If you’re like most fundraisers, planned giving might not be at the top of your to-do list. You’re focused on immediate needs like annual campaigns, donor events, and securing monthly gifts. But what if I told you that ignoring planned gift opportunities could mean leaving a massive amount of potential support untapped?
Planned giving represents one of the most impactful, yet often overlooked, ways to generate long-term funding for your organization. Let’s explore why planned giving is so valuable, the misconceptions that might be holding you back, and how to start capturing these opportunities today.
The Untapped Power of Planned Giving
Did you know that over $50 billion is donated annually through planned gifts in the United States? And yet, fewer than 10% of people who leave a legacy gift do so because they were asked. That means a significant portion of your donor base may already be willing to consider planned giving—but only if you take the time to educate them and provide the opportunity.
Planned gifts can take many forms, such as:
- Bequests in wills
- Charitable remainder trusts
- Gifts of stock or real estate
- Donor-advised funds
- Endowment gifts
These types of contributions often provide greater flexibility for your donors while securing critical long-term funding for your mission.
Why Aren’t More Fundraisers Leveraging Planned Giving?
If planned giving is such a fantastic opportunity, why aren’t more organizations taking advantage of it? Here are a few common barriers:
1. Misconceptions About Target Donors
There’s a myth that planned giving is only for older, wealthy donors. While it’s true that retirees may be more likely to consider a bequest, planned giving is accessible to people of all income levels. Many donors, regardless of their financial situation, want to leave a lasting legacy with the causes they care about.
2. Lack of Understanding
Planned giving may seem overly complex or intimidating to fundraisers unfamiliar with it. Terms like “charitable remainder trust” and “estate planning” can be daunting, but demystifying these tools is easier than you think. Working with a financial planner or attorney to create a simple guide can help you educate your donors and your team.
3. Being Too Focused on Immediate Results
Nonprofits often prioritize campaigns and gifts that generate immediate revenue to meet short-term needs. While this is important, planned giving requires a long-term mindset. By balancing current fundraising with planned giving, you’re ensuring your organization’s sustainability well into the future.
4. Fear of Talking About Legacy
Many fundraisers shy away from discussing legacy gifts because it involves sensitive topics like aging or mortality. However, when framed thoughtfully, planned giving is less about loss and more about creating a meaningful legacy that aligns with your donor’s values and passion.
How to Start Tapping Into Planned Gifts
Here’s the good news: you don’t need to overhaul your entire development strategy to include planned giving. Small, incremental steps can yield significant results. Here’s how to get started:
1. Identify Potential Donors
Look at your database to identify long-term supporters. Donors who have been consistently involved with your organization for years are excellent candidates for legacy conversations. Pay attention to those who give frequently, regardless of gift size.
2. Educate Your Donors
Most people don’t understand the concept of planned giving until they’re presented with clear, accessible information. Use newsletters, events, and your website to highlight how planned giving works and the impact these gifts can create. Include stories from other legacy donors to inspire action.
3. Make Asking Simple
Planned giving doesn’t need to be a hard sell. Often, it’s as simple as letting your donors know, “You can include [organization name] in your will or estate plan.” Add a checkbox for planned giving inquiries on your donation forms, or share a downloadable guide for donors interested in learning more.
4. Leverage Professional Help
Connect with a financial planner or estate attorney who can help you and your donors understand tax advantages and different giving options. Partnering with an expert lends credibility and removes potential roadblocks.
5. Celebrate Legacy Donors
Publicly recognize individuals who leave planned gifts (with their permission, of course). Create a Legacy Society or similar program to thank and honor those who make this lasting commitment, which can inspire others to do the same.
6. Include Planned Giving in Conversations
Don’t wait for donors to bring it up! Include planned giving opportunities as part of your regular donor stewardship conversations. Framing it as “an opportunity to leave a legacy of impact” often resonates deeply with committed supporters.
Real Results from Planned Giving
Organizations that focus on planned giving often see transformational results. One donor’s legacy gift can fund initiatives, programs, or even a new facility that creates lasting impact. For example:
- A dedicated monthly donor left a bequest of $500,000 to her local animal shelter, ensuring the organization could expand its services for decades to come.
- A retired teacher included an education nonprofit in his estate plan, providing scholarship funds for hundreds of underserved students.
These are just a few real-life examples of how planned giving creates tangible change.
The Cost of Ignoring Planned Giving
By neglecting planned giving, you may be leaving critical, mission-driven dollars on the table. Worse yet, you may miss the chance to deepen relationships with donors who want to make a lasting impact through your organization.
Investing even a small amount of time and resources into planned giving today can provide a lifetime of benefits for your nonprofit, ensuring you can fulfill your mission for years to come.
Take Action Today
If you still have questions, schedule a free consultation with our team to see how we can support your fundraising goals.
Planned giving isn’t just a strategy; it’s a commitment to your organization’s future. Don’t wait to start securing the legacy your mission deserves.