What You Need to Know
- Nonprofits may not understand the donors’ financial objectives.
- Donors may not know much about charitable lead trust math.
- Federal estate tax updates could soon change everything.
Agents and advisors are looking for new ways to recharge their financial practices. One way we did this was to offer estate planning through charitable giving.
How do you start?
We suggest you contact a couple of nonprofits in your community and schedule a meeting. Ask them what they feel their weaknesses and strengths are in securing donors.
Many nonprofits do not understand the motivations of a charitable giving donor. The donor’s objective may be to create a one-year tax deduction or a tax-efficient legacy for the heirs.
As an estate planner, it is your objective to share with the nonprofit all the excellent strategies that you can provide to entice the single-time donor or the philanthropic donor to give on an annual basis.
How to Prepare
Here are steps for establishing yourself as an expert in the field of charitable giving:
- Build a relationship with an experienced estate attorney. Also, have a relationship with a notable CPA.
- Learn about the different types of trusts that provide tax-efficient strategies for the donor. There are several that create different outcomes.
- Understand how life insurance and irrevocable life insurance trusts integrated with fixed annuities and indexed annuities are the components of the safe, secure investment within a trust.
Here’s a basic outline of what you will want to create and structure your presentation with the nonprofit.
We started with a mission statement for the nonprofit to explain our objective. Ours is:
To educate, assemble and implement tax-efficient estate planning services tailored to a donor’s values, family legacy, and the charitable organizations they wish to support.
There are many forms of giving. An estate plan review will provide direction for the donor
We explain to the nonprofit that encouraging a donor to share the donor’s wealth with a favorite cause and charitable organization, instead of with the IRS, is legal and benevolent. We explain that we devise a plan based on the donor’s input, which provides a customized estate plan in conjunction with tax-efficient charitable giving.
The Donor’s Goals
An individual or family donor decides who will ultimately benefit from the donor’s benevolence.
Multiple organizations can benefit from a donor’s estate plan. The donor is not limited to donating to only to the nonprofit sponsoring a charitable giving planning program.
Donors are transferring wealth to their beneficiaries, upon death, through financial estate planning strategies arranged in a tax-efficient manner. Transferring wealth in a tax-efficient manner should be the first objective for the donor.
An estate plan will transform the financial future of the donor’s family.
The donor can also use the estate plan to project values and goodwill into the future.
Controlling the donor’s wealth transfer requires education, planning and implementation.