Why Participate In Planned Giving?

There are many donor benefits to planned giving.

This month we are very pleased to have a guest author, Diana Rawizza, Director of Development, The Walker Scottish Rite Clinic, St. Louis, Missouri. In the following essay, she points out that, while the Scottish Rite and the children we serve can benefit from planned giving, the donor also reaps several significant advantages.

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Many people live modestly and work hard throughout their lives because they know they must accumulate savings in order to live comfortably when they retire. So, is it possible for such people to (a) take care of themselves, (b) take care of their loved ones, and (c) also manage to contribute to charity? This article describes a typical estate plan for a Scottish Rite Mason, his spouse, or others wanting to accomplish all three of these objectives.

It Begins With a Will. This is a document which identifies your inheritors, nominates caregivers for your children (if they are still minors at your death), and appoints someone (a "personal representative") to wind up your affairs, pay your debts, and distribute inheritances (bequests) from your estate. For most individuals, the centerpiece of estate planning is a will.

Just as Important Is a Durable Power of Attorney. This is a document that appoints someone to pay your bills, deposit your checks, and generally handle your affairs for you while you are still alive. It covers situations like stroke, Alzheimer's Disease, and coma-situations where you would be unable to handle your own affairs even though you continued to live.

Living Will/Health Care Power of Attorney. These are documents which give your instructions, ahead of time, regarding (a) whether to receive extraordinary life support in event of final illness, and (b) who will have authority to direct your health care in the event that you're unable to direct your own.

Blending Charitable Giving with Other Goals. Scottish Rite Masons, their spouses, and friends of the Fraternity are recognized for their commitment to service. Planning ahead financially to support a charity that provides an important service to society is a good example of this. It may well be necessary, however, to balance this objective with certain personal concerns, such as the following:

Premature Death. I may die too soon. How will I provide for my spouse and children?

Poverty. I may live too long. What if my spouse and I outlive our resources?

Catastrophic Illness or Injury. What if I have a catastrophic illness or serious accident? How much and what kinds of insurance do I need?

Disability. What if I develop a chronic mental or physical disability? How much will it cost for skilled nursing care?

There are ways to meet all of these concerns and, at the same time, contribute to charity. For example, married couples can word their wills so that bequests to charity only occur after both spouses have died. That way, the couple's financial security isn't affected by the charitable gift. Where inheritances to family members are also part of the picture, the bequest to charity is often stated as a percentage of the estate. This helps to keep the charitable gift proportionate to other considerations.

In summary, accomplishing multiple objectives is what planned giving is all about. As they say, "Where there's a will, there's a way!"

Types of Planned Giving. A planned gift can be of any kind or amount for any purpose. It can be accomplished through many techniques-the most common being (a) a bequest in the will, (b) a bequest in the trust, (c) an outright gift during your life, and (d) an annuity or life insurance policy that pays the charity after you die. (Charitable Gift Annuities, life insur-ance, and the Scottish Rite Pooled Income Fund are topics frequently covered in the Scottish Rite Journal's monthly column "Where Do You Do Your Shopping?") As applied to charitable giving, any of these "planned gifts" can be earmarked for a charity's operating expenses, capital expansion, or endowment.

Getting Professional Help. In making these arrangements, you may need professional assistance to ensure that your wishes are met. Appropriate advice can be obtained from a number of sources. Prior to consulting with any professionals, it would be wise to sit down and make a list of the "Four P's," which include:

People. Who are the people and/or charities that are important to you?

Property. List all the property and income that you have now or that you expect to have in the future.

Plans. Match up the people and/or charities and the property.

Planners. Who will help you to do these things? Depending on your situation, you may need the advice of an attorney, financial advisor, realtor, insurance agent, or other professional. You should choose someone to lead the group.

Conclusion. The Scottish Rite Mason is well known for going beyond life's normal obligations and engaging in acts of voluntary generosity. By working through the steps outlined above, your planned gift to a Masonic charity, such as The Walker Scottish Rite Clinic, can be balanced with your other goals.

If you would like to receive the brochure, "A Circle from Childhood to Childhood: Scottish Rite Foun-dation Guidelines to Planned Giving," contact Ill. Earl E. Ihle, Jr., 33°, Director of Development, or Barbara G. Golden, Director of Planned Giving, at 1-800-486-3331.

I wish to thank Bob Casey, an attorney specializing in wills, trusts and charitable giving in Portland, Oregon, and Robert F. Sharpe, president of Robert F. Sharpe & Company, Inc. for material they provided for this article.

Diana Rawizza, MBA, is the Director of Development for The Walker Scottish Rite Clinic for Childhood Language Disorders in St. Louis, Missouri. She has previously held development positions with major St. Louis arts and human services organizations as well as having been employed in marketing positions with IBM and Xerox. She can be reached at 314-533-7415.

To learn more about the Scottish Rite Pooled Income Fund, click here. For a chart illustrating Scottish Rite Foundation, S.J., USA, Charitable Gift Annuity Rates–Single Life, please click here.

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Barbara Golden is the Director of Planned Giving for the Development Office of the Supreme Council. Barbara is an attorney with experience in tax, corporate, and commercial real estate law. She managed a non-profit legal services organization for several years and has extensive experience in fundraising, grant writing, and program operations.

Ill. Thomas M. Boles, 33°, G.C. (left in photo) has worked extensively in fund-raising for children's programs throughout our Fraternity. For more information on planned giving, call Bro. Tom at 562–691–4227 (Fax 562–691–5327) or the Scottish Rite Foundation, Southern Jurisdiction, U.S.A., at 202–232–3579, ext. 143. Ill. Earl E. Ihle, Jr., 33°, is our development team's Director of Major Gifts. He has been a member of the Fraternity for 25 years and served in 1978 as Master of Lafayette Lodge, No. 111, Baltimore, Maryland. He is also a member of Boumi Shrine Temple in Baltimore, the York Rite, and a dual member of the Scottish Rite Valleys of Baltimore and Washington, D.C. You can reach Bro. Ihle toll free at 1–800–486–3331, ext. 143.