For many development professionals new to it, planned giving can be a bewildering mix of jargon, tax laws and complex financial relationships. It is, however, often simpler than it appears. First of all, in even a mature program, at least 80 percent of “planned gifts” are bequests. In fact, if all you do in your work is to encourage donors to consider naming your charity in their will, you will have covered at least 80 percent of your market.

Bequests, however, are a revocable gifting vehicle. Your donor may change their will at any time and, if they do, your charity loses the gift. So instead of spending hours trying to figure out life expectancy tables for an as-yet-unknown donor, invest the time in stewarding your known bequest donors. One colleague we know, for example, introduced a simple stewardship program to reduce the number of bequest expectancies that didn’t materialize because donors changed their minds. Ten years later, not one bequest expectancy failed to be realized. Thanks to good stewardship, no one changed their will.

A few donors you know well

If this seems like common sense, it is. Despite the reputation planned giving has as an arcane rite – only the initiated may presume to practice it – most gift planning is an extension of good development practices. The most important aspect of planned giving is neither technical knowledge, nor beautiful brochures, but quality one-to-one contact with donors. Planned giving is not about mass marketing; it’s about a few donors who you know well and who will give relatively large gifts. If you do one thing, and one thing only, establish personal contact with donors and prospective donors.

Good stewardship is essential, but it’s not merely concerned with preserving the status quo. The better you know your donors, the more opportunities there will be to engage in real planning. Bequests are only the beginning of the planning process. Most donors begin with something simple, and as their confidence and commitment to your charity grows, so their gift plan may become more sophisticated. Some donors increase their bequests. Others decide to give cash during life, either in addition to the bequest or in lieu of it. Others choose to use a “planned gift” such as a charitable gift annuity, a strip bond or a life insurance policy.

The goal of planned giving is to develop a gift plan that not only is right for the donor, but also, if at all possible, helps the charity get the gift as quickly as possible. The very best planned gift is thus often a cash gift. Don’t be so sophisticated that you forget what the bottom line is.

Your infrastructure will grow with you

The other reality of development work is that you will not likely be confronted by a planned giving situation for which you are unprepared. Neither institutions or individuals are likely to find themselves trying to handle complex gift plans until there is an infrastructure in place to handle it. Only very rarely do people walk in off the street and ask to set up a charitable gift annuity.

The best way to develop a basic level of knowledge is gradually, while you’re on the job. There is no shame in calling a colleague to ask for help or for a referral to a qualified financial professional familiar with charitable giving vehicles. Joining a professional association such as the Canadian Association of Gift Planners (CAGP) is one of the best ways to develop a network of peers who will come through in a pinch. It is also useful to develop an informal network of volunteers who can provide your gift planning program with guidance and possibly even pro bono assistance. On many issues relating directly to some of the more sophisticated gift plans, however, your best bet is usually experienced colleagues at other charities.

Information Resources growing

While you may have to wait to secure your first planned gift, you don’t have to wait to educate yourself in the field. Through the Canadian Association of Gift Planners, there are professional RoundTables in most regions of the country. (In Toronto, for example, CAGP offers monthly sessions as well as in-depth seminars.) National Society of Fund Raising Executives (NSFRE) conferences normally have strong planned giving tracks. And there are high-end seminars such as those offered by the Banff Centre. In Canada, there is how-to book, the “bible” for gift planners: Planned Giving for Canadians, by Lorna Somers and Frank Minton. And now there is even a software on the market, Planned Giving Assistant, that will crunch the numbers and prepare donor illustrations for you.

With time and greater exposure, soon the basic planned giving vehicles will begin to make sense. Before you know it, you’ll be sitting down with donors and saying with confidence, “I think I might have another idea you may wish to consider; it’s called the charitable remainder trust.”

Ann Rosenfield is a Senior Development Officer at the Faculty of Law, University of Toronto; in her previous position with Goodwill Industries she won the North American Outstanding Development Award. Malcolm Burrows is the Director of Planned & Major Gifts at Princess Margaret Hospital Foundation and is the Chair of CAGP Greater Toronto RoundTable.