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  • 1.  Replacing a Bequest Expectancy with a Gift Annuity

    Posted 05-01-2023 08:45 AM

    Good morning.  I'm looking for some best practice guidance.  We have a donor that in 2020 created a Bequest Expectancy for $25K which we recorded in our system.  Recently he changed his mind about the $25K Bequest Expectancy and initiated a $25 K Gift Annuity.  Some mgmt are telling me to use the recording of the Annuity as a payment on the donor's Bequest.  I think the Bequest should be written off and the Annuity should be recorded as a separate current year gift.  I believe their concerns are that the $25k Bequest was recorded in our Campaign in 2020 and it the Annuity is recorded as a separate gift, it will move the $25K to the current year.  Wondering if anyone has dealt with something similar and how they handled it.  



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    Margaret McGraw
    Colonial Williamsburg Foundation
    MMcGraw@CWF.org
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  • 2.  RE: Replacing a Bequest Expectancy with a Gift Annuity

    Posted 05-01-2023 08:51 AM
    You are correct in what you propose to be done. As the donor removed you from their bequest plans, the original bequest expectancy should be deleted or written off. I mention deletion because I have encountered cases where bequests are recorded without substantiating documentation and entered based on a verbal commitment. In those cases, I would delete the entry as there wasn't anything in writing to substantiate it.

    Regardless, treat the new CGA as a new irrevocable planned gift. Document the rationale for removing the bequest and replacing it with this in the donor's prospect record.

    Sorry about the impact on the campaign totals. But donors change their minds!

    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




    Original Message


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