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Planned Giving Program: 6 Steps to kickstart your campaign

Planned Giving Program

Creating a planned giving program can significantly impact your nonprofit’s long-term financial stability. Planned giving, sometimes called legacy giving, allows donors to contribute through estate plans, ensuring their support continues after their lifetime. This form of giving has become a cornerstone for many nonprofits, enabling them to fund operations, expand services, or build endowments.

In this article, we’ll explore the essential steps to building an effective planned giving program, while emphasizing the importance of professional guidance. A planned giving program may seem complex, but with the right approach, your organization can establish a lasting legacy of generosity.


What is a Planned Giving Program?

A planned giving program enables donors to make larger gifts than they could from disposable income. These gifts come from a donor’s estate and can take many forms, including bequests, trusts, beneficiary designations on retirement accounts or life insurance policies, and even real estate. By including your nonprofit in their estate plans, donors demonstrate long-term commitment to your cause, while benefiting from tax incentives and the satisfaction of leaving a lasting legacy.

Planned giving also offers flexibility, as donors can structure their contributions in various ways. These gifts may be restricted to specific projects or go towards an endowment that supports the nonprofit’s operations indefinitely.


Why Your Nonprofit Needs a Planned Giving Program

A well-structured planned giving program provides stability and growth potential. Here are the primary benefits:

  1. Long-term financial health: Planned giving is designed to build your nonprofit’s future financial foundation. By encouraging legacy gifts, you create a pipeline of contributions that will support your work for years to come.
  2. Expanded donor relationships: Engaging donors in planned giving opens up deeper, more meaningful conversations about their commitment to your organization’s mission. This strengthens relationships and cultivates ongoing loyalty.
  3. Access to larger gifts: Planned gifts are typically larger than annual donations, offering significant funding potential for major initiatives, capital projects, or endowments.
  4. Tax advantages for donors: Many planned giving vehicles provide tax benefits, which can appeal to donors seeking to maximize their impact while minimizing their tax liability.

Understanding these benefits sets the stage for implementing a planned giving program. Let’s walk through the steps to establish one for your nonprofit.


Steps to Create a Planned Giving Program

1. Start with a Strong Foundation

The first step in launching a planned giving program is laying the groundwork internally. This requires gaining buy-in from your leadership and board members, as they will play a critical role in the program’s success.

Consider how planned giving fits into your organization’s overall fundraising strategy. If your team lacks experience, bringing in professional expertise might be necessary. You can find seasoned consultants to help map out your strategy here.

2. Understand Your Donor Base

Not all donors are the right candidates for planned giving. Begin by identifying individuals who have demonstrated a deep commitment to your cause, have a history of giving, and are in the appropriate age group—typically between 55 and 75 years old.

Look into your existing donor database to segment potential legacy donors. Review key giving indicators, such as lifetime giving and frequency of donations. These insights can help prioritize which donors to approach.


3. Educate and Engage Donors

Planned giving is often a sensitive topic, as it involves discussions around end-of-life planning. You’ll need to educate your donors about how planned giving works and the benefits it offers. This is where tailored messaging comes in.

Consider creating materials that explain planned giving options in easy-to-understand language. Offering seminars or workshops can be effective, as can publishing case studies or testimonials from existing planned givers. These efforts will help demystify the process and encourage your supporters to consider leaving a legacy gift.


4. Diversify Planned Giving Options

A successful planned giving program should offer multiple ways for donors to give. Some of the most popular forms of planned gifts include:

  • Bequests: A bequest is the most common type of planned gift. Donors can specify a fixed amount, a percentage, or the remainder of their estate to your nonprofit in their will or trust.
  • Charitable Gift Annuities: This allows donors to transfer assets to your organization in exchange for a lifetime income stream. After their death, the remaining funds go to your nonprofit.
  • Beneficiary Designations: Donors can name your nonprofit as the beneficiary of life insurance policies, retirement accounts, or other financial assets.
  • Charitable Trusts: A trust allows donors to make a gift that provides income to them or their beneficiaries for a specified time, with the remainder going to your nonprofit.

The key is to provide options that appeal to donors’ personal financial and estate planning goals.


5. Promote Your Planned Giving Program

To successfully cultivate planned gifts, you’ll need to promote your planned giving program. Create dedicated web pages, brochures, and email campaigns that highlight the various options. You should also consider integrating planned giving messaging into your existing donor communications, such as newsletters, annual reports, and direct mail.

When promoting your program, remember to focus on the emotional and financial benefits of planned giving. Highlight stories of individuals who have already included your nonprofit in their estate plans, emphasizing the impact of their future gift.

Professional help can make the promotion of your program seamless and impactful. By working with a skilled fundraising consultant, you can ensure that your marketing materials resonate with your target audience. Explore how professional expertise can elevate your efforts by visiting Nonprofit Freelancers.


6. Build Long-Term Relationships

The process of securing planned gifts is long-term. Donors need time to make estate planning decisions, so it’s crucial to maintain ongoing relationships with your planned giving prospects. Regular check-ins, updates about the organization’s progress, and expressions of gratitude keep donors engaged.

Your planned giving program should be built on trust and transparency. Providing resources like annual reports and impact statements reassures donors that their legacy gift will be well-managed. Building these lasting relationships is key to a successful program.


Professional Guidance: Why It’s Important

Creating a planned giving program requires a significant investment of time, resources, and expertise. While some nonprofits may have the capacity to manage this internally, others may benefit from seeking professional guidance.

Hiring a consultant who specializes in planned giving can streamline the process, ensuring that your program is both strategic and legally sound. They can help with:

  • Developing a comprehensive strategy tailored to your nonprofit’s mission and donor base
  • Providing expertise on legal and tax regulations associated with estate planning
  • Crafting personalized marketing materials that resonate with potential legacy donors

If you’re ready to take your planned giving program to the next level, consider hiring a nonprofit consultant. Professional support can make all the difference in ensuring the program’s success. Explore professional services here.


Final Thoughts

A planned giving program offers invaluable long-term benefits for your nonprofit, from financial stability to deeper donor relationships. However, building and managing a successful program requires a thoughtful approach and expertise in estate planning and donor cultivation.

By following the steps outlined here and considering professional help, your organization can create a planned giving program that leaves a lasting impact. For those seeking professional guidance, Nonprofit Freelancers provides expert services to help your nonprofit maximize its planned giving potential.


For additional insights on estate planning, you can explore resources like the Planned Giving Design Center, National Association of Charitable Gift Planners, and American Council on Gift Annuities.

September 16, 2024