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Quotes for today: I have found that among its other benefits, giving liberates the soul of the giver. Maya Angelou

Social Security All planned fund raisers interested in planned gift development should know the basics of social security since it forms 20%of most retiree income.

Quiz: How old is social security? See answer at bottom of newsletter.


Financial Principles Questions? Social Security: According to the American Society of Actuaries more than half of married couples retiring today at age 65 will have one spouse live to age 90, and almost one in four will have a spouse reach age 95. This may be a major reason most gift annuity programs should look to a "reinsurance strategy" to protect against the longevity risks of gift annuity agreements.

Inflation: What is the value of a $100 in 23 years with 3% inflation? See answer at bottom of newsletter. You need to consider the purchasing power of a dollar when examining the residuum of a gift annuity program.

Health Care: According to the Employee Benefit Research Institute, a couple retiring today can expect to spend how much on health care insurance premiums and out-of-pocket medical expenses? See multiple choice answer at bottom of newsletter. Is it $210,000, $235,000, $275,000, $295,000 or $352,000?

Retirement accounts: Retirees should generally tap a taxable or a non-taxable account first during retirement years? See answer at bottom of newsletter.


Kudos Corner

This is a new section where I will be highlighting some gift expectancies and gift program elements I think it will be helpful and informative.

Kudos to Sharon Jones FAHP, Vice President for Development, HPC Healthcare (a Hospice organization), Temple Terrace, Florida for the 17th gift annuity from the same donor. This gift was the first cash gift funded gift annuity as the donor is letting his stock portfolio recover before using more stock.

Comment: I often remark current gift annuitants are your best prospects for additional annuity agreement no matter what the economy is or their lifestyle circumstances. Previous annuitants have seen the advantages of increased income and decreased taxes and know how easy gift annuities are to establish. Keep close to your annuitants throughout their life circumstances and you will find they are your most loyal advocates.


Connell and Associates welcomes St. Vincent's Health Care Foundation Jacksonville based St. Vincent's Health Care Foundation, Jane R. Lanier CFRE, Senior Vice President and Executive Director and Jim Towler, Director or Donor Services are in the initial stages of a revamped charitable estate and gift planning program. A Planned Gift Committee and Professional Advisory Council have been formed. There are several natural prospects in their donor base who will be approached with a new awareness of the power of charitable estate and gift planning strategies.


Want a Free Tax and Wealth Management Guide. PriceWaterhouseCoopers has just the thing you have been waiting for, a 2010 Tax and Wealth Management Guide. It is available as a free download. Just go to the following link and download its valuable information. Sections include the following: Strategic tax planning , Managing your portfolio, Charitable giving, Estate and gift planning, Business succession planning, Choosing entities for businesses/investments, Family limited partnerships, Insurance, Family offices, Working with financial advisers Whole publication Link


Planned Giving Mentor - Article The article below Building an Advisor Network first appeared in the August 2005 issue of Planned Giving Mentor. It is reproduced below because the financial advisor network is becoming increasingly significant in determining what donors are doing with their assets.

Building an Advisor Network August 2005 issue of Planned Giving Mentor, Link to PDF copy

Building an advisor network is an exciting and challenging task. A Professional Advisor Committee (PAC)or network provides a direct connection with professionals who implement donor financial and estate plans. The main goal of creating a PAC is to build a network of ambassadors who can suggest to prospects consideration of charitable options in their financial, retirement or estate plan. When a charity finds an individual in need of financial and estate planning advice the PAC provides a ready referral resource of competent professionals familiar with charitable gift and estate planning strategies.

Not every charity is a candidate for forming an advisor network. The goals and expectations for a national’s charities network may be entirely different than advisors supporting a local charity.

The first step should be a feasibility study to determine if a PAC will add important relationships to the gift planning efforts.

When building a professional advisor network start by doing an estate planning focus meeting with professionals. The first meeting is designed to solicit professionals’ input on how estate planning is conducted within the charity’s service area while the PGO provides a brief outline of PAC plans. Professionals should be asked their interest in forming a group and may help in identifying competing efforts. Peer feedback will help identify additional candidates.

With the feasibility study completed formal recruitment can begin. The PGO should present a summary of the role and responsibilities of the PAC network to advisors outlining the mutual expectations. The summary should state clearly the charity’s commitment to accomplish the programmatic goals. PAC members should acknowledge their participation agreement by signing a statement of support to attend meeting, provide professional advice and participate in seminars and cultivation events.

Prepare a handout sheet covering the following: committee structure, purpose, goals, responsibilities, definition of planned gifts, meeting frequency, expected membership and performance measures. Indicate how the PAC relates to the development committee or governing board.

Identifying professionals

To identify professionals ask current board members for recommendations and consult the directory of a local estate planning council. Seek names of competent certified public accountants, estate planning attorneys, trust officers, financial advisors, charted life underwriters, investment professionals, and real estate agents from board and executive staff members. Review the names of attorneys who have drafted recent bequests. Not every professional will be a candidate since their specialty or market segment may not directly benefit charitable support.

Revisit professionals you have identified that are willing to participate in the PAC activities. Be aware of those who simplify wish to join for self benefit. Some PACs have community length of stay membership requirements in order to restrict those new to communities who have not sufficiently established their relationships and credibility with prospective donors and area professionals.

As each member is recruited provide an updated list of participants and suggest a target dates for the first and subsequent meetings. Members may also be provided a background packet on the charity, suggested bequest wording, and brochures on ways to give.


Philanthropic Quotes If you are looking for a great selection of philanthropy quotes for that next speech or letter consult the National Philanthropic Trust site LINK you will be surprised at the depth of their selection. I will also place the link on the HELPFUL LINKS category on my web site for future your future use. They also have information on the history of Philanthropy and Philanthropic Dictionary.


Looking for a Catchy Seminar Title I saw recently a neat title that would draw anyone's attention "What The Rich Do Differently." Charities could use such a title for a seminar concentrating on major asset changes which can be used to increase income and decrease taxes using gift annuities and charitable trust.


Answers: Social Security was founded in 1935, therefore it is 74 years old, the typical age of many planned gift prospects.

A 3% inflation over 23 years makes a $100 today worth $50 tomorrow.

Health care: a couple can expect to spend $235,000.

Retirement accounts: Retirees should use taxable accounts before non-taxable accounts so the principal can continue to grow tax-free. Of course during the current Great Recession all accounts decreased in value.


James E. Connell and Associates is a national consulting service devoted to increasing resources for char ties using the power of charitable estate and gift planning techniques.

Pinehurst office: PO Box 3335, 15 Pinewild Drive, Pinehurst, NC 28374
Phone: 910-295-6800

Northeast office: 20982 Bayside Avenue, Rock Hall, MD 21661

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