In the book, Fundraising for Nonprofit Groups, fundraisers Joyce Young, Ken Wyman, and John Swaigen offer what is probably one of the most direct and easiest to understand definitions of planned giving: “If a person gives you money now that you can spend now, that’s not planned giving. If a person gives you a commitment to provide funds in the future, that’s planned giving.”
Some of the more common types of planned giving include will bequests, gift annuities, gifts of life insurance, charitable remainder trusts, and tribute or memorial gifts. Some of these can be further subdivided into more complex categories tailored to meet the specific financial needs and desires of the donor(s). Consult a planned giving or financial consultant for more information – many can be found through Internet research, in your phonebook, or in the CharityVillage Marketplace.
If your organization is ready to begin a planned giving program, one of the first things your fundraising staff and board of directors should acknowledge is that planned giving programs usually require careful attention, a substantial investment of human resources, and, well, planning.
Regardless of the type of planned giving programs your charity wants to pursue, essentially you want to ensure that your donors or planned giving prospects will remember your organization in their future financial planning. So, how do you start , and how do you attract donors to such a program?
A Clear and Honest Ask
The topic of planned giving reminds people of the inevitable – death. It requires that we acknowledge our mortality, our relationships, and the things that are important to us. So understandably, it’s a sensitive topic. Any human being, even if not a fundraiser, would want to approach this topic with a donor very carefully.
In her book, Successful Fundraising: A Complete Handbook for Volunteers and Professionals, fundraising consultant Joan Flanagan offers advice on developing “the ask”. Her approach is a fairly straightforward one that encourages stating the obvious.
“It is obvious that we are all going to die,” Flanagan writes. “It is also obvious that your wonderful organization will still be going and have even greater needs in twenty or thirty years. Planned gifts are the bridge between these two facts.”
Following on that idea, Flanagan specifies three plain ideas that need to come across in your ask. “Somehow we need to say: “
Flanagan’s approach may sound blunt and perhaps you wouldn’t choose her exact words., but the main idea she gets across is that as much as your ask needs to be sensitive, it also needs to be clear, honest, and direct.
Ways to Ask
A is one possibility, but think through the message and how it will be delivered before you send your designated planned giving staff or volunteers knocking on doors. Some donors may find this method or even a telephone call a bit intrusive. You don’t want to risk upsetting a current donor by doing this. However, that doesn’t mean it won’t work in some cases. It depends on the size and capacity of your organization, the relationship certain donors have with your organization, and your knowledge of the donor(s) you are asking.
For example, you know that Mr. Smith, a retired teacher, has been donating to your children’s program for the past four years – but how well do you really know him? Do you chat with him at fundraising events? Do you call him to say thank-you for his annual gift(s), or do you send him a form thank-you letter and tax receipts? How experienced are your staff or volunteers at face-to-face asks? Are you confident in their manners and speaking ability? The following are a few ideas you might want to consider before going the face-to-face route.
There are other very common and effective methods that nonprofits use to grow planned giving programs. Most involve promoting your planned giving program on your various written materials or communications touch points: your web site; an ask letter about planned giving (different than a regular ask letter); your newsletter; your program brochures, your annual report; or even a short tag line on your letterhead or envelopes.
In written materials, the message need not be a lengthy one. The box in your newsletter or program brochure could be a single paragraph inviting a donor to consider planned giving and closing with a brief call to action, “For more information, call us at…” The ask letter might be a little longer, but should also include a call to action. The idea is to engage your donor’s interest, ask them to think about planned giving, then ask them to call you for more information.
Engaging your donor’s interest may also require including elements in your ask letter that are specific to your donors or the type of work you do. Fundraiser Felicia Migliore, an administrator at Toronto’s Interval House, a small nonprofit shelter for women escaping abuse, says their recent direct mail campaign focused on a special planned giving ask letter. So far, the campaign has raised 15 (and counting) planned giving donors from among a group of loyal donors who’d already supported the organization in other ways for the years.
“Our letter was very simple and short, but it included a personal story about a woman who had been helped by the organization followed by a brief call to action at the end of the letter,” explains Migliore. Interval House’s planned giving program is only about six months old, but it looks like the personal story about the woman may have played a role in some donors’ responses.
The Canadian Cystic Fibrosis Foundation took a different approach in their ask letter. The organization typically receives between $500,000 and $750,000 in planned giving support each year. “We included a personal story from another donor who was already giving through one of our planned giving programs. But, this kind of story is usually from a donor who has or knows someone who has a personal connection to the cause,” says Julie Cookson, director of development.
Cookson emphasizes the value and relevance in incorporating a donor’s perspective in a planned giving ask. “Planned giving is not about your organization. It’s about your donors and meeting their needs.”
With these two organizations we see two different but effective elements – a focus on the cause and those helped by your work or a focus on the donor and meeting their financial (and altruistic) needs and desires. Consider how one or a combination of these approaches could work for you.
About Your Audience (not only your immediate or “major gift” donors)
Once you decide on the approach you are going to take, you’ll need to determine who to ask. In, Successful Fundraising, Flanagan suggests starting close to home by including yourself at the top of the list followed by your board or planned-gift committee members, your most consistent and regular annual donors, and new people with an interest in your cause and the ability to contribute.
This makes sense given that the “sell” on planned giving may be that much easier to make with those who already know and trust your organization versus those who don’t. Also, think how much easier it is to talk to a donor about planned giving when you are a willing participant yourself. You’ll be better equipped to anticipate their questions and concerns.
“Don’t assume that only the donors who make larger gifts are the only ones to approach. We looked at high-end donors too, but we also focused on donors who gave consistently over time,” Migliore says. “The main thing to consider is their loyalty to your cause. A donor who gave a larger one-time gift a few years ago but hasn’t supported you since, may not necessarily be the best option.”
Invest time and resources in analyzing your current donor base in order to determine planned giving prospects. If your organization is keen on starting this program, you might also consider hiring an outside consulting firm to do the analysis.
Other Things to Consider
Your can promote planned giving through an event. Host an information night about will-writing or estate planning and invite your current donors and planned giving prospects to attend. Ask a reputable financial consultant to lead the session (he or she may appreciate some new client prospects as well). Not as direct an approach, but writing wills is an important thing everyone should do. Your donors will appreciate that you’ve created an opportunity to learn more about this and may consider your organization for planned giving as a result.
Don’t ask everybody. Take a targeted approach to matching donors with your planned giving programs. “[It] wouldn’t have worked for us to ask everybody,” says Migliore. Again, really know your donor base and assess who are your best options for asks based on past history with your organization.
Test your message. “In planned giving, you should really look at finding the exact message that will prompt a person’s desire to take action,” advises Graham Hill, manager of resource development at Dorothy Ley Hospice. “One way is to survey a group of volunteers with your planned giving ask or message and invite them to share opinions and feedback.”
Planned giving programs require resources and also take time. “Keep in mind all the work required at the front and back ends of a planned giving program. You’ll need people to answer donors’ calls and questions about your program, there’s paperwork and more involved. Ultimately, you want to make sure you can handle the responses you’ll get,” Migliore says. Cookson adds, “make sure your board and people within your organization understand that once they start, planned giving programs take time to pick up.” While it’s important to stay informed on laws and legislation regarding planned giving, Cookson warns staff and volunteers not to get to overwhelmed by these or you risk losing focus of your goals. “Stick to your cause, build your case, and the gifts will come.”
Abigail Brown, B.A., has a self-described passion for helping those in need through charity. She is also concerned with telling the important human stories behind the work that charities do. She has worked in several communications and fundraising roles for both corporate and nonprofit organizations, including John Wiley and Sons Publishing, United Way of Greater Toronto, and Youth Without Shelter. She resides in Toronto.