Planned Giving: Securing Your Nonprofit’s Future.

Planned giving may be one of the most misunderstood aspects of charitable gift fundraising. Learning from nonprofit fundraising courses can help organizations develop stronger donor engagement strategies, understand different giving methods, and create sustainable fundraising programs. Often cast as complicated and leading to uncomfortable discussions, in reality planned gifts can be simple, uplifting and leading to hope for the donor and your nonprofit.

Most planned giving is easy. A donor can add your nonprofit as a beneficiary of their will, insurance policy, or retirement plan. The donors leave an important legacy, securing the future of your important cause.

Some get a bit more complicated, such as life income agreements like charitable gift annuities, charitable remainder trusts and similar instruments. These provide income over the lifetime of the donor, with what’s left going to your nonprofit’s mission.

Others you may only see once in a lifetime, such as charitable lead trusts, in which the nonprofit uses the income from a monetary trust today, which at some future date is transferred to a donor’s heirs. 

Yet all of these and their variations have one thing in common: charitable intent. While they may have tax benefits, they’re not tax dodges. They may provide income, yet they’re not investment opportunities. They are ways for donors to help the cause they love, while caring for their own, and their family’s needs. 

Maybe the biggest challenge in planned giving is making potential donors aware that it’s an option that can help them, and sometimes their families, too. Do this through tag lines on email signature (“Have you put Our Nonprofit in your will?”). Add stories of planned giving donors in print publications. Mailing postcards highlighting stories and the advantages of planned giving is very popular. And always, educate your staff and volunteers on planned giving. They need to be prepared in case they’re asked.

Have you ever heard of someone who didn’t have much means, or wasn’t known by a nonprofit making a major planned gift to a cause? It happens. Why? A lot of planned gifts come from people who never feel quite financially secure during their lifetime, but are glad to help after they “don’t need the money anymore.” Using nonprofit prospect research can help organizations better understand donor interests, giving capacity, and relationships that may lead to future planned gifts. They’re often teachers, clergy, nurses and others who may not have great means, but are in helping professions. Some also consistently make small donations, and may never tell you about their estate plans. 

Many donors have a misconception that once they say they put your nonprofit in their will, you’ll forget about them. Smart nonprofits know that this is the furthest for the truth. Smart nonprofits create planned giving recognition programs that keep planned giving donors top of mind. They’re often called “clubs” or “societies.” Nonprofits develop recognition materials, such as pins or plaques. They hold events specifically to thank their planned giving donors. They visit planned giving donors regularly. These can be very successful in keeping the donor engaged.

It’s too bad that many nonprofit leaders feel that spending time and resources on funds that may not come until some future date, that the expense isn’t worth it. It’s a short-sighted view. Planned gifts can assure the long-term health of any nonprofit, and their stories can inspire every donor - now and well into the future.

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Resource List

• Bloomerang: Utilize this platform to manage Legacy giving and ensure long-term donor retention. It helps you focus on the charitable intent behind planned gifts, securing the future of your cause by maintaining deep connections with donors who wish to leave a lasting impact.
• Constant Contact: Use this tool for Marketing and Awareness to educate your audience about planned giving options. It is effective for adding simple taglines to email signatures or sharing postcards that highlight the personal and family advantages of including your nonprofit in a will or estate plan.
• WeVideo: Leverage this cloud-based platform for Storytelling to share the inspiring accounts of legacy donors. Creating videos that feature donors from helping professions, such as teachers or nurses, can demystify planned giving and encourage others to consider similar contributions.
• Little Green Light: This CRM is essential for Donor Tracking, especially for identifying consistent small donors who may be high-potential legacy prospects. It allows you to systematically monitor giving histories, ensuring that those who have supported you for years are recognized as vital parts of your future.
• Handwrytten: Add a personal touch to your Stewardship and Recognition by sending automated, authentic handwritten notes to your legacy society members. These personalized tokens of appreciation are key to keeping planned giving donors engaged and feeling valued throughout their lifetime.
• Aplos: Use this platform to manage the Financial Health and accounting complexities often associated with planned gifts, such as charitable gift annuities or trusts. It provides the necessary transparency and organizational structure to assure donors that their future contributions will be handled with integrity.

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