How do you count revocable and deferred gifts for campaign and Legacy Society purposes?

Cathryn Erhardt directs the Gift Planning effort at Union-PSCE (Presbyterian School of Christian Education) in Richmond, Virginia.  She asks how to count revocable and deferred gifts for campaign and Legacy Society purposes. Here’s my response.

Let’s begin with what is essential for every organization and in every situation.  There should be a Gift Acceptance Policy.  (If the reader doesn’t have one for your organization, let me know.  We have some excellent samples I can send you.)

In the Policy, it is quite clear what you are willing to count for your campaign and for Legacy Society purposes.  Some years ago, we had a minimum age of sixty as the guide.  Then it went to sixty-five.  Many organizations are now going to seventy years of age.  Each institution needs to decide what is an appropriate age. 

Typically, the Gift Acceptance Policy is written by the staff.  (Use ours as a guide.  Don’t reinvent the wheel.) 

In our campaigns, I encourage clients to count all deferred gifts.  I usually suggest that they be counted at face value.  That assumes the donor has reached the minimum age.

I recommend, also, that Estate Notes be counted.  Estate Notes is the term I use for donors who indicate they have left the institution in their wills. 

I know what your finance people will say:  “Well that could be revoked.  We have no way of knowing of whether we’ll get the money or not.” 

But I admonish institutions to not let their finance office run the campaign. 

I find that if you continue to show appreciation, provide good stewardship, and celebrate the estate gift— it nails in place the commitment.  In fact, if you do a really good job, it very often provides more in the estate than had been anticipated. 

I count for full value when a person has told me they have left the institution in their estate plans. 

Take, for instance, a life insurance policy that has been given to you.  If the person is over the minimum age in your Gift Acceptance Policy, I count the gift at the face value.  Here again, your policy will determine what your institution is willing to accept. 

Getting back to the Estate Note, I had a situation recently where a person said they could make a $100,000 gift to the College, pledged over three years.  “But I have left you folks $2 million in my estate.”

- Jerry Panas