The Year of Life Income Gifts

Next year is going to be the year of life income gifts, or actually, it will probably be the next four years.
When I read a recent New York Times headline, Plans for Uncertain Times: What do you still control?, I thought they had received a gift annuity mailing! It’s clear that this is a message that will be relevant for a long time.

Back in March of this year, we published an article, Planned Giving in a Volatile Market,  which addressed many of the same issues touched on in the New York Times article. No, the stock market hasn’t dived, but we do not know the ramifications of the decisions that will be made.  As the old cliché warns, “the only constant is change,” and change equals uncertainty. This will make charitable gift annuities and remainder trusts desirable gifts. Supporting charity while receiving reliable, guaranteed, fixed payments will continue to be an attractive option for donors.

As you consider marketing strategies going forward, your messaging should continue to focus on flexibility, control, risk reduction, and limiting volatility. The marketing challenge will be how to say the same thing, repeatedly, without sounding stale. To that point, here is a short list of headlines that you can use:

• You Can Avoid Market Volatility
• Secure Your Retirement, and the Future of ….
• Provide for Your Future and Ours
• A Lifetime of Benefits for You and Us
• Concerned about outliving your resources?
• Wouldn’t you rather receive payments than send them?

The conclusion of the Planned Giving in a Volatile Market article will be relevant for some time and bears repeating,

“For many planned giving age donors, volatility of investments will continue to be a major concern. Planned gift solutions that offer maximum flexibility like bequests and beneficiary designations can be appealing to those concerned about outliving their resources. Gift annuities offer reliable fixed payments at attractive rates that can reduce the impact of volatility on a donor’s income. Charitable remainder trusts can offer ways to diversify portfolios and minimize capital gain tax consequences at the same time.”