planned giving myths

Does charitable bequest planning cannibalize current giving?

“I don’t give anymore,

because I have a planned charitable bequest”

Does charitable bequest planning

cannibalize current giving?

Tracking the entire “lifetime” movie

• Collect giving information to all charities for years before, during, and after plan changes

• Large, federally-funded, longitudinal, in-person, well-compensated, nationally representative, study on health and retirement issues since 1992

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Before -8

years

Before -6

years

Before -4

years

Before -2

years

Mixed After +2

years

After +4

years

After +6

years

After +8

years

An

nu

al C

har

itab

le G

ivin

gin

Co

nst

ant

(In

flat

ion

Ad

just

ed

) 2

01

2 D

olla

rsGiving Before and After Adding

Charitable Beneficiary to Estate Plan9,439 observations from a nationally representative longitudinal study

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Before -8

years

Before -6

years

Before -4

years

Before -2

years

Mixed After +2

years

After +4

years

After +6

years

After +8

years

An

nu

al C

har

itab

le G

ivin

gin

Co

nst

ant

(In

flat

ion

Ad

just

ed

) 2

01

2 D

olla

rsGiving Before and After Adding

Charitable Beneficiary to Estate Plan9,439 observations from a nationally representative longitudinal study

$7,381 average annual giving post-plan

$4,210 average annual giving pre-plan

+$3,171 average

annual giving increase

Does charitable bequest planning

cannibalize current giving?

Does charitable bequest planning cannibalize current giving?

Avoid technical language when first introducing a gift planning vehicle

Avoid technical language when first

introducing a gift planning

vehicle

Results from 10 survey groups

including over 5,000 total participants

collected during 2014

Please rate your interest in pursuing the following charitable giving arrangement

Make a gift

where you get an immediate tax deduction, still control the

investment of the assets and receive income from the

investments for the rest of your life with anything left over going to

charity at your death.

where you get an immediate tax deduction, still control the

investment of the assets and receive income from the

investments for the rest of your life with anything left over going to

charity at your death.

Make a transfer of assets

Different groups rate their interest after receiving different descriptions

Does it make much difference?

Describing a CRT

14%

54%

32%27%

53%

20%

Interested now Not now, but in future

Will never be interested

Transfer

GiftMake a giftwhere you get an immediate tax deduction, still control the investment of the assets and receive income from the investments for the rest of your life with anything left over going to charity at your death.

where you get an immediate tax deduction, still control the investment of the assets and receive income from the investments for the rest of your life with anything left over going to charity at your death.

Make a transfer of assets

2014 Survey (A/B)1,101 Respondents

Make a gift

and in exchange receive a guaranteed lifetime income from

the charity.

and in exchange receive a guaranteed lifetime income from

the charity.

Enter into a contract with a charity where

you transfer your cash or property

Does it make much difference?

Describing a CGA

13%

44% 44%

29%

48%

23%

Interested now Not now, but in future

Will never be interested

Contract

Gift Make a gift and in exchange receive a guaranteed lifetime income from the charity

receive a guaranteed lifetime income from the charity

Enter into a contract with a charity where you transfer your cash or property and in exchange

2014 Survey (A/B)1,101 Respondents

Formal terms lower charitable interest

Interested Now

36%

22%

Will Never Be

Interested

14%

23%

2014 Survey, 1,417 Respondents, Group F/G

Get an immediate tax deduction and still receive income from your investments for the rest of

your life by making a gift where you control the investment of the assets, but anything left over

goes to charity at your death.

Get an immediate tax deduction and still receive income from your investments for the rest of

your life by making a gift

using a “Charitable Remainder Trust”

where you control the investment of the assets, but anything left over goes to charity at your

death.


Interested Now

50%

23%

Will Never Be

Interested

8%

19%


Receive a tax deduction and make a gift that pays you

income for life

Receive a tax deduction and make a gift that pays you

income for life

called a “Charitable Gift Annuity”


Interested Now

26%

15%

Will Never Be

Interested

23%

30%


Immediately receive a tax deduction for 70% of the value of a house or land by

making a charitable gift of the property, but keeping the right to use it for the

rest of your life.

Immediately receive a tax deduction for 70% of the value of a house or land by

making a charitable gift of the property,

using a “Remainder Interest Deed”

but keeping the right to use it for the rest of your life.

Interested Now

23%

12%

Will Never Be

Interested

12%

14%

2014 Survey, 1,246 Respondents, Groups D/E

Make a gift to charity in my will

Make a bequest gift to charity


Avoid technical language when first

introducing a gift planning

vehicle

Avoid technical language when first introducing a gift planning vehicle

The decision to leave an

actualcharitable

bequest (not just a survey

response) isn’t dramatically

influenced by slight phrasing

changes

The decision to leave an actualcharitable bequest (not just a survey response) isn’t dramatically influenced by slight phrasing changes

3,000 testators in the normal process of completing their wills were randomly assigned to one of three groups

Many of our customers like to leave money to

charity in their will. Are there any causes you’re

passionate about?

Would you like to leave any money to charity in your will?

No reference to charity

Cabinet Office Behavioural Insights Team (2013) Applying behavioural insights to charitable giving

5.0%

10.4%

15.4%

Charitable bequests are influenced by a simple social example

Charitable plans among

1,000 testators


1,000 testators


1,000 testators

Many of our customers like to leave money to

charity in their will. Are there any causes you’re

passionate about?

Would you like to leave any money to charity in your will?

No reference to charity


The social example also increased the average amount of bequest gifts


$5,610 $5,291

$11,333

No ask Simple Ask Social NormUsing £1=$1.70 exchange rate


1,000 testators


1,000 testators


1,000 testators

The social example dramatically increased total charitable dollars


$280,500

$550,264

$1.75 million

No ask Simple Ask Social NormUsing £1=$1.70 exchange rate

among1,000 testators



The social norm increased charitable bequest intentions

Interested Now

30%

23%

12%

Will Never Be

Interested

9%

12%

14%

2014 Survey, 1,866 Respondents, Groups D/E/LateG+H

Many people like to leave a gift to charity in their will. Are

there any causes you would support in this way?

Make a gift to charity in my will

Make a bequest gift to charity

The decision to leave an actualcharitable bequest (not just a survey response) isn’t dramatically influenced by slight phrasing changes

The decision to leave an actual charitable bequest isn’t dramatically influenced by slight phrasing changes

It is better to tell stories of living

planned bequest donors than deceased

bequest donors

It is better to tell stories of living planned

bequest donors than

deceased bequest donors

New Survey

v.

Instead of testing question wording, now

testing impact of marketing messages for

40 national charities(4,560 participants)

Baseline BEQ GiveAmer Cancer Society 26.79 36.77The Red Cross 25.93 41.12ASPCA 24.18 33.77Habitat for Humanity 24.01 34.90Amer Heart Association 23.17 33.95Natl Cancer Coalition 22.56 34.54Breast Cancer Res Fnd 22.53 33.93Natl Breast Cancer Fnd 22.43 33.48The Amer Humane Assn 22.23 33.91The Alzheimer's Found 21.40 32.00Susan G. Komen Br Canc 21.39 29.22Dana Farber Cancer Inst 21.13 29.63American Diabetes Assn 20.84 32.54World Wildlife Fund 20.82 29.08Guide Dogs for the Blind 20.80 31.46The Alzheimer's Assn 20.80 31.86American Lung Assn 20.78 31.40MD Anderson Cancer Cr 20.59 30.53UNICEF 20.37 32.31The Salvation Army 19.98 31.44

Baseline BEQ GiveWildlife Conserv Soc 19.90 29.26Goodwill Industries 19.65 34.42Big Brothrs/Big Sisters 19.47 30.49The United Way 18.97 28.97Joslin Diabetes Center 18.91 29.18Canine Compan for In 18.90 29.67Fnd Fightng Blindness 18.77 28.37AIDS Project LA 17.71 25.64Prevent Blindss Amer 17.51 28.32San Fran AIDS Found 17.39 25.49Nat Audubon Society 17.33 24.24YMCA 17.16 28.12Boys and Girls Clubs 17.14 30.10Girl Scouts 16.71 31.27YWCA 16.21 24.42Amer Indian College F 15.97 22.33CARE 15.86 24.69Boy Scouts 14.51 23.56United Negro Coll Fnd 14.13 21.90Ducks Unlimited 13.60 19.49

Social NormsFormal Evidence

Information indicating that it is common for Americans

to leave 5% or 10% to charity. Sharing survey

results showing agreement with concept.

Spendthrift Heirs Formal Evidence

Statistics showing how rapidly heirs typically

spend inheritance from published academic

research

MessageGive-

BEQ GapGap50+

GapMale

GapFemale

None 10.2 14.0 7.7 11.7Spendthrift Heirs (Formal) 9.4 11.4 8.4 10.1Social Norms (Formal) 8.8 11.7 7.5 9.7Heirs + Social Norms 8.0 10.2 6.4 9.0

Charitable bequest decision making emphasizes “visualized

autobiography” brain regions

Contrast Brain RegionMNI co-ordinates

Peak p FWE

Clust-er p FWE

(1) Beq> Give Lingual Gyrus -2, -78, -2 .004 .000

Precuneus 26, -66, 42 .102 .009(2) Beq> Vol Lingual Gyrus 2, -80, -4 .007 .000

Precuneus 30, -66, 40 .180 .004

Precentral Gyrus -34, -3, 36 .397 .001(3) Beq> (Give+ Vol) Lingual Gyrus 0, -78, -4 .001 .000

Precuneus 26, -66, 42 .007 .001

James, R. N., III & O’Boyle, M. W. (2014). Charitable estate planning as visualized autobiography: An fMRI study of its neural correlates. Nonprofit and Voluntary Sector Quarterly, 43(2), 355-373.

With new images or pure text (no significant difference)

Deceased bequest donor life stories

MessageGive-Beq

GapGap50+

GapMale

GapFemale

None 10.2 14.0 7.7 11.7Spendthrift Heirs (Formal) 9.4 11.4 8.4 10.1Social Norms (Formal) 8.8 11.7 7.5 9.7Heirs + Social Norms 8.0 10.2 6.4 9.0Deceased Beq. Stories 6.7 7.5 4.4 7.5


Living bequest donor life stories

E.g., “School janitor Lester Holmes died in 1992” becomes “School janitor Lester Holmes signed his will today”

MessageGive-Beq

GapGap50+

GapMale

GapFemale

None 10.2 14.0 7.7 11.7Spendthrift Heirs (Formal) 9.4 11.4 8.4 10.1Social Norms (Formal) 8.8 11.7 7.5 9.7Heirs + Social Norms 8.0 10.2 6.4 9.0Deceased Beq. Stories 6.7 7.5 4.4 7.5Living Bequest Stories 4.4 4.3 3.3 5.0


Effect of More Stories

1st 4 Stories: Janitor, pet groomer, carpenter, symphony patron

2nd 3 Stories: fisherman, coach, physician

MessageGive-Beq

GapGap50+

GapMale

GapFemale

None 10.2 14.0 7.7 11.7Deceased 1st 4 stories 6.8 7.5 5.5 7.6Deceased All 7 stories 6.6 7.5 5.4 7.4Mixed Dec/Liv 7 stories 6.0 7.2 5.0 6.6Living 1st 4 stories 4.8 5.7 3.9 5.4Living All 7 stories 4.1 2.5 3.0 4.7

Which of the four message

types worked best for which of

the 40 charities?

Living donor stories outperformed all other messages for 40 out of 40 charities tested

Although numerical ability declines with age, verbal knowledge does not

Park, et al (2002) Psychology and Aging, 17(2), 299-320

It is better to tell stories of living planned

bequest donors than


It is better to tell stories of living planned bequest donors than


Many people increase their interest

in a charitable bequest if given the

option to leave a tribute bequest

honoring a loved one

Many people increase their interest in a charitable bequest if given the option to leave a tribute bequest honoring a loved one

Bequests to friends and family (v. charitable bequests) more heavily involve brain regions of Emotion (mid/posterior cingulate cortex;

insula) and Memory (hippocampus)

Can a charitable bequest represent a loved one, and thereby connect with this

memory and emotion?

Female, 63 widowed

‘The reason I selected Help the Aged...it was after my mother died...And I just thought – she’d been in a care home for probably three or four years. And I just wanted to help the elderly...I’d also support things like Cancer Research, because people I’ve known have died...An animal charity as well, I had a couple of cats.’

Bequest charity representing loved ones

“‘[In my will I have a gift to] the Cancer Research. My father died of cancer and so I have supported them ever since he died.’

Male, 89 married (Routley, 2011, p. 220-221)

Do you have a deceased friend or deceased family member who would have appreciated your support of an International relief organization such as CARE or UNICEF?

Also tested for living friend or family memberAlzheimer’s The Alzheimer's Association, The Alzheimer's Foundation

Diabetes Joslin Diabetes Center, The American Diabetes Association

Wild Birds Preservation National Audubon Society, Ducks Unlimited

Wildlife World Wildlife Fund, Wildlife Conservation Society

Minority College Fund United Negro College Fund, American Indian College Fund

Blindness related nonprofit Foundation Fighting Blindness, Prevent Blindness America

Youth-related charitable Girl Scouts, Boy Scouts, YMCA, YWCA, Big Brothers / Big Sisters of America, Boys and Girls Clubs of America

AIDS research and care San Francisco AIDS Foundation, AIDS Project Los Angeles

Animal welfareAmerican Society for Prevention of Cruelty to Animals, The American Humane Association

International relief UNICEF, Care

Cancer research American Cancer Society, National Cancer Coalition, M.D. Anderson Cancer Center, Dana Farber Cancer Institute

Guide dogsGuide Dogs for the Blind, Canine Companions for Independence

Breast cancer researchBreast Cancer Research Foundation, National Breast Cancer Foundation, Susan G. Komen Breast Cancer Foundation

If so, please state your relationship to them and write at least 25 words describing their interest in or connection with this cause.If you signed a will in the next 3 months, what is the likelihood you might leave a BEQUEST gift honoring a living [deceased] friend or family member to _____

Testing the tribute bequest

Change in charitable bequest intention for those with family/friend connection

Total Age 50+ Male FemaleMemorial reminder +14.0 +14.0 +13.5 +14.0Living reminder +9.2 +9.3 +7.7 +9.9

Connection reminder + tribute bequest offer

increases interest

Average share with family/friend connections to each cause

Total Age 50+ Male FemaleMemorial reminder 22.1% 27.1% 19.5% 23.6%Living reminder 34.2% 36.1% 30.4% 36.6%


Total Age 50+ Male FemaleMemorial reminder

+11.7 +12.2 +11.0 +12.1

Memorial reminder(after othermessages)

+15.0 +14.0 +15.3 +14.8

Living reminder

+9.4 +11.3 +6.4 +10.0

Living reminder (after other messages)

+9.2 +9.1 +7.9 +9.9

Connection reminder + tribute bequest offer can be “stacked” with other bequest messages

Giving – Tribute Bequest

TotalAge 50+ Male Female

Memorial reminder(after living/ deceasedstories)

-4.2 -1.7 -6.5 -3.1

Living reminder (after living/ deceasedstories)

-3.3 -2.3 -2.4 -3.7

Donor stories + tribute reminder eliminates giving-bequest intention gap for those with friend/family connections

DONOR STORY

TRIBUTE REMINDER

DONOR STORY

DONOR STORY

Tribute bequests are more attractive for ascendants, less for descendants or friends

Family and friend words associated with interest in a tribute bequest(ranked by strength of correlation)

Positive Non-significant Negativegrandmother +7.5 dad girl -12.8family +3.5 children boy -13.7mother +2.4 uncle kids -8.4aunt +2.6 sister girls -12.1grandfather +2.7 mom friends -3.5husband +3.6 wife boys -11.6

cousin brother -6.4parents daughter -6.1son child -5.8father friend -1.4

Phrasing the tribute question

Interested Now

23%

16%

13%

Will Never Be

Interested

17%

21%

21%

2014 Survey, 1,961 Respondents, Groups B/A/H

Honor a friend or family member by making a memorial gift to charity in

my last will & testament

Make a bequest gift to charity in my last will & testament in honor of a

friend or family member who appreciated the charity's work

Make a bequest gift to charity in my last will & testament in honor of a friend or family member who was

passionate about the charity's work

1 in 4 increased their intention to leave a

charitable bequest

Many people increase their interest in a charitable bequest if given the option to leave a tribute bequest honoring a loved one

Many people increase their interest if given the option to leave a tribute

bequest honoring a loved one

Are Americans becoming much

less likely to have a signed and

witnessed will or trust document?

Are Americans becoming much less

likely to have a signed and

witnessed will or trust

document?

51%

53%

55%

57%

59%

61%

1998(n=18,987)

2000(n=18,142)

2002(n=17,353)

2004(n=17,464)

2006(n=17,033)

2008(n=16,280)

2010(n=17,562)

2012(n=17,798)

2014(projected)

U.S. 55+ population with a will or trust

States allowing “Transfer on Death” deeds in 1995

States allowing “Transfer on Death” deeds fall 2014

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

Age 55+ use of will alone or trust

Will Only

Funded Trust

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

1998(n=18,987)

2000(n=18,142)

2002(n=17,353)

2004(n=17,464)

2006(n=17,033)

2008(n=16,280)

2010(n=17,562)

2012(n=17,798)

2014(projected)

Charitable beneficiary among those aged 55+ with a will or trust

0%

2%

4%

6%

8%

10%

1998(n=18,987)

2000(n=18,142)

2002(n=17,353)

2004(n=17,464)

2006(n=17,033)

2008(n=16,280)

2010(n=17,562)

2012(n=17,798)

2014(projected)

U.S. 55+ with a charitable beneficiary

Are Americans becoming much less

likely to have a signed and

witnessed will or trust

document?

Are Americans becoming much less likely to have a signed and witnessed

will or trust document?

Don’t the aging demographics say we should be getting big charitable

bequest dollars now??

Don’t the aging

demographics say we should be getting big

charitable bequest

dollars now?

0

20

40

60

80

100

120

140

19

90

19

92

19

94

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

20

16

$ B

illio

ns

An

nu

ally

Est. High ('98-'17)

Est. Middle ('98-'17)

Est. Low ('98-'17)

Charitable bequestsreceived

Charitable bequests:Predicted

v. Received

Estimated annually is 1/20 of 20 year estimated total from P.G. Schervish and J. J. Havens (1999) “Millionaires and the millenium: New estimates of the forthcoming wealth transfer and the prospects for a golden age of

philanthropy”. Bequests received are inflation-adjusted numbers from Giving USA 2014

76

78

80

82

84

86

88

Me

dia

n A

ge a

t D

eat

h

Linear (Male BequestDonor)Linear (FemaleBequest Donor)Linear (All Female)

Linear (All Male)

Wealthy people die old.Wealthy bequest donors die even older.

“the life expectancy [of a 65-year-old female Charitable Remainder Trust Donor]… would be… nearly 10 and one-half years longer than the charitable income tax deduction table (90CM Table).Clontz & Behan, NCPP 2010

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95+

Cumulative percentage of charitable bequest dollars by donor age at death

Over 80% of charitable bequest dollars come from decedents aged 80+

Half of all charitable bequest dollars came from decedents this age and older…

Current U.S. study:

Age 89

New Australian study (5% sample of national

probate files):

Age 90

2000000

2500000

3000000

3500000

4000000

4500000

19

14

(A

ge 1

00

)

19

17

(A

ge 9

7)

19

20

(A

ge 9

4)

19

23

(A

ge 9

1)

19

26

(A

ge 8

8)

19

29

(A

ge 8

5)

19

32

(A

ge 8

2)

19

35

(A

ge 7

9)

19

38

(A

ge 7

6)

19

41

(A

ge 7

3)

19

44

(A

ge 7

0)

19

47

(A

ge 6

7)

19

50

(A

ge 6

4)

19

53

(A

ge 6

1)

19

56

(A

ge 5

8)

19

59

(A

ge 5

5)

19

62

(A

ge 5

2)

19

65

(A

ge 4

9)

19

68

(A

ge 4

6)

19

71

(A

ge 4

3)

19

74

(A

ge 4

0)

19

77

(A

ge 3

7)

19

80

(A

ge 3

4)

19

83

(A

ge 3

1)

The “baby bust” is driving demographics

Births

0

5,000,000

10,000,000

15,000,000

20,000,000

50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90-94 95-99 100+

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Key population not growing, YET

Total resident population by 5-year age groups

Temporary flat trend in key population

Don’t the aging

demographics say we should be getting big

charitable bequest

dollars now?

Don’t the aging demographics say we should be getting big charitable

bequest dollars now?

90% of planned bequest donors never change their plans

90% of planned bequest

donors never change their

charitable plans

The NCPG (2000) study showed that 90% of planned bequest donors don't change their plans

Fiction

Among those (avg. age of 58) WITH a charitable plan, 10% chose “Amount Decreased” when asked about their overall plan, “Has the amount of the charitable bequest ever increased or decreased?”

FactIt showed that IF charity stayed in, plan changes decreased total charitable amount 10% of the time

Old data

Post-mortem for largest estates

Plans changes occur over time

We can see this only in

a LIFETIMEsurvey

not in a

ONE TIMEsurvey

The ten-year test

Among those who reported a charitable plan in the initial year AND answered the same

question 10 years later, what percentage still reported having a charitable plan?

1994 v. 2004; 1996 v. 2006 1998 v. 2008; 2000 v. 20102002 v. 2012

Most still report charitable plans 10 years later

0%

10%

20%

30%

40%

50%

60%

70%

1993/4 to2004

1995/6 to2006

1998 to2008

2000 to2010

2002 to2012

10-Year Retention of Charitable Estate Component

age 70+

age 50-69

50%

55%

60%

65%

70%

75%

80%

85%

2002 2004 2006 2008 2010 2012

Charitable Plan Loss Trajectory Among those still answering the question who reported having a

charitable component in BOTH 1998 & 2000

“Count it and forget it” doesn’t work!

90% of planned bequest

donors never change their

charitable plans

90% of planned bequest donors never change their charitable plans

Most charitable plans are added within five years

of death

Most charitable plans are

added within five

years of death

Most realized charitable plans added within 5 years (shown in red) of death

Total Number Total $

Although most charitable plans were added within 5 years of death, ONE longer-term plan was worth FOUR made in the last two years.

A 5% national sample of 2012 probate records in Australia showed an estimated

• 31% of charitable wills were signed within 2 years of death

• 60% were signed within 5 years of death

Baker, Christopher (2014) Encouraging Charitable Bequests by Australians . Asia-Pacific Centre for Social Investment & Philanthropy - Swinburne University

Age at Will Signing(by share of total charitable bequest $ transferred)

76%

11%

13% 80s+

70s

pre-70

Australian data from: Baker, Christopher (October, 2013) Encouraging Charitable Bequests by Australians . Asia-Pacific Centre for Social Investment & Philanthropy - Swinburne University

Factors predicting when charitable plans are

ADDED

1. Approaching death (final pre-death survey)

2. Becoming a widow/widower

3. Diagnosed with cancer

4. Decline in self-reported health

5. Divorce6. Diagnosed with

heart problems7. Diagnosed with

a stroke8. First grandchild9. Increasing

assets10. Increasing

charitable giving

Factors predicting when charitable plans are

DROPPED

1. Decline in self-reported health

2. Approaching death (final pre-death survey)

3. Becoming a widow/widower

4. Divorce

5. Diagnosed with cancer

6. Diagnosed with heart problems

7. Diagnosed with a stroke

8. First grandchild

9. First child

10. Exiting homeownership

Most charitable plans are

added within five

years of death

Most charitable plans are added within five years of death (and many are dropped)

More older adults (50+) are

resistant to planned giving concepts than younger adults

(30-50)

Difference in older (50+) v. all respondents

Questions

I Will Never Be Interested

DefinitelyInterested

Now

All gift of cash +0.1% +2.4%

All bequest gift +8.5% +0.6%All tribute bequest +10.1% -0.2%

All TOD +13.2% -0.2%All donor advised fund +13.9% -0.2%All gift of stocks/bonds +14.3% +0.0%All retained life estate +15.9% -0.9%

All CGA +16.8% -2.3%All CRT +25.2% -1.9%

A larger share of older adults are decidedly resistant to bequest

giving and planned giving(2014 Survey)

Older adults are initially more resistant to bequest giving but more responsive to

bequest marketing

0

2

4

6

8

10

12

14G

ive

-Be

qu

est

Gap

All

50+

Older adults are initially more resistant to

bequest giving but are more responsive to

bequest giving marketing

{ { { {{ { {

{

}


Total Age 50+Memorial reminder +13.97 +13.96Living reminder +9.22 +9.33

Older adults initially more resistant to tribute bequest concept (survey #1) but more

responsive to tribute bequest reminder (#2)

Average share with family/friend connections to each cause

Total Age 50+Memorial reminder 22.1% 27.1%Living reminder 34.2% 36.1%

Will Never Be Interested

All 50+

All bequest gift 15.9% 24.4%

All tribute bequest 20.3% 30.4%

More older adults (50+) are

resistant to planned giving concepts than younger adults

(30-50)

More older adults (50+) are resistant to planned giving concepts, BUT are also more responsive to messages

If you are in the signed and witnessed will, you should expect to receive a

gift at death

If you are in the signed and

witnessed will, you should expect to

receive a gift at death

The entire “lifetime” movie (tracking same people from mid-life to post-mortem)

New data

Previous data

Old data

Small one-time snapshots in life

Post-mortem for largest estates

Wills that

won’tWhat ultimately

happened to those written and witnessed will documents reported during

life?

Reported wills are often unused

16%

38%10%

19%

11%

6%

Distributed estates where decedent reported having a written and witnessed will (n=6,063)

No will found

Will probated

Unprobated will: nothingmuch of value

Unprobated will: estateotherwise distributed

Unprobated will: trustdistributed

Unprobated will: other

Funded trusts more likely to work

75%

5%

10%

4% 2%4%

Distributed estates where decedent reported having a funded trust (n=913)

Funded trust exists

No documents

Will probated

Unprobated will:Otherwise divided

Will - Nothing much ofvalue

Will - Unknown

If you are in the signed and

witnessed will, you should expect to

receive a gift at death

If you are in the signed and witnessed will, you should expect to receive a

gift at death.

It is important to mention tax deductions when initially describing a

planned gift

It is important to mention tax deductions when initially describing a planned gift

Social Desirability

Bias

The motivational effects of tax

benefits appear when measured

directly

People are unlikely to report giving as motivated by personal benefits like tax deductions

Interested Now

50%

33%

31%

Will Never Be

Interested

8%

14%

20%

2014 Survey, 1,904 Respondents, Groups D/E/F

Receive a tax deduction and make a

gift that pays you income for life.

Make a gift that pays you income for life and

receive a tax deduction.

Make a gift that pays you income for life.

Mentioning tax deductions increases charitable interest

Interested Now

26%

12%

11%

Will Never Be

Interested

23%

33%

42%

2014 Survey, 1,826 Respondents, Groups F/B/D

Immediately receive a tax deduction for 70% of the valueof a house or land by making a charitable gift of the property, but

keeping the RIGHT TO USE it for the rest of your life.

Make a charitable gift of either a house or land, but keep the RIGHT TO USE for the rest of your life and immediately

receive a tax deduction for 70% of the value of the property.

Make a charitable gift of either a house or land, but keep the RIGHT TO USE it

for the rest of your life.


InterestedNow

28%

27%

21%

Will Never Be

Interested

17%

20%

25%

2014 Survey, 1,782 Respondents, Groups E/A/C

Get an immediate tax deduction by making a gift where you still control the

investment of the assets, and receive income from the investments for the rest of

your life with anything left over going to charity at your death.

Make a gift where you get an immediate tax deduction, still

control the investment of the assets and receive income from the investments for the rest of your life with anything left over going

to charity at your death.

Make a gift where you still control the investment of the assets, and receive income from the investments for the rest of your life

with anything left over going to charity at your death.


It is important to mention tax deductions when initially describing a planned gift

It is important to mention tax deductions when initially describing a

planned gift

planned giving myths

Documents