There’s a lot to think about when starting a planned giving program. Experts recommend nonprofits take these first steps.
Pick the right gift types for your organization. There are many different kinds of planned gifts, and not all of them are complicated.
Bequests are a good place to start, says Charlotte Meyer, director of planned giving at the Ocean Conservancy. They don’t have to cost the organization anything, and they require little effort.
“Many are as easy as signing [a donor’s] name or changing a beneficiary designation,” she says. Nonprofits “don’t need to have a lot of expertise. You just need to let people know that you accept bequests.”
Launching a program to seek gift annuities, which provide income to donors and an eventual large gift to charity, is a typical next step for organizations that actively promote bequests. The American Council on Gift Annuities has a list of things to consider when deciding whether gift annuities are right for your organization.
Nonprofits should establish gift-acceptance policies early on to help outline the types of gifts they accept.
Assign a point person on staff. The era of the planned-giving expert and specialist on staff is passing, says Jeff Lydenberg, a consultant with a planned-giving software company. Nonprofit fundraisers are asked to handle multiple types of donations—annual gifts, planned gifts, major gifts—all at the same time.
But he still recommends designating one person to be the resource and the point of contact to answer any questions.
You may also want to include planned-gift efforts in your internal metrics and give credit to fundraisers who are speaking with donors about planned giving, even though the payoff will be deferred.
“People will focus on the things for which they are rewarded and measured,” says Mr. Lydenberg.
Talk about your planned-giving program. When an organization consistently communicates that it’s interested in planned gifts, the group is more likely to reach donors at the right time. Planned gifts are often triggered by life events—the birth of a grandchild, the sale of a business, a retirement.
Whether that contact comes through newsletters, e-mail, postcards, personal visits, or phone calls, the key is to include a sentence or two in all communications.
“You never know when the donor’s going to be in the right frame of mind to hear that message,” says Karen Gallardo, a planned-gifts fundraiser who has worked at organizations including the AARP Foundation, the Aspen Institute, and the Nature Conservancy.
A parting comment at the end of a donor meeting—something like, “By the way, if you have ever thought about creating a legacy, we’re here to help you”—is easy and can have high impact, says Ms. Meyer of the Ocean Conservancy. “You have to inform people now, in order to reap the rewards later.”
A 2013 study of 1,200 nonprofits, conducted by the Nonprofit Research Collaborative, found that only a third of charities made formal efforts to solicit planned gifts or bequests, with larger organizations more likely to do so.
Find planned-giving prospects. While each organization has a different donor profile, you can start seeking out planned-giving prospects by taking a look at who’s been giving to your organization the longest and their age. Americans age 55 and older who have a will are more likely to leave a legacy gift, according to an analysis of data from the Health and Retirement Study by Russell James, director of graduate studies in charitable planning at Texas Tech University, though it may be wise to focus some efforts on even younger donors.
The idea that planned giving donors are always major donors during their lifetime is a myth, says Ms. Gallardo, who has also served as president of the National Capital Gift Planning Council.
“Anybody who is a donor is a prospect for planned giving.”
She often hears that organizations are getting six- or seven-figure bequests from donors who consistently gave small amounts during their lifetimes.
Schedule meetings with donors. It’s usually easy to get in the door with planned-giving prospects because they tend to be donors who are passionate about the cause, says Ms. Meyer. She typically meets with donors who have been giving $100 or less annually for a number of years.
The goal of these meetings is to thank donors and give them an update on the organization’s programs. If it seems appropriate, toward the end of a meeting Ms. Meyer will ask if they’ve considered making a gift through an estate plan. Whatever the donors’ response, the question presents an opportunity for follow-up.
Provide proper acknowledgements. Creating a planned-giving legacy society is key to building a strong program, no matter the size of the organization. The groups usually offer members perks like access to special events, pins, and publications, and donors are generally recognized publicly.
If you know people who have already included your organization in their estate plans, you’re ready to start one now, says Mr. Lydenberg.
A legacy society also presents an opportunity for fostering stronger donor ties. When donors are recognized and thanked regularly and their relationship with the organization is strengthened, they may be more likely to give a cash gift during their lifetime.
That’s been true at the Ocean Conservancy, where planned-giving donors also give more through direct mail than donors who haven’t made deferred gifts, says Ms. Meyer.
