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Every charitable organization should have a planned giving program. The Board of Directors introduced a full-fledged planned giving program in Memphis, Tennessee in 2000.
Overall Program Objective: To meet the fiduciary responsibility of building the assets of the ESA Foundation over the long term, which will aid in the increasing activity which serves the purposes for which the Foundation was chartered, to serve human need.
The Board’s objective is to generate an awareness of the ESA Foundation and the charitable opportunities to support the Foundation both now and in the future. Current opportunities consist of the following: membership, scholarship, endowments, memorials, bequests, charitable trusts, and insurance programs. We want to provide as many charitable giving opportunities as we can so past and current supporters can choose an alternative that is appropriate for them.
PLANNED GIVING PROGRAM CAMPAIGNS
In celebration of the Foundation’s commitment to effective communications with the International Council of ESA, and the ESA Headquarters it adopted the goal of achieving 75 gifts by the year 2004 in celebration of the 75th anniversary of Epsilon Sigma Alpha International. The gifts that will be counted for the 75 are charitable remainder trusts, charitable lead trusts, insurance plans, scholarship bequests from estate or will planning, being included in a will or estate, and Service ($500) and Heritage Level ($1000) giving.
The following campaigns are being developed which will feed the "More than a Promise, A Commitment: 75 for the 75th" campaign:
The following programs will be campaigns that generate gifts to obtain the goal of 75 gifts by the year 2004:
Helping Other People Excel
ESA Foundation HOPE Legacy Program
In an effort to recognize people who generously give to the ESA Foundation, a legacy program was established in 2000. The legacy program will recognize contributions between June 1 and May 31 of each year in two categories. The Foundation is also sensitive to the wishes and desires of those who wish to keep their donations confidential. We assure these donors that any donations made in this regard will be kept in strictest confidence until which time they wish to make their generosity known.
"H.(elping) O.(ther) P.(eople) E.(xcel) … We Succeed." GIFTS
Members who establish gifts in the planned giving program in the following categories: CRTs, CLTs, Insurance Plans, Scholarship Bequests from estate and/or will planning, wills or estate donations, and Service and Heritage level giving. These gifts will be divided into two groups: realized gifts and unrealized donations.
"H.(elping) O.(ther) P.(eople) E.(xcel) … Because of You" GIFTS
Members who give to the Scholarship Endowment Program in any amount to promote our education legacy will be recognized.
- Names will be listed in the Fall Newsletter to the membership.
- These gifts will be included in the Plateaus of Giving.
- Recognition will be given at the Annual Meeting to legacy members.
Friendship Level = $35 gift "Encourage each other to become the best you can be. Celebrate what you want to see more of." - Tom Peters
Advocate Level = $50 gift "If everyone is moving forward together, then success will take care of itself" - Henry Ford
Pioneer Level = $100 gift "Quality is not just a chart, or a standard, or a specification – it’s a state of mind, a commitment, a responsibility, a spirit. It’s a way of doing, being and living." - Don Galer
Partnership Level = $250 gift "One person can make a difference, and every person should try." - John Kennedy
Service Level = $500 gift "When you do the best you can, you never know what miracle is wrought in your life, or in the life of another." - Helen Keller
Heritage Level = $1000 gift "The future is in the hands of those who can give tomorrow’s generations valid reasons to live and hope." - Teilhard de Chardin
THE FOUNDATION’S PLANNED GIVING PROGRAM
Implementing the planned giving program will require time and planning. This program will be rolled out over a period of time as a tool to educate and create awareness regarding wills, bequests, beneficiary designations and other charitable planning alternatives.
The State Counselor can assist the Foundation in the promotion of the planned giving program in the following ways:
- Identify people within their state that have been long standing supporters of the Foundation and ask them if they are interested in providing support to the ESA Foundation through estate planning.
- Utilize the published materials put out by the Foundation to advertise and educate the membership in their state regarding the planned giving program.
- Keep themselves up-to-date on the planned giving program and the current changes that come along as the program is developed.
- Keep the Board of Directors informed on where information may be inserted regarding wills and bequests for the membership. If a member indicates an interest in establishing a will or bequest to inform the Endowment Committee so the appropriate contact can be made with the correct information sent.
- Alert the membership in their state as to new programs and opportunities for giving that are developed for the planned giving program.
It is important to note that having a wills and bequests program may not directly lead to increasing our assets at the outset of the program. It generally takes time before the benefits of being left in someone=s estate planning will be realized by the Foundation. Be patient with the program and allow time for it to grow and evolve over time. What we are looking to establish is the long-term development of permanent assets to build our endowment. The results will follow.
The regulation of the planned giving program falls under the direction of the Endowment Committee. The committee shall be responsible for the investment plans of the ESA Foundation and coordinating the activities of the planned giving program.
WILLS, BEQUESTS AND BENEFICIARY PROGRAMS
These programs are quite basic and the results can be very rewarding. Implementing these programs requires understanding of a practical wills and bequests program for which effective educational efforts and marketing and public relations programs are critical elements for success. A vital service is delivered to your constituency by educating them about the importance of a will, estate planning, and the important role that bequests play in providing continuing support for the ESA Foundation. It is appropriate for you, as part of their education, to tell your prospects about the merits of the ESA Foundation and request the ESA Foundation be considered in their wills.
WHAT IS A WILL
A will is a legal declaration of how a person wishes their possessions to be disposed of after their death. The document containing the declarations is called a will.
REASONS FOR HAVING A WILL
Knowing why your donors should have wills can help you motivate them to make wills for their families and your organization.
_ You, not your state’s arbitrary intestacy laws - determine to whom, how and when your property will be distributed.
_ You name your executor - the person, bank or trust company who will manage and settle your estate according to your instructions. If a person dies without a will, the law decides who settles the estate.
_ In a will you can name the guardian who will raise your minor children and manage their property - subject, of course, to your spouse’s natural rights.
_ A will can assure a marital deduction for bequests to a non-citizen spouse.
_ You can create trusts for your spouse, children and others. Trusts protect your beneficiaries against loss or dissipation that might result from their inexperience. Trusts also save taxes.
_ With a will, estate taxes are often reduced and sometimes even eliminated. Taxes can also be saved in a survivor=s estate.
_ A life insurance designation is no substitute for a will. Most people have other property in addition to life insurance.
WHAT IS A BEQUEST
A bequest is something that is left or given to another by will. A legacy. No other source has greater potential for the planned giving program than bequests.
WILLS AND BEQUESTS - Asking Individuals to Name the ESA Foundation in Their Wills
State Counselors can assist with the following:
_ Ask through mailings and meetings with donors who won't make outright gifts or life income gifts - or as a supplement to a modest or not-so-modest lifetime gift.
_ Ask for the Foundation to be named in wills at board meetings and meetings of volunteers.
_ Promote the program by sending donors literature provided on the importance of a will. Emphasize that it is important to give the ESA Foundation’s full legal name.
LIFE INSURANCE PROGRAMS AND RETIREMENT PLANS
LIFE INSURANCE PROGRAMS: Life insurance policies originally purchased to satisfy a particular need that no longer exists are excellent candidates for a charitable gift.
By contacting his/her insurance agent, a donor can change the beneficiary on an existing policy naming the ESA Foundation as a primary or a contingent beneficiary.
A donor can make the ESA Foundation the owner and the beneficiary of a life insurance policy and take a tax deduction for the value of the policy.
Using the tax dollars saved by making a major gift, a donor may be able to purchase a "wealth replacement" policy for the benefit of heirs.
RETIREMENT PLANS: The growth of retirement plans during recent years has been significant and most donors are simply unaware they can designate a charity as a beneficiary.
Even listing the ESA Foundation as a contingent beneficiary can result in sizable gifts.
Asking Individuals to Name the ESA Foundation as Beneficiary/Contingent Beneficiary
Ask through mailings and meetings with donors who won't make outright gifts or life income gifts - or as a supplement to a modest or not-so-modest lifetime gift.
Ask to be named as beneficiary/contingent beneficiary at board meetings and meetings of volunteers.
Emphasize the importance that the donor give the ESA Foundation’s full legal name.
SAMPLE Bequest Clauses: If a member asks about the necessary wording for a bequest the following suggestions may be used. It is essential that the ESA Foundation’s full legal name be used. The member should be told that this is only a sample language and that all legal documents need to be checked by their attorney.
Unrestricted general legacy: I bequeath to the ESA Foundation, headquartered in Fort Collins, CO, the sum of $___________ dollars for its general purpose.
Gift for a specific purpose: I bequeath to the ESA Foundation, headquartered in Fort Collins, CO, the sum of $____________ dollars to be added to its endowment and the net income therefore shall be used for scholarships. If in the opinion of the ESA Foundation Board of Directors the purposes of the ESA Foundation would be better served by using the income or principal, or both, for the ESA Foundation general purposes, the income, or principal, or both, may so be used.
A specific legacy: I bequeath my art collection consisting of paintings and sculptures to the ESA Foundation, headquartered in Fort Collins, CO.
Gift of residuary estate: I devise and bequeath the residue of the property owned by me at my death, real and personal and wherever situate, to the ESA Foundation, headquartered in Fort Collins, CO, for its general purposes.
Contingent gift of residuary estate: I devise and bequeath the residue of the property owned by me at my death, real and personal and wherever situate, to my spouse, Mary Jane Doe-Smith, if she survives me. If my spouse does not survive me, I devise and bequeath my residuary estate to the ESA Foundation, headquartered in Fort Collins, CO, for its general purposes.
Amount of gift dependent on the size of the estate: I bequeath the sum of $_________ dollars or %_____ percent of my adjusted gross estate as finally determined for federal estate tax purposes, whichever is the lesser, to the ESA Foundation, headquartered in Fort Collins, CO, for its general purposes.
Direction that the charitable gift be free of taxes: I direct that no estate or inheritance taxes be paid from my share of any property devised or bequeathed to the ESA Foundation, headquartered in Fort Collins, CO.
Provision providing for payment of pledge: I direct my executor to pay to the ESA Foundation, headquartered in Fort Collins, CO, any balance that is due or will become due under the terms of any pledge or pledges made by me during my lifetime.
SPECIFIC SAMPLE BEQUESTS:
Unrestricted Bequest - An unrestricted bequest may be made effective upon your death or after a specified period during which assets are used to support another family member. This type of request allows the ESA Foundation to use the entire gift in a manner that the ESA Foundation determines to be most important.
Samples:
I give to the ESA Foundation, a nonprofit organization headquartered in Fort Collins, CO:
The sum of $______________
The following property herein described _________________________.
______% Percent of the residue of my estate.
This gift shall be used by the Board of Directors of the ESA Foundation as it deems to be in the best interests of the ESA Foundation.
Restricted Bequest - A restricted bequest may also be effective upon your death or after a designated period during which your assets benefit another person. This type of bequest allows you to choose how your gift will be used at the ESA Foundation.
Samples:
I give to the ESA Foundation, a nonprofit organization headquartered in Fort Collins, CO:
The sum of $______________
The following property herein described ____________________________.
______% Percent of the residue of my estate.
This gift shall be used by the Board of Directors of the ESA Foundation either to establish an endowed fund, the income of which shall be used for__________________ (e.g. general operating expenses, scholarships, programs or grants) or to add to an existing restricted endowment or grant which has been established for a similar purpose. The Board of Directors may use all or part of the income from this gift for such purposes. If it is found that the income can no longer be used for the purposes stated here, then the income may be used for other purposes that will benefit the ESA Foundation, taking into consideration my interest in the purposes stated in this paragraph.Scholarship Bequest - A Lasting Legacy - In leaving a bequest to the ESA Foundation in your will to establish an endowment in the Scholarship Program is a wonderful way to utilize your money and leave a living legacy for future generations to benefit. There are two ways to establish a bequest in your will. Suggested guidelines to follow and considerations regarding the Foundation’s Endowment Program are included.
I give to the ESA Foundation, a nonprofit organization, located in Fort Collins, Colorado (363 West Drake Road, Fort Collins, Co. 80526):
The following property herein described: ____________________________.
The Board of Directors shall use this gift either to establish an endowed fund, the income of which shall be used for operations of the scholarship or to add to an existing restricted endowment or grant which has been established for a similar purpose. The Board of Directors may use all or part of the income from this gift for such purposes. If it is found that the income can no longer be used for the purposes states here, then the income may be used for other purposes that will benefit the ESA Foundation, taking into consideration my interest in the purposes states in this paragraph.
(If you wish to designate a name for the endowment)
This will give the Board of Directors jurisdiction over the endowment fund. They will operate it for you when the time comes in the manner in which you specify. Key factors to remember when establishing an endowed scholarship are:
Memorial Fund - Your bequest can be used to create a memorial fund in your name or in the name of another person you wish to honor.
Your gift would then be known as
"The ___________________ Memorial Fund", and this phrase would be included in the wording for either a restricted or unrestricted bequest. If you would like the fund to be endowed, please check with the ESA Foundation regarding endowment requirements.
The Remainder of a Trust - Unrestricted and restricted gifts may be made upon the termination of a trust that initially benefits another person. An example of an unrestricted gift would be:
Upon the death of ________________ (the first beneficiary), this trust shall terminate and the remaining trust estate shall be distributed to the ESA Foundation, a nonprofit organization headquartered in Fort Collins, CO, to be used by the Board of Directors of the ESA Foundation as it deems to be in the best interests of the ESA Foundation.
Unrestricted Residuary Bequest - You may choose to have the ESA Foundation receive the rest of your estate once other bequests have been fulfilled.
Sample:
I give to the ESA Foundation, a nonprofit organization headquartered in Fort Collins, CO, the rest and residue of my estate to be used by the Board of Directors as they deem most advisable for the best interests of the ESA Foundation.
ENDOWMENT (Investment) Committee:
The Endowment (Investment) Committee shall be appointed by the Chairman of the Board with the advise and consent of the Board of Directors of the ESA Foundation to regulate the planned giving and investments of the Foundation. The following appointments will comprise a five-member committee:
As the Investment Officer for the Board, the elected Treasurer shall serve on this committee. One member of the Advisory Panel of Past Chairman of the Board shall serve on the Investment Committee.* Non-voting members will not be required to attend meetings. Three additional members of the Board of Directors shall serve on the Investment Committee. One shall be the current Chairman of the Board and two Directors appointed by the Chairman to serve which can include the Jr. Past Chairman. The Registered Agent shall serve on this committee in a non-voting advisory capacity.
The Chairman of the Investment Committee shall be elected by the members of the committee and serve for one year. No limit shall be imposed on the number of terms a person can serve as chairman of this committee. The committee shall serve for a period of one year. Membership on the committee shall not be limited to one term.
The Committee shall meet as a group at least twice a year in conjunction with the annual meeting and mid year Board meeting. All other work of the committee shall be conducted by mail or telephone.
INVESTMENT PLAN FOR FISCAL YEARS ENDING 5/31 / 2000-2001-2002
The Investment Plan for 2000 - 2001 is designed to achieve the objectives of the ESA Foundation’s Investment policy. The purpose of the plan is to reflect both the intent and the practical application of the concepts set out in the Investment Policy.
ASSET ALLOCATION
This Investment Plan is intended to serve as an investment program which will provide the income determined by the Spending Policy outlined below, and to offer the greatest opportunity for appreciation of the ESA Foundation=s assets while focusing on the preservation of principal. The ESA Foundation Board of Directors has established the following allocation:
- No more than 60% Equities
- No less than 40% Fixed Income
MONITORING
Quarterly
reports will be produced by the Investment Committee and submitted to the ESA Foundation Board of Directors for review.SPENDING POLICY
Each year, the Investment Plan will include a spending rate. Annual distributions may not exceed 5.5% of the fund balance after 5/31/ 2002 unless otherwise determined by the Investment Committee. This spending rate shall be achieved over a three-year period. Starting with the spending rate of 6.3% in 2000, 6.0% in 5/31/2001, and 5.5% in 5/31/2002.
ORIENTATION PROGRAM:
Orientation of the Board of Directors, State Counselors, and membership shall be an ongoing process to keep the membership informed. It shall take the following forms:
- Procedural Manual
- Mid-year meeting presentation
- Annual meeting presentation
- Marketing materials
Procedural Manual: There shall be a special section added to the procedural manual Section VI and in Appendix A. Additionally, the Investment policy in Section I, page 11 of the manual shall be updated to include the additional activities added by the Endowment Committee.
Orientation of the Board of Directors and the ESA Foundation membership shall be an continuous process. Orientation and informational sessions will be conducted twice a year. The Chairman shall schedule a portion of the mid-year meeting to include investment policy orientation. Annual Meeting Presentation: The Chairman of the Board shall schedule two meeting times for board orientation on the investment policy for new and present members of the Board of Directors as well as the State Counselors Workshop. As the Investment officer for the Board the Treasurer shall conduct these orientations. It is essential that all members of the Board have an understanding of the Foundation=s investment activities and policies. The Board of Directors may determine that it is essential to conduct an orientation session on the Investment Policy of the Foundation with the membership at the annual meeting. It is the intent of the Board of Directors that the membership is kept informed.
It will be most helpful if the State Counselors will keep themselves informed and up to date concerning the investment policies of the Foundation. Should the State Counselor not be able to answer a question that comes up within their state they are directed to contact one of three board officers: Chairman of the Board, Chairman of the Endowment Committee or Treasurer.
INVITING SOMEONE FROM CAPITOL GROUP TO SPEAK ON PLANNED GIVING:
First, we ask that you contact the Chairman of the Investment Committee, which is a member of the ESA Foundation Board of Directors. This Director will establish the necessary contact with Capitol Group for you. When contacting any employee of Capitol Group, please remember that these are professionals in their field and they travel at their own expense. Since they are working, it is important to make them feel comfortable by doing what it is they do best. Therefore, request their ideas for a presentation and then present what you have in mind in order to coordinate for any presentation.
IF YOU DON’T KNOW - ASK US! THE BOARD OF DIRECTORS IS HERE TO ASSIST.
PLANNED GIVING INFORMATION/REQUEST FORM
To Obtain Additional Information send for one or more of the following:
- Making a will
- Gift Annuities
- Life Insurance Gifts
- Pooled Income Funds
- Charitable Remainder Annuity Trusts
- Charitable Remainder Unitrusts
- *new booklet "The Charitable Remainder Trust - A Gift and an Income"
Number requested if ordering more than one: ________________________________________
________________________________________
Many friends of the ESA Foundation have named the ESA Foundation in their wills. Knowing about their generosity helps the ESA Foundation plan better for the future. If you know of someone that included the ESA Foundation in their estate please list them below and send the information to the Registered Agent at ESA Foundation Headquarters.
Name: ________________________________________
Address _______________________________________
City ____________________ State ______ Zip Code _________
Send to: ESA Foundation
363 West Drake Road
Fort Collins, CO 80526