Many non-profits have supporting donors that believe in their mission, but you know they can give a lot more than they do.  Or, you suspect that they have a substantial estate, but you do not know if you are in line for any of it when they pass.  Or, you may know the answers to the above, but do not have the in-house expertise to help a donor move their contribution level or their estate plan to the next level.  We can provide that missing piece.  There are four ways we can work with your organization.

Planned Giving Resource

Smaller non-profits may not have a development officer or an organization may have a development officer, but the officer may or may not have expertise in planned giving and charitable tax planning.  Advanced planing strategies make it possible for donors to give more.  We can be a resource providing expertise to come along side when needed.

Donor Vision

A multi-faceted approach to educate, inspire and motivate donors to give more, to enlarge their vision of generosity.  Donor Vision typically starts with a group presentation, although some organizations prefer to skip the group presentation and meet individually with high-end donors.

A group presentation usually consists of stories and examples of how others have given far more and made a much larger difference than they ever thought possible.  Or, we can focus upon a specific strategy or approach, depending upon the audience and what your organization would like to accomplish.  They key to any presentation is to motivate them to want to take action at the end.

Following the presentation, we offer the opportunity for an attendee to meet with us and your development officer to discuss their specific philanthropic needs, goals, and objectives.  At this meeting, we will evaluate where they are and which, if any, of our services, can help them.  The objective is not to pressure them to do anything and, definitely not quickly.  This is a long-term planning approach that may take several weeks or months to bear fruit.  But, when it does, it is usually very fruitful!  Most donors also have financial, tax and legal advisors.  We include them in the process and do not try to usurp their role with the donor.

Regenerative Compensation Strategies

Three common issues faced by non-profits include:

    • Attracting and retaining good talent
    • Paying for employee benefits
    • Building an Endowment for long term support

We have developed a suite of compensation strategies which address all of the above problems.  We are able to custom design greatly valued compensation and benefit packages for higher-compensated employees that not only cost the organization little or nothing, but return significant dollars back to the organization down the road.

What if you could offer a benefit to existing or prospective employees which offered optional pre-tax contributions on their part and significant tax-free income at retirement – if they stay with you long enough?  (Golden handcuffs!)

Even better, what if this benefit could be funded by outside dollars, not taken from current cash flow or assets?  (Leveraging other people’s money!)

Finally, what if all of the dollars invested in this program were paid to you at the employee’s death?  (Endowment!)  This is why we call it regenerative.

I know this sounds too good to be true, but it isn’t.  These strategies are utilized by most Fortune 500 companies and a growing number of large non-profits and government entities.  All aspects are founded upon well-established legal precedence and tax laws.  We utilize third-party trustees, conservative non-recourse bank financing, and top-rated insurance companies to protect the interests of all parties.  An example of one strategy, the Executive Endowment Builder, is described in more detail below.

You have an opportunity to create a competitive edge to attract and retain top talent while at the same time enhance your long-term viability and success.  While these strategies may be applicable to a number of non-profits, it is ideal for:

    • Hospitals – for executives, physicians and nurses
    • Universities – for executives and professors
    • Foundations – for executives
    • Larger non-profits – for executives and contractors

The only thing separating you from super-charging your compensation package and increasing your endowment contributions is a phone call or email to us.

Journey of Generosity

This is a retreat created by Generous Giving, a non-profit whose mission is to spread the biblical message of generosity.  It is designed specifically for faith-based organizations and churches.  Spread over two half-days, it is a non-threatening atmosphere to encourage discussion of generous living with one’s peers.  These gatherings are guided by Wayne McDaniel, a Generous Giving facilitator. Together we explore the life-changing message of generosity and the power it has to bring joy, freedom, and purpose.  There is no cost for facilitating a retreat - it is our gift to you!

To learn more about Journey of Generosity Retreats, click here.  After viewing the information, if you are interested in us facilitating a JOG, please contact us.

Executive Endowment Builder (a Regenerative Compensation Strategy)

Executive Endowment Builder (EEB) is a cutting-edge strategy so beneficial to highly compensated employees and contractors, they willingly make irrevocable estate contributions to build the organization’s endowment.

Key personnel and other key stakeholders elect to forego current taxable income in exchange for future tax-free benefits.  Benefits include:

    • Pre-tax contributions
    • Short 5 year contribution commitment
    • No maximum limits
    • Tax deferred growth
    • Tax free retirement distributions
    • Market-based performance
    • No market risk
    • Exempt from creditor claims
    • Critical illness and injury benefits
    • Chronic illness and long term care benefits
    • Death benefits
    • Portable
    • Low expenses

Non-profits love it because it does not cost them anything – in fact, they make money on the program!  Here are benefits to the non-profit:

    • Helps retain talent
    • No additional outlay required
    • Converts compensation expense to an asset
    • Recovery of executive compensation plus interest at death – secured
    • No market risk
    • Long term endowment security

The EEB is not a deferred compensation plan.  However, it may also be used to augment or replace existing deferred compensation and other benefit packages.  It may even be possible to convert current existing incentive costs from a liability to an asset.

For example, an employee may elect to contribute $30,000 per year for five years to the plan.  Right now, the non-profit receives back none of the $30,000 paid to the employee - it is an expense.  Under the EEB, the organization will receive back $150,000 plus interest at the employees death, building a long term endowment.

The EEB utilizes a trust with a third party trustee, conservative non-recourse bank financing and top rated insurance companies to protect the interests of all parties and secure the tax benefits.  The plan has been actuarially tested and shown to have been profitable under all historical scenarios since 1929, though past performance should not be considered a guarantee of future performance.

Organizations this is ideal for include:

    • Hospitals – executives, physicians, doctors groups and independent contractors
    • Foundations – executives
    • Larger Non-profits – executives and contractors

Right now, you probably have a lot of questions.  To get answers on the details of how the EEB works, please contact us.