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
Retaining donors is more cost-effective than acquiring new ones. Learn practical strategies nonprofits can use to improve donor retention and grow sustainably.
If you need a single, compelling reason to prioritize planned giving this year, here it is: around 46 billion dollars flows to charities every year through bequests. In fact, the latest Giving USA numbers show that bequests in 2024 totaled about $45.84 billion—roughly 8% of all U.S. charitable giving for the year. That’s not a rounding error; it’s a transformative funding stream your mission can’t afford to ignore.
One of the most interesting parts of planned giving is that you never know what is going to happen! Planned gifts will surprise you. In an earlier blog, I talked about the planned gift that I DIDN’T accept. That was not even close to the most interesting gift that I ever received.
And this one isn’t either. But it was something I never expected.
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