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."
The fields are ready. Uniforms are pristine. The concession stands are stocked. The bats are warmed up. The gloves are oiled. That’s right it can only mean one thing...baseball season is here! At this point you are probably wondering where this is going so let me get started.
One thing baseball and nonprofits have in common is they operate under a form of leadership. Both answer to a board of directors, shareholders or someone at a high management level. The leadership is responsible for a variety of tasks; financials, human resources, employees, clients and operations just to name a few. This probably sounds very similar to your organization. Leaders have a hug responsibility to their organization. Without leadership something is bound to fail. This month let’s look at how baseball and nonprofit succession planning are important to staying in the game.
The game of baseball is a very strategically planned and played as a team sport. On the field the team is led by a manager. The manager is the decision maker for the on-field strategy, lineup, training and instruction. The role is critical to the team because the manager’s guidance is what dictates the team’s direction on the field. So, what happens if the manager is no longer there? Maybe a planned retirement or an unplanned termination has occurred. Maybe a personal emergency takes them off the field. No manager could now mean no direction for the players. So, how does an organization handle this? The organization needs a new leader. They can't just pull one of the streets to fill the role. The sustainability of the team requires careful succession planning if the organization is to continue to drive success.
Nonprofits are also very strategically driven. They are also challenged with the inevitable leadership shifts. Leadership will change, it’s not a matter of if but when. These types of shifts can be detrimental to the organization if there hasn't been any pre-planning done. The best way to handle this is to create a written succession plan. Not taking the time to create one could mean the demise of your organization. Getting started is always the toughest part. Let's get you pointed in the right direction.
The National Council of Nonprofits suggests starting with these ten planning tips for transition:
The future sustainability of your organization relies on the work and plans you put into place today. Get a written succession plan created and keep your organization in the game!
If you are in need additional resources take a look at the Nonprofit-Executive Succession Planning Toolkit. It offers guidance on emergency and planned successions. (Federal Reserve Bank of Kansas City)
National Council of Nonprofits. Succession Planning for Nonprofits – Managing Leadership Transitions. www.councilofnonprofits.org/tools-resources/succession-planning-nonprofits-managing-leadership-transitions
Planning is bringing the future into the present so that you can do something about it now. "
Michelle has been a volunteer with the Volunteer Center of McHenry County for a year serving as a marketing volunteering.