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Revocable trusts

  • 1.  Revocable trusts

    Posted 18 days ago
    facts:
    - we acquired another college and a revocable trust dated 2015 came with the acquisition
    - we are in a campaign that started 7/1/2018
    - the donor is 93 years old
    questions:
    - is it appropriate to request the updated value?
    - if so, is it appropriate to recognize  the change in value?
    - according to CASE, is it appropriate to book the planned gift in the current campaign?

    ------------------------------
    Carla Murphy
    Executive Director Advancement Initiatives
    Sacred Heart University
    murphyc5@sacredheart.edu
    ------------------------------


  • 2.  RE: Revocable trusts

    Posted 18 days ago
    Your CFO should determine what value to place on the asset for general ledger purposes.

    And, no, you cannot count this in your campaign.  Not only wasn't the trust given to you (you essentially "bought it" when you acquired the other institutions), but the trust was established before the campaign and without the donor having any knowledge of the campaign.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987






  • 3.  RE: Revocable trusts

    Posted 18 days ago
    we became aware of this after the campaign started. our campaign is comprehensive.
    the documentation from the trust gives 1/3 to my school and a third to the school we acquired.

    ------------------------------
    Carla Murphy
    Executive Director Advancement Initiatives
    Sacred Heart University
    murphyc5@sacredheart.edu
    ------------------------------



  • 4.  RE: Revocable trusts

    Posted 18 days ago
    But it was not GIVEN for this campaign.  The underlying CASE premise is that campaigns are not about finding old money but raising new.

    When it comes to bequest expectancies that had not previously been identified or documented, some institutions will count those.  But only if they demonstrate a discussion with the donor during the campaign and an allocation of the bequest to campaign priorities.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 5.  RE: Revocable trusts

    Posted 18 days ago
    So if we communicate with the folks managing the trust and they don't have an issue with it being counted in the campaign, then can we count the ⅓ to us the ⅓ to the school we aquired.

    ------------------------------
    Carla Murphy
    Executive Director Advancement Initiatives
    Sacred Heart University
    murphyc5@sacredheart.edu
    ------------------------------



  • 6.  RE: Revocable trusts

    Posted 18 days ago
    I did not say that.  I said that SOME institutions will count the expectancy but ONLY if a discussion leads to a campaign priority designation.  But I also said that counting anything that was committed prior to the campaign is not in keeping with the CASE underlying philosophy.  CASE clearly states that no pledge made prior to a campaign is ever counted.  And that's what this really is - a pledge that is entirely revocable.

    John

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987







  • 7.  RE: Revocable trusts

    Posted 18 days ago
    Ok. I misunderstood. So, since the planned gift was made in 2015 and we just found out about it, we cannot book as of today so it counts in the campaign, even though a portion was directed to us? But can we book it with a 2015 date?

    ------------------------------
    Carla Murphy
    Executive Director Advancement Initiatives
    Sacred Heart University
    murphyc5@sacredheart.edu
    ------------------------------



  • 8.  RE: Revocable trusts

    Posted 18 days ago
    I believe you stated that you acquired an organization.  If you now want to "merge" your giving records, you should pull in all donations recorded in the other organizations' system into yours on the corresponding donor record (or create a new record).  All of those prior transactions should appear in the merged database with their original transaction dates.

    If, however, you are talking about old bequest expectancies you were previously unaware of, you should follow your campaign counting policies regarding "grandfathering."  If those policies do not allow counting of pledges or transactions made before the start date of the campaign (grandfathering), then I have seen institutions handle those two different ways:
    • Record the found expectancy with the original date
    • Record the found expectancy with today's date, but flagged in a way that excludes it from campaign totals. 
    If you do not have a policy about counting these "discovered" pre-campaign expectancies, then CASE discourages that.  However, as I mentioned, some institutions do allow this to an extent.  Here is the language some of my clients adopt when they are writing counting policies:

    Revocable gifts (i.e., bequest expectancies):  These must be documented either by a copy of the portion of the will mentioning [institution name], or a duly executed bequest intention form.  Agreements outlining specific purposes for the use of the bequest must be executed during the campaign period Other prior bequests will not be counted, although additions to those provisions made during the campaign will as long as the above documentation supports them.    

    Also, remember that CASE further suggests that those expectancies you do count should be counted differently depending on the donor's age.

    John H. Taylor
    Principal
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987