There’s a lot that small- and mid-size nonprofits can do to start Planned Giving and have a very respectable program going forward. To kick off your campaign, promote and market bequests, then you might include the IRA rollover and life insurance.
The charitable IRA rollover from the Taxpayer Relief Act is one of the rare gifts in Planned Giving that gives your charity immediate cash. For most planned gifts you have to wait until the death of the donor. Not so with the IRA rollover.*
Here’s why I suggest you promote it immediately: 1. Perfect for end-of-year giving. This is an easy way for your donors to make their annual gift and earn considerable tax advantages. More here.
2. Expires on December 31. It might be extended, as it has been twice before, but do you want to roll the dice on any prediction of what Congress will do? Use the 12/31 deadline to create a sense of urgency through your marketing channels.
3. Limited audience. This is only for those age 70 1/2 or over. I blogged more IRA detail back in January.
4. Easy to promote. Share your tax ID number, address and legal name. Have donors contact their IRA administrator for instructions to make a “qualified charitable distribution” to you.
You can do a few sentences on your blog; in an email blast; on Twitter and Facebook (recurring once a week); drop a slip in a mailing you’ve already planned; and drop a mention into meetings and events.
5. Easy for donors to pull the trigger. The companies that hold IRAs have got this down to a simple process. In most cases, donors fill out a short form using the info you’ve provided. The check comes directly to your office (which is one of the requirements; the links above have more detail).
My clients are having great success with IRA gifts this year! You can too if you get the word out.
Do it now because IRA giving may not last much longer.
*It’s actually a distribution (to charity), not a rollover. I’m using what’s popular because that’s how people search.