Before you start a planned giving program, there are certain minimum tasks which must be accomplished.

First, you'll need to find a qualified financial institution which will custody the funds for the program, and administer the planned donations on a daily basis. It is recommended that those financial institutions with whom a relationship has already been established be approached first. The financial institutions should also be asked if they will discount their fees for the planned giving program.

Find out exactly what services the financial institution will perform (and their fees) and what services they will not perform, and ask for a copy of their investment management agreement. For instance, as part of their standard fee, will the institution prepare and disseminate the tax information each participate must receive each year to complete their tax return? What kind of investment reports will the institution provide to you? To the beneficiaries?

The financial institution should describe how these donations will be invested. Determine if your charity will absorb part of the financial institution's fees, as opposed to those fees being netted out of the fund's return. If the fees are to be netted, will there be sufficient net investment return to cover required beneficiary payments?

You will also need to determine if your organization will act as corporate trustee of these deferred giving mechanisms, with the financial institution merely being the custodian of the fund assets. Or will you recommend that a qualified financial institution be both the fiduciary and the custodian, with your charity solely as a beneficiary? State law should be reviewed in connection with this question.

There are many other questions which should be addressed before implementing a deferred giving program, so make sure to consult your advisor.

Jay Fleisher has played integral roles in creating and managing planned giving programs from the ground up--from selecting and negotiating with financial custodians, building pooled income funds, to creating descriptive copy for ad campaigns.  Mr. Fleisher offers these services to charitable organizations in Palm Beach County and throughout the nation.