Planning Your Legacy – Notifying Nonprofits About Planned Gifts
by Amanda Thomas, CFP®
According to a 2019 Giving USA special report, only 4 percent of donors always notify organizations about their planned gifts, while 38.7 percent sometimes do. Reasons for not notifying include a “set it and forget it” mentality, since the gift won’t achieve its full potential until after the donor is gone. Or, maybe the donor doesn’t want anyone to make a fuss over them. No matter, notifying a nonprofit about your gift intentions should be a priority whether that gift is a simple bequest or you have named the
nonprofit as the beneficiary of a retirement account or a charitable remainder trust.
Why notify the nonprofit:
1) The nonprofit might not get the donation if it doesn’t know about it. Heirs can contest charitable donations and sometimes brokerage and insurance services are slow to pay out a planned gift. Sometimes the nonprofit doesn’t get paid out at all until the nonprofit notifies them.
2) If the nonprofit knows about the planned gift they can better plan for their future. Donations may be used for day-to-day operations, education, scholarships, and other important functions. Knowing that a gift is to be received in the future helps the charity budget for potential larger expense items, such as an upgrade to their facility or needed improvements to enhance their nonprofit clientele’s experience.
3) Some nonprofits are limited in the types of gifts they can receive. The Santa Barbara Maritime Museum has a gift acceptance policy that serves as guidance for the types of donations that are accepted to ensure that these gifts meet the Museum’s mission and are gifts that can be easily maintained or disposed. (Imagine the Museum receiving a gift of a racehorse!)
4) Some planned gifts carry tax benefits to the donor. The nonprofit can provide the donor with property documentation for the IRS.
The Santa Barbara Maritime Museum offers membership to its Flagship Society for those making a bequest or other planned gift to the Museum. Members names are on display in the Museum, listed in the Museum’s annual report and other publications, and members are invited to unique receptions held annually in their honor. The greatest reward comes from knowing that you are helping SBMM fulfill its mission and vision for generations to come.
SBMM is ready to work with you and your professional advisors to discuss giving a future bequest or other planned gift to the Museum. Please contact SBMM Executive Director Greg Gorga at ggorga@sbmm.org with any questions.