Planning for Planned Giving

Just as for profit businesses do, nonprofits assess their successes and failures at the end of each year and start making plans and budgets for the coming year. For fundraisers, that assessment includes looking at which fundraising initiatives were successful and which were borderline or actual failures. We are now almost one-quarter into the calendar year, and some charitable organizations may even be well into their fiscal years. It is not too early to be thinking about taking steps toward energizing your fundraising with a planned giving program.

During annual reviews, nonprofits agonize over what they can add to the fundraising mix that might bring in additional dollars and/or donors. How many times have you said in those planning sessions, "We need to start a planned giving program!"? As budgeting and staffing realities set in, however, the planned giving initiative is invariably dropped because of time, staff or budget constraints. The need for current dollars always trumps whenever we try to add deferred gifts to the mix.

Myths & Misunderstandings
Sometimes, the reluctance to jump into planned giving is based on myths or misunderstands. Let's try to dispel some of that misinformation.

1. Planned giving is highly technical and we would need an expert on the staff to start promoting these gifts.
Totally false! Establishing a successful planned giving program will take some time and effort (what doesn't!), but by promoting simple gift plans, your program can be easily integrated into your current fundraising program without major effort or cost. The key is planning and executing a well-thought-out strategy, which reflects the needs and available resources of your nonprofit. Whether you use in-house staff or an outside consultant, developing a workable plan that incorporates budgeting, marketing, and staffing is essential. What planned gifts should you promote to your donors in you start-up program? Gifts of stock, gifts from insurance policies and retirement accounts, or simple bequests are easy to promote and easy for donors to understand. Bequests (gifts through wills) are by far the most common "planned gift" for all charities.

2. Planned giving is only for the wealthy, and we do not have wealthy donors.
Again, false! Research shows that the majority of planned giving donors are "ordinary" folks. In fact, it is your consistent regular donors who are your best candidates. They may not be able to give you a major gift while they live, but may be interested in giving your organization estate assets after death.

3. My Board just does not "get it" when I try to explain why we need to start talking about planned gifts to our donors.
While it is true that without proper education your Board will not "get it", you can start helping by educating the Board (and staff) about the benefits of incorporating a planned giving program into the overall fundraising effort.

Start by educating yourself. Attend seminars and workshops about planned giving and get involved in your local planned giving council. Local councils are affiliated with the National Committee on Planned Giving and can provide education, mentoring, and support for your new program.

You may consider also bringing in an expert who can talk with your Board. Someone outside the organization can often better explain why the Board should consider supporting planned giving, the benefits to the nonprofit when donors have the planned giving option available, and what their role will be in the success of the program. This "expert" could be a Board member from another nonprofit with a strong planned giving program or a consultant who specializes in planned giving. While some attorneys are able to speak effectively about planned gifts, they cannot always communicate from the nonprofit standpoint unless they have had some "real world" experience working with a nonprofit.

Finally, it will be extremely helpful if you can identify a current or former Board member who has already made a planned gift or is willing to be your cheerleader for the planned giving program to the rest of the Board.

Preparing for a Great Start
So, when is the best time to start a planned giving program? The best time is NOW if your nonprofit meets some basic criteria: My best advice would be: (1) Don't be afraid to ask for help, (2) Start with simple steps and gradually build your program…but start now!