Planned giving has traditionally been defined as the gift an individual creates during his or her lifetime that will take affect at or after their passing. Planned giving requires more thought and planning to execute than the average donation.
A donor recognizes the mission of an organization and believes their work should carry on and be preserved for the future. Donors may have a personal connection with the organization and truly appreciate the work they do. For example, a donor might have first-hand experience with an organization and has seen how effective the organization is to the community. Donors usually give to organizations or causes that are important to them, not for the benefits (Garecht). Keep in mind almost everyone has the ability to make a planned gift. They just need to be asked.
Bequests can be made through a variety of methods, generally facilitated through a donor’s will, with the assistance of a professional adviser. Planned gifts can include, cash, stocks, life insurance, annuities, real estate property, personal property and more.
Planned giving can be another part of your organization’s fundraising program. It will require a different type of partnership between the fundraiser and donor, but working with a professional adviser can help with the process. Before jumping on board with this type of fundraising program your organization will need to do its homework. Start by identifying whether this endeavor can be supported by the organization. Considerations will need to be given to identify potential donors for legacy gifts and ensuring those donors align with your mission and goals. Your organization will need to identify how the gift will be used and share this with the potential donor. Establishing this program will also have specific legal requirements that will need to be met.
Not sure where to start? The Volunteer Center McHenry County can help with that. Join them on August 28th for Planned Giving, a workshop that will provide an introduction to encouraging planned gifts in today’s environment. The workshop will take a look at the life-cycle of typical donors and personal priorities at different stages in life, how effective gift planning can help donors make larger gifts today, as well as plan for future gifts through bequests, trusts, gift annuities and other popular gift planning techniques. Learn how planned giving is best done in partnership between fundraiser and professional advisers, and hear about the different roles each have in the process.
20 Facts about Planned Giving. Joe Garecht. https://www.thefundraisingauthority.com?planned-giving/20-facts-about-planned-giving.
24 Planned Giving Terms You Should Know. Katherine Swank. https://www.blackbaud.com/files/resources/downloads/WhitePaper_23PlannedGivingTermsYouShouldKnow.pdf
How a Nonprofit Can Start and Market a Planned Giving Program, Start with Simple Bequests. Joanne Fritz. https://www.thebalancesmb.com/how-your-nonprofit-can-get-started-with-planned-giving-2502443
"There is no happiness in having or in getting, but only in giving."
Michelle has been a volunteer with the Volunteer Center of McHenry County for a year serving as a marketing volunteering.