Why Every Nonprofit Should Spend a Little Time on Planned Giving
Planned giving often sits at the bottom of a fundraiser’s to‑do list. We understand. It’s uncomfortable to talk about mortality, intimidating to bring it up, and it probably won’t produce cash for your nonprofit as quickly as some other fundraising activities. Yet ignoring it means leaving staggering generosity on the table. Think of planned giving like long-term financial planning for your development program: contribute a modest, steady effort now and harvest outsized returns for decades.
The Opportunity Is Too Big to Ignore
Gifts 100× Larger Than Cash Gifts
The average charitable bequest in the United States hovers near $70,000, roughly one hundred times the size of the average one‑time cash donation ($600-$700). A single bequest can rival an entire year of annual‑fund revenue.Trillions in Wealth Transfer
Baby Boomers alone are projected to pass on more than $50 trillion over the next 20-30 years . Even a sliver directed to charity can transform balance sheets.
Planned Giving Doesn’t Burn Out Your Donors
Planned‑giving conversations complement, rather than compete with, campaign appeals. Talking about a bequest or beneficiary designation engages donors on legacy—who they want to be remembered as—without pressuring their current cash flow. As a result, you can broach the topic with loyal donors without triggering fatigue or cannibalizing their yearly gifts.
Minimal Time, Maximum Return
You don’t need a specialized department or tons of extra time to get started. You probably need a total of 1–2 hours weekly even with a busy schedule. Over time, these micro‑touches form a pipeline of future gifts. These small but consistent efforts can compound like retirement contributions the longer that you do them.
Legacy Resonates With Donor Values
Planned giving flips the conversation to one of identity and legacy. Questions like “What impact do you hope endures after you’re gone?” invite reflection. Donors often mention:
Continuity of a mission they care about
Setting philanthropic examples for children and other family
Ensuring a lifetime of giving continues beyond their own life
When you frame planned giving as extending their life’s story, donors tend to become far more enthusiastic.
Your Organization vs. Every Other Beneficiary
If you’re silent, donors’ estates default to their family, alma maters, religious institutions, as well as other nonprofits that are already asking. A gentle nudge of—“Have you ever considered including us in your estate?”—plants a seed few have heard before. Some will say yes and some will say no, but you would be surprised at the number of people who tell you they have just never thoughts about it before.
Four Quick Wins to Launch a Planned‑Giving Rhythm
Identify Loyalists: Pull a report of donors who’ve given for several years consecutive, regardless of amount. They are prime planned gift prospects.
Add Simple Language: Insert legal name, tax ID, and sample bequest wording on your website’s giving page.
Create an Evergreen Brochure: One tri‑fold or other piece of collateral explaining bequests and beneficiary designations. Keep it plain‑language so that a non-CPA or tax attorney would understand.
Celebrate Early Commitments: Launch a legacy society. Even five charter members generate powerful social proof.
Stewardship for the Long Horizon
Unlike annual gifts or even multi-year comittments, planned commitments may not be realized for decades. Stewardship should therefore focus on relationship depth:
Annual “legacy society” luncheon or giving club
Personalized notes on mission milestones
Legacy society recognition wall or digital honor roll
These touches reinforce trust and often inspire increased current giving.
Planned giving should be thought of more as a small habit than something you dedicate a ton of time to. Dedicate maybe an hour or two each week to legacy giving, and you’ll build a deferred‑revenue engine capable of sustaining programs, funding endowments, or seeding capital needs for the future. Your donors will leave their resources to someone, so give them a compelling reason to choose your mission.
Need more insights on planned giving? You’re not alone! Planned giving is confusing and intimidating even for some of the most veteran fundraising professionals. Reach out to us if you are looking to increase your planned gift revenue and you can set up a free call with one of our fundraising experts.
