The Pentera Blog
Pentera Webinar Presenter Russell James Describes "Crazy" Giving Opportunities for the Rest of This Year
In a recent sold-out Pentera Webinar, planned giving researcher Russell James highlighted some of the planned gifts that he described as "crazy" opportunities for donors during the rest of 2020. And he answered a question by recommending that gift officers not ask for gifts on Zoom or other electronic technology in most cases.
You can download his Webinar here.
James presented the Webinar last month, adding the subtitle "New Strategies for September 2020" to the name of the Webinar, "Raising Major Gifts of Assets in the Aftermath of COVID-19." James said that there are "special one-time opportunities for 2020 in the U.S." this fall based on the September federal 7520 interest rate of 0.4% that is the lowest in history. The low federal rate, which is used to discount charitable remainder trusts and other planned gifts, means that donors can get benefits for themselves or their heirs that are so high that James called them "nuts" (in addition to crazy).
He described a number of examples, including a $10 million nongrantor charitable lead trust in which heirs could eventually receive almost $23 million tax-free. The Webinar explains several attractive scenarios in detail. But James warned that such benefits may be available only for 2020.
"For the rest of the year we can still use this 0.4% rate, but we've got to take advantage of it now," he said. "Rates conceptually can't get much lower than this."
Asks should be in person, James says
James said that he received a number of questions during the Webinar asking his opinion about using electronic technology such as Zoom when asking donors for gifts. He said he wouldn't sugarcoat his answer and it might be considered "contrarian"—but he advised against asking for a gift during a virtual meeting, suggesting that in most cases you should wait until you can have a face-to-face meeting.
In the Webinar he explains the brain research supporting his position and recommends what to do if the ask is for a critical need and can't wait.
