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.
The good news? With the right use of strategy, technology, and data, nonprofits can build a low-effort, high-impact planned giving program that delivers long-term results. Below, we highlight the top 10 miscues nonprofits can make in planned giving—and how to avoid them.
1. Not Including Planned Giving in the Strategic Plan
Planned giving isn’t a side project—it should be woven into your organization’s fundraising plan. Too often, nonprofits focus solely on immediate revenue and neglect legacy giving. By making planned giving part of your strategic plan, you signal to staff, donors, and stakeholders that this is a core function of your mission’s long-term success.
How to avoid it: Assign measurable objectives around planned giving in your strategic plan, such as “secure 10 new bequest commitments annually” or “launch a QCD campaign targeting donors age 73+.”
2. Failing to Discuss Planned Giving at the Board Level
Your board members are both ambassadors and some of your best planned givers. If planned giving isn’t discussed at the board level, it remains invisible in strategic and fundraising priorities.
How to avoid it: Add planned giving as a standing agenda item. Provide training so board members understand vehicles like bequests, Qualified Charitable Distributions (QCDs), Charitable Remainder Trusts, and gifts of life insurance. Encourage board members to make their own planned gifts—it sets a powerful example.
3. Not Setting Annual Goals
What gets measured gets managed. Many nonprofits fail to establish annual goals for planned giving, making it difficult to track progress or celebrate wins.
How to avoid it: Set goals for activities (e.g., number of donor touchpoints, events held, or digital campaigns launched) and outcomes (e.g., new planned giving commitments secured). Make sure you are tracking progress in your CRM.
4. Overcomplicating the Message
Planned giving vehicles can be complex, but your messaging shouldn’t be. Too often, nonprofits overwhelm donors with jargon or fail to make the process approachable.
How to avoid it: Use donor-friendly language. Instead of “charitable remainder trust,” talk about “a gift that provides income for life and benefits the charity later.” Digital platforms like The Giving Suite by LifeLegacy help simplify the process for donors and reduce barriers to entry.
5. Not Leveraging Technology
Some nonprofits still rely on brochures or one-off conversations to promote planned giving. In today’s digital-first environment, that’s a missed opportunity.
How to avoid it: Incorporate estate planning platforms into your donor journey. Tools like online wills, intention forms, and email automation software make it easy for donors to set up bequests or QCDs with minimal staff involvement. CRMs like Bloomerang, Virtuous or GiveButter allow you to segment your donors by age, giving history, or interests—so you can target the right people with the right planned giving message. LifeLegacy’s Giving Suiteintegrates with most nonprofit focused CRMs.
6. Ignoring Donors While They’re Alive
Too many nonprofits focus only on “after-life” gifts, like bequests or gifts of insurance. But donors over 72 can make Qualified Charitable Distributions (QCDs) directly from their IRAs today—tax-free. That’s a real, immediate impact.
How to avoid it: Create campaigns specifically for QCDs. Use data to identify donors over age 72 and send them personalized messages. Highlight how QCDs can satisfy required minimum distributions while reducing taxable income.
7. Not Promoting Non-Cash Assets
Most wealth isn’t in cash—it’s in assets like securities, retirement accounts, and life insurance. If you only ask for cash, you’re leaving money on the table.
How to avoid it: Educate donors on how to give gifts of stock, retirement assets, or life insurance policies. Provide step-by-step online instructions or link directly to digital transfer tools. Make non-cash giving options as prominent on your website as cash donations. The nonprofit planned giving experts at LifeLegacy can help
8. Treating Planned Giving as One-and-Done
A planned gift isn’t just a transaction; it’s part of a donor’s legacy. Many nonprofits make the mistake of securing a commitment and then moving on.
How to avoid it: Steward planned givers with the same care as major donors. Recognize them publicly (with permission), create legacy societies, and continue engaging them in your mission.
9. Not Using Data to Drive Strategy
Without data, nonprofits often “guess” who might be a good planned giving prospect. This leads to wasted resources.
How to avoid it: Use data analytics to segment donors by age, giving patterns, and engagement history. Identify loyal annual givers or folks who’ve done a QCD as prime planned giving candidates. CRM systems and donor intelligence tools can help pinpoint high-potential supporters.
10. Delaying Action
The final mistake is simply not starting. Many nonprofits believe they lack the time, staff, or expertise for planned giving. But inaction costs your mission significantly in the long run.
How to avoid it: Start small. Launch a digital estate planning tool on your website. Send an email campaign about ways to give. Train your board. With today’s technology, even small teams can build scalable, low-effort planned giving programs. LifeLegacy even offers cost effective, experienced Fractional Planned Giving Officers to get you started and to provide continuity.
Final Thoughts
Planned giving doesn’t have to be intimidating. By avoiding these common mistakes—and embracing technology, data, and donor-friendly tools—you can create a planned giving function that requires minimal effort yet delivers lasting impact.
The future of your mission depends not just on today’s gifts, but on the legacy your donors leave behind. Now is the time to make planned giving a strategic priority, integrate it into your goals, and give your supporters the opportunity to make their mark for generations to come. The Giving Suite by LifeLegacy can help. Schedule a discovery convo today with our team of planned giving experts.
