How do you avoid the unusable Bequest? (Comments needed)
One of the great tragedies in the nonprofit world is to learn that someone now deceased left a generous bequest to your organization in their estate plan and, upon reading the donor’s instructions, to realize you can’t use the gift.
The donor’s intended purpose may be inconsistent with your mission. The gift might not be large enough to accomplish what the donor wanted. Laws and regulations may prohibit your nonprofit from doing what the donor wanted. Regardless, it’s too late to discuss this with the deceased donor.
How can you communicate with those donors who have included your nonprofit in their estate plans in order to learn the details of their bequest instructions?
The obvious solution is to invite a conversation with the still-living donor, to negotiate the gift instructions in hope of agreeing on a gift purpose that makes both parties happy. My own explanation goes something like this: “I want to make sure we’re able to honor your wishes, that your gift instructions align with our mission, our programming. The only time to do that is when you’re here to have that conversation. So, what would you like to accomplish through your bequest?”
That can be easy – once you identify the donor. And that’s the challenge. Many well-intended donors just don’t pause to think about whether their wishes are acceptable by the recipient nonprofit; they see no need to inform you.
What message can you send to invite constituents to let you know if your nonprofit is in their wills, their trusts, their beneficiary designations? What media channels do you use to share this message?
This post invites your response. I want to share solutions, to help others like you find their voices to address this dilemma. PLEASE REPLY IN THE COMMENTS TAB to note your experience. How did you share your message – in print, online, in live group settings? What did you write/say to explain WHY you want to know? What has worked for you?
Development Consultant, planning to change the world for the better!
3 年Thanks, Dan I'm no longer working in the organization where I wrote the letter, and it was some years ago. I'm now an independent consultant and fundraising coach, with a focus on planned giving and donor relations, which I fervently believe should always go hand in hand. The more trust we build, with our loyal donors in particular, the more likely they are to share their bequest intentions with us.
Development Consultant, planning to change the world for the better!
3 年Hello Dan. I think it's important to first understand the motivations behind people not informing us about bequests - according to Penelope Burk that is 56% of legacy donors. We want to be sure that our messages are aimed at the underlying causes of their reticence. We know that a will is a very personal document, often kept private, even from friends and family members. We also know that a gift in a will is revocable. The messages I have used have been accepting of this need for privacy, they express respect for this decision along with gratitude, but ask that a donor would consider giving us the honour of telling them in person how grateful we are for their future gift. Added to that should be the message that informing us of their gift also provides us with the opportunity to discuss their vision and what they'd like to accomplish, making sure it will be feasible, although this conversation can also take place through an intermediary, such as their legal representative. This message should be included everywhere that legacy gifts are mentioned or offered. I once wrote about it in an open letter to legacy donors in our newsletter, while honouring a donor who had remained anonymous in her lifetime.