FundSvcs Community

I'd love some input on a (really great) situation we are dealing with. 

A donor has signed an agreement with us that on his death we will receive a set of rental properties that he owns. We will then manage those properties for 100 years, and the proceeds from the rentals will be used for scholarships. Retaining and managing the properties is key - we will not sell. The funds will pass through our affiliated Property Management Corporation.

We are looking at booking this as a bequest expectancy that takes into consideration a donor estimate of the rental business value. As we receive proceeds from the rentals, we will pay that expectancy - as bequest payments - up to the recorded expectation. It's (understandably) important to leadership that we count some portion of the contribution towards the current campaign.

Is there anything we may be missing here? Any suggestions for better ways to book it?

We are also wondering about how to advise future staff on handling the proceeds from the properties after the initial bequest amount is realized. A few options we discussed:

1) The money would continue to be booked as estate gifts. Basically it's a guaranteed gift amount for several campaigns in the future.
2) The additional proceeds wouldn't be booked on the Advancement side at all. It's income, like endowment proceeds.
3) You figure it out future people. Reporting standards will have totally changed by then and you're probably an AI robot.

I'd love some input on a (really great) situation we are dealing with. 

A donor has signed an agreement with us that on his death we will receive a set of rental properties that he owns. We will then manage those properties for 100 years, and the proceeds from the rentals will be used for scholarships. Retaining and managing the properties is key - we will not sell. The funds will pass through our affiliated Property Management Corporation.

We are looking at booking this as a bequest expectancy that takes into consideration a donor estimate of the rental business value. As we receive proceeds from the rentals, we will pay that expectancy - as bequest payments - up to the recorded expectation. It's (understandably) important to leadership that we count some portion of the contribution towards the current campaign.

Is there anything we may be missing here? Any suggestions for better ways to book it?

We are also wondering about how to advise future staff on handling the proceeds from the properties after the initial bequest amount is realized. A few options we discussed:

1) The money would continue to be booked as estate gifts. Basically it's a guaranteed gift amount for several campaigns in the future.
2) The additional proceeds wouldn't be booked on the Advancement side at all. It's income, like endowment proceeds.
3) You figure it out future people. Reporting standards will have totally changed by then and you're probably an AI robot.

I'd love some input on a (really great) situation we are dealing with. 

A donor has signed an agreement with us that on his death we will receive a set of rental properties that he owns. We will then manage those properties for 100 years, and the proceeds from the rentals will be used for scholarships. Retaining and managing the properties is key - we will not sell. The funds will pass through our affiliated Property Management Corporation.

We are looking at booking this as a bequest expectancy that takes into consideration a donor estimate of the rental business value. As we receive proceeds from the rentals, we will pay that expectancy - as bequest payments - up to the recorded expectation. It's (understandably) important to leadership that we count some portion of the contribution towards the current campaign.

Is there anything we may be missing here? Any suggestions for better ways to book it?

We are also wondering about how to advise future staff on handling the proceeds from the properties after the initial bequest amount is realized. A few options we discussed:

1) The money would continue to be booked as estate gifts. Basically it's a guaranteed gift amount for several campaigns in the future.
2) The additional proceeds wouldn't be booked on the Advancement side at all. It's income, like endowment proceeds.
3) You figure it out future people. Reporting standards will have totally changed by then and you're probably an AI robot.

Thanks, John!

We have already started the process of setting up the funds, as you suggest.

Do you think that the rental income above the booked bequest amount should end up being booked in the CRM or do you think it's like endowment proceeds and only booked by the finance department?

I'd love some input on a (really great) situation we are dealing with. 

A donor has signed an agreement with us that on his death we will receive a set of rental properties that he owns. We will then manage those properties for 100 years, and the proceeds from the rentals will be used for scholarships. Retaining and managing the properties is key - we will not sell. The funds will pass through our affiliated Property Management Corporation.

We are looking at booking this as a bequest expectancy that takes into consideration a donor estimate of the rental business value. As we receive proceeds from the rentals, we will pay that expectancy - as bequest payments - up to the recorded expectation. It's (understandably) important to leadership that we count some portion of the contribution towards the current campaign.

Is there anything we may be missing here? Any suggestions for better ways to book it?

We are also wondering about how to advise future staff on handling the proceeds from the properties after the initial bequest amount is realized. A few options we discussed:

1) The money would continue to be booked as estate gifts. Basically it's a guaranteed gift amount for several campaigns in the future.
2) The additional proceeds wouldn't be booked on the Advancement side at all. It's income, like endowment proceeds.
3) You figure it out future people. Reporting standards will have totally changed by then and you're probably an AI robot.

I'd love some input on a (really great) situation we are dealing with. 

A donor has signed an agreement with us that on his death we will receive a set of rental properties that he owns. We will then manage those properties for 100 years, and the proceeds from the rentals will be used for scholarships. Retaining and managing the properties is key - we will not sell. The funds will pass through our affiliated Property Management Corporation.

We are looking at booking this as a bequest expectancy that takes into consideration a donor estimate of the rental business value. As we receive proceeds from the rentals, we will pay that expectancy - as bequest payments - up to the recorded expectation. It's (understandably) important to leadership that we count some portion of the contribution towards the current campaign.

Is there anything we may be missing here? Any suggestions for better ways to book it?

We are also wondering about how to advise future staff on handling the proceeds from the properties after the initial bequest amount is realized. A few options we discussed:

1) The money would continue to be booked as estate gifts. Basically it's a guaranteed gift amount for several campaigns in the future.
2) The additional proceeds wouldn't be booked on the Advancement side at all. It's income, like endowment proceeds.
3) You figure it out future people. Reporting standards will have totally changed by then and you're probably an AI robot.