Measurement

It is not unusual for organizations to eagerly establish planned giving programs only to back away from them a few years later as the board of directors looks for more immediate and tangible fundraising successes. The problem is often not with the planned giving program, but with how the program was measured and reported to the board.

Unlike cash donations that are easy to measure with an annual calculation, planned gifts are usually (not always) gifts made now that will be realized in the future. It is important for the board and staff to have an accurate measurement of how the planned giving program is proceeding in the absence of hard dollars in the door by fiscal year end. The board needs to understand that success in terms of future realized bequests and other planned gifts will be a direct result of activities undertaken today. For reporting purposes, it is important to break down the components for measurement of activity leading to future gift planning successes.

Bequest expectancies. Perhaps the most important measurement of the current success of a planned giving program is the number of new will appointments that are recorded on an annual basis. These appointments will translate into bequest gifts at some point in the future. The will appointments include both donors who self-identify, as well as lawyers who contact your organization to alert you to the fact that their client has made a provision in his or her will and is leaving a bequest.

For reporting purposes, an approximate calculation can be done that multiplies the total number of bequest expectancies by the average bequest that your organization typically receives (calculate the average bequest by dividing dollars raised from past bequests by the total number of past bequests). This figure can be presented to the board as an approximate calculation of known future bequest expectancies. In addition, you can also remind the board members that most bequests come from donors who have not informed organizations of the gift beforehand, so it is likely that your guesstimate is on the conservative side.

Expectancies from other planned giving vehicles. It is important to also keep a record of any other expected future gifts such as gifts of life insurance, trusts, etc. Your organization’s board of directors should be kept up to date with regard to expected revenue from these future gifts.

Annual funds realized from bequests and other gifts through wills. In order to track funds realized and funds expected from active estates (estates currently under administration) on an annual basis, a tracking system needs to be developed. This can be done in the form of a chart that is updated monthly, with each active and open estate account recorded. Beside each estate account will be recorded cash received to-date as well as projected to fiscal year-end. This is valuable information to have at your finger tips when responding to board enquiries about revenue projections.

Annual funds realized from other planned giving vehicles. Similarly, a tracking system needs to be in place to quantify other planned gifts such as securities, life insurance, trust income that are actually realized. This tracking system will allow staff to project cash flows for the fiscal year and to have an ongoing measurement of the success of the planned giving program.

Annual contact with gift planning prospects. Through donor data software, staff can review on a monthly and annual basis, the number of contacts they have with prospective gift planning donors. This is an important measurement of the level of active fundraising activity that is occurring in an organization and an indication of future success of the planned giving program. The goal of the contact is to build relationships to the point that prospective donors convert into confirmed planned giving donors. Contacts with donors can include phone calls, correspondence, meetings, home visits, events, seminars etc.

Annual contact with confirmed planned giving donors. A similar measurement program should be established through the donor data software to measure interactions with confirmed planned giving donors, however the primary goal here is ongoing stewardship of the donor. A secondary goal would be to encourage future gift planning donors to also consider supporting your organization with current cash donations.

Networking activity. All networking activity with professional advisors should be recorded on donor data software and reported on a monthly basis. A staff person should be assigned to each individual professional advisor and activities recorded as they occur. Categories for recorded activity include correspondence, seminars, meetings, presentations, and lunches. A follow-up action needs to be recorded with each contact so that relationships are continually nurtured.

Leslie Howard is founder of Planforgifts.com, one of Canada’s premier web-based planned giving resources for charities, nonprofits, professional advisors, volunteers and donors. For comprehensive material on developing a planned giving program with downloadable examples, visit www.planforgifts.com and become a member.