Smart ideas delivered every other Tuesday from Hartsook Companies, Inc.

July 10, 2007

While the June 26 issue of Strategies for Success explored basic tools used in structuring planned gifts, today's issue will stress the importance of satisfying your prospective donors' objectives while fulfilling your organization's goals - both can be accomplished by utilizing the basic tools from Part I of "A Planned-Giving Primer."

Step 1:
Identify your prospective donor's need:

• Increase current income
• Hedge against inflation
• Income security
• Current charitable deduction
• Avoid capital gains tax
• Provide for nonprofit
• Provide for heirs

Step 2:
Utilizing the basic tools (Charitable Gift Annuity, Charitable Remainder Unitrust, Charitable Annuity Trust, Charitable Lead Trust, and Wealth Replacement Life Insurance) recommend a best and second best way to accomplish the donor's objectives.

• Increase current income
  Best: Charitable Gift Annuity
  Second Best: Charitable Remainder Unitrust

• Hedge against inflation
  Best: Charitable Remainder Trust
  Second Best: Charitable Gift Annuity

• Income security
  Best: Charitable Gift Annuity
  Second Best: Charitable Annuity Trust

• Current charitable deduction
  Best: Charitable Annuity Trust
  Second Best: Charitable Remainder Unitrust

• Avoid capital gains tax
  Best: Charitable Remainder Unitrust
  Second Best: Charitable Annuity Trust

• Provide for nonprofit
  Best: Charitable Annuity Trust
  Second Best: Charitable Remainder Unitrust

• Provide for heirs
  Best: Charitable Lead Trust
  Second Best: Wealth Replacement Life Insurance

This process is most effective for prospective donors new to planned giving. These are simple solutions to satisfy simple objectives.

However simple or complex your prospective donor's objectives may be, he or she should always seek the professional advice of an attorney when establishing a gift that will impact his or her estate.

Another Smart Idea...From the Hartsook Best Practices Collection^SM

"For gifts received via e-mail, follow up beyond just an email reply. Get on the phone. Call them and say thank you. It often turns into a bigger gift. It allows you to connect." - Robert Crandall, CFRE, American Baptist Churches USA (Valley Forge, Pa.)

If you are interested in Best Practices and smart ideas, see these additional resources from Hartsook Companies:

• "Fundraising Magic - 33.5 Strategies for Turning Board Members into Money Makers" by Robert G. Swanson (2007, ASR Philanthropic Publishing). This book shares proven strategies you can implement immediately to give Board members the confidence and tools needed to cultivate donors, solicit gifts and strengthen your organization's position in the community. To order this book, follow this link http://www.ASRpublishing.com.

• "Reality Fundraising: Proven, Practical Ideas for the Enlightened Fundraiser" by Bob Hartsook (2005, ASR Philanthropic Publishing). The book features great ideas, insights and lessons learned through hundreds of best practices from nonprofit professionals nationwide. To order the book, follow this link http://www.ASRpublishing.com.

• "Best Practices Coast to Coast^SM," a compilation of best practices from every state in the union.

• "Hartsook Best Practices Collection^SM," our original collection of 250 best practices and great ideas.

For a free copy of "Best Practices Coast to Coast^SM" or the "Hartsook Best Practices Collection^SM", please email Tammy Weinman, tammy@hartsookcompanies.com, or visit our web site at http://www.hartsookcompanies.com/bestpractices2.shtml. We also invite you to contribute your own best practice by emailing Tami Druzba, tami@hartsookcompanies.com.

Interested in Speakers?

Hartsook consultants are available to speak to your organization on a variety of topics. To read more, visit http://www.hartsookcompanies.com/speak.shtml or email Tami Druzba at tami@hartsookcompanies.com to discuss the possibilities.

Visit the Hartsook Companies web site for:

• Educational opportunities
• Books/reference articles
• Conference/workshop speakers

Strategies for Success explores smart ideas, connecting with more than 1,500 fundraising professionals bi-weekly. We welcome your contributions or comments. If you'd like a free subscription to Strategies for Success - or its monthly companion, eHartsook on Philanthropy - contact Tammy Weinman, tammy@hartsookcompanies.com. You also can reach her at 316.630.9992.

Our web site is located at http://www.hartsookcompanies.com.