Learn why a trust-based memorial fundraising account is better than a bank-based memorial fundraising account.
- Trust-based memorial funds can control when and how the money in a memorial fund is used and provides far more oversight than a simple bank account.
- An offical trust document that outline the usage of fundraised money for a memorial account increases the chances of more donations, since donors know where their money is going and how it will be used.
- Banks provide no assurance that the solicited funds are not diverted into the pockets of the person(s) sponsoring the fund or for purposes outside the stated intent of the fund, so trust-based memorial accounts ensure that the longevity of the trust is maintained and upheld.
Two Types of Memorial Trusts
Memorial Trusts serve an important role when groups and individuals seek to provide a fund to aid victims of tragedy or establish memorial accounts for the surviving members of a recently deceased person.
Unlike bank accounts, a trust-based memorial account does more than just hold contributions. A trust can control when and how the money in a memorial fund is used and provides far more oversight than a simple bank account.
Most importantly, a memorial trust provides the donors peace of mind, ensuring that an independent trust institution is overseeing the use of the money. This added safety can greatly increase the motivation of donors to be more generous.
By contrast, here are some of the drawbacks of using a bank account as a memorial fund-raising account:
- A bank-based fundraising memorial account can leave the donors worrying that no controls exist for the use of the account, resulting in smaller or lost donations;
- Banks accounts offer no assurance that the funds will benefit who they were intended for, or go where they are supposed to.
- A bank provides no contingency plans for use of the fund if the intended recipient(s) passes away or is unable to accept the funds.
- Banks provide no oversight to ensure the fund is complying with tax and tax filing requirements related to its investment income.
- The bank where the fund-raising account is housed does no due diligence before accepting the memorial account. It only verifies the identity of the person opening the account and does not implement any safeguards or oversight on the use of the money.
- Banks provide no assurance that the solicited funds are not diverted into the pockets of the person(s) sponsoring the fund or for purposes outside the stated intent of the fund.
With affordable trust options now available online from providers like Kiss Trust you have an opportunity to increase donations by providing your potential donors with the assurance of an independently and professionally managed memorial fund. The affordable cost of Kiss Trust’s services is less than a tank of gas to get started.
Click below to access the check list of Benefits of a trust-based memorial fund and increase your fund-raising results.