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Charitable Gift Annuities: A Fundraising Tool for Hospices

Charitable Gift Annuities: A Fundraising Tool for Hospices. Maureen Lilly Director, Planned Giving & Stewardship National Hospice Foundation mlilly@nationalhospicefoundation.org. Charitable Gift Annuities Basics. Contract between the donor and a charity/NHF

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Charitable Gift Annuities: A Fundraising Tool for Hospices

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  1. Charitable Gift Annuities: A Fundraising Tool for Hospices Maureen Lilly Director, Planned Giving & Stewardship National Hospice Foundation mlilly@nationalhospicefoundation.org

  2. Charitable Gift Annuities Basics • Contract between the donor and a charity/NHF • Allows donors to match their passion to give to hospice while supporting themselves or their spouse/child • Gift of cash or another asset to charity • Charity pays income for life to donor • On average, 50% of the original CGA goes to the charity

  3. The Basics of Charitable Gift Annuities As the name suggests, a Charitable Gift Annuity consists of two elements: 1) an outright charitable gift, and 2) the purchase of an annuity contract ($ or property)

  4. $10,000 CGA gift by 59 year old donor Annuity Type

  5. Benefits to a Hospice • CGAs attractive to aging baby-boomers needing supplemental income • Audience for CGAs are people who already know you – donors, Board, volunteers • CGA donors likely to make repeat gifts

  6. Risks to a Hospice • “Bob Hope” risk: donors live too long • “In like a lion, out like a lamb”: efforts taper off and pool of CGA donors doesn’t grow • Investment rates plummet: hospice may have to dip into reserves to meet CGA payments to donors

  7. Partner with NHF to Offer CGAs • Eliminates the need to purchase expensive software • Limits the administrative and management costs • Avoids the financial risk of guaranteeing payments to donors

  8. Partnership Obligations of Hospice • Market the CGA program in existing publications and communications • Share information about CGAs with existing hospice supporters • Contact NHF when a prospective donor is interested in a CGA

  9. Partnership Obligations of NHF • Provide marketing materials for Hospice to customize • Provide CGA educational resources on NHF website that can be used by the Hospice and donor • Develop individual CGA proposals for donor • Execute CGA contract between the donor and NHF • Coordinate donor designation of 50 – 80% of the residuum for referring Hospice

  10. Partnership Obligations of NHF • File state registration and annual reports • Pay annual state fees • Manage investment of the funds thru Morgan Stanley Smith Barney • Contract with 3rd party to manage quarterly payments to donors

  11. Partnership Obligations of NHF • Coordinate inserts from NHF and Hospice to include with payments to donors • Send annual report to Hospice • Charge 1% asset maintenance fee to the CGA pool to cover administration costs • Manage payout of residuum for Hospice (50 – 80% range) and NHF (20 – 50% range)

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