My VP asked me to see how other institutions would handle this giving scenario.
We are planning to start a capital campaign soon at our institution, so every new pledge/planned gift is being counted accordingly.
I'm seeing the following scenario two ways:
Option 1: 5 year pledge for $72,000 and booking a Planned Gift Bequest for $128,000 (conservative estimate to not have to accommodate a loss potentially in the future)
Option 2: 5 year pledge for $72,000 and booking a Planned Gift Bequest for $200,000 (due to donors' ages)
Other pertinent information: The donor verbally stated that the amount used to pay the "pledge" portion would be from the earnings on the IRA so we should still receive $200K or so upon the his and his wife's deaths. However, that is not in writing. The donors are currently in their early/mid 80s age-wise.
The WRITTEN gift agreement reads as follows:
Gift Commitment
The Donors agree to make a charitable gift of $6,000 in 2026 to the Charity for the benefit of the X Memorial Endowment.
Beginning in January 2027, the Donors intend to make an annual gift of $18,000 each
January to the Charity for the benefit of the endowment. The annual gift will
continue for the remainder of the donor's and his spouse's lifetime.
The Donors acknowledge that the $18,000 annual amount is based upon the current
estimated annual distribution from the Donor's IRA and may be greater or less
in future years based upon changes in the IRA distribution amount, investment
performance, or other circumstances.
IRA Beneficiary Designation
Upon the death of <Donor Names>, the Donors intend for the
remaining assets of his IRA to be distributed to the Charity and designated for the X Memorial Endowment.
The remaining value of the IRA is currently estimated to be approximately $200,000.
The Donors understand that the actual amount ultimately received by the Charity may be greater or less than this estimate due to future distributions, investment
performance, market conditions, and other factors.
My VP wants to book a pledge of $72,000 (over the next 5 years) as well as book the Planned Gift (but is unsure of what value it should be; he would rather be conservative, but will book at full value if I can't find anything stating we shouldn't).
How would your institution handle this and what value would you use for the Pledge and Planned Gift respectively to book them for campaign counting?
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Nikki L.
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