Lights, Camera, Philanthropy: And the Oscar® Goes to…Planned Giving!

Stelter’s Senior Gift Planning Consultant, Lynn M. Gaumer, J.D., is back with her awards for outstanding gift vehicles in 2024.

Movie lovers around the world (many of them dressed in bright pink this year) recently tuned in to see who would be recognized by the Academy of Motion Picture Arts and Sciences. Similarly, I am here today to recognize excellence in planned giving vehicles.

Just like actors and filmmakers, these gift vehicles have star power and deserve their moment in the spotlight. So, grab your popcorn and get ready as we roll out the red carpet to recognize excellence in planned giving.

Can you feel the Kenergy?

And the Winners Are….

First up, the Golden Legacy Award recognizes the timeless impact of a gift vehicle. Let’s give a standing ovation to this year’s recipient: beneficiary designations.

These philanthropic powerhouses are the backbone of planned giving, providing donors with a simple yet impactful way to leave a lasting legacy. By naming your organization as a beneficiary of their retirement accounts or life insurance policies, donors ensure that their support continues long into the future. And with over $37 trillion (and growing) held in retirement accounts, now is a golden opportunity to highlight these gifts in your marketing material. Remember to encourage donors to notify you of their gift so you can collect the proceeds in a timely manner.

Collecting the proceeds should be a streamlined process for your organization. Unfortunately, this might not necessarily be the case when dealing with some administrators. A retirement plan administrator may require, for example, your organization to open an inherited IRA and supply personal information. According to the Financial Crimes Enforcement Network (FinCEN) recently published administrative ruling, personal information may be required under the Customer Identification Program and Customer Due Diligence Rules. Now, not all custodians require an inherited IRA, and those who do not will not have to collect this information. The best way to stay informed on this issue is to visit the National Association of Charitable Gift Planners’ charitable beneficiary IRA distribution center. It provides sample letters and the most updated information. 

The Silver Screen Star Award celebrates the shining success of a gift vehicle reserved for those in the 70+ category. Like a box-office hit wows crowds, qualified charitable distributions dazzle donors with their tax-smart approach to giving. For IRA owners age 70½ or older, these charitable champions support your organization while minimizing tax liabilities. Consider this: By 2030, all baby boomers will be 65 and older. That’s a lot of potential IRA gifts on the horizon. Some movies are timeless, and this gift is no different.

The Director’s Cut Award applauds a gift that gives donors creative control over their charitable giving narrative—mirroring the coveted control movie directors seek over their cinematic stories. Donor advised funds allow donors to direct funds to various causes with ease and purpose. If you haven’t seen the 2024 National Study on Donor Advised Funds, take a look—it’s the most extensive independent study on DAFs.

The Diamond Award celebrates the brilliance of a gift vehicle that helps donors maximize their tax savings. Please give a round of applause for this year’s winner: appreciated stock! The Dow Jones Industrial Average has been at or near all-time highs. Like a prestigious film that rakes in Oscar^® nominations, appreciated securities captivate donors with their tax-wise giving strategy. By donating securities that have increased in value, donors can qualify for an income tax deduction and avoid capital gains taxes. Remember this fascinating stat: Dr. Russell James found that nonprofit organizations consistently receiving gifts of stocks or bonds grew their contributions six times faster than those receiving only cash.

The Lifetime Achievement Award highlights a gift vehicle that continues to shine brightly for generations to come. This year’s award goes to gifts in wills and trusts. A great new report from Sea Change Strategies, highlighted in The Chronicle of Philanthropy, found that 31% of mid-level donors have made a bequest and 23% are considering it. The report defines mid-level donors as those who give $1,000 to $10,000 annually. The lion’s share are either baby boomers (61%) or members of the silent generation (21%). The survey found most midlevel donors connected with their favorite causes when they were young—72% engaged with their cause by the age of 39! This is great research to use when developing your planned giving marketing program.

And finally, the Best Planned Gift of 2024 Is…

The charitable gift annuity! What makes the CGA stand out among its peers? The American Council on Gift Annuities increased gift annuity rates not once, not twice, but three times within 18 months, making many rates the highest they have been in 16 years. In addition, Congress gave donors a gift last year: An IRA owner age 70½ or older can make a one-time election of up to $53,000 in 2024 to fund a CGA with a QCD.

And that’s a wrap. Congratulations to all of our winners!  And now, onto the afterparty (aka Next Steps).

Next Steps

I hope this blog gave you enough Kenergy to make 2024 your best year yet. My award for outstanding philanthropy is reserved for you, for your unwavering commitment to making the world a better place, one charitable gift at a time. Because, to quote the Oscar^®-nominated song about everyone’s favorite plastic blond heartthrob, you are “great at doing stuff.”