Why You Should Promote Planned Gifts Now

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Nearly all bequests come from long-time regular donors who give small amounts

It’s been my experience that the first thing slashed when cuts are deemed necessary in fundraising budgets is planned giving marketing.  

And it’s happening even now during the pandemic when donors are confronted with their own mortality and are flocking to online will sites, calling their advisors, and seriously considering their estate plans.

So, the obvious is to ramp up efforts, right? 

Unfortunately, due to the vagaries of annual income from planned gifts, it’s often difficult to convince those holding the purse strings to continue to invest when other sources of revenue are shrinking.

What’s the solution? My recommendation is to set aside a fixed amount annually based on spending at least ten percent of the rolling average of planned gift revenue over the past five or ten years. This policy then becomes a business rule that helps avoid the temptation to cut this critical source of leads and, even more importantly, the suggestion to ALL donors to remember their favorite charities in their estate plans.

Yes, I said ALL donors! It seems the usual and customary practice is to limit planned giving marketing to donors of $100+ or more. 

In fact, nearly all bequests come from long-time regular donors who give small amounts. By limiting marketing, organizations are cutting off a major source of revenue, admittedly deferred, but in the pipeline for the future.

My recommendation is to focus on bequests since 95% of all planned gifts are bequests, but also promote charitable gift annuities, gifts from IRA’s and donor-advised funds. All efforts should suggest donors consult with their advisors, and this could lead to more sophisticated planned gifts such as trusts.

Stories abound of amazing gifts, some transformational, from average donors. Please give ALL your donors the opportunity to support your organization via their estate plans.  

Keys to Success

  • Regular communications that encourage planned gifts telling the stories of donors who have made bequests. We find that letters work as well or better than newsletters.

  • Establish a Legacy Society – It encourages donors to join, and it allows invitation style marketing. It offers the opportunity to ask donors to share if they have included your organization in their estate plans, giving you the opportunity to say thank you.

If you would like to explore ways that Meyer Partners can help your organization promote legacy giving, please contact us at info@meyerpartners.com to get started.

 

 

 

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