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Changing Intent on a planned gift

  • 1.  Changing Intent on a planned gift

    Posted 15 days ago
    We have a donor who committed to a planned gift via a life insurance policy back in 2001 (multiple campaigns ago). Due to the restrictions of the policy and a change in the donor's situation, we agreed to close out the life insurance policy (at one tenth the value) to avoid loosing it all together.

    The donor has expressed in written intent that the funds from the insurance policy should now go towards a capital project of the current campaign.

    Can I change the intent (fund)? [I think so?]
    Can I count it in the current campaign? [I don't think so.]
    Can we allow the gift to count towards naming rights on a space? [I can't see why not.]

    What should I be doing to stay above board with the auditors either way?

    Thanks in advance for the feedback/advice.

    Joel Clasemann
    jclasema@css.edu
    The College of St. Scholastica
    Duluth, MN

    ------------------------------
    Joel Clasemann
    Director of Advancement Services
    The College of Saint Scholastica
    jclasema@css.edu
    ------------------------------


  • 2.  RE: Changing Intent on a planned gift

    Posted 15 days ago
    You certainly can permit the change in "direction."  However, you will want to craft an addendum to the original agreement and have both parties sign it.

    And, no, you cannot count anything now as you already counted the gift!

    Normally, organizations do not bestow naming rights on revocable instruments or pledges.  Or at least not until a sizeable portion of the pledge is made.  When it comes to money you will not see until a donor dies you should make sure that the value of that gift will still meet the current naming rights requirement, future valued based on the age of the donor.

    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: Changing Intent on a planned gift

    Posted 15 days ago
    Thank you.  This helps!

    Joel



    Joel Clasemann (he, him, his)

    Director of Advancement Services


    jclasema@css.edu | 218-723-6479

    css.edu/campaign



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