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Removing Bequest Expectancy pledge from previous campaign with an outright gift to be counted in this campaign

  • 1.  Removing Bequest Expectancy pledge from previous campaign with an outright gift to be counted in this campaign

    Posted 11-25-2024 12:12 PM

    We have a  donor that wishes to remove us from his estate.  We recorded a Bequest Expectancy pledge back in 2016 during a previous campaign.  In place of the Bequest he is going to give us the same amount during his lifetime as an outright gift.  I am not sure how to record this.  Is it "new money" even though there was an existing pledge for the same amount? Should I create a 2016 pledge and apply the funds to that?  Would appreciate some guidance on the best way to handle this.  



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    Margaret McGraw
    Colonial Williamsburg Foundation
    MMcGraw@CWF.org
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  • 2.  RE: Removing Bequest Expectancy pledge from previous campaign with an outright gift to be counted in this campaign

    Posted 11-25-2024 12:28 PM
    The one thing you must avoid is counting the commitment twice.

    Normally, when donors do something like this, they don't "remove" the bequest but reduce it through current gifts instead. In that case, you apply gifts toward the bequest like a pledge payment.

    Since the donor has stated they are removing you from their estate, you could ask if they want to change the original expectancy to a pledge. That would accomplish the same thing.

    However, if they want to commit to a new legally binding pledge of a specified amount, you can go that route - but just as long as the new pledge does not count in a new campaign. That would be double-counting.

    Also, you mention gifts made "during his lifetime." Most organizations will not book a pledge for more than five years-although up to ten isn't unheard of. In the interest of transparency, your Gift Acceptance Committee may wish to consider a new pledge time limit.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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