2 • Philanthropy Journal of North Carolina
January 1998
Gifts
Continued from page 1
So far, the Greensboro foundation
has worked with more than two
dozen area charities at various
stages of managing planned gifts. Not
all nonprofits are in a position to
begin formal programs, Ftomer says,
but the ones that are should learn to
think beyond the year-to-year budget
cycle. “For planned giving to work
well, you have to look 20 years out,”
he says.
And, he says, nonprofits should
consider beefing up their planned giv
ing programs b^use they could get
their lai^st gifts that way
Planned or deferred giving allows
donors to make a contribution to char
ity — in cash, stocks, retirement
assets, real estate or other forms —
while benefiting themselves or rela
tives during their lifetimes. Planned
gifts, usually irrevocable, can be estab
lished through bequests, charitable
trusts, annuities, pooled income funds
or other types of assets. Known tor
their flexibility, planned gifts often
allow donors to save or altogether
avoid capital gains, income and estate
taxes.
.to example: A longtime
Gr**isboro resident wanted to find a
way to give back to some of the non
profit oi^anizations that had made a
difference in her life. While not
extremely wealthy, she had some hi^-
ly appreciated stock that the founda
tion helped her convert into a charita
ble remainder trust. The trust will pro
vide income for her during her life
time, and, after her death, for her
church, two educational institutions,
the foundation and 12 nonprofit orga
nizations.
Mike Aiken, executive director of
PlanniMi giving
assistance
For informatiofl on planned giving ond
nonprofits, contact your locd community
foundation or the following:
Communily Foundation of Greater
Greensboro-(910) 379-9100.
Community Foundation of Western
North Corolina - (704) 254-4960.
Triangle Communily Foundation -
(919) 549-9840 or hltp://www.
Winslow II CoNsiDiNE
kernel (jcnm&el
Capital Campaigns
Long-Range Planning
Sponsorship Development
Special Events
Public Relations
P.O. Box 10973, Salem Station
Winston-Salem, N.C. 27108
336-722-7982 ■ FAX 336-722-8671
E-mail: dwinslow@interpath.com, patrickc@interpath.com
pj .org/wincon/wchome.htm
Greensboro Urban Ministry, says the
foundation’s service has h^ multiple
benefits for that organization.
“It helps out to have their support
in explaining the compiex ins ancl outs
of planned giving,” Aiken says.
“Before we started working with them,
we were handling it the best we could.
We needed the technical expertise to
help us follow throu^ on gifts, which
often take years to plan and carry
out.”
And, with the expected intergener-
ational transfer of trillions of dollars of
wealth accumulated by baby boomers,
Aiken says, potential donors often are
interested in giving to more than one
charity.
“In our history, there haVe been
very few bequests in which we’ve been
the oniy beneficiary,” he says.
The foundation’s service also helps
raise awareness about planned giving
in the community, Aiken says.
The Triad Health Project, a
Greensboro AIDS service organiza
tion, is in the initial stages of working
with the foundation to design a pro
gram that fits its mission.
It hasn’t been a clear-cut process,
says Ben McFadyen, director of the
organization. “We have unique prob
lems as an AIDS service,” he says.
“There’s the perception, with recent
advances in treatments, that the need
for AIDS services is waning. Obviously,
a cure or vaccine could eliminate the
need for an agency, but [in the mean
time] donors may te skeptical that the
oiganization would need their money
far into the future.”
The organization has established
gift acceptance and management poli
cies to deal with bequests of houses,
cars and insurance money, McFhdyen
says. A more focused planned giving
program could help target donors who
could establish gifts white they are still
alive.
The foundation also is a good
resource when an attorney or execu
tor of a wili calls the organization to
ask about including the organization
as a beneficiary, McFadyen says. “We
know [the foundation] has wide, broad
stewardship.”
In their estate plans, donors often
name general topics such as AID*"
health or youth programs as areas
they would like to support. The foun
dation’s service can put those donors
in direct contact with organizations
such as the Triad Health Project or
others that support their causes.
“As a community foundation,
they’re immediately accessible,”
McFhdyen says.
While the Greensboro foundation’s
breadth of services is relatively
unique, other community foundations
in North Carolina have been doing
planned giving for years.
“We don’t advertise it as a sepa
rate service, but we do it every day,”
says Pat Smith, executive director of
the Asheville-based Community
Foundation of Western North Carolina.
In addition to managing endow
ments for dozens of nonprofits, the
foundation also helps donors arrange
gifts and works with organizations
that receive them.
“We’re not out soliciting business
based on these services,” Smith says.
“We help them receive complex gifts.
We’re really here for the community.”
Gifts of land or stock can be especially
complex, she says, and should never
be received without carefui considera
tion.
It’s also Important to use clear lan
guage and keep discussions about
planned giving with potential donors
and recipients fairly simple. “Many
nonprofits are intimidated by the term
‘planned giving,”’ Smith says. “We
don’t just say, ‘I want to talk to you
about planned giving.’ What we try to
do is to get someone on [the organiza
tion’s staff] involved and meet with
them.”
Board members also play an impor
tant role in orienting an organization to
planned giving. Smith says. “It takes the
pressure off an executive director or
fundraiser when they realize there’s a
way to get help. That’s what we try to
be.”
Shannon St. John, executive direc
tor of the Triangle Community
Foundation, echoes these sentiments.
“We know that beyond the univer
sities, most of the nonprofits in this
area don’t have the luxury of having a
planned giving officer,” she says. And
planned giving fits in with the foimda-
tlon’s mission to expand philanthropy
in the communities of W^e, Durham,
Orange and Chatham counties, she
says.
A simple way for an organization
to initiate a planned giving program,
she says, would be to start internally
and try to identify a handful of people
associated with the organization, such
as board members, who might have
the ability to make a gift throu^ their
estate plans.
“Planned giving is for everyone,”
St. John says. “The barriers for
smaller organizations tend to be time
and expertise. What we’re trying to
do is remove those barriers.”
Cannon Financial Institute
1998 School of Foundation Management
Oct. 25-30, 1998 * Kingston Plantation, Myrtle Beach, S.C.
At Cannon, we recognize the special talents and skills
necessary in the proper management of foundations
established for charitable purposes. With over thirty-five
years of practical training experience, and faculty who
work in various areas of the trust and financial services
industry. Cannon is uniquely qualified to provide a course
to deal effectively with the various aspects of foundation
management.
This course provides the basics necessary for a fuller
understanding of the concepts which drive the decision
making process of charitable donors, thereby allowing
greater opportunities to effectively serve the providers of
charitable funds. Additionally, this program will offer the
necessary building blocks in the operational area to
assist management in establishing appropriate policies
for their boards, investment processes and evaluation
techniques for investable assets and a discussion of the
applicable tax issues which are part of the executive
director’s responsibilities. You will receive timely, practi
cal, dynamic ideas that work. It will be one of the best
weeks of your professional career.
Who Should Attend?
Trustees and Board Members
Executive Directors of Foundations
Foundation Personnel with Management Responsibilities
Trust Managers with Specialized Charitable Areas who
want an inside exposure to the issues Executive
Directors of Foundations face
Business Development Officers
Key Benefits
Participants will leave with timely, effective, practical
ideas and understanding of efficient methods of
management applicable to charitable foundations.
Participants will have the opportunity to establish a
network for sharing ideas and maintaining contact with
other professionals in their field.
Participants will be afforded the opportunity to gather a
variety of checklists and resources for future use and
reference.
Curriculum:
Introduction: Overview of Endowments & Foundations, 2
hrs; Estate Planning, 5 hrs; Concepts & Taxation of
Charitable Trust, 2 hrs; CRAT’s CRUT’s Gift Annuities
and Pooled Income Funds, 4 hrs; Practical Applications
of Planned Giving, 4 hrs; Role of the Board & Staff, Ihr;
Public Relations and Marketing, 2 hrs; Responsible
Investing, 2 hrs; Spending Policy, Ihr; Market Timing vs.
Asset Allocation, 1 hr: Choosing & Evaluating a Manager,
Ihr; Role of the Consultant, 1 hr; Investments, 6 hrs; Tax
Issues, 4 hrs; Participant Activities, 2hrs
Faculty
Ken Brown
Senior Vice President and
Managing Director of
Charitable Fund Services
First Union Bank
Charlotte, NC
John Ferree
President
Scottsdale Memorial Health Foundation
Scottsdale, AZ
Roger Roemmich
Advanced Financial Strategists
Athens, GA
Class Schedule:
Registration and orientation Sunday afternoon; Class
begins Monday at 8:00 AM. The one-week session closes
on Friday at noon, following a comprehensive exam.
Attendance is mandatory at all sessions.
Cost
An investment of $1,525 includes registration, tuition,
room, meals and all instructional materials.
Travel Arrangements
Call Cannon Travel Services at 1-800-775-8646 to
arrange your itinerary at the lowest possible price.
For more information please call (706) 353-3346.
□ Please enroll me in the School of Foundation Management at Kingston Plantation, Myrtle Beach, S.C., Oct. 25-30,1998
Mr, □ Ms. □
Cannon
Name (to be used on diploma)
Social Security Number
Phone Number (_ )_
Name (to be used on nametag)
Fax Number( )
Financial Institution/Organization_
.4ddress
FINANCIAL INSTITUTE City, state, zip
_ Please list any Cannon Schools that you have previously attended:
(706) 353-3346
FAX (706) 353-3994