How do you educate and inspire your major donors to consider planned giving options and legacy gifts?

Giving out of sheer generosity means far more to me, and it’s in sincerity, than reducing one’s tax penalties. It benefits the recipients as the reason does not really affect the value.

Planned giving provides a donor the opportunity to leave a legacy gift impacting missions they care about. There is an opportunity to use various types of assets in their estate. A planned gift can also be used to amplify a gift given in their lifetime to help organizations important to them.

Legacy giving isn't just for the elite—it's for anyone who wants to make a difference and leave a lasting impact. While the term "legacy" may evoke images of iconic figures like Michael Jordan, the truth is that setting up a planned gift is accessible to all. Legacy giving is about creating a meaningful legacy that reflects your values, passions, and desire to make a positive impact on future generations. Whether it's supporting a cause you're passionate about, leaving a charitable bequest in your will, or setting up a charitable trust, legacy giving offers a range of options for individuals from all walks of life. It's not about the size of your estate and/or status. It's about the heart and intention behind your giving.

Ask, listen, learn, observe, clarify, etc. Early on I made the mistake of looking for cash gifts only. Most of the wealth of your major donors (the vast majority, in fact) is non-cash. And the wealthier they are the more this tends to be true. Learn to identify and to help your major donors 'unload' significant assets that they no longer want in their portfolio - especially investments with significant gains and a low cost basis. Perhaps a yacht they they rarely use anymore and have little to no need for the cash it will produce. Build close relationships with donor advised foundations in your city - they usually know how to receive and liquidate complex gifts!

Although major gift donors can also be good planned gift donors, the best propects for legacy gifts are those who are loyal donors (10+ years of giving), recent givers (past 3-5 years), childless, and over the age of 60. Planned gifts are sometimes called the "major gifts of the middle class," since they are often made from retirement plans and real estate - two major asset classes that these donors need while they are living but can allow them to leave a substantial gift after their lifetimes. It's important to keep the planned gift opportunity in front of all of your constituents, however, because the decision to make a planned gift often comes after years of consideration. It's a long game!

By employing a combination of data analysis, relationship building, segmentation strategies, professional partnerships, research, and recognition programs, a non profit can effectively identify planned giving prospects and engage them in meaningful conversations about leaving a lasting legacy of support. It has to be about the relationship and not a transaction.

Agreed, one-pagers from other credible sources are useful. Be prepared to educate donors on matters of the head and the heart. Understand what is holding them back: not sure how to discuss this with family? not sure how much/what to give to charity and to family? not sure of the impact they want to make? unclear about probate, trusts, or other terms? are they confused by the illustrations the charity provided? financial advisor or estate attorney who is unfamiliar with philanthropy? Additionally, I like Collier's book Wealth in Families.

It is valuable for donors to be aware that your organization accepts planned gifts by language on your "Ways to Give" or stories you share on your website, newsletter or others. Is there an opportunity for your organization to recognize planned gifts through a named society, curated events, speakers or tribute walls. Your team speaking to donors should have the knowledge to share planned giving opportunities where it provides value and may inspire a donor. Often times a planned gift is the highest form of flattery by a donor choosing to consider a complex asset like real estate, stocks, gift from their trust, etc in a way to accomplish their philanthropic goals and impact with your organization.

As I've mentioned on a few of the other questions surrounding planned gifts, it has to be about relationship and not brochures/fliers. Those provide some basic information, yet, it's tough to create meaningful and lasting relationships from those handouts. It can take many years to cultivate, yet, even once you reach the point of a gift documentation, they are always revocable. You have to employ strong stewardship standards.

Get one-pagers from your local community foundation(s), the big boys like Fidelity, Schwab, National Christian Foundation, etc. Build relationships with experts in those circles who you trust and can help your major donors. You don't need to be the educator. Facilitate and broker good education for your donors (and learn a lot for yourself in the process).

Because you have shown such passion and commitment to our community, I'm curious to know if you ever considered including charity in your will or trust? Have you considered our charity?

Having passion and belief behind what you are doing will inspire the donors to get to know who you are and that you will use their generous contributions towards the goal you are achieving.

In addition to other good points here, think of planned giving as a way to help donors unload tricky or complex assets. It may not be often, but if you keep your radars tuned on a regular basis you will come across situations where you are doing them a huge favor and unleashing some incredible resources for your cause at the same time. A surprising number of donors don't know about or understand the power of donating long-term appreciated assets - including retirement assets. Research (Google) "non-cash assets that make great charitable donations" for 30 minutes a week and you'll be steps ahead of the majority of your donors. Rather than simply asking you are helping them solve tricky problems while supporting their beloved cause(s).

Planned giving is a way to create symbolic immortality. So the "ask" should be more focused on helping the donor explore larger, open-ended questions about how they want to be remembered, what positive change they would like to create in the world, etc. Talk first about the what and why, then about the how. If a donor has a charitable desire, there are many ways to get to the solution. It will take time (usually years). And yes, always thank. Treat your planned gift donors like your best major gift donors.

Many organizations don't have the bandwidth to steward donors who identify they are giving them a planned gift. I think we as a sector need to adjust our approach and commit resources to proper stewarding. A bequest is revocable. If a donor feels less connected to your mission because we have not properly thanked or included them in appreciation they may decide to change their legacy focus. It is up to us to continue to share our appreciation for their choice to consider us in their legacy gifting which can be the highest form of flattery from any donor interested in making an impact with a mission they care about. Inviting donors to a legacy society, celebrating their planned gift by special invites or opportunities.. are good tools.

As appropriate, build relationships with their other trusted professionals (CPAs, attorneys, financial advisors, investment partners, etc.). Position yourself as part of the solution in your donor's overall portfolio of assets. This is a long burn that will pay significant dividends if done with authenticity and care.

The process can be slow, sometimes years. I often ask where donors are in their planning process. They may contact the charity as the first step, the second-to-last step or after the ink is dried. Be grateful you can help them, wherever they are in the journey, to create their meaningful gift.