Sometimes donors who aren’t able to give a lot during their lifetime are able to leave larger gifts as a bequest. For some of America’s Favorite Charities, those legacy gifts provide a steady, if uneven, source of support. Fundraisers at those nonprofits say planned giving is an area where smaller organizations may want to spend some time. They say now is a great time to start because of the expected transfer of wealth — estimated to be as much as $18 trillion — in the coming years.
UNCF (No. 49) gets between $7 million and $12 million in legacy gifts each year, says Michael Lomax, the education organization’s CEO. He points out that planned gifts often come from loyal, longtime donors.
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With the great wealth transfer coming, now is a great time for nonprofits of all sizes to start a deferred-giving program.
Sometimes donors who aren’t able to give a lot during their lifetime are able to leave larger gifts as a bequest. For some of America’s Favorite Charities, those legacy gifts provide a steady, if uneven, source of support. Fundraisers at those nonprofits say planned giving is an area where smaller organizations may want to spend some time. They say now is a great time to start because of the expected transfer of wealth — estimated to be as much as $18 trillion — in the coming years.
UNCF (No. 49) gets between $7 million and $12 million in legacy gifts each year, says Michael Lomax, the education organization’s CEO. He points out that planned gifts often come from loyal, longtime donors.
“You actually get two opportunities with those small donors,” Lomax says. He says that planned giving is often a big win for donors who are committed to the cause, but who don’t have a lot of extra money to give during their lifetimes.
While planned gifts can be big-dollar donations, some charities shy away from them because they involve talking to a donor about their demise — and because gifts often aren’t realized for many years.
“It’s not necessarily going to pay off in the next fiscal year,” says Casey Marsh, chief development officer for Feeding America (No. 24), a charity that works to reduce hunger. “It really is a longer game in terms of how you engage meaningfully with donors and how you can support them in their legacy.”
‘A Bequest Is So Easy’
The Nature Conservancy (No. 11) has a strong deferred giving program that includes a “legacy club that generates significant revenue for us each year,” says Tom Neises, the chief development officer.
The legacy club includes a newsletter, special webinars, and exclusive events for members. Neises thinks that seeking planned giving is something all organizations should do.
“If I worked at a smaller organization, I would focus on bequests,” he says. “A bequest is so easy, anybody can do it. If you have a 401k, you can go online and make a charity, a beneficiary of your 401k in 10 minutes.”
“Make a Will month” — which takes place in August — is also a great time to talk to donors about planned giving, says Katherine Williford, chief development officer at Plan International USA (No. 14), the American fundraising arm of Plan International. She says it’s an easy way to broach what can be a sensitive subject.
In times of economic uncertainty, planned-giving discussions can help donors who are nervous about giving significant sums right now. Neises notes that for many people of average means, planned gifts are the only way they can make a large gift. It can also be helpful, Williford adds, to have conversations about “blended gifts,” which include something now and a bequest.
Nonprofits that aren’t focused on planned giving are potentially missing out, says Chris Needles, chief development officer for the Wounded Warrior Project.
Planned giving doesn’t pay off right away, but it does over time, says Casey Marsh, chief development officer for Feeding America (No. 24).
“Do what you can to capitalize on the transfer of wealth,” he says. “Every nonprofit, no matter what their size, will have a base of donors they can market to for legacy giving. Understanding that that’s the tremendous opportunity that exists.”
While it may take time to see rewards, the income that comes in through planned gifts is often significant after the program has been in place for several years.
“Earlier in my career as a fundraiser, I discounted how well spent that energy on planned giving can be,” Williford says. “But once you have it in place, it really makes a difference to the sustainability of the organization and programs.”
__ Image at top: Organizations of all sizes should consider planned giving, says Tom Neises, chief development officer at the Nature Conservancy (No. 11).
