Critical Issues to Consider for Launching or Re-Launching a Planned Giving Program

Have You Thought Through Some Critical Questions?
for A Planned Giving Program:
The following are preliminary topics to prepare for a launch or re-launch of a planned giving program. Many of these topics will be covered in greater depth throughout this series.
1. ENDOWMENT
Endowment: Is there or will there be an endowment? Some churches may wish to have planned gifts be available for immediate spending needs. While this may be necessary in certain situations, this is generally not a best practice.
Be certain to categorize the funds properly. Are the funds really intended to be?:
• True endowment from which the church cannot spend the principal (This is the best practice)
• Quasi-endowment / Session-Designated Endowment from which principal can be accessed under certain conditions
• Reserve Fund or Capital Fund
• Combination of the options above – may be practical to appeal to different types of donors.
2. COMMITTEE STRUCTURE
Identify what body will be responsible for encouraging charitable planned gifts to the endowment (or other fund) and what body will be responsible for managing the endowment (or other fund) and its distributions? There are usually two options:
• Keep All Responsibilities in one committee, often known as an Endowment Committee: A very common structure where a single committee manages the planned giving and endowment program. This includes messaging, communications, education, investment & regular review of the funds, distributions, etc.
Positive: All interested parties are coordinated under one committee.
Negative: Nearly all such committees feel pressure to balance too many responsibilities and therefore focus a majority of efforts on the management of the endowment and investments. There is a very little attention paid to encouraging / gathering planned gifts.
• Divide Responsibilities Between Two Committees:
Planned Giving Committee: Responsible for the communication, education and encouragement of planned giving within the congregation.
Business/Finance Committee (or Relevant Comm. That is Already Responsible for Financial Affairs): A well-run endowment needs the focus and skills of a team with financial skills. If practicable, consider placing the responsibility of the endowment’s management, investment and distribution under the auspices of a committee that already has relevant skills, responsibilities and expertise.
Consider your best options for your committee Description: Sub-committees, position descriptions, serving terms, diversity of membership (varying skills, ages, and back grounds)
3. POLICIES
Are there any current or legacy policies governing the following?:
o Endowment
o Investment
o Gift Acceptance
o Spending Formula
o How bequests (or other planned gifts) are treated when received
o Procedure for documenting donor notification/intent
4. DISTRIBUTIONS
• How will funds be spent?
o How much?: Spending formula vs. other
o Who receives funds?
• Specific purpose designated
• Session (or other committee) directed
• Grant application process
• How will the news be shared?
5. LEGACY SOCIETY
• Is there a Legacy Society in place?
• If no, should there be?