Profile of a Nonprofit with a Plan and a Purpose: A Guide to Planned Giving
Seize the Day
“The future depends on what we do in the present.” -Mahatma Gandhi
We don’t like to talk about death. Who does? Maybe that’s part of the reason why nonprofits continue to dismiss the topic and fail to create a planned giving program. You know it’s something you need to do, but just haven’t devised a campaign you like that is both sensitive as well as practical to the donor.
Let’s seize the day. No one is promised a tomorrow. Morbid perhaps, but true. What does that mean for your nonprofit?
What planned giving is: In its simplest form, planned giving refers to a future donation that a supporter decides to give in the present. https://www.donorsearch.net/planned-giving-job-description/
Planned giving programs—sometimes called gift planning, deferred giving, or legacy giving—help donors make plans to leave money or assets to nonprofits at a future date, both during their lifetimes and after death. There are many forms of planned giving, but the most common are bequests, charitable gift annuities, and charitable remainder trusts https://www.thebalancesmb.com/how-your-nonprofit-can-get-started-with-planned-giving-2502443
It means it takes time. You won’t see this donation immediately. It also takes time to cultivate relationships and encourage giving over long periods of time. It’s a process that is worth the wait.
What it isn’t: Annual fundraising or major gift-giving
Profile of a Planned Giver
Who are they?
· They are people who understand the brevity of life. They have come to terms with the fact that they are not invincible creatures. https://afpglobal.org/news/eric-litwiller-mba-planned-giving-perceptions-estate-planning
· Age: 72+ are most likely planned giving donors. However, the average age of donors when they made their first planned gift was 52.8 years. https://bit.ly/3mZa4LE-balancemb
· They are loyal donors who believe in you, your cause, or your organization. They believe your nonprofit is making a sustainable impact, and that they can give more through their estate than during their lifetime.
· They want to give major gifts in their lifetimes but don’t have the financial flexibility to do so. Planned giving lets donors give those large gifts after they have passed away when living expenses won’t interfere. https://www.donorsearch.net/planned-gifts-complete-guide/
Why do they become a planned giver?
Two major reasons:
1. They receive a significant tax break.
2. They have more opportunities to decide how their funds are used.
Where are they?
They are already on your list of donors. Identify in your database categories of donors who have the potential to be legacy givers.
The Calendar, Charles and Melanie
Today was that day. Charles drank his early morning coffee sitting out on his screened-in back porch. He took a deep breath, listened to the chirps and calls of the birds drifting up from the feeder. As he took a sip of his fresh brew, he pressed the button on his phone. The first thing he saw – the date. Today was his 65th birthday. That wasn’t a surprise, of course, but just seeing the date gave him pause. It was the day he had dreamed about, planned for, saved for. Retirement was coming very soon now. He made a note to contact his accountant to see when he could schedule the final date to step away from his job. But today was not that day. Today Charles would celebrate with his family. He couldn’t wait to see his three granddaughters and hold his newborn grandson.
“What are you so deep in thought about birthday boy?” Melanie, his wife asked as she sat down next to him with her coffee.
He showed his wife of 38 years the family photo on his phone. “Just these babies. We need to finalize some giving plans for them.”
Melanie poured Charles fresh coffee from the carafe. “I agree. I’ve got a few ideas….”
Profile of a Nonprofit with a Plan and a Purpose
When should you approach potential planned givers?
Now. Don’t wait to implement your legacy program. Today is that day.
What do they need to know from you?
Potential planned givers want to know your organization has concrete plans to be around for a long time. They want to invest in an organization that will continue to impact the lives of people for generations to come.
How do you get them the information?
Create awareness. This is your most important task. Create a legacy giving campaign that leads into an ongoing program and presence in your organization. https://www.donorsearch.net/planned-gifts-complete-guide/
· Brand your program as a legacy program.
· Send reminders to encourage donors to announce bequest intentions.
· Create materials for a variety of channels.
-Send personalized communications to the generous donors you have identified.
-Email – include donor giving stories and a link to the planned giving webpage.
-Web pages -create a planned giving page
-Direct mail – pieces that people can use as visual reminders about setting up a legacy plan with you.
-Newsletters – include a testimonial from a planned giver.
-Social Media – tell a story https://resources.freewill.com/nonprofit-storytelling-how-to-write-persuasive-donor-stories
Testimonials from planned givers are very personal and effective communications to inform other donors. https://pgmarketing.com/good-donor-stories/
· As the donors agree to become planned givers, acknowledge how grateful you are for their donation and thank them in numerous ways, treating them as you would a major donor.
The Calendar, Kevin and a Call
Kevin was driven by lists, plans and procedures. As Founder and CEO of a mid-size nonprofit, Firm Foundations, he was passionate about the purpose. His organization empowered people throughout the developing world to develop sustainable job skills. He had structed a model that not only brought educational opportunities; he had seen lives changed as families in communities began caring for themselves. It was satisfying to know it was making a difference.
As Kevin powered on his laptop at his desk early one morning, his “To do” list grabbed his attention. Today was the day to launch the legacy program. Today was the day he would make the first phone calls to potential donors and hopefully inspire them to take a step toward establishing a legacy for their family here and for families in villages where his nonprofit worked.
He made the first call. He wanted to lead the way and set the example for his staff and board members by reaching out personally to a couple who had a history of giving and were at the time of life they may be ready for this specific conversation. He heard a friendly voice answer, “Hello… this is Melanie.”
“Hi Melanie. This is Kevin from Firm Foundations. Do you and Charles have some time to chat.”
“Hi Kevin… we were just thinking about you.”
Seize the Day
Today is that day – the day to structure your nonprofit to receive planned giving donations. How does your nonprofit encourage planned giving today? What is your plan for the future?