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Editor’s Note: The
Planned Giving Pulse
interviewed several
industry leaders
about the future of
the planned giving
industry. This
interview took place
prior to the U.S.
Presidential
election.
Frank Minton is
President of Planned
Giving Services, a
U.S. consulting firm
that serves clients
in both the U.S. and
Canada. He’s been
in planned giving
for 28 years and has
worked at two
universities. In
addition to having
his own consulting
firm for 14 years,
he co-authored
Planned Giving for
Canadians.
Currently he is
chair of the
American Council on
Gift Annuities, and
he is a past
president of the
National Committee
on Planned Giving.
Planned Giving
Pulse:
What do you think
will be the future
of planned giving
over the next 10
years?
Frank Minton:
I think planned
giving will continue
to be very
important. Bequest
giving, for example,
has increased at a
faster rate than
individual and
corporate giving.
The increase in
planned gifts partly
results from the
aging of the
population and the
concentration of
wealth in the older
generation. Also,
there is now a
better understanding
of planned gifts
than was the case a
few years ago.
Another factor
driving planned
giving is the fact
that more
institutions are
interested in
building endowments,
and endowments are
built to a great
extent through
planned gifts.
The "tax climate" in
Canada has also
become more
favourable in recent
years.
Pulse: How
will the U.S.
Presidential
election affect gift
planning?
Minton: The
Bush administration
will probably try to
repeal the estate
tax and make the tax
cuts permanent.
Repealing the estate
tax will eliminate
any tax incentive
for making
bequests. People
will still make
bequests, even
without incentives,
but total bequests
will be less than
they would have been
had the estate tax
not been repealed.
It’s also very
possible the
administration may
try to move to
eliminate the
taxation of capital
gains and dividend
and tax earned
income. That would
have a negative
effect on certain
types of planned
gifts, particularly
charitable remainder
trusts.
The demographic
trends are similar
in both side of the
border. The tax
climate is not
identical. I don’t
expect to see the
same diminished tax
incentives in
Canada.
Pulse: Are
there any other
issues facing gift
planners?
Minton:
There’s going to
continue to be more
competition for
gifts. Donors are
increasingly
inundated by
solicitations so
there is a certain
donor fatigue.
Charities need to
become more
imaginative in how
they reach donors
and make their
appeal.
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