How to Raise Significant Financial Resources via a Planned Gifts Program

The decision for a church to move into a planned gifts program is an important one with major implications and an equal number of opportunities. Clearly, this effort can have a profound and lasting impact on a church’s ability to secure significant funding in support of its vision. However, to achieve the overarching goals, this program should be viewed as a systemic effort that is well organized, formalized and supported by the clergy, governing board and members associated with its stewardship program. When implemented in this manner, the church will experience a wide array of benefits that go beyond just realizing significant financial resources.

Currently, and in the foreseeable future, there will be an unprecedented transfer of wealth from one family’s generation to another. The actual amount is difficult to determine but many financial professionals contend that it could result in tens of trillions of dollars over the next twenty-year period. In addition, a longitudinal examination of philanthropic giving reveals that over one-third of all contributions were directed to religious organizations and affiliated causes.

While this environment is not reason enough for a church to consider the employment of a planned gifts program, it does support the idea that, if implemented correctly, a church can realize substantial financial resources. However, the primary motivation for the implementation of a planned gifts program should be centered upon the resolve of significant church needs and the advancement of God’s work.

     A few additional reasons for considering a planned gifts program include:

• Given these uncertain economic times, planned giving offers an alternate way in which financial support can be provided to a church which does not require immediate “out-of-pocket” monies.

• A planned gifts program will not negatively impact a church’s annual stewardship, which generally needs to be sustained or enhanced given increases in operational overhead.

• Deferred gifts can greatly enhance a church’s ability to achieve long-term objectives such as building an endowment.

• This type of giving offers congregations an additional way to demonstrate sacrifice as well as commitment to the “Will and Works of God.”

People are often unsure of the definition of "planned giving.” A gift is "planned" to the extent that the donor purposefully integrates a charitable gift into the donor's overall financial, tax and estate planning. A planned gift enables a donor to make a positive financial difference for himself/herself and for his/her family, while also making an important gift to a church. Planned gifts are often thought of as leaving a legacy that benefits not only the donor and the donor's family, but also future generations. Planned giving may take the form of:

• Bequests in a Will

• Beneficiary of retirement plan assets

• Beneficiary and/or owner of an existing life insurance policy

In addition, there are other options, which tend to be more complex including:

• Life income gift

• Charitable remainder trusts

• Charitable lead trusts

This planned gifts program promotes a culture of giving. In most instances, congregations provide support to their church by way of the annual stewardship program. While this venue is important for the daily operation of the church, it rarely accommodates additional resources to promote growth and advancement of important long-term initiatives. Through personal financial sacrifice and the sharing of God’s gifts for the benefit of others, members of the congregation realize a greater sense of fulfillment.

This program, which is intended to be congregation-wide, provides a forum for disseminating information on a church’s long-range goals. These goals may include advancement of various programs and services, capital development projects or endowment building. Through implementation of a planned gifts program, a sense of community and ownership are created. By acquiring the perceptions and attitudes of worshippers, they will become more vested in the process and the desired outcomes. If an individual or couple decides to include the church in their estate planning, it is an indication and validation of a long-term commitment to the church.

For the purpose of this resource guide, specific technical information on the planned giving vehicles is outside the intended scope. In many cases, members of the clergy, administration and/or volunteers should seek advice from appropriate counsel, such as attorneys and/or tax advisors.

Instead, this manual offers a very detailed implementation model and framework with a primary goal of securing a significant number of planned gifts for a church of any denomination or size. As far as a specific premise, any effort that requires ample human and financial resources should result in an equally significant dividend. In the case of this effort, when employed in the prescribed manner, the return on investment can amount to acquisition of approximately 25 percent or more of worshippers participating in the program.

Thus, the corresponding materials are designed in a manner such that:

• A church can successfully implement a comprehensive and rewarding planned gifts program over a twelve-month period of time.

• A church does not have to engage the services of outside counsel and incur expensive consulting fees.

• The church can utilize a volunteer (worshippers-based and driven) structure to implement the process.

• The church can implement the process on a step-by-step basis resulting in monthly outcomes and achievements.

     This manual is organized in 12 monthly subsets. Each subset is inter-related and used in a “building block” approach. It is designed to be a self-directed, self-contained implementation model and inclusive of all necessary support materials. The employed strategy is grounded in widely accepted fundraising principles and methodologies.