One of the long-time supporters Davoren planned to approach was a financial advisor. She knew he would understand help to leverage a challenge grant of that magnitude. In addition, she wanted this donor to consider honoring his wife, a long-time volunteer of the hospital and life member of the board, by making a very significant gift that would result in naming a special area of the hospital for her.

The donor indeed wanted to help secure the $ 1 million challenge grant, and he agreed to make a significant cash contribution toward that effort. He also was excited about the possibility of honoring his wife, but he knew he would need to find creative means to maximize his cash gift in order to reach the level of the particular naming opportunity. Davoren, her planned gift officer and the donor’s personal advisors went to work.

The hospital worked with the donor and his insurance agent to determine whether a paid-up insurance policy was an option. It was a coincidence that at that time the donor also was considering selling his highly successful business, and doing so would create significant capital gains liabilities. With his professional advisors mapping the course, a win-win solution was created.

The multi-faceted solution included the donor transferring his ownership interest in the business to the hospital and the hospital selling the business free from capital gains tax. With the proceeds, the hospital had cash to help match the challenge grant and sufficient cash remaining to purchase the paid-up insurance policy of which the hospital was owner and beneficiary.

Maximizing his gift in this way resulted in the donor achieving two goals: he helped Children’s Mercy Hospital reach its campaign goal and secure the matching grant, and he honored his wife by having a special and visible feature of the hospital named for her. Not only did he achieve these goals, but also he benefited by avoiding capital gains taxes on his appreciated assets and he received a tax deduction for his charitable contribution.

This gift truly was a win-win for all. Also, it well illustrates not only how a gift can be maximized by creative gift planning, but also what can be accomplished when a philanthropic individual, a charity’s gift officer and professional advisors come together and work toward a common goal.