Dear Charity Clairity,

I was talking with a donor the other day and he mentioned our organization was in his Will. How do you go about asking for amounts and documenting it? For example, we want to document that he is a legacy giver, and we’d love to enter the amount as a pledge. How do you ask that question/questions? Is this something nonprofits do? Also, we found out about this gift intention fortuitously. I’m wondering if we can proactively start conversations about legacy giving with donors if we don’t yet have any communication materials?

— Willing it To Be

Dear Willing it To Be,

Let’s break this down into:

1. How to ask
2. How to document internally
3. How to record (finance and development)
4. How to secure commitments

How to ask

Some donors are proud to tell you the expected size of their bequest to you, while others can prefer more privacy. There’s room for both; what’s important is demonstrating gratitude and working with what makes your particular donor comfortable. Curiosity and empathy must go hand in hand.

As fundraising departments everywhere become more data driven, it’s not unreasonable to seek to document the amount or estimated value of donor bequest provisions, including whether they are specific, contingent, or residuary, and the date of the Will or trust. Today, the portion of organizations showing the estimated dollar value of bequest intentions on internal management reports may be approaching 50%. For those intentions whose values are undisclosed by the donor, the best practice is to apply a five-year or ten-year rolling average, based on the pool of known amounts.

That being said, it’s important to frame requests for this information in donor-centered terms. Let donors know you’re asking for (1) future planning purposes, and (2) to assure their desires are fulfilled. Compliance should be completely voluntary. There can be a fine line between appearing merely nosey and appearing helpful, diligent, and concerned.

How to document internally

It is not advisable to require donors to report to you the amount of their legacy gift expectancy. What I recommend is asking donors if they would feel comfortable completing a non-binding Letter of Intent. You can find some examples here and here.

Make it optional; people can get a bit leery if you seem too nosy. The basic function of the Letter of Intent is simply to formalize their commitment in some fashion. Just know that once they commit in writing they’re more likely to stick with the commitment — especially if you steward them over time. The written Letter of Intent also serves as a record so future staff will be alerted to the need to continue ongoing cultivation and recognition of these loyal supporters.

• Let donors know this will help assure their wishes are fulfilled “to the letter” when their gift matures.
• Let donors know you’ll be honored to include them in your Legacy Society, if you have one. Offer to keep their names anonymous if they prefer, but also let them know that by publicizing their giving they may inspire others to follow in their footsteps. In this way, they actually can increase the benefit of their gift!

PRO TIP: Include a space where donors can write a personal statement about why they are leaving this legacy. Let them know you’ll hope to share parts of this statement with future generations who wonder “Who were Jane and John Doe, and why did they decide to leave a bequest?” Many donors enjoy this exercise, and some will even leave notes to their heirs explaining why they did this. I find it generally makes people feel warm and fuzzy to talk about their values and know they’ll live on.

When donors choose to keep the amount undisclosed, you can still ask them to inform you if they’ve left a specific, contingent, or residual bequest. All of this is for internal planning purposes, and can be helpful not just with financial forecasting but also with plans for future stewardship. Since residual bequests tend to be the largest in size (most people underestimate the value of their estates at death), knowing this may cause you to prioritize these supporters when it comes to ongoing cultivation.

How to record (finance and development)

Do not enter a bequest as a “pledge” on your financial ledger because bequests are always revocable. Finance can keep a separate record for internal management and forecasting purposes, but should not book this as a formal receivable. The only reason you’d ever have a binding bequest pledge is if your charity intended to sue the estate for the money after the donor died. This is seldom a good look. As one of my mentors once told me: “If you wouldn’t want to see it on the front page of the local newspaper, don’t do it!”

In your nonprofit CRM you can certainly enter an expected amount in your notes for your own tracking purposes. Just know why you’re doing so and how you’ll use the information you recorded. The most important information for fundraising staff is the “intent to give,” and using this information to include folks in a bequest society and other types of engagement moves and touches.

How to secure commitments

Don’t fall in to the trap of thinking every “t” must be crossed and every “I” dotted before you can begin to promote legacy giving. You can create basic collateral materials very quickly. You wouldn’t decide not to have a baby just because you didn’t yet have a crib, stroller, and high chair, would you? Those things can come later.

For now, simple messages to let folks know you warmly welcome legacy gifts can be sprinkled everywhere (e.g. Outer envelopes; Email signatures; Business cards; Letterhead; Print newsletter, e-news or blog; Annual report recognition pages; Other donor recognition listings; Social media; Website donation pages; Advertising, or wherever else you can think of.) You don’t need to get fancy.

A message might say:

• Please remember XYZ Charity in your Will.
• Want to support a cause important to you in life? Where there’s a Will there’s a way.
• Honor your mother and father with a memorial gift in your Will.
• Perpetuate your values with a legacy gift.

These simple things let folks know you welcome these kinds of gifts.

I hope this helps you “will it” to be, and encourages more constituents to feel supported by you in leaving a legacy that matches their values and brings them joy.

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Willing it To Be” did.)

How does your organization handle legacy giving conversations with donors? Let us know in the comments.

The post [ASK AN EXPERT] What to do when you’re notified your organization is in someone’s will appeared first on Bloomerang.

Let’s start by trying to fathom that Herculean number of $84 trillion. Visualize a paltry $1 billion. Then imagine 10,000 pallets, each stacked with $100 million in $100 bills. Even then, a man standing next to it looks small. Alternatively, one trillion dollars would stretch nearly from the earth to the sun, and it would take a military jet flying at the speed of sound 14 years to reel out one trillion dollar bills. Of course, you have to multiply all that by 84.

The best time for nonprofits to start preparing for this historic wealth transfer is yesterday; the second-best time is now.

The stark reality is that too many nonprofits don’t place enough emphasis on planned giving in general because they can’t see the immediate returns. Put the $84 trillion aside, during all times, typical donors can make gifts several times larger from their estates than their current wealth positions. When you study the largest endowments on the planet most are the result of legacy gifts.

Nonprofits of all sizes, missions and parts of the country can and should take concrete steps to position themselves for the opportunities presented by the $84 trillion wealth transfer.

Here are 10 strategies, tactics and best practices to prepare for an $84 trillion wealth transfer

1. Establish planned giving infrastructure: Make planned giving visible on your website, marketing material, and during conversations with donors and prospective donors.
2. Estate gifts really aren’t that complicated: More than 90% fall into three basic categories: (a) charitable bequests, (b) retirement plans and (c) life insurance policies. Emphasize to donors that all three options empower them to amplify the impact of annual gifts while postponing any out-of-pocket expenditure. For capital campaigns and major gifts bring up the exciting possibilities of blended gifts mixing current and deferred components. Rule of thumb: People prioritize in their estate plans what they emphasized during their lives.
3. Facilitate estate planning conversations: Only about one-third of Americans have wills. This even includes affluent individuals. It’s just human nature to delay and put off this essential common-sense exercise. Host free workshops and other educational initiatives that emphasize that estate planning doesn’t have to be expensive, time consuming, and only for the very wealthy. Be disciplined and hold back from aggressively pitching that your organizations are designated as beneficiaries. There are plenty of legal and financial authorities who are more than willing to share their expertise such as the passing of wealth in the most tax savvy ways.
4. Create and nurture planned giving societies: These donors deserve to be treated like heroes. Consider lapel pins, recognizing them at special gatherings and publicizing their personal stories. This will help reinforce that people from all different socio-economic backgrounds can make gifts from their estates.
5. Establish intergenerational relationships with donors: Inform them of the results and impact of the gifts being made by their parents and grandparents. Recognize that there can be obvious tensions. I’ve been in too many meetings where family elders excitedly announce gifts they are making and have witnessed the suspicious expressions of heirs. Engage family members early in the gifting continuum. Start now by recruiting Next Gen representatives for boards, committees, and important assignments.
6. Understand different values and motivations of generations: Generation Z and Millennials are becoming increasingly interested in donating to basic needs. Giving to education is becoming less popular with each younger generation. Younger donors also favor environmental and social justice issues more than older donors.
7. Recognize different communication, platforms, and media preferences: We’ve already vividly learned that younger donors participate in collaborative online exchanges with organizations, learn about and advocate for causes on social media, and turn to online resources to access information on nonprofits, giving vehicles, and impact results.
8. Cherchez La Femme: Before the intergenerational transfer there will be a profound intragenerational transfer. Women are projected to control two-thirds of U.S. wealth by 2030 and are already exerting significant influence over charitable decisions. It is a fool’s game to give spouses and other females a secondary role in philanthropic conversations. Research repeatedly indicates that they are the more generous gender.
9. Board and management must lead by example: This is crucial! If those leading the nonprofit aren’t making these precious commitments, they will fail to have credibility in asking those outside the inner circle to do so.
10. Through every communications channel ask if current donors and supporters have included the nonprofit in their estate plans: All too many times organizations are surprised and caught completely off guard by substantial bequests, often made by those living modest lifestyles. This is the equivalent of low-hanging fruit.

From a big picture perspective, generosity and planning go hand-in-hand. Harris Poll reveals that adults who include charitable giving in their annual budget donate nearly three times more, on average, than those who donate money but did not budget for it. The essential role of planned giving in philanthropy is nothing new. Smart nonprofits have prioritized this high value commitment for generations. But with the $84 trillion wealth transfer on the horizon all nonprofits seeking to develop and sustain resources so that they can more effectively champion their noble missions must put the pedal to the metal and position themselves for awesome opportunities and growth.

How is your organization preparing for the $84 trillion wealth transfer? Let us know in the comments. 

The post Get Your Share Of $84 Trillion appeared first on Bloomerang.

In-memory fundraisers are growing faster than any other type of peer-to-peer fundraising. That means your nonprofit must create a dedicated strategy for managing and acknowledging memorial donations.

Sending memorial donation notification letters helps build positive relationships with families and strengthen your memorial giving program. This guide reviews best practices for sending these memorial notification letters. Here’s what we’ll cover:

• What is an acknowledgement letter for donations made in memory of someone?
• Why should you send sympathy donation messages?
• What should you say in memorial donation letter?
• What should donors write in their own letters after contributing in someone’s memory?
• Memorial donation notification letter templates

Keeping families in the loop is essential to respectful memorial donation management. Let’s start by taking a closer look at what a memorial donation acknowledgement letter is.

Wrapping up

With robust donor management software and a clear template, your organization can quickly generate thoughtful memorial donation notifications that keep families informed throughout the giving process.

Bloomerang’s donor management software simplifies the tribute gift notification process and facilitates long-term supporter relationships. Your nonprofit can steward memorial donors and families with personalized thank-you messages and updates about the impact of their gifts on your mission.

For more information about donation management best practices, start with these resources:

• Bloomerang’s Tribute Notifications. Learn more about Bloomerang’s tribute notifications feature, which makes it easy to send memorial donation letters to families.
• How to Choose Donor Management Software + 9 Top Options. Donor management software can help automate the family notification process. Learn about top solutions with this buyer’s guide.
• Donor Appreciation: Creating a Strategy (And 22+ Ideas!). Thanking memorial donors helps jumpstart long-term relationships. This guide offers donor appreciation ideas that will show memorial donors your organization’s gratitude.

FAQ: Memorial donation notification letters

The post The Ultimate Guide to Writing a Heartfelt Memorial Donation Notification Letter appeared first on Bloomerang.

Dear Charity Clairity,

We have an on-paper “legacy society” that was started before my time here. Members gave $5000 outright to be a “member” and the funds are in our restricted fund. I want to energize our legacy giving program, and wonder if starting with these members to talk about actual bequest giving is a good start? Also, do bequest societies work to secure gifts? If so, what benefits should I list?

— Uncertain How to Proceed

Dear Uncertain,

First, allow me to address whether legacy societies matter. Yes! As I’ve previously noted, most people enjoy being recognized and appreciated. It appears these $5,000 donors may have felt this way when your legacy society was initiated, but… perhaps it’s been some time since they’ve felt the rewards for their giving? You are right to consider how to reboot your legacy giving program so it brings donors the connection and meaning they seek. Generally, this will be the reassurance that their values will live on.

Second, beginning with your current members is a great idea. The $5,000 cash gifts they already made are indicators they can probably make much larger legacy gifts from their assets – once they no longer need them. These are folks who already understand the importance of having the equivalent of a “rainy day fund,” and will be receptive to adding to their impact if you make it easy for them to do so. Depending on how many of these members you have, you might want to attempt a personal meeting with as many as possible. Some may want to vent about their discontent at having been abandoned for so long. Allowing them to do so, while embracing your own organization’s errors, is a good way to restart what should be a values-based conversation.

Beginning with bequests is also smart. They’re the most common form of legacy giving, and something with which most folks are familiar. You don’t need to become an expert on complex gift vehicles (e.g., charitable remainder annuity and unitrusts, charitable lead trusts, charitable gift annuities, pooled income funds, real estate gifts, etc.), which actually make up just a small fraction of all deferred gifts. Just be aware of these options should a donor who’s seen them being promoted elsewhere asks you about them; know who to call for help when the need arises. When you’re ready, you can add in other giving options you’ll want to promote more actively.

List benefits the same way you would for any other type of giving society. For example: “Legacy Society donors assure the mission of XYZ Charity continues on for future generations. All members receive ongoing updates on program outcomes, and also get….” Whatever you choose to offer as a benefit doesn’t need to be fancy or even substantial. The real benefit is intangible: the donor feels a warm glow knowing their values will live on, and they’ve planted a seed for those who will come after them.

Here are some examples of benefits you can list:

• Listing in your donor honor roll.
• Receipt of a certificate of appreciation.
• Special annual or bi-annual newsletter.
• Impact story of the quarter.
• Invitation to a free event or virtual fireside chat.
• Bi-annual conference calls with updates and Q & A.

It’s all about making them feel special, and reinforcing this feeling consistently throughout the year and years to come. The point of such a society is to make people feel they belong to a community of like-minded folks. Here’s a simple example from the Hospice East Bay.

My best advice is to hold an annual legacy society “event” that showcases this impact. It can be onsite, virtual, or a combination of the two. My favorite program is a combination of beneficiaries talking and legacy society members offering testimonials about why they made their gift. You might even send a survey in advance to legacy society members to ascertain their participation preferences. Even the act of letting them know how special they are, and saying you would love to thank them in person, is a nice cultivation touch point.

Remember, gratitude fosters loyalty. A legacy society should be a giant gratitude machine. One that consistently assures members they are loved, and informs them of the benefits (mostly intangible) of being part of your family and community.

You can learn more about spreading the word about your retooled legacy giving program in 3 Secrets to Acquiring Nonprofit Legacy Gifts.

— Charity Clairity (Please use a pseudonym if you prefer to be anonymous when you submit your own question, like “Uncertain How to Proceed” did.)

How do you promote and energize your legacy giving program? Let us know in the comments. 

The post [ASK AN EXPERT] What’s The Best Way To Revive A Moribund Legacy Society? appeared first on Bloomerang.

Building a legacy giving program comes down to marketing

While we might like to think that a donor with 10+ years of giving history already has our nonprofit in their will, they may need to learn that leaving a gift is an option. That’s where legacy giving marketing comes in.

Through marketing communications, nonprofits can educate donors about the opportunities to leave a legacy gift and the tax benefits for their loved ones. But unlike making an ask for a one-time annual gift, getting the gift takes more than one ask and a few follow ups. It also takes more than passive marketing efforts.

Nonprofits who are succeeding in building large legacy giving programs are proactively marketing legacy giving to donors. Through face-to-face conversations, direct mail pieces, and email, nonprofits who approach legacy giving as a long-term, multi-channel effort are getting more traction.

But wait! Aren’t legacy giving donors direct mail donors?

To that I say, but who are your legacy donor prospects? It’s not just Boomers. In fact, most people tend to write a Will during a big life change such as marriage or having a child — life changes that often take place in people’s 30s and 40s. Conversations about gift and estate planning may need to happen with people younger than you think.

Indeed, the legacy gifts that your organization may receive in the next 20 years might be from Boomer direct mail donors. However direct mail donors (even those over 65) have email addresses and are often on a nonprofit’s email list, and not all of them are legacy donors yet.

4 steps to integrate legacy giving marketing into your email program

Email is a scalable and highly effective way to get legacy giving marketing materials in front of your donors. If your nonprofit is ready to up your legacy giving game, here are four steps to get started integrating legacy giving into your email program.

Step 1: Identify your segment(s)

Have an open mind when it comes to your legacy giving data. Your best legacy giving prospects are your most loyal donors, regardless of the dollar amount they give. Loyalty can look like making annual gifts for years, volunteering, being a board member, or being a monthly donor.

To keep things simple, you might start with one segment of legacy giving prospects. Over time, as you see who is most engaged with your legacy giving content (see Step 4), you may develop other segment strategies for those donors who are more engaged.

Wealth screening can also impact your segmentation choices. Specifically, someone’s net worth can indicate whether they may be a prospect for a Charitable Remainder Trust or a Charitable Gift Annuity.

You can also find some great insights on segmenting legacy prospects by generation in this webinar.

Step 2: Build a plan to consistently roll out legacy giving messaging in email

Once you know who you want to target through your legacy giving marketing, you need a plan to consistently get legacy giving messaging in front of the audience. Consistency is often the biggest challenge nonprofits face with legacy giving. It’s easy to send a one-off mailing but it can feel like a heavier lift to be consistent. The balance here is committing to a cadence you know you can execute.

If you’re just getting started, my recommendation is once per quarter. If you have been working on a legacy giving program for a while or have more capacity, aim for once a month.

In these regular email marketing pieces about legacy giving, the goals are to 1) educate donors about legacy giving opportunities and 2) help donors see that people just like them leave legacy gifts.

We often see news stories about mega-transformational legacy gifts so it’s easy for someone to feel like their gift of $5,000 or $25,000 may not make a difference. That’s where storytelling can be a powerful ally for legacy giving. Stories offer social proof and when organizations pick diverse donor stories, they can be more effective at reaching different cross-sections of the donor audience.

If you’d like to see some examples of legacy donor stories, take a look at these examples from BC Women’s Hospital Foundation and these legacy donor stories from the Canadian Red Cross.

With any legacy giving email you send, giving subscribers content to click on is key. Your email could be a teaser of a story or a link to a legacy giving story video. The reason we want people to click on content is so that over time we can see who is most engaged with legacy giving content. Either within the content or in the email, be sure to link to your legacy giving informational page. Again, this will be valuable information about your prospects.

Step 3: Strategically use surveys

One of the best tools we have to get legacy giving prospects to raise their hands is surveys. With our clients, we typically run an annual prospecting survey to update the donor file. It’s a short email with just one question that gets to the most important information for the fundraising team: Is someone planning to or considering a legacy gift?

Here’s an example of one of these survey emails.

These kinds of emails are extremely effective because of the ability to answer the survey quickly and easily track responses. Over time, they will help you build a better legacy giving portfolio.

Step 4: Leverage your email user data to take things multi channel

The fuel for your legacy giving marketing is your data. With email, you have an incredible wealth of engagement data that will allow your team to do things like:

• Personally follow up with subscribers who are highly engaged with legacy content
• Send targeted direct mailings
• Curate better event invite lists legacy giving events

Email has long been an incredible tool for fundraising and there are so many possibilities for legacy giving marketing. With time and consistency, your nonprofit will begin to build a legacy giving program that can provide sustainability for its future.

The post 4 Steps To Market Legacy Giving Using Email appeared first on Bloomerang.

Maybe you’ve tried numerous ‘win back’ campaigns that failed to convert them, and you’re wondering whether you should just delete them from your database.

Don’t do it!

A massive generational shift in giving is happening right now with donors aged 60 and older.

The great wealth transfer is officially here. Older Americans—Baby Boomers—have massive wealth, and trillions of dollars will be passed down as members of this generation pass away.

Making a legacy gift to charity can lower their taxes. They can trade a gift for income, which could be income back to them or a tax-free inheritance to their children.

Why should you care? If you’re like most nonprofits, the average age of the donors in your file is 64.

You may not know the average age of your donors. Most nonprofits don’t. Why? Because they don’t collect their birthdates.

Luckily, that’s an easy fix. You can run a date of birth append on your files to find your donors’ birthdays. A public demographic information database sources this data.

How are my older lapsed donors a literal giving goldmine, you ask?

It’s expected that they’re lapsing. Think about your grandparents’ activities before you lost them. They likely slowed down. Stopped volunteering. Stopped donating to charity. This typically happens in the final years of life. People are living longer. And wealthy people live the longest.

So this is *not* the time to stop communicating with them. If you don’t communicate with these donors in their last years of life, the odds of them not making that gift to you increase as much as 50%, according to Russell James, PH.D, JD, one of the world’s foremost experts on planned giving—even if they’re a member of your legacy society.

The chart below shows the latest fundraising results from Giving USA. While total giving is down—led by a decline in individual giving—giving by bequests has remained strong. How strong? Deceased people literally give more than corporations.

When you consider that the great wealth transfer is now upon us, it may even rise.

Donor-advised funds (DAFs) can help with legacy giving by enabling donors to name a successor(s) to the fund who can continue their philanthropic legacy. Donors can designate successor(s) as individuals, including their spouse, child, other descendants, or representatives. Donors can also designate an IRS-qualified 501(c)(3) public charity as their successor.

One thing is certain: in times of economic uncertainty, innovative nonprofits work to diversify their sources of revenue.

Wondering how you can make the most of this opportunity? Here are three simple strategies:

1. Love on your oldest friends, and keep communicating with older lapsed donors. Don’t remove them just because you haven’t heard from them.
2. Do a stellar and robust job promoting legacy giving. Making donors aware that you value legacy gifts is the first step to getting them. According to Agents of Good, “With good marketing, roughly 2.5% of your donors will add a gift to you in their wills. If you have 6,000 active donors, that’s 150 bequests.
3. Steward donors who’ve named you in their estate will.

If you have any reservations, remember this advice from my friend Wayne Olson, JD, author of Big Gifts, Small Effort: “Planned giving is the only way people can support a charity that brings them tremendous satisfaction, yet has no impact on their lifestyle, other than to improve it.”

We’d love to hear about your efforts to re-engage lapsed donors. Please tell us more about what strategies have worked for you. Have you stayed in touch with older lapsed donors and marketed your legacy program to them? We’d love to hear more about your experiences in the comments below!  

The post Strategies To Re-Engage Your Lapsed Donors appeared first on Bloomerang.

It’s a significant opportunity to increase your nonprofit’s planned gifts by making your donors aware of this. Charity Navigator has documented that 10% of overall giving comes from bequests made by Wills.

The easiest planned gift for your supporters to make is to leave a portion of their estate to your nonprofit as a bequest in their Will. Even if that gift is only 1% of a donor’s total estate, it can have a huge impact.

According to Giving USA, the average planned gift in the US is more than $78,000 per donor’s estate. Yet, only about 30% of Americans say they have a Will, which means that most of your supporters probably need to make one.

Even if you don’t have a planned giving campaign devoted to Make-A-Will Month, you should at least promote it several times via email, social media, and other communications. Mailing a letter as well is best practice. There are many free samples of a “include us in your Will” donor letter online if you search that subject.

You should also include this resource in your donor communications to help your donor’s plan their future giving. This free, online resource guides the donor through the process of creating a legally valid Will in 20 minutes or less.

The fact is that many of your donors mistakenly think that Wills are only important if you have a lot of money or property. That is simply not true. You must debunk this myth in your donor communications, and this list of the ten reasons a Will is important will help you do that.

When you ask your donors to include your nonprofit in their Will, also ask them to let you know when they do. Here’s an example from the Palestinian Children’s Relief Fund of a website announcement and related form that you can model your nonprofit’s message after.

Thoughts on planned giving from 860 donors

Using data from a survey with 860 donors, we learned the following:

• The average age donors wrote their first Will was 44 years old and almost all (91.6%) used a legal advisor to write their Wills.
• Over half (53%) of donors established their first planned gift at the time of writing their first Will.
• 7% of study participants felt their estate planning process was “very easy” or “somewhat easy” with another 22.9% reporting feeling neutral about the process.
• The average age at which donors made their first planned gift was 52.8 years old. Among gay and lesbian donors, the average age of first gift was slightly younger, at 50 years old.
• Respondents were most likely to make a charitable bequest (68.1%), followed by a charitable beneficiary of a retirement plan (29.7%), insurance policy beneficiary (18.5%), and charitable trust (18.5%). Interestingly, donor-advised funds (DAFs) surpassed charitable gift annuities in the donor sample.
• The top three motivations donors cited for making a planned gift were: the importance of the cause; the belief that the nonprofit makes a significant impact; and the donor’s ability to make a larger gift through their estate than during the donor’s lifetime.

How do you plan to take advantage of Make-A-Will month? 

The post Make-A-Will Month: Here’s Why You Should Prioritize Planned Giving In August appeared first on Bloomerang.

1. Research and identify potential donors

Begin by identifying individuals who have demonstrated a strong commitment to your organization. Look for donors who have a history of regular giving, long-term involvement, or a personal connection to your mission. Consider starting your research with the board, volunteers, and staff members of the nonprofit to see if any of them meet the profile for a legacy gift.

Your research about the donor can be anecdotal or extensive, depending on your support staff and budget. Anecdotally, you can ask people who know the donor to share information about them. More extensive research (that can be gleaned by engaging a professional prospect research service) would include finding out what they’ve given to other nonprofits and if they have a donor-advised fund or family foundation. Consultants gather this information to guide you in your cultivation and solicitation.

Profiling donors ready to make a planned gift is not an exact science, but we can identify certain characteristics and indicators that may suggest a prospect’s readiness.

Here are common traits associated with donors most likely to consider a planned gift:

• Long-standing Support: Donors with a history of supporting your organization over an extended period are always more likely to consider a planned gift. They’ve demonstrated a deep commitment to your cause and have developed a strong relationship with your organization.
• Passion for the Cause: Donors who have a genuine passion and connection to your mission are more inclined to consider a planned gift. They believe in the long-term impact of your work and may wish to create a legacy for their philanthropic efforts.
• Affinity and Engagement: Donors who actively engage with your organization–the ones that attend events, volunteer, or serve on committees or boards–are often more receptive to discussions about planned giving. Their involvement shows a higher level of commitment to your organization and a greater degree of interest.
• Financial Capacity: Donors who have accumulated significant assets or wealth may be more open to making a planned gift. They have the financial resources to support both their personal needs and philanthropic aspirations, making them prime candidates.
• Life Stage and Age: While age alone is not a determining factor, donors who have reached certain life stages, such as retirement or active estate planning, are more likely to consider making a planned gift. They may be evaluating their financial and philanthropic goals, and thinking of ways to leave a lasting impact.
• Prior Charitable Giving: Donors who have previously made significant charitable contributions or steadily supported other organizations have already enjoyed the benefits of philanthropy. They may be more receptive to conversations about furthering their charitable legacy.
• Personal Connections: Donors who have been a beneficiary of your services or have a family member that exemplifies your cause, may have a higher inclination to consider a planned gift. Their emotional connection can be a motivating factor for making a lasting impact.

2. Cultivate relationships

Build a strong relationship with potential donors before discussing legacy giving. Engage with them regularly through personalized communications, invitations to events, or one-on-one meetings. Show genuine appreciation for their support and keep them informed about your organization’s impact.

3. Educate yourself

Familiarize yourself with the different types of legacy gifts, such as bequests, charitable trusts, life insurance policies, or retirement account designations. Understand the associated legal and financial implications so that you can answer any questions that may arise. You don’t have to become an estate attorney, but you should try to understand how the various legacy investments are structured. Also, seek out professional fundraising networks you can join that usually are quite extraordinary learning venues. In New York City for example, the association of planned giving professionals is called the “Philanthropic Planned Giving Group of Greater New York” (PPGGNY) which brings together individuals involved in the field of planned giving, including fundraisers, attorneys, financial advisors, and nonprofit professionals. Through webinars, networking, and professional development opportunities, the group strives to promote and enhance the understanding and practice of planned giving.

4. Develop a legacy giving program

Create a comprehensive legacy giving program that illuminates the benefits of leaving a legacy gift to your organization. Highlight the impact it can make, the recognition opportunities available, and the ways you will steward and honor the donor’s legacy. Our colleagues at FreeWill.com share useful steps and examples.

5. Establish a legacy giving committee

Form a committee within your organization, comprising relevant staff members, board members, and volunteers who are knowledgeable about legacy giving. This committee can help guide the process, develop strategies, and provide support during discussions with potential donors.

6. Craft a clear and compelling message

Develop a case for support, a concise and persuasive message to articulate the importance of legacy giving. Emphasize the opportunity for donors to have a lasting impact on the causes they care about and leave a meaningful legacy for future generations. The document should be concise and graphically appealing. A short, high-quality video would also serve well. Consider testing your written and/or visual messages with a small group of five to ten trusted colleagues before disseminating them more broadly.

7. Arrange personal meetings

Once you have identified potential legacy gift donors, request a personal meeting with each to learn about their philanthropic goals and aspirations. Broach the topic with sensitivity and respect, recognizing that legacy giving is a deeply personal decision. Many donors you encounter haven’t yet given this option much thought. Drawing them out to talk about their legacy should be an inspiring process for them.

8. Tailor the conversation

During the meeting, listen attentively for the donor’s values and interests. Tailor the conversation to align their philanthropic aspirations with the mission of your organization. If possible, demonstrate how a legacy gift can help achieve the donor and nonprofit’s shared goals.

According to a study conducted by the Center on Philanthropy at Indiana University, analyzing data from various sources, including the IRS’s Statistics of Income, bequest giving represents 6-9% of total charitable giving in the United States. This indicates that a small, but sizable portion of donors include a nonprofit organization in their estate plans. (In contrast, according to Giving USA 2021, a compendium of comprehensive data on charitable giving in the United States, approximately 69% of American households made a charitable contribution in 2020.)

But look again at the elements that enable us to construct a profile of likely bequest donors, and keep in mind the age, wealth, and connection factors as they apply to the person with whom you’re meeting.

9. Provide detailed information

Offer comprehensive information about legacy giving options, including written materials, brochures, and legal resources. Ensure that potential donors have access to professional advisors, such as estate and trust attorneys or financial planners, to address their specific questions. Be sure to provide sample language for donors to use in their Will to arrange for your nonprofit to receive a portion of what remains after estate taxes.

10. Follow up and maintain relationships

After the initial conversation, be sure to send your donors personalized follow-up letters expressing gratitude for their time and reiterating the importance of their potential legacy gift. Continue to nurture the relationship by keeping donors apprised of your organization’s progress and maintaining regular communication.

Remember, legacy giving is a momentous decision for donors, so be patient, respectful, and understanding throughout the process. Building trust and maintaining strong relationships is the key to successfully securing legacy gifts.

What’s your experience with the steps required to secure legacy gifts? Please let us know in the comments section below.

The post Asking For A Legacy Gift: 10 Practical Steps To Get Started appeared first on Bloomerang.

What age group should you target?

Older adults tend to be more actively engaged in charitable giving and are more likely to make substantial donations.

According to data from various studies and research, the average age of nonprofit donors typically falls within the range of 50 to 75 years old. This age group often has more disposable income and is more inclined to include charitable giving in their financial plans. Additionally, they may have reached a point in their lives where they are reflecting on their legacy and the impact they want to leave behind.

As we age, we usually have more saved resources, and therefore have a greater ability to share those resources. The fact remains that most charitable giving still goes to the donor’s family, the school they attended, and their church, synagogue, or place of worship. If your nonprofit is not among those three places, then you have a marketing task to attend to.

Practical tips to encourage planned giving

Here are 13 practical tips on how to relate to and engage older donors and encourage planned giving.

1. Use larger print (14-point font at a minimum): Larger print helps aging eyes.
2. Build personal relationships: Cultivate personal connections with your aging donors. Reach out to them individually, listen to their stories, and express genuine appreciation for their support over the years. Regular communication can help maintain their engagement and trust in your organization.
3. Engage their family and loved ones: Recognize the importance of family in the lives of older donors. Engage their family members and loved ones in your organization’s activities, events, and communication. This inclusivity can foster a sense of shared philanthropy and strengthen the overall relationship with your nonprofit.
4. Educate and raise awareness: Many donors may not be familiar with planned giving options or how to include your nonprofit in their Will and estate plans. Providing educational materials, workshops, or seminars on estate planning and the benefits of making a planned gift, in person and via online video, is crucial. Help them understand the impact their legacy can have on your organization’s mission. (For more about planned giving see this piece on how to properly ensure planned giving stewardship.)
5. Share donor stories: Highlight pithy stories of individuals who have made planned gifts and the lasting impact it has had on your organization. These stories, preferably with a photo of the donors, can inspire and encourage other aging donors to consider making a planned gift. Consider creating testimonials or case studies that showcase the meaningful outcomes of planned giving by using short videos. If you don’t have any planned giving donors to highlight at this time, we suggest you examine your board of directors and hopefully there are a handful of them that will include your nonprofit in their Will.
6. Offer guidance and resources: Provide comprehensive information about various planned giving options, including wills / bequests. Including your nonprofit in the donor’s Will is the number one way most nonprofits receive a planned gift. There are other methods like charitable remainder trusts, charitable gift annuities, and more, but none as effective as being included in the donor’s Will. Make sure your donors have access to professional advisors who can help them navigate the complexities of estate planning. Offering a list (not a recommendation) of trusted attorneys or financial planners can be beneficial.
7. Tailor messaging and materials: Create marketing materials specifically focused on older donors. Craft messaging that resonates with their values, legacy, and desire to make a lasting impact. Use clear and simple language and include testimonials or examples relevant to their life stage. Older donors often appreciate storytelling and nostalgia. Share compelling stories that evoke emotions and connect them to the impact of their contributions. Use nostalgic elements that resonate with their life experiences to create feelings of familiarity and engagement.
8. Recognize and honor planned giving donors: Implement a recognition program specifically for planned giving donors. Acknowledge their generosity publicly, such as through a donor wall, a legacy society, or special events. Recognizing their contribution can inspire others and foster a sense of belonging and appreciation within your organization.
9. Facilitate the process: Make it easy for donors to include your nonprofit in their estate plans. Provide clear instructions. Most impactful is having sample bequest language that donors can share with their legal advisors. Donors report that they like that the most. Offer to assist in any documentation or administrative tasks related to the planned giving process.
10. Foster ongoing stewardship: Don’t forget about your planned giving donors once they’ve made their commitment. Continue to engage them through personalized updates, exclusive events, or volunteer opportunities. Regularly demonstrate the impact of their planned gift and express your gratitude for their support.
11. Timing is everything: Asking for a planned gift can feel sensitive or awkward, but with thoughtful preparation and communication, you can navigate the conversation smoothly. Choose the right time to bring up the subject. Timing is crucial when discussing a planned gift. Consider the donor’s life events, such as milestone birthdays, retirement, or personal reflections on their legacy. Look for natural opportunities to broach the topic, ensuring that the donor feels comfortable and receptive to the conversation. However, avoid a protracted process and make the request to be included in their estate plans sooner than later. It’s important that you actively listen. Approach the conversation as an opportunity to understand the donor’s philanthropic aspirations and desires. Give them space to express their thoughts and concerns openly. By actively listening, you can address any apprehensions or uncertainties they may have and tailor your approach accordingly. Most importantly, be sensitive and respectful. Recognize that estate planning is a deeply personal matter. Respect the donor’s autonomy and decision-making process. Ensure that your request for a planned gift is presented as an opportunity rather than an obligation. Emphasize the impact their gift will have on the causes they care about and the lasting legacy they can create.
12. Flexibility and recognition of different giving capacities: Recognize that older donors have varying financial capacities. Provide options for donors to give at levels comfortable for them, whether through major gifts, recurring donations, or smaller contributions. Every donor’s support is valuable, and their contributions should be recognized and appreciated accordingly.
13. Explore establishing a “Legacy Society” named after the largest planned giving donor: Such a naming opportunity should be thought through carefully. Some nonprofits offer the naming opportunity with a shelf life, say for the next decade, then it opens up again to be renamed. The list of your planned giving donors comprises the society’s members. Your dedicated legacy society for planned giving donors provides special benefits, such as exclusive events, regular updates, and opportunities to interact with your organization’s leadership. This recognition can inspire continued engagement and motivate them to promote planned giving within their networks.

Remember, cultivating planned giving relationships requires a long-term approach. It takes time to build trust, provide education, and help donors understand the benefits of leaving a legacy. By implementing these strategies, you can effectively address your aging donor population and inspire them to consider making planned gifts to support your nonprofit’s mission.

What’s your experience of what works with older donors? Please share in the comments section below. 

The post Your Donor Population Is Aging: 13 Tips To Engage Older Donors & Encourage Planned Giving appeared first on Bloomerang.

Your nonprofit should have a clear strategy for managing memorial donations and building relationships with donors and the family of the deceased. When you can build relationships with families, friends, and donors, you can strengthen your nonprofit’s community and foster more legacy giving in the future.

Managing memorial donations requires sensitivity and thoughtfulness. We’ll cover the special steps you should take in the following sections:

• What are memorial donations?
• 8 tips for managing tribute and memorial donations

Let’s start by taking a closer look at what memorial donations are and who they come from.

Wrapping up

Managing tribute and memorial donations strategically allows your organization to receive a revenue boost while forming stronger bonds with supporters. When you have clear processes for engaging with families and accepting memorial donations, audience members will feel more comfortable engaging in this giving method to honor their loved ones.

For more information about how to improve the memorial-giving process, explore these additional resources:

• Bloomerang Launches Tribute Notifications. Engaging with families is an essential step in the memorial donation process. Learn more about Bloomerang’s tribute notification functionality in this overview.
• Peer-to-Peer Fundraising: The Ultimate Guide for Success. Peer-to-peer fundraising can be an effective way to honor someone’s life. Learn about the best practices for facilitating peer-to-peer fundraising.
• 16 Top Donor Management Software Solutions (+ Buyer’s Guide). Keeping track of donor information ensures that you can properly communicate with families and memorial donors. Find out more about top donor management solutions with this guide.

The post 8 tips for managing your nonprofit’s memorial donations appeared first on Bloomerang.