FundSvcs Community

Expand all | Collapse all

Re-counting previous planned gift SOIs

  • 1.  Re-counting previous planned gift SOIs

    Posted 06-21-2021 10:02 AM
    Hi everyone,

    One of our top directors is telling me that we are moving forward with a practice that I've never heard done before, but I'm keeping on open mind.  Basically, she's asking our Director of PG to recontact all our existing PG donors with existing testamentary commitments that we had counted at the time at their respective NPVs, and... if they're willing to sign a new statement of intent that we remain in their estate for the same amount or more and give us a number, that we can COUNT THE INCREASE in the NPV of the gift.

    So for instance:

    Example 1: Let's say Donor X stated in FY2015 that she was leaving us $1M in her will and that at that time the NPV was $600K, and we counted that in our fundraising totals for FY2015. Our top director is now saying, if our Director of PG can get the donor to sign a new SOI stating that she intends to still leave us the SAME $1M (and let's say the current NPV is $875K), that we can record the difference in the NPV ($275K) as a new gift.

    Example 2: Let's say Donor Y stated in FY2014 that he was leaving us $1M in his will and that at that time the NPV was $500K, and we counted that in our fundraising totals for FY2014. Our top director is now saying, if our Director of PG meets with the donor and learns that he plans to leave us $1.5M (current NPV=$1.3M) and gets him to sign a new SOI stating that, then we can record the difference in NPV ($800K) as a new gift.

    Is this common practice?

    Thanks

    ------------------------------
    Eric Valdescaro
    Senior Director, Advancement Services
    University of Memphis
    eric.valdescaro@memphis.edu
    ------------------------------


  • 2.  RE: Re-counting previous planned gift SOIs

    Posted 06-21-2021 10:13 AM
    This is a direct violation of CASE Standards.  There is no new gift, period.  The bequest was previously made and counted.  Done.

    If the donor increases your specific amount or percentage, then you can count that NEW gift.

    John

    John H. Taylor 
    919.816.5903 (Cell/Text)

    Big Ideas; Small Keyboard





  • 3.  RE: Re-counting previous planned gift SOIs

    Posted 06-21-2021 11:15 AM
    The rise in the NPV of a gift like this is the same as the rise in the value of an investment. You already own it, and increases in its value are not the result of additional generosity. The donor already gave you that bundle of assets and possible changes in value, and you already counted it using a risk-adjusted number. There's nothing left to count again. The donor reaffirming their commitment doesn't change anything, they're not giving you anything you didn't already have. 


    Thank you,
    Isaac Shalev
    CRM Expert
    Sage70, Inc.
    (917) 859-0151
    isaac@sage70.com

    Schedule a 30-minute consultation now:






  • 4.  RE: Re-counting previous planned gift SOIs

    Posted 30 days ago

    That's some creating gift accounting, and definitely suspect per John and Isaac.  I would feel super uncomfortable being a part of it. 

    It's non-compliant with CASE, misinterprets the purpose of establishing an NPV in a particular moment of time ... but also, wouldn't the university be better served by thanking those existing bequest donors, and turning their sites on bequest commitments from other donors? 

    I know that confirming bequests with existing legacy donors and counting any bequest increases is a practice of sorts, but I wonder what would be the more productive fundraising activity in terms of generating new dollars booked...



    ------------------------------
    Tom Yates
    Temple University
    Executive Director of Gift Planning
    215-926-2545
    tyates@temple.edu
    ------------------------------



  • 5.  RE: Re-counting previous planned gift SOIs

    Posted 29 days ago
    Thanks all, much appreciated.

    -Eric

    ------------------------------
    Eric Valdescaro
    Senior Director, Advancement Services
    University of Memphis
    eric.valdescaro@memphis.edu
    ------------------------------