The great hockey player, Wayne Gretzky, says he doesn't skate to where the puck is. A great hockey player skates to where the puck is going to be.

The same is true for the church, especially if you are thinking about financial resources. The church needs to anticipate the financial trends of the future and plan accordingly. The opportunity for the church, both local and the church universal, to acquire significant resources for expanding ministries beyond current means, exists in the next 20 years!

Opportunity has been defined as "a combination of circumstances that create a favorable occasion for the purpose." In this case, the "purpose" is to acquire financial resources in order to advance the Kingdom.

By now you've probably heard about the opportunity that exists with the $41 T intergenerational wealth transfer that is occurring between the present and 2054. (If you gave away $10,000,000 a day, it would take 11,000 years to give that much money!) You also know that 9% of a person's assets are in cash and cash equivalents, and that 91% are in fixed assets (home value, IRA, death benefit from life insurance and other investments).

So, where is that money (the 91%) going? The following is a rough list of the distribution, according to a recent Boston College study:

* $24.6 T bequests to heirs
* $8.5 T estate taxes (Isn't there a better way to utilize some of these dollars?)
* $1.6 T estate settlement fees
* $6 T charitable bequests (Is your church going to receive any of these gifts? Also, can that amount be increased?)

Beyond the next 20 years, the ability of many individuals to give substantial amounts of money (from both the 9% & the 91%) to their churches, ministries, and other charitable interests will greatly diminish because of the following trends that may have a negative impact on the ability (or capacity) of succeeding generations to give from current income or from accumulated assets:

1. More and more, American retirees will have defined contribution retirement plans as opposed to defined benefits (pension) plans. In a defined contribution plan, assets saved and invested will be the main source of income (in addition to Social Security).

2. Assets will be "spent down" in retirement to cover lifestyle choices, leaving less to pass on in the form of bequests to heirs and/or charitable interests like the church.

3. The average inheritance is spent in about 18 months.

4. Social Security: higher ages for eligibility for retirement income with lower benefits are projected.

5. Medicare: reduced benefits; increased costs paid by the recipient

6. Personal medical expenses (not covered by insurance or Medicare) – estimated to be $200,000 per person during their "golden years"

7. Living Longer Consequence: "spending down assets"

8. Annuitized Income: The annuitization of retirement plan assets requires a draw down of those assets, which will cease to exist at death.

The conclusion is that for the average non-wealthy American (estate less than $1 M, which covers the majority of us), longer life implies less wealth transfer (bequests to heirs and charitable entities).

Trends in Estate Planning and Charitable Giving
We are beginning to see an increase in charitable giving during the donor's lifetime and the increased utilization of planned giving vehicles that allows donors to make substantial charitable contributions while they are alive.

People are giving now instead of at death for the following reasons: to increase the effectiveness and significance of their giving; and, with new approaches to financial planning, where tax considerations take a subordinate role, in order to explore their values and shape their financial biography.

A decline in charitable bequests may suggest a shift among many wealth holders from making charitable bequests (gifts in their estate plan) to making charitable gifts during their lifetime.

If this shift occurs, those churches in the business of marketing and accepting planned gifts will be recipients, while those churches without established programs will not. Also, a new definition of when many large capital gifts are made will be created: during life rather than at the end of life.

Recently, a state Baptist foundation president told me he believes the biggest competition for charitable gifts comes from secular universities and other charities. As a former planned giving officer at a state university, I am very aware of the efforts of universities to raise millions and, even billions of dollars. I helped solicit gifts to the various campaigns we conducted. I told the foundation president of specific situations (without names) I knew about in my own church and Bible study class I teach, where substantial gift commitments were made to the university. But, in all candor, I do not know if any of those same individuals have made gift commitments to our church.

So, what exactly is the size of this opportunity in individual terms? Please note the following:

Here is how we quantify the potential gain (or loss) in gifts. Using the gift table below, we illustrate the potential for receiving large capital gifts during life or as estate gifts ($10,000 and above) using 50 regular tithers and "generous givers":

No. of Givers                     Amt. of Gift                  Total of Gifts
       2                                 $1,000,000                  $2,000,000
       4                                     500,000                     2,000,000
       8                                     100,000                        800,000
      10                                      50,000                        500,000
      12                                      25,000                        300,000
      14                                      10,000                        140,000
Total   50                                                                    $5,740,000

$5,740,000 ÷ 50 donors = $114,800 per gift. So, for each member of the church who dies without making a planned gift during their lifetime and/or including a gift to the church in their estate plan the church is losing an average of $114,800! In some instances, it is being reported that the average gift to the church, using comprehensive marketing and estate planning tools, may indeed be much higher, approaching $250,000 per gift.

The cost (in terms of resources that could be used for missions, ministry, and/or capital improvements) of delay to the church, and subsequently to the Kingdom, is quite significant. Because many of these resources are being transferred to other charitable entities, they are forever lost to the benefit of the church.

For forward-thinking churches, these acts of individual stewardship will generate significant additional resources for Kingdom purposes. For others, the opportunity may be lost forever.

Ron Beck is regional marketing director for PhilanthroCorp and works with churches and other Christian ministries to implement planned giving programs, www.philanthrocorp.com.