Planned Gifts – Now and Later!

In the 1960s, there was a candy called “Now & Later.” It was a fruit-flavored hard chewy candy whose tagline was “Enjoy some now and save some for later.” For nonprofit fundraising leaders, there’s a lesson to be learned from this unique confection. Creating a well-executed planned giving program is one of the most impactful ways to ensure long-term sustainability and growth. While many donors care deeply about your mission, they may not be aware of the various ways they can leave a lasting legacy now and after they pass! By integrating the right tools and communication strategies, you can help supporters make meaningful planned gifts now and later!

Planned Giving Tools Available While Donors Are Alive

Engaging donors in planned giving conversations now allows them to see the immediate impact of their generosity. Here are key tools to leverage:

• Qualified Charitable Distributions (QCDs): Donors aged 70½ and older can give directly from their IRA to your nonprofit, avoiding taxable income and meeting their required minimum distributions (RMDs). This is a great strategy for retirees who don’t need their full RMD for living expenses.
• Donor-Advised Funds (DAFs): Many high-net-worth individuals use DAFs as a vehicle for charitable giving. Encouraging donors to designate your organization as a beneficiary ensures future support.
• Charitable Gift Annuities (CGAs): A CGA provides donors with lifetime income while committing a future gift to your nonprofit. It’s an excellent option for those who want to give but still need financial security.
• Charitable Remainder Trusts (CRTs): Like CGAs, CRTs allow donors to receive income during their lifetime, with the remaining assets passing to your organization upon their death.

Planned Giving Tools That Deliver After a Donor’s Lifetime

By making it simple for donors to include your nonprofit after they pass, you can cultivate lasting gifts that support your mission for generations.

• Wills and Living Trusts: The simplest and most common post-death planned giving tool is a bequest in a donor’s will. Encourage donors to name your organization as a beneficiary of a specific dollar amount, percentage of their estate, or residual assets after other obligations are met. LifeLegacy can help you offer a complimentary online will to interested donors for free.
• Beneficiary Designations: Donors can name your nonprofit as a beneficiary of life insurance policies, retirement accounts (IRAs, 401(k)s), or investment accounts. These gifts bypass probate and go directly to your organization.
• Payable on Death (POD) and Transfer on Death (TOD) Accounts: Bank and brokerage accounts can be designated to transfer to your nonprofit upon the donor’s passing, ensuring a seamless donation process.

How to Ask for a Planned Gift: Communication Strategies That Work

Many donors simply haven’t thought about including a nonprofit in their estate plans, so proactive and thoughtful communication is key. Here are strategies to help guide these conversations:

• Describe the Options in Simple Terms – Define each giving option and direct donors to the area of your website where they can learn more and take action. Have a resource available to assist them.
• Focus on Impact: Instead of asking, “Would you like to leave a gift in your will?” try, “Many of our supporters choose to leave a gift in their estate plans to ensure their impact continues. Is that something you’ve considered?”
• Tell a Story: Share a real donor story (with permission) about how a planned gift made a difference. Emotionally connecting donors to legacy giving increases the likelihood of participation.
• Make It Easy: Provide sample bequest language and direct them to estate planning resources like LifeLegacy, where they can create a will for free.
• Show Immediate Gratitude: Recognizing legacy donors today through a legacy society or other public acknowledgment encourages others to follow suit.

Planned giving is a long-term strategy, but by educating donors about these powerful tools and using effective communication techniques, you can secure transformational gifts that sustain your mission for years to come.