Here are 5 Building Blocks You Need
By Kimberly Jetton, MNM, CFRE
Many nonprofits I speak to understand that a vibrant planned giving program can be the difference between sustaining the status quo in programming and becoming innovative and growing organizations.
Leadership may even encourage the development team to research and implement a gift planning program without understanding that not every organization is ready to launch such a complex initiative. Ensuring your organization is ready before implementing a planned giving program is crucial. Here are five essential building blocks for establishing a planned giving program.
1. Loyal and Long-term Donors
The first step in preparing for a planned giving program is understanding your donor base. Planned gifts often come from long-term supporters who deeply connect to your mission. You need to have donors on fire for your mission. It would greatly help if you had donors who have given over many years and are committed to your success, regardless of the amount they have given. This does not include donors who only purchase tickets to events or sponsorships. Those donors will likely have other motives and are not necessarily "sold out" on your mission. Instead, look for donors who give outside of events. Identify individuals with a history of consistent annual giving, involvement in your organization, and an evident passion for your cause.
Tips:
Evaluate your annual donor list over the last ten years. If you don't have a strong annual donor list, we recommend building one before starting a planned giving program.
2. Educating Your Team and Board
A successful planned giving program requires buy-in and understanding from your entire organization, including leadership and board members. Ensure that everyone understands planned giving, its benefits, and how it aligns with your organization's mission and goals.
Organizations without leadership or board support face an uphill battle in planning giving. Your board members should be founding members of your Legacy Society.
Tips:
Host educational sessions or workshops on planned giving.
Provide literature and resources to your team.
Encourage board members to include planned gifts in their own estate plans as a demonstration of commitment.
3. Building a Marketing and Outreach Strategy
Marketing for bequest gifts and gifts of appreciated assets is sent to a targeted segment of your donor list. This marketing does not focus on your mission – these donors should already deeply support it. Instead, this marketing invites your dedicated donors to give in a way that helps them AND your organization. These areas might focus on saving income taxes, giving a gift while receiving a lifetime of income, or leaving a bequest gift while saving their heirs in taxes. Smart ways to give will encourage donors to see mutual benefit while helping their favorite cause. Each touchpoint should invite a call to action to learn more, not to make an immediate gift.
Tips:
Develop a dedicated section on your website for planned giving information, then have your outreach direct them to this area.
Use testimonials from current planned giving donors to inspire others.
4. Establishing Policies and Procedures
To ensure a smooth and professional planned giving program, establish clear policies and procedures. This includes creating gift acceptance policies, outlining the types of planned gifts your organization will accept, and defining the process for managing and recognizing planned gifts. This includes what types of gifts will be considered a planned gift, and how will you account for future gifts (expectancies). These policies will protect you and your organization alike.
Tips:
Consult with legal and financial advisors to develop sound policies. Create a
gift acceptance committee to review and approve planned gifts. Note that policies can change as new resources become available, and new ways of giving might be encouraged over time.
Develop a recognition program to honor planned giving donors.
5. Providing Resources for Donors
Planned giving can be complex, and donors may need guidance on how to include your organization in their estate plans. Providing resources and support can help donors navigate this process and make informed decisions. Be prepared to run proposals for complex gifts, and have a list of vetted attorneys, financial advisors, and fiduciaries for your donors. Have advisors that can assist with questions from you and your team and donors as necessary, and offer estate planning seminars to cultivate planned giving interest.
Tips:
Offer informational brochures and guides on planned giving options.
Provide access to estate planning professionals or financial advisors.
Host seminars or webinars on the benefits and mechanics of planned giving.
Conclusion
A planned giving program can significantly enhance your organization's financial stability and enable you to continue making a meaningful impact in the long run. By understanding your donor base, educating your team, building a robust marketing strategy, establishing clear policies, and providing resources for donors, you'll be well on your way to launching a successful planned giving program. Taking these steps ensures that you are ready for a planned giving program and have laid a solid foundation for its long-term success. Embrace the journey, and watch as your organization reaps the rewards of thoughtful, strategic, planned giving.
Comments