By Trudy Schroeder
I have pondered the strange irony that people who give more are happier than people who get more.
In last month’s column, I wrote about the many good reasons for supporting organizations and causes you care about through your estate planning. This month, I want to outline the indicators that an organization is prepared and ready to be a partner with donors in planning and implementing legacy planning with supporters who care about the long-term importance of the services and programs offered by a charitable organization.
One of the great privileges of my professional life has been the opportunity to work with generous community members who are interested in leaving a legacy of generosity for the community in which they have lived well and experienced success. The remarkable similarity of joy in giving that I have seen in these individuals has been a very big life lesson for me.
Researchers in happiness have found that philanthropy is one of the truly great indicators of happiness in individuals.
I have pondered the strange irony that people who give more are happier than people who get more. How can that be explained? What I have observed is that people who live generously have developed a practice of gratitude. They are thankful for the professional and economic success they have experienced in their lives, and they want to make contributions to others in their community and the world in thankfulness for the success they have achieved. No one convinces these people to contribute to community causes and projects.
They know that they want to help the community, and they want to make a difference, but they are also very discerning in the ways they make contributions and the organizations and causes to which they contribute.
Not all organizations and causes have prepared themselves to be ready to help generous potential donors make contributions to their cause. The legacy gifts that you plan to make will come from a lifetime of work, careful savings, and thoughtful investments. You want to know that the organization will treat these resources carefully, responsibly, and respectfully. Here are some of the indicators you should look for in organizations that will treat your generous legacy gift with the care and attention that the gifts deserve.
1. Does the organization have a planned giving program that is developed and visible? An organization that is prepared to engage with potential legacy donors in a convincing way will be very clear and organized and visible about their legacy giving programs. You should be able to easily find information about the legacy giving program in organizational program guides, in their annual reports, on their website, or in brochures or handouts that are available to the public.
2. Does the organization have information on their legacy giving program that you can read and research? If you reach out to the development department of the charity or speak with the executive director about a legacy giving program, the individuals should be able to efficiently provide a package of clearly described and thoughtfully presented materials to show you some of the options that are available to you. This is information that you can take to your lawyer as you do your estate planning, but you should also be able to meet one-on-one with representatives from the organization to be sure that you understand the program options.
3. Does the organization have orientation and information events for people who may be considering making a legacy gift? An organization that has a well-developed legacy giving program will host legacy giving information events on a regular basis. The events will be advertised in their programs, on their websites and through information emails to members and donors. The events themselves will be positive and clear. Usually there will be a representative of a bank, investment firm, or financial planner who will clearly outline the financial and tax advantages of planned giving.
The event should also include a presentation by senior personnel in the organization who can describe the specific program options for legacy circle members for that organization. This should include the types of specific programs that can be supported by a legacy gift. This might include youth and access programs for specific population groups, capital campaigns, scholarships, program naming opportunities, and special events that can be attached to a legacy gift. There should also be a folder of information about the program available for pickup at the event and the opportunity to set up a one-on-one meeting with a representative of the organization.
4. Does the organization have a range of program options available for every level of gift that may be made? Sometimes we believe that legacy gifts can only be made by very wealthy people who have millions of dollars to leave to an organization. An organization that has a well-developed program will have a wonderful program of giving options for givers of gifts of all sizes.
You should never get the impression that an organization is not interested in your generosity because your potential gift is not large enough. Also, you should not feel at all pressured to provide specific information of the size of your planned gift to the organization. That is your business. Specific gifts of modest size can make a huge difference for an organization if there are many people who have made this type of planned gift.
5. Does the organization have an endowment fund that is held or managed by a respected and responsible board? Before making a commitment of a legacy gift to an organization, you should check to see that the organization is responsibly managed by good professional staff members, that if you desire your gift can be contributed to an endowment fund operated by a reputable board, and that there are good restrictions on the access to endowment funds so that boards are not tempted to squander the funds that are meant to be a support to the organization for the long term.
In many communities, there are community foundations that can hold funds on behalf of organizations in the community. In Manitoba, the Winnipeg Foundation is a highly reputable community foundation that has hundreds of agency funds that are held on behalf of charitable organizations in Winnipeg. The proceeds of the endowment funds are directed to the specific charity every year, usually at the rate of 5% of the fund size. Your gift of $10,000 would provide annual income of $500 per year in perpetuity to the cause that you care about. If you contribute $1M to the endowment fund, the annual contribution to the organization would be $50,000. That can do a lot of good over time.
6. Is there evidence that the organization thanks and recognizes legacy donors in an appropriate and sustainable way? While you are making your gift to an organization because you care about the service the group provides to the community, you should also see evidence that the organization is consistent and responsible in the way that it remembers and recognizes those who make legacy gifts to the organization. You should see the names of legacy givers in the organization’s annual reports, program guides, and on websites, or on walls on capital projects. If an annual event or concert is to be held in honour of a donor, that event should come up regularly. There should be profiles of legacy donors in development newsletters or on websites. You should see evidence of the generosity of previous generations of givers on building names, or program names.
7. Is there some documentation around planned gift that will give you reassurance that your planned gift will be used for the purposes you have identified? When you decide to join a legacy circle for an organization, you should be able to fill out a program registration form that indicates your intention to make a legacy gift. The form should allow you to select the area or program to which you plan to make a gift.
There should be an opportunity to share a personal profile with the organization that can be used for future recognition of your gift. There should be a description of the way in which your gift will be recognized, and you should be able to determine the way in which your name appears on recognition vehicles. Some organizations will send back a legacy giving agreement that is authorized by the CEO and will have an official seal or stamp of the organization on the document.
8. Is there a legacy circle membership protocol and program elements? In some organizations, special legacy giving membership pins, lists on donor walls or legacy donor books are kept. Find out about the program elements and plan to participate in the events. What you will discover is that the enthusiasm and stories of the other members of the planned giving group will inspire and amaze you. If you can make connections with others who plan to remember their community in their will, you will be delighted by the wonderful people you meet.
9. How will your gift be recognized? The way in which your gift will be recognized should be clearly outlined in writing. Do keep this information with your will and estate planning documents so that your executors and family members can be sure of the recognition and benefits that are linked to your planned gift. If there are term limits to the recognition, this should be clearly outlined.
10. Does the organization have regular meetings to thank members of their legacy circle for their legacy gifts? It is a good sign that the organization is serious about its planned giving program if they have an annual event to which members of the planned giving program are invited on an annual basis. This may be a reception, a tea, a dinner, or just a meeting to talk about the status of the organization, recognize the members that have made a gift in the past year, welcome new members, and generally thank planned givers for their generosity in planning for a gift for the organization. If you join a planned giving program, you should be thanked for your gift while you are still alive.
11. Will there be any lasting signage, naming rights, legacy benefits, or other elements that should be clearly documented so that there will not be any misunderstandings or disappointments later? If you are giving a very large gift that is attached to very specific expectations of signage, program naming, or access benefits for future generations of members of your family, be sure that this is well documented, and find out how the organization keeps records of these kinds of commitments. Staff members change, technology changes, offices change, and sometimes files disappear. It is best to be sure how the promises made while a legacy gift is being organized will be kept.
Giving to organizations that you care about should be a joyful process for you. If you have been passionate about a cause or an organization in your lifetime, the opportunity to make a legacy gift that will help to sustain the program or service for future generations should be an engaging and memorable experience for you in your life. Whether your favoured charities are protecting prairie wetlands, grasslands, Celtic dancing, pet rescues, historical sites, museums, art galleries, orchestras, classic car races, festivals, churches, summer camps, or your university, know that your generosity and thoughts for future generations will make a difference.
Trudy Schroeder provides project planning and management services to the community through Arts and Heritage Solutions.