Your faithful donors will make planned gifts... just ask!

Have you ever opened a letter to find out your organization is the beneficiary of a bequest or other planned gift?  Do you know of an organization similar in size to yours where this has happened?  Would you like to experience this exhilarating moment?

Regardless of the size of your organization, if you have been in existence for ten (10) years or more, you likely have a group of donors faithfully supporting your annual fund.  These are your first and best planned gift prospects.  Perhaps you have personally visited donors within this group who you believe have capacity to make a major gift toward a current program or project. 

Have you ever considered introducing the idea of a future gift on one of these visits?  This doesn’t have to be the point of your visit – but it can be a part of your overall donor discussions.

And then there are the many individuals who don’t have high current giving capacity but are comfortably well-off and all heart for your mission.  These are your core supporters, who, with proper attention, will show up well as a group on your legacy society rolls.

Why not let Marquis Partners help you put together a bite-sized plan to identify, educate and personally reach out to your loyal supporters about planned gift opportunities?  The planned gifts you raise will immediately strengthen your ongoing fund development program.

The step to create a plan is likely simpler and less time consuming than you think!  But it is vital to the long term sustainability of your program.  And it often turns out that some gift commitments you receive will come to maturity fairly soon.

Be sure to brief your board on your ideas about seeking planned gifts. Board members are a great source for your first planned gift commitments.  And perhaps one of your board members will even agree to help you with the first steps, or fund a special mailing.

You’ll also want to announce the start-up of a planned giving outreach in your charity’s newsletter.  Include a few simple ways to make a planned gift and what the benefits are to both donor and charity.  Tell the story of a donor who named your organization in his or her will or living trust.  Begin to incorporate planned giving education and motivational messages into a variety of communications, both written and oral.

Commit to a plan, take it step by step – get your board on board!   You will be applauded for your wisdom and farsightedness.  One day soon, a special envelope announcing the legacy gift of one of your dearest supporters will arrive on your desk!  

Heard of the billions of dollars...?

Have you heard of the billions of dollars that will pass from one generation to the next in the years to come, flooding our charities with resources? Well, the first half of that sentence is undeniably true, but the second half? Not true at all unless your organization puts some effort into generating planned gift commitments. Now.

Of course there are plenty of reasons for sticking to what you are currently doing, the annual fund, events, major gifts, the ever-necessary components of your fund raising plan. But don’t lose sight of the gems in your midst, persons ready, willing and able to make a planned gift commitment. Now. Here is your action plan:

1. Check the database for your top planned gift prospects.
Do you see them? They are the donors who have been giving to you year-in year-out. Whether their regular gifts are large are small, they are loyal to your cause.  Since these lovely people rarely make waves, they may be under your radar screen as you pursue current gifts from larger donors. Make it a point to get to know the quiet side of your donor database and direct a planned gift appeal to them once a year. According to Target Analytics, “Loyal giving behavior frequently trumps gift size as a predictor of planned giving.”

2. Use positive language.
Donors making legacy gifts invariably feel rewarded by their decision. Be assured that you didn’t force them into anything; they are proud and happy to bolster your mission by pledging assets to your cause. They truly believe that even one person can make a difference and want to be that person. Don’t let them down by apologizing about what you are asking them to do for the future of your mission. Bonus hint: Avoid, “When you die…”  There are lots of ways around this!

3. Be economical.
Use your current communications to spread the planned giving message. Put educational blurbs in your regular newsletter, add a page to your website, highlight any estate gift you received this year in your annual report. Even a sentence or two in regular solicitations will let your donors know these gifts are valued and appreciated by your organization. And, don’t forget the response card! Make it easy for people to ask for more information or check a box that says you are already in their will.

4. Give them your best suggestion.
IRA’s! Capitalize on the tax-free rollovers and testamentary distributions from your donors’ qualified retirement plan funds. Congress extended the law permitting charitable distributions from IRAs for (living) donors 70 ½ and above. Testamentary charitable designations have always been tax-free. Remind supporters that IRAs designated for persons other than a spouse are subject to estate and income taxes, possibly reducing an inheritance by half. A charity on the other hand receives full value. Direct other assets to loved ones and IRAs to charity.

5.  Start. Now.

• PULL A LIST of your loyal donors, five years and running

• PUT A SPECIAL APPEAL ON THE CALENDAR - focus your message on bequests or IRA gifts

• INCORPORATE TWO SENTENCES on planned giving into all your communications

Then smile! You’re successfully seeding the next generation of planned gifts for YOUR mission. Before you go…  What’s YOUR secret to planned giving success?

Leave a comment and let us all know!