Planned giving has been a mainstay of fundraising since Plato bequeathed his farm to his nephew in 347 B.C., providing instructions that the profits should support students and faculty at the academy Plato founded. In 1649, Harvard University received the first gift of real estate, and in 1843, the American Bible Society issued the first charitable gift annuity.
For many nonprofits, planned giving begins – and ends – with requesting that donors remember the organization in their wills or trusts. Since it’s estimated that up to 95 percent of planned gifts are bequests, there’s no shame in stopping there.
Recently, there has been some research released on planned giving. While these studies are not broad-based, there are several takeaways the wise fundraiser should consider.
The first report, “The 2016 Planned Giving Study — Building Lasting Legacies: New Insights from Data on Planned Gifts” was released by Pentera, Inc. and Indiana University Lilly Family School of Philanthropy in September 2016 (request a copy here). This research focused on institutions of higher education, but offers sage information for all nonprofit fundraisers and leadership:
- Not surprisingly, people age 50 and older were the most likely to make a planned gift. However, when the more complex gifts such as trusts and annuities were eliminated from the mix, age 45 was when people sharply increased their willingness to make a planned gift.
Are you broadly promoting planned giving regularly in publications and online, but also sending specific invitations to learn more or participate to donors age 45 and older? - The top 20 percent of donors in terms of accumulated giving were responsible for 82 percent of planned giving.
Is promoting planned giving part of the toolbox used by your major gift officers? - People who join your legacy gift society typically give larger planned gifts.
Do you have a planned giving society? Are you regularly promoting it? Are there specific benefits that make it attractive for donors to notify you of a planned gift so they can be part of the society? Are you offering regular opportunities for legacy society members to engage with you more deeply?
Do you have a planned giving society? Are you regularly promoting it? Are there specific benefits that make it attractive for donors to notify you of a planned gift so they can be part of the society? Are you offering regular opportunities for legacy society members to engage with you more deeply?
Not surprisingly, one of the conclusions of the research was that “relationship building is still at the core of planned giving.” While immediate gifts are essential to the operation of a nonprofit organization, the steady income from planned gifts can ensure the future and provide the means for growth and transformation.
As you set your strategies, take a look at your planned giving marketing. Does it need shoring up to give you the most effective program possible?