Introduction: What Is Planned Giving and Why Does It Matter?
Planned giving, also known as legacy giving, is the art of securing future gifts from donors through their estate plans. These gifts are often the largest and most impactful contributions a donor will ever make—with the average planned gift ranging from 200-300 times larger than a typical annual donation.
Consider how a small environmental nonprofit transformed its future with just three bequests in its first year of planned giving: these gifts secured enough funding to protect 250 acres of critical habitat in perpetuity.
Yet, many nonprofits hesitate to launch their own planned giving program, assuming they lack the expertise or resources.
The truth is: Planned giving is a people business, not a legal business™. And it’s never too early to start.
This guide offers the most practical, scalable approach to launching a planned giving program—even if you’re a small nonprofit with limited staff and budget.
Quick Start Guide
If you need to launch quickly, focus on these five core elements. Read the rest of the article for valuable details, typical case study and a readyness calculator.
Foundation Steps:
- Identify loyal donors with 5+ years of giving history (prioritize those with increasing gift patterns)
- Create a simple legacy society with basic recognition elements (special pins, annual letters, exclusive events)
- Develop a basic planned giving webpage focusing on bequests (include sample bequest language and one donor story)
Engagement Actions:
- Train staff on natural conversations about planned giving (provide simple scripts and practice scenarios)
- Send personalized thank-you notes to every legacy donor (handwritten notes within 48 hours of commitment)
Timeline & Results:
Launch in 30 days, see first bequest intentions within 6 months, and expect 8-15 commitments by month 18.
Remember: Start simple, stay consistent, and focus on relationships over transactions.
Table of Contents
- Understand the Basics of Planned Giving
- Engage Your Board of Directors
- Identify and Thank Your Most Loyal Donors
- Create a Legacy Society
- Develop Your Planned Giving Website or Microsite
- Establish Gift Acceptance Policies
- Create Basic Planned Giving Marketing Materials
- Formalize Your Program With Tools and Systems
- Learn Prospect Identification and Segmentation
- Use Your Donor Database Effectively
- Send Personalized Thank-You Notes to Board and Donors
- Make Planned Giving a Daily Habit
- Host Educational Events and Seminars
- Emphasize Trust, Not Money
- Collect and Share Donor Testimonials
- Master the Planned Giving Conversation
- Explain How the Gift Will Be Used
- Join a Peer Group or Network
- Plan for Future Program Growth
- Use Smart Planned Giving Marketing Strategies
- Add Signature Line Pitches and Site Linkage
1
Understand the Basics of Planned Giving ESSENTIAL
You don’t need to be a legal expert. Start with common, easy-to-explain gift vehicles:
- Bequests: “A provision in your will that directs a gift to our organization.”
- IRA Beneficiary Designations: “A form from your retirement plan administrator that names our organization to receive funds after your lifetime.”
- Life Insurance Gifts: “Making our organization the beneficiary of a policy you no longer need.”
- Appreciated Securities: “Donating stocks or bonds that have increased in value since you acquired them.”
- Gifts of Retirement Plans: “Naming our organization as a beneficiary of your 401(k), 403(b), or IRA.”
Real-World Examples: The Children’s Museum focused solely on bequests and IRA designations for their first two years, securing 14 legacy commitments before expanding to additional gift types. A college was about to close its doors when it was saved by a surprise bequest.
Recommended Resource: A donor-friendly video or planned giving pocket guide can be incredibly effective for internal training and donor education.
SEO Tip: Use the phrase “what is planned giving” in your FAQs to attract beginner-level queries.
2
Engage Your Board of Directors ESSENTIAL
Your board’s support is essential. Educate them on how legacy gifts work and why they are critical to the long-term health of your organization. Get all planned giving myths out of the way.
Board Engagement Strategies:
- Schedule a 20-minute presentation at your next board meeting
- Share simple one-page handouts explaining the basics
- Ask board members to consider their own legacy gifts
- Invite a board member from another nonprofit to share their planned giving success story
Pro Tip: Send handwritten thank-you notes during key holidays or milestones. Gratitude opens doors.
3
Identify and Thank Your Most Loyal Donors ESSENTIAL
Your best planned giving prospects are not necessarily your largest givers. Instead, focus on those who have:
- Donated 8+ of the last 12 years
- Consistently supported specific programs
- Demonstrated personal affinity
Donor Identification Steps:
- Run a database query identifying donors with 5+ years of consecutive giving
- Create a tiered approach, starting with those giving longest
- Develop a personalized outreach calendar
Personalize your outreach. Make it feel like a letter to your mother, not a cold institutional appeal.
4
Create a Legacy Society ESSENTIAL
A Legacy Society is a simple way to honor planned giving donors and build social proof. It gives donors community, credibility, and connection.
Steps to Build One:
- Give it a meaningful name and logo (e.g., “Heritage Circle,” “Future Builders Society”)
- Offer special perks (events, recognition, behind-the-scenes tours)
- List members in your annual report or website (with permission)
- Mail custom welcome packets to new members
Legacy Society Success Story: The Westside Community Center launched their “Tomorrow’s Promise Society” with just three founding members. Within 18 months, it grew to 17 members through peer-to-peer referrals alone.
5
Develop Your Planned Giving Website or Microsite ESSENTIAL
Every planned giving program needs a digital hub. At a minimum, your planned giving web page should include:
- Overview of planned giving options
- Contact information (with photo and direct line of your planned giving contact)
- Donor testimonials (with permission)
- Clear calls-to-action (CTA)
- Legacy society info
- Online will planner free for donors (see LegacyPlanner™)
Website Enhancement Tips:
- Include sample bequest language that donors can share with their attorneys
- Add a calculator showing the impact of different gift amounts
- Feature photos of real legacy donors (with permission) rather than stock images
Internal linking tip: Link every mention of “planned giving” or “bequest” back to your site’s planned giving section.
6
Establish Gift Acceptance Policies ADVANCED (IMPORTANT, BUT NOT URGENT)
Start simple. Later, you can expand. Your policies protect your nonprofit legally and set internal expectations. Here’s a free template you can start developing.
Begin with:
- Bequests
- Beneficiary designations
- Life insurance
- IRA rollovers
Then grow into real estate, complex trusts, and life income gifts. Document your flexibility, but use the word “suggested” to allow discretion.
Template Structure:
- Purpose of the policy
- Types of gifts accepted
- Review process for non-standard gifts
- Gift acknowledgment procedures
- Gift valuation guidelines
7
Create Basic Planned Giving Marketing Materials ESSENTIAL
You don’t need a massive budget to start promoting planned gifts. Begin with:
- A one-page bequest brochure
- Planned giving elevator pitches (for email signatures)
- Website banners
- Simple thank-you cards
- Mail stuffers and postcards
High-Impact, Low-Cost Materials:
- Insert a single planned giving paragraph in your existing newsletter
- Create a dedicated annual “legacy giving” edition of your newsletter
- Add simple “Have you remembered us in your will?” language to existing communications
SEO Tip: Include images and donor quotes in your materials to enhance shareability and visibility in search results.
8
Formalize Your Program With Tools and Systems advanced
Don’t overbuild too soon. Focus on generating gifts, then invest in back-end operations. Recommended tools:
- Donor management systems (CRM)
- Prospect tracking
- Event tracking
- Back Office Tools (Custom forms, templates, and more)
Software Selection Criteria:
- Ability to track legacy gift commitments
- Easy reporting on loyal donor segments
- Automated birthday and anniversary reminders
- Integration with email marketing platforms
9
Learn Prospect Identification and Segmentation ESSENTIAL
Target your core donors. Segment them based on:
- Giving consistency
- Age range (45+)
- Life events (retirement, children leaving home)
- Engagement level (event attendees, volunteers)
High-Potential Segments to Target First:
- Donors who have given for 10+ consecutive years, regardless of amount
- Board members (current and former)
- Regular volunteers who also give financially
- Mid-level donors ($250-$1,000) with 5+ years of giving
Avoid mass outreach—narrow your list to avoid waste and donor fatigue.
10
Use Your Donor Database Effectively ESSENTIAL
Track:
- Age and birthdays
- Giving frequency and amount
- Event attendance
- Bequest inquiries
Database Optimization Strategies:
- Create a “legacy prospect” code or flag in your system
- Schedule monthly review of donor milestones (birthdays, anniversaries)
- Track every meaningful interaction with legacy prospects
- Use wealth screening tools to identify prospects with capacity
Tip: A “Happy Birthday” postcard does more than show gratitude—it keeps your organization top-of-mind.
11
Send Personalized Thank-You Notes ESSENTIAL
Thanking donors and board members through handwritten cards sent via US Mail is a powerful gesture. It’s not just a courtesy—it’s a strategy.
Thank-You Note Best Practices:
- Reference specific impact of their support
- Avoid generic language and institutional jargon
- Include one question to encourage ongoing dialogue
- Mention one program achievement that wouldn’t be possible without their support
The Power of Timing: Send thank-you notes when least expected—not just after gifts, but on anniversaries of their first gift, during relevant awareness months, or simply “just because.”
12
Make Planned Giving a Daily Habit ESSENTIAL
Spend 15–30 minutes daily thinking about planned giving:
- Who can I reach out to?
- What small update can I make to our messaging?
- Who did I forget to thank?
Daily Habit Implementation Ideas:
- Block 15 minutes on your calendar every morning
- Keep a running list of potential legacy donors to contact
- Set a goal of one personal outreach per day
- Create a simple “planned giving dashboard” to track progress
This mental shift will organically increase your results over time.
13
Host Educational Events and Seminars advanced
Host engaging donor events with light estate planning themes. Include:
- Donor testimonials
- Brief attorney/financial advisor talks (no sales pitches)
- Short seminars on “planning your legacy”
Event Format Ideas That Work:
- “Lunch and Learn” with estate planning attorney (30-minute presentation)
- “Coffee with the Director” small-group discussions (10-15 attendees)
- Virtual webinars on “Creating Your Legacy”
- Annual legacy society recognition reception
14
Emphasize Trust, Not Money ESSENTIAL
Most donors care about impact and legacy—not tax loopholes. Your messaging should reflect:
- Values-based giving
- Long-term sustainability
- Family inclusion
Trust-Building Language Examples:
- “Your values continue through your legacy gift”
- “Create permanence for the work that matters to you”
- “Join others who are ensuring our mission continues for generations”
Avoid fear-driven language about death or dry technical terms that distance donors from their meaningful intent.
15
Collect and Share Donor Testimonials ESSENTIAL
Stories sell.
- Use videos, articles, and pull-quotes
- Keep stories emotional and human
- Focus on why the donor gave, not just what they gave
Testimonial Collection Questions:
- “What first connected you to our organization?”
- “Why did you decide to include us in your estate plans?”
- “What impact do you hope your gift will have in the future?”
- “What would you tell others who are considering a legacy gift?”
Implementation Tip: Create a “Legacy Stories” section on your website, featuring a new donor story every quarter.
16
Master the Planned Giving Conversation ESSENTIAL
Know your:
- Elevator pitches
- Conversation starters
- Gift type explanations
- Terminology (without sounding like a lawyer)
Proven Conversation Starters: “Many supporters find comfort in knowing their values will live on through a gift in their will. Is this something you’ve considered?”
“Some of our most meaningful gifts come from people who include us in their estate plans. Would you like to know more about how that works?”
When a donor expresses interest: “Thank you for considering this important step. May I ask what aspects of our mission mean the most to you?” (This helps you understand their motivations and customize your follow-up.)
Handling “I’ll think about it”: “That makes perfect sense. This is an important decision. May I check back with you in a few months? In the meantime, I’d be happy to send you some information about how other donors have structured their legacy gifts.”
17
Explain How the Gift Will Be Used ESSENTIAL
Be clear on:
- Unrestricted vs. restricted giving
- Program-specific funding
- Naming opportunities
Impact Description Examples:
- “Your bequest will ensure that 100 more students receive scholarships each year”
- “A legacy gift of $25,000 can provide shelter for 500 animals annually”
- “Your planned gift can endow a permanent research position in your area of interest”
Anticipate and answer: “What will my gift do?”
18
Join a Peer Group or Network IMPORTANT, NOT URGENT
Participate in:
- AFP (Association of Fundraising Professionals)
- CGP (National Association of Charitable Gift Planners)
- Local philanthropy roundtables
Network Utilization Strategies:
- Find a mentor with 5+ years of planned giving experience
- Participate in regular planned giving discussion groups
- Attend at least one conference annually
- Share resources with similar-sized organizations
Collaborate with organizations both larger and smaller than yours.
19
Plan for Future Program Growth advanced
Once your program gains momentum:
- Expand to direct mail campaigns
- Launch more robust microsites
- Host more targeted cultivation events
- Consider full audits or planned giving boot camps
Growth Benchmarks:
- 5-10 legacy commitments: Begin donor recognition events
- 15-25 legacy commitments: Consider expanded marketing materials
- 25+ legacy commitments: Develop more sophisticated gift vehicles
- 50+ legacy commitments: Consider dedicated planned giving staff
20
Use Smart Planned Giving Marketing Strategies ESSENTIAL
Effective planned giving marketing includes:
- Consistent, multi-touch campaigns
- Print + digital strategy
- Donor-centric messaging
- Regular testing and analysis
- Limited reliance on traditional newsletters
Marketing Effectiveness Research:
- Personal stories increase response rates by 55%
- Direct mail outperforms email for initial planned giving inquiries
- Keywords like “remember,” “legacy,” and “future” outperform technical terms
- Simple one-page materials outperform lengthy brochures
Tip: Use “Make a gift in your will to support causes that matter to you” over “Leave a bequest.” It increases engagement by 28%.
21
Add Signature Line Pitches and Site Linkage ESSENTIAL
Transform email signatures into marketing tools. Use donor-centric elevator pitches like:
- “Make a gift that costs you nothing during your lifetime.”
- “Support the future—make a will today.”
Effective Email Signature Structure:
Your Name, Your Title
“Make a Gift That Costs Nothing During Lifetime” [Link to planned giving page or bequests]
Organization
Direct Phone | Email
Place links directly beneath your name, not at the bottom of the email.
Real Client Success Story
Disclaimer: Results vary based on donor engagement, relationships, and implementation consistency.
This case study features a regional food bank with just two full-time staff members who launched their “Legacy Partners” planned giving initiative.
Their Strategic Approach:
Phase 1: Foundation Building (Months 1-3)
- Identified 30 most committed supporters (5+ years of consistent giving)
- Created dedicated legacy giving webpage with clear bequest language
- Developed simple “Our Next Chapter” case statement focusing on long-term impact
Phase 2: Personal Outreach (Months 4-12)
- Made personal phone calls to each identified prospect
- Hosted intimate annual “Legacy Partners Recognition Dinner” (18 attendees)
- Launched quarterly impact newsletter specifically for legacy donors
Phase 3: Stewardship (Ongoing)
- Sent personalized handwritten notes each quarter
- Provided exclusive behind-the-scenes program updates
- Created Legacy Partners pin and welcome packet
Results After 24 Months:
Quantitative Outcomes:
- 11 confirmed bequest intentions (37% conversion rate)
- Projected future value: $1.2M – $3.8M (based on current average bequest of $110K-$350K)
- Additional annual giving increase: 28% from Legacy Partners
- Program investment: $3,200 annually
- Staff time: 5 hours monthly (avg.)
Qualitative Impact:
- Strengthened donor relationships across entire donor base
- Enhanced organizational prestige and stability messaging
- Improved board confidence in long-term sustainability
- Created replicable stewardship model for future growth
Key Success Factors:
- Personal Connection: Every interaction was personally handled by executive director
- Consistency: Quarterly touches maintained year-round engagement
- Transparency: Clear communication about giving options and impact
- Celebration: Recognition event created community among legacy donors
- Patience: Allowed 18-month relationship-building before requesting commitments
Financial Return Analysis:
- Cost per confirmed bequest: ~$350
- Estimated 5-year ROI: 400-1,100%
- Cost to raise $1: $0.08-$0.25 (compared to $0.25 industry average)
Executive Director’s Reflection:
“The transformation went beyond fundraising. These conversations deepened our understanding of why donors connect with our mission. Many shared personal stories we’d never heard despite years of support. The planned giving program didn’t just secure our future—it strengthened our present relationships.”
Lessons for Other Small Nonprofits:
- Start small: Focus on your most engaged supporters first
- Be authentic: Share your vision, not complex financial instruments
- Think legacy: Connect planned gifts to lasting impact, not operational needs
- Invest in relationships: The program’s success relied on quality, not quantity
- Document everything: Track both financial and relationship outcomes
Note: While individual results vary, this example demonstrates how small nonprofits can achieve significant planned giving success through focused, relationship-centered approaches rather than expensive marketing campaigns.
Frequently Asked Questions About Launching a Planned Giving Program
Q: How much does it cost to start a planned giving program? A: A basic planned giving program can be launched for under $5,000, focusing primarily on bequest marketing materials, a simple website section, and recognition elements for your legacy society.
Q: Do we need an attorney on staff to manage planned gifts? A: No. While having access to legal counsel is helpful for complex gifts, most organizations work with donors’ attorneys and financial advisors. Focus on relationship-building, not technical expertise.
Q: How long before we see results from a planned giving program? A: While the actual receipt of planned gifts may take years, many organizations secure gift commitments within 12-18 months of program launch. The key is consistent, relationship-focused outreach to loyal supporters.
Q: Should we launch a planned giving program if we’re in a capital campaign? A: Absolutely. Capital campaigns often surface your most committed donors, making it an ideal time to discuss how they might extend their impact through a planned gift.
Program Readiness Assessment
Rate your organization’s readiness on these key factors (1=Not Ready, 5=Fully Ready):
Total Score:
28-35: Ready for full program launch
21-27: Ready with some preparation
14-20: Need focused preparation before launch
Below 14: Begin with board education and loyal donor identification
Your Roadmap to Success
You don’t need a massive endowment or legal team to launch a successful planned giving program. What you need is clarity, consistency, and compassion.
Your First 90 Days:
Days 1-30: Foundation Building
- Educate your board with a 30-minute presentation
- Identify your loyal donors (5+ years giving)
- Create a basic planned giving webpage
Days 31-60: Program Development
- Establish your legacy society structure
- Create simple marketing materials for bequests
- Send personal outreach to 10 loyal donors
Days 61-90: Relationship Building
- Host a small gathering for interested supporters
- Secure your first 2-3 legacy commitments
- Recognize your first legacy donors
Remember, every transformational legacy gift begins with a single, authentic conversation. Start small, stay consistent, and watch your program grow.
