The Why for Planned Giving (Gift Planning)

What Every Board Member Needs to Know

By Andy Ragone, CGPP

Most fundraising programs stick to the familiar—annual appeals, galas, and cash gifts. But here’s the truth: only 3% of American wealth is in cash. The other 97%? It’s tied up in stocks, real estate, retirement accounts, and businesses. That’s where the real opportunity is.

Your donors may not have extra cash, but they have assets. When you help them give from their wealth—not just their wallets—you unlock transformational gifts. Gifts that reduce tax burdens, deepen donor commitment, and fuel your mission in ways annual giving never could.

The largest gift your organization will ever receive will likely be a planned gift, such as an estate gift or a gift that allows a donor to relieve her tax burden and receive income. The only question is, will it be yours—or another organization that has invested in its gift planning program?

We’re standing at the edge of the greatest wealth transfer in history. Every day, 10,000 baby boomers turn 65. They control 50% more wealth than the generations that follow. If you’re not inviting them to include you in their estate plans, someone else is. And once that wealth is allocated elsewhere, it’s gone.

Planned giving (gift planning) isn’t just about the future. Yes, bequests are the foundation, but donors can give now—through stock, IRA distributions, Donor-Advised Funds, real estate, and business interests. Some gifts even generate lifetime income for donors while strengthening their financial futures and the well-being of your organization. A well-run program builds a pipeline of bequests that begin paying out in as little as 5 to 10 years. The average estate gift? Between $35,000 and $70,000. The range of the amount given depends on the nature and work of your organization and how they align with your donors' values.

This isn’t an either/or strategy. It’s about balance—blending immediate and future gifts, cash and assets, to create long-term financial stability. Many nonprofits chase short-term wins, prioritizing cash-in-the-door over the far greater opportunities that may take a little more work. But those that commit to gift planning? They far outperform every other fundraising initiative.

A Texas Tech study found that nonprofits relying solely on cash gifts grew just 5% over five years, while those incorporating asset and estate gifts grew 67%.* A strong program doesn’t just generate a few bequests—it multiplies them, turning unpredictable windfalls into sustainable impact.

The most common roadblocks are as follows:

• Leadership may not see the value of investing in gift planning. Poorly executed efforts lead to turnover and stagnation.

• Development officers may lack knowledge of charitable tax law, missing key opportunities to help donors make smarter financial decisions.

• Professional advisors? If they’re not well-versed in charitable giving, they won’t guide donors toward the best options. Their education is essential.

• Absence of educational marketing or discovery of key donor interest. Both are needed to formulate strategies to reach these potential donor prospects.

None of these roadblocks are insurmountable, but they do require leadership to carefully think through how to overcome them.

Planned giving isn’t for the impatient. It’s not about quick results. It’s about changing the game. Organizations that invest in gift planning don’t just raise more money. They redefine their future.

The only question is: will yours?

*James, R. N., III. (2018). Cash is not king in fundraising: Gifts of noncash assets predict fundraising growth. Texas Tech University.