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The following are preliminary topics to prepare for a launch or re-launhc of a planned giving program.  Many of these topics wil be covered in greater depth through this series.
 
1. ENDOWMENT
Is there or will there be an endowment? Some organizations may wish to have planned gifts available for immediate spending needs. While this may be necessary in certain situations, this is generally not a best practice.
 
Be certain to categorize the funds properly. Are the funds really intended to be?:
  • True endowment from which the organizatino cannot spend the principal
  • Quasi-endowment / Board-Designated Endowment which is treated as an endowment, yet from which principal can be accessed at the governing board's discretion
  • Reserve Fund or Capital Fund
  • Combination of the options above – may be practical to appeal to different types of donors
 
2. COMMITTEE STRUCTURE
Identify what body will be responsible for encouraging charitable planned gifts and what body will be responsible for managing the endowment (or other fund) and its distributions? There are usually two options:
  • Keep All Responsibilities in one committee, often known as an Endowment Committee: A very common structure where a single committee manages the planned giving and endowment program. This includes both (1) encouragement of planned gifts through messaging, communications and education and (2) investment, accounting & regular review of the invested funds, the distributions, reporting, etc.
    • Positive: All interested parties are coordinated under one committee.
    • Negative: Nearly all such committees feel pressure to balance too many responsibilities and therefore focus a majority of efforts on the management of the endowment and investments. There is minimal attention left over to encouraging / gathering new planned gifts.
  • Divide Responsibilities Between Two Committees:
    • Planned Giving Committee: Responsible for the communication, education and encouragement of planned giving within the congregation.
    • Business/Finance Committee (or Relevant Comm. That is Already Responsible for Financial Affairs): A well-run endowment needs the focus and skills of a team with financial skills. If practicable, consider placing the responsibility of the endowment’s management, investment and distribution under the auspices of a committee that already has relevant skills, responsibilities and expertise.
Consider your best options for your committee Description: Sub-committees, position descriptions, serving terms, diversity of membership (varying skills, ages, and back grounds)
 
3. POLICIES
  • Are there any current or legacy policies governing the following?:
    • Endowment
    • Investment
    • Gift Acceptance
    • Spending Formula
  • How are bequests (or other planned gifts) treated and allocated when received?
  • Is there a procedure for documenting donor notification/intent?
 
4. DISTRIBUTIONS
  • How will funds be spent?
    • How much?: Determined by spending formula vs. other
    • Who receives funds?
  • Is there a specific purpose designated?
  • Does the board/session (or other committee) direct the distributions?
  • Is there a grant application process?
  • How will the news be shared?
 
5. LEGACY SOCIETY
  • Is there a Legacy Society in place?
  • If no, would your organization benefit from one?
 
These are a few of the big picture items. We will share on many of these categories as this series of articles proceeds. If you have comments or questions, please share them with us.