While the results are similar across segments, the rationale is
likely different: High-influence givers often want a similar level of involvement in all their financial affairs, and they treat philanthropy as an
extension of a bigger initiative, while low-influence givers see the
planned-giving process as a way of taking action now to reduce the need for
involvement down the road.
Many affluent donors make contributions with little or no advance planning, possibly sacrificing substantial benefits. |
There are a number of vehicles for the charitably inclined to
consider, and our respondents have used most all of them (see chart below). Yet
they use some more often than others. Among survey respondents, the most popular
vehicle for high-influence givers is the charitable remainder trust, with 60
percent reporting they have established one. Thirty-four percent of high
influence respondents prefer private foundations. By contrast, almost
three-quarters of low-influence givers use a simple will bequest as the way to
structure their charitable gifts. Twenty-nine percent of the low-influence group
use donor-advised funds.
A portion of our survey respondents—most in the low-influence
category—also use charitable lead trusts, life insurance and charitable gift
annuities. (Click image to enlarge) 
About half of the individuals who have established planned gifts
report that they have additional planned-giving needs. A much larger percentage
of high-influence givers—58 percent—expect to enhance their existing gifts or
establish additional ones, as compared with just 19 percent of the low-influence
givers.
For making future donations, high-influence givers cited the same
gifting vehicles—private foundations, charitable remainder trusts and charitable
lead trusts—as their low-influence counterparts. The latter group, however,
expressed an interest in exploring other options, with the highest level of
interest—52 percent—being in the establishment of a private foundation. After
that, interest in other giving structures dropped off considerably, with just 13
percent identifying the donor-advised fund as a product of interest.
Russ Alan Prince is the president of Prince & Associates, a
market research and consulting firm for the affluent, and the author of more
than 35 books on related topics. Hannah Shaw Grove, an author and columnist, is
an expert on the behavior, concerns and finances of affluent
consumers.
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