Planned giving might be one of the most special ways a supporter can contribute to a nonprofit organization.
What exactly is planned giving?
A planned gift, also referred to as a legacy gift, is a significant donation that is designated for a nonprofit organization at a specific time during a donor’s life or death. These generous contributions are carefully planned and documented as part of an estate plan or financial plan, usually through a will. This ensures that the donor’s wishes are fulfilled and the organization receives the gift as intended.
Legacy gifts can take various forms, including cash, property, or stocks, allowing donors to align their philanthropic goals with their personal circumstances. Given the legal and tax considerations involved, it is advisable for donors to seek guidance from legal and financial professionals. This expert assistance ensures a seamless process and provides peace of mind to the donor, knowing that their legacy will be properly honored.
Who Gives and Why?
Planned donors are driven by a desire to make a difference even after they are gone and to leave a meaningful legacy. They carefully select organizations with missions that resonate with their values and have had a significant impact on their lives. In most cases, legacy donors have had a meaningful relationship with the organization prior to making the decision to give a planned donation. The donor may have gifted donations of various amounts, attended events, volunteered, or maybe either themselves or a loved one received services from the organization.
How to Establish a Planned Giving Program
To establish a successful planned giving program, building donor loyalty and trust is paramount. Donors invest significant thought into their asset distribution, making planned donations among the most substantial gifts they will ever make. The decision to include a specific organization in their will reflects their passion for the cause, faith in the organization’s mission, and confidence in its ability to make a difference.
Nurturing relationships with current donors forms the foundation for generating planned gifts. Implementing additional strategies can further increase their frequency:
Effective Communication:
- Engage potential donors in discussions about planned giving as a meaningful way to leave a lasting legacy.
- Adopt a donor-centric approach, focusing on their values, needs, and desire to make a lasting impact.
- Build comprehensive supporter profiles over time, capturing engagement and donation history, preferences, and interests in your nonprofit CRM like Giveffect.
- Use multiple types of communication to stay in touch with donors, including phone calls, emails and text messages. Be sure to also stay in touch with their entire household if relevant.
- Personalize communication messaging, leveraging their engagement and donor history and interests.
- Incorporate planned giving appeals alongside other types of donation methods, making it a natural choice among available options.
- Keep donors informed about how their donations are utilized, the organization’s achievements, goals, and program impact.
- Highlight the potential impact and benefits of leaving a planned gift.
Acknowledging Legacy Gifts:
When acknowledging donor legacy gifts, it’s important to focus on expressing gratitude and showing accountability. Here’s what you need to consider:
- Timeliness: Express gratitude promptly and personally to the donor’s family for their generous legacy gift.
- Personalization: Customize acknowledgments to honor the donor and their remarkable impact.
- Communicate Impact: Clearly communicate how the legacy gift will be used to advance the organization’s mission, aligning with the donor’s wishes.
- Transparency: Maintain transparency by communicating to the family how the funds will be responsibly managed in line with the organization’s values. Fulfill specific program or initiative requests made by the donor.
- Recognition: Respect the donor’s preferences regarding recognition. If the gift is intended for commemoration, promptly create plaques or dedications. However, if the donor chooses to remain anonymous, honor donor anonymity.
- Ongoing Engagement: Keep the donor’s family engaged by providing updates and involving them in future initiatives, enabling them to witness the ongoing impact of their loved one’s gift. Offer opportunities for family members to participate in the organization’s work as they consider their own estate plans, deepening their connection and support.
Fulfilling the Donor’s Wishes:
- Implement and adhere to the established guidelines of the planned gift, and ensure the donor’s intentions are faithfully honored.
- Promptly create and install plaques or dedications if the gift is intended for commemoration.
- Honor any specific requests made by the donor regarding the use of funds, ensuring their wishes are fulfilled.
Planned giving empowers individuals to make significant contributions to organizations, leaving a lasting legacy. By developing a comprehensive planned giving program and fostering strong donor relationships, nonprofits can inspire supporters to consider this impactful way of creating enduring change.
Are you ready to establish your planned giving program? Schedule your demo today to learn how Giveffect can support your efforts and increase your fundraising!