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Recent Questions

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Archive of Previous Questions

I was reading an article the other day in a reputable newsletter. It was written by a former planned giving director.

He says you can’t count anything that’s revocable. “That means no bequests, testamentary trusts, designations as beneficiary of insurance, retirement plans, or commercial annuities, nor anything that can be changed or revoked by the prospect.”

Question: Does this mean, you may well ask, you simply can’t count anything unless it’s irrevocable?

Answer:
In my judgment, this “expert” is absolutely wrong. I hope you won’t consider his the last word. What he writes would absolutely delight the chief financial officer. But it certainly would not touch the heart of a donor.

We have had countless, countless!, donors who make gifts on the basis of their intent or a testamentary promise (which is revocable) in order to give to something they care greatly about.

Every institution has a Gift Policy. (If you don’t, you should.) The Policy clearly indicates at what age certain gifts can be accepted.

Let’s say the age is seventy. That’s pretty typical in most institutions these days. 

(Some are still at 65— but this may be too young considering today’s life expectancies.)

Take Lota Bucks, for example. She’s 74 and loves the medical center.  Her husband recently died of cancer.
 
Lota Bucks says to the fundraiser: “I’m very interested in the Cancer Center you just described. And I love the idea of naming something for my husband who just died of cancer. But I’m going to have to live off the interest of the money my husband left me. 

“But I’m really interested in this program. I can promise you I’ll leave $5 million in my estate.”

I would accept the gift. I preach that to all our clients. But, of course, there has to be a Gift Policy that covers this.

There would be an exchange of letters with Lota acknowledging the gift. I would publicize it and celebrate it. And I’d make certain that Lota feels all the joy and jubilation of having something named for her beloved husband.  You make certain there is superb stewardship of the gift.

I have never, not once, had anyone renege on this kind of a situation. If the gift is acknowledged, recognized, and proper appreciation is shown— it will be left in the estate. In fact, most often, even more is left than is initially indicated.