Planned giving is one of those fundraising tools that can reward even a nonprofit that expends minimal effort. Simply asking donors to remember your organization in their estate plan can result in unexpected income.
But research shows that the organization that takes a less passive role in planned giving can reap even greater rewards. For example, a recent post referenced research that shows that donors who are part of a planned giving society at the nonprofit organization typically give larger gifts.
Legacy giving is a strong pillar of fundraising in the United Kingdom, bringing in about £2.5 billion each year, according to the Behavioural Insights Team at University of Bristol. Although focused on research in the U.K., their recent report, “Legacy Giving and Behavioural Insights,” provides learnings for any nonprofit leader or fundraiser wanting to begin or strengthen a legacy giving program.
One of the key findings in the report was that while a third of the people surveyed indicated a willingness to leave a legacy gift in their estate plan, fewer than seven of every 100 people actually do so. A conclusion of the research was that misconceptions lead to a lack of follow-through on making a planned bequest, including a concern that a person has to choose between benefitting the family or a charitable organization when preparing a will or trust.
Key findings in the research that can be applied by any organization, no matter where you are located include:
- When someone is preparing a will for the first time, the most effective message was to tell them that remembering your charity in an estate plan is something that other people do. Presenting leaving a charitable bequest as a normal activity had a positive effect. In newsletters, receipt inserts and other forums, sharing stories of real donors who have chosen to remember your organization in their estate plan can be powerful, especially if they talk about how they also remembered family and loved ones.
- It was beneficial to ask people, when completing their will, to think about the charities that they care about or have benefitted from. However, reminding them about the good work that would continue as a result of their bequest was a negative influence. It appears, even when preparing an estate plan, that people prefer not to think about the future beyond their own lifetime.
- When a donor has children, asking them to consider charities that matter to their family members can also get a positive response.
Obviously, there is no one way to talk about planned giving to your supporters. But reading the key findings and conclusions in this report can help you sharpen your own message, whether you discuss planned giving in person, in your written communications, on your website, or via multiple platforms.