Major Gifts and Planned Giving Flashcards

What is the difference between a 'revocable' and an 'irrevocable' planned gift?

Answer: A revocable gift (e.g., a bequest) can be changed by the donor during their lifetime, while an irrevocable gift (e.g., a funded CRT) cannot be changed once established

Revocable planned gifts, like bequests, can be altered or revoked at any time before death, while irrevocable gifts, once transferred, cannot be changed or reclaimed by the donor.

Why is it important for a fundraiser to involve the donor's legal and financial advisors in a planned gift discussion?

Answer: Because the financial and legal implications of planned gifts require expert guidance to protect the donor's interests and ensure the gift is properly structured

Involving the donor's advisors ensures that planned gifts are structured appropriately for the donor's financial and estate planning situation and protects both the donor and the organization.

A 'charitable lead trust' (CLT) is structured so that:

Answer: The charity receives income first for a period of time, and then the remainder passes to the donor's heirs

In a charitable lead trust, the charity receives income (the 'lead' interest) for a term of years or lifetime, after which the remaining assets pass to the donor's heirs or other beneficiaries.

What is the recommended approach when a donor expresses interest in a planned gift but is hesitant to commit?

Answer: Provide educational resources about planned giving options, respect their timeline, and maintain regular stewardship contact

Planned giving decisions involve complex personal, financial, and family considerations; respecting the donor's timeline while providing education and maintaining a supportive relationship leads to better outcomes.

Which of the following is a key metric for evaluating the success of a planned giving program?

Answer: Number of confirmed gift intentions (expectancies) in the pipeline and the estimated value of those commitments

The number and estimated value of confirmed gift intentions (expectancies) is the primary indicator of a planned giving program's pipeline strength and future revenue potential.

How does a fundraiser ethically handle a situation where an elderly donor with cognitive decline expresses interest in making a very large planned gift?

Answer: Pause and consult with supervisors and legal counsel to ensure the donor is competent and acting of their own free will

When donor competence is in question, ethical fundraisers pause the process and seek guidance from supervisors and legal counsel to ensure the donor is genuinely competent and acting freely.