Seven Reasons To Ask For QCD’s Early In The New Year

1. Donors Plan Early

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.

2. Avoiding Year-End Competition

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.

3. Maximizing RMD Flexibility

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.

4. Tax-Smart Giving Awareness

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.

5. Cash Flow Boost

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.

6. Relationship-Building Opportunity

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.

7. Proactive Messaging Stands Out

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.