Some donors, especially those required to take Required Minimum Distributions (RMDs), begin planning their financial and tax strategies at the start of the year. Punctual CPAs send their clients information about their RMDs for the calendar year in January or February. By communicating early, nonprofits position themselves as part of these plans before funds are allocated elsewhere.
Year-end giving season is crowded with appeals from various organizations. By making the QCD ask early, nonprofits can stand out and avoid competing for attention and funds during the busy holiday period.
RMDs must be taken by December 31, but donors can spread distributions throughout the year. Early outreach gives donors more flexibility to plan and execute their QCDs in a way that fits their financial timeline.
Not all donors are familiar with QCDs and their benefits. Early communication provides time to educate donors, answer questions, and guide them through the process without the pressure of looming deadlines.
Receiving QCDs early in the year provides nonprofits with critical funding sooner, enabling them to start or expand programs, plan events, and manage budgets with greater confidence.
An early QCD ask allows nonprofits to engage with their donors on a personal level throughout the year. Following up with updates on the impact of their gift strengthens the donor relationship and fosters loyalty.
Being proactive signals to donors that the nonprofit is organized and thoughtful in its outreach. It positions the organization as a professional partner in helping donors achieve their philanthropic goals.
Want to learn more about how you can leverage QCD’s at your organization? Talk to our team or join LifeLegacy’s Planned Giving Co-Op.
Jordan@lifelegacy.io
The word “increase” is a bit of a conundrum. Many nonprofits are being asked to do more (increase) with less (no increase). Your planned giving program is no different. Raising more planned gifts with increasing headcount is not just a recommendation but a requirement.
Planned giving has long been a vital—yet underutilized—source of revenue for nonprofits. Unlike annual donations, which fuel today’s operations, planned gifts create a pipeline of sustainable funding for tomorrow. According to Giving USA, planned gifts account for billions of dollars each year, with bequests alone contributing more than $40 billion in 2023. Yet many nonprofits, even those with strong donor bases, fail to maximize this powerful opportunity.
In today’s increasingly digital world, nonprofits have more tools than ever at their disposal to engage donors and increase impact. But when it comes to planned giving—one of the most meaningful and transformational forms of donor support—many nonprofits are finding themselves stuck between a rock and a hard place: do they partner with a large tech company with little experience in the fundraising world that sees adding a nonprofit vertical as a revenue play, or do they work with a lean, experienced team that has decades of combined fundraising experience and an advanced online estate planning platform?
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