It's the ultimate gift. Often the most personal philanthropic gift. And a donor's last gift. Planned gifts are at the top of the donor pyramid for a reason.
But for many organizations, planned gifts feel elusive.
Thankfully, planned giving is not as difficult as you might imagine. Even small nonprofits can increase these gifts by implementing a few simple steps.
Planned Giving 101
1. Educate your donors.
Many potential donors might not be familiar with the details of bequests or other planned gifts. Communicate with them to explain the benefits (such as tax advantages), and how these gifts can make a lasting impact on your organization’s mission. Let them know that their legacy will be honored and that their gift will create meaningful change.
2. Make it easy!
Create a planned giving page on your organization’s website. Since bequests—gifts from wills or trusts—are the most frequent type of planned gift, include some basic bequest language examples. You might also provide key details that donors will need when talking to their financial planner: the organization’s EIN number, mailing address, and contact person.
3. Create a society to honor planned giving donors.
People want to feel a sense of belonging. Create a legacy society and brand it with a memorable name. Some examples:
Montclair State University has the Carpe Diem Society, which reflects a core value of the institution.
The Environmental Defense Fund named their group the Osprey Society, after a bird that was saved from extinction.
The Dor L’Dor (“Generation to Generation”) of the Combined Jewish Philanthropies encourages the current generation to lay a foundation for the next generation.
Once you’ve established a name and brand, host annual events for your planned giving group and communicate with them regularly.
4. Regularly celebrate planned giving.
Consistently highlight this type of gift: in appeal letters, on your website, in conversations, in printed materials, at events, in the newsletter. Tell stories about planned gift donors and the impact of their gifts.
5. Know when to “phone a friend.”
It’s ok to ask for help on complex questions. Identify board members or local financial advisors that you can direct questions to. Look amongst your peers for CAPs (Chartered Advisors in Philanthropy) or estate planning attorneys who can provide guidance when you have questions.
Start Today
Still unsure if you can justify prioritizing a few planned giving efforts? Listen to the data:
As of 2024, the average philanthropic bequest is more than $45,000 with a return on investment of $56.83 for every dollar spent on fundraising for bequest gifts. (Source: FreeWill)
Bequests were the only source of funding to outpace inflation in 2023. (Source: Giving USA)
After making a planned gift, donors’ annual gifts increase by an average of $3,171. (Source: Pentera)
So, take that first step. Educate yourself, start the conversation with your donors, and watch how planned giving can transform your nonprofit’s future. After all, there’s no better time than now to think big and plan for the future.
Need help establishing your planned giving program? Reach out to see how AltruNext can partner with your organization to develop a roadmap for building a planned giving program tailored to your mission and supporters.
Photo by Gerd Altmann from Pixabay
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