofits, Planned Giving
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Charities Turned Away by Banks

Friday, July 24th, 2009

Planned giving programs are steadily gaining popularity with donors and their charities.  However, banks that service them are slowly turning away.  In fact, there are already key banks that retreated from this financial management area.  They refuse to take charities that have less that $5 million (some even $1 million) in assets.  And there are some that are dropping clients who do not make the cut.

This move is squeezing the smaller organizations, wherein many of them are dependent on banks to manage complex programs and they rely on planned giving vehicles to get donations.  Today, over 50 charities scramble to find new banks since BNY Mellon Wealth Management gave clients a deadline (until Sept. 1) to select another manager.  BNY Mellon is one of the biggest bank players in the investment arena of planned giving.  Likewise, other banks like Wachovia and Merryll Lynch that have longtime philanthropic practices are now folded into merged operations.

A few charities try to join forces in order to gain back clout with banks.  A New York attorney serving on the professional advisory committee of Charities Support Foundation, Andrew Grumet said, “These days, you need to have real money to gain a financial institution’s attention.  That’s just the harsh reality.”

Tags: Andrew Grumet, attorney, banks, BNY Mellon Wealth Management, charities, Charities Support Foundation, donors, Merryll Lynch, New York, Planned Giving, Wachovia
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Holocaust Centre Launched $20M Endowment Campaign

Wednesday, July 1st, 2009

MHMC (Montreal Holocaust Memorial Centre) launched a recent “legacy campaign” that will secure the future of the museum and preserve the memory for six million generations to come.  It’s called Legacy Society, an initiative that will establish $20-million endowment fund perpetually to continue the centre’s work.

“Activities include anti-Semitism and intolerance through educational outreach, discrimination, furthering human rights as well as fight against hate, honoring family, commemorating Holocaust, and Holocaust resistance,” as revealed by Julia Reitman, centre president, during the campaign’s launch.

U.S. Holocaust Memorial Museum’s George Hellman, the director of planned giving in Washington D.C. said that “creating an endowment fund surely is the best way to secure the future of any institution.”  Since 2002, Washington Museum already raised over $56 million through planned giving.

Hellman said, “Our donors are taking this commitment seriously.  They learned that it will give you peace of mind to leave a planned gift.  It’s critical to the great success of any legacy society.”

Meanwhile, Alice Herscovitch, centre executive director, said no overtures or individual approaches will be made although the term “campaign” was used.  Those who are considering making a “planned gift” voluntarily may approach the centre to meet with a representative on a confidential and individual basis.  He further said that the donor can decide whether the “planned gift” will be kept confidential or not.

Tags: Alice Herscovitch, donors, endowment, George Hellman, legacy campaign, Legacy Society, MHMC, planned gift, Washington Museum
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