Planned Giving Can Change the World

Talking to donors about planned giving can be a game-changer for your nonprofit’s future. Planned giving, or including a charitable gift in a will or trust, provides a powerful way for supporters to contribute without impacting their everyday finances. Despite its potential, initiating conversations about legacy giving can be challenging. How do you bring up the topic without feeling awkward or intrusive? How can you convey the profound impact of such gifts while making the process simple and appealing? In the realm of nonprofit fundraising, planned giving stands out as a powerful yet underutilized strategy. By understanding the nuances of planned giving, recognizing its benefits for both your organization and your donors, and learning how to approach the topic with confidence and sensitivity, you can foster meaningful conversations that lead to lasting legacies. Whether your nonprofit is just starting its planned giving program or looking to enhance its existing efforts, these insights will equip you to secure invaluable support for your mission.  Initiating Legacy Conversations 2.0 Do you clam up when it’s time to have “that talk?” Here’s how to talk to donors about planned giving. Recorded Webinar Statistically, donors who are directly asked to make a bequest are 17 times more likely to do so. By proactively discussing planned giving, your organization can unlock a substantial increase in future donations, ensuring long-term sustainability. Simplifying the process is key — provide clear resources on how to create a will and streamline the notification process for your donors. By simply asking, your organization could receive more donations and secure its future. Just make sure that you simplify the giving process as much as possible. Direct your supporters to resources on how to create a will and make it easy for them to notify you of their gift. You must illustrate that making a planned gift is not difficult and is not only for wealthy folks. Focus on Legacy, Not Loss But how do you start the planned giving conversation? It can certainly feel like an awkward or unnatural topic to bring up, especially if you’re new to legacy giving or your nonprofit doesn’t have a solid planned giving program in place yet. When discussing planned giving with donors, it’s crucial to frame the conversation in a positive and forward-thinking manner. While it’s true that planned gifts typically come into effect upon the donor’s death, leading with this fact can be counterproductive. Instead, emphasize the enduring impact of their generosity. Our 101 Clever Questions booklet can get you started. In their influential case studies white paper, planned giving experts Russell James and Michael Rosen stress that communications should focus on the value to the donor, enhancing their sense of wellbeing rather than centering on mortality. Reminders of death can trigger avoidance or the desire to leave a lasting impact. Your goal is to steer clear of any triggers for avoidance and instead ignite the motivation to make a meaningful difference. To achieve this, highlight how donors can create a lasting legacy through their planned gift. Illustrate how their contributions will support the future of the causes they care deeply about. This approach not only resonates more positively but also aligns with the donors’ desires to see their values and passions endure with either a small or hopefully, a major gift. Additionally, be mindful of your language. Phrases like “leave a legacy” can inadvertently bring the focus back to death. Instead, opt for active and empowering language such as “create a legacy” or “make a gift.” These phrases highlight the donor’s active role in shaping the future and underscore the impact they can have. The Importance of Providing Will Creation Resources Talking to your donors about planned giving can be a seamless experience when you equip them with the right resources. One of the most impactful steps your nonprofit can take is to provide the right tools and information that simplify the will creation process. By doing so, you not only facilitate the inclusion of planned gifts but also build trust and demonstrate your commitment to making the process as easy as possible for your supporters – increasing cash flow that will have a major impact outside of annual giving campaigns. Simplifying the Process for Your Donors Creating a will is a crucial step for anyone looking to protect their loved ones and ensure their wishes are honored. For many donors, the complexity and cost associated with drafting a will can be a deterrent. By offering free resources and guidance, you remove these barriers and make it easier for donors to consider planned giving. Providing links to free online will creation tools is an excellent starting point to ensure a future gift from major donors. These tools are user-friendly and designed to help individuals draft their wills quickly and efficiently. In addition to these tools, offering a comprehensive blog and glossary on your website that explain key estate planning concepts, especially tax benefits and other legal considerations can further empower your donors. These resources can demystify the process and provide valuable insights into the benefits of planned giving and the importance of the will creation process. Creating a Dedicated Planned Giving Microsite To maximize the effectiveness of your planned giving outreach, consider creating a dedicated Planned Giving Microsite. This microsite can serve as a central hub for all the information and tools your donors need to create a legal will and include your organization in their estate gifts. An effective microsite should include: User-Friendly Will Creation Tools: Direct links to free or low-cost will creation platforms. Educational Content: Articles, FAQs, and glossaries that explain the importance of having a will, how planned giving works, and the impact it can have on your organization. Estate Planning Templates: Sample language and templates that donors can use to include your nonprofit in their wills, making the process straightforward and accessible. Contact Information: Clear instructions on how donors can reach out for additional support or legal advice. A well-designed microsite not only simplifies the donor journey

It may seem silly, but it’s true — and it’s a step many donors forget. A 2019 Special Report from Giving USA found that just 4 percent of donors always report their planned gifts to organizations, and 38.7 percent sometimes inform the organizations.

A new report from Giving USA shows that despite charitable giving reaching a new high for 2023, inflation took a hefty toll. It proves what we’ve been saying all along: Planned giving works, and it’s a lifeboat in the stormy waters of inflation.

Over 60 percent of all Americans are missing a critical legal document: Their last will and testament. While there are a lot of important reasons to create a will and keep it updated, here are the Top 10.