Fundraising in a Recession With Bequests
Nonprofit Planned Giving Trend Leads to Greater Gifts Down the Line
Jul 28, 2009
While nonprofits are dealing with decreased giving even by their most ardent supporters by cutting costs and programs, fundraisers are talking up a different kind of charitable giving. Planned gifts – also known as bequests and legacy gifts – are vehicles for deferred donations. Often called the “ultimate gift” because of their enormous revenue potential, bequests are charitable gifts made in a donor’s will.
Bequests Have a Huge Potential for Nonprofits
Over the next 40 years or so, reports Sheila Pursglove in “Leave A Legacy Campaign Looks to Future” in the July 23, 2009 issue of the Milan News-Leader, “an estimated $11 - $12 trillion will be passed from the estates of the World War II and early baby boom generations.”
Those are funds with the potential to become bequests, if nonprofit fundraisers can help prospective donors understand the opportunity for future impact.
Recession Gets Planned Giving Conversation Going
While some organizations do a great job cultivating legacy gifts, even having entire departments devoted to this specialized fundraising, most nonprofits benefit from a planned gift only when a donor takes the initiative to leave a gift in her will. “While 81.5 percent of the U.S. population gives annually to nonprofits, only 2.8 percent leave a bequest at death,” reports Pursglove.
When a donor indicates he will not be able to give as much as he’d like at this time, discussing a planned giving pledge is a natural response. While annual gifts are generally made from day-to-day cashflow, planned gifts are carved from assets.
Legacy Gifts Require Vision and Trust
While annual or major gift donors are motivated to contribute to the mission of an organization, bequest donors are investing in the vision. Nonprofit organizations benefit from having not only a mission statement, but a vision statement that looks into the future. Legacy donors want to create a legacy that will live on.
Planned Giving Tools Available
Nonprofits may be intimidated by the legal intricacies of planned giving. Fortunately, many resources exist to guide nonprofits and their donors about bequests. Books and articles on planned giving are easy to find, and consultants specializing in planned giving are available, as well. A nonprofit organization may want to consider taking advantage of the services of a planned giving marketing firm that can offer tailored planned giving brochures and other tools.
Some tools nonprofit organizations may want to use include:
- Brochures to give to donors and to post electronically on the organization’s website
- Articles to include in organization newsletters, in emails and on the website
- Donor testimonials as standalone endorsements or to include in publications
- Advertisements
- Solicitation packages
- Talking points for staff and volunteers
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