Kara Redoutey, MBA
What are the barriers to launching Planned Giving Programs?
The biggest barrier to launching a planned giving program is making the choice to invest in a program that will not show an immediate return on investment. Planned giving takes a significant amount of time and relationship building up front. Planned gifts are often a result of years of donor cultivation. As with any development program, planned giving requires a clear and compelling case and plan for the future of the organization. It takes committed development staff trained in the complexities of the field, significant board and leader support and clear understanding of the program, plans to continuously cultivate planned giving donors, marketing, and strict management oversight, policies, and procedures. As you can see, launching a comprehensive planned giving program can be a lofty goal!
What is the case for building a Planned Giving Program anyway?
Planned giving should be a win-win for the organization and donor. Development staff should really be focused on making sure that the donor’s motivation for giving matches the organization’s mission and that the gift they are giving meets their personal long term financial goals. Of course, their legal and financial advisors should always be involved. There is an “80/20 rule” we learn in philanthropy studies that basically states that 80% of nonprofit contributions received comes from about 20% of your donors and often by way of planned giving. Planned giving tends to produce large gifts and allows donors to make gifts to the nonprofit other than cash, such as real estate, stocks, and bonds. Donors can often increase their income and take advantage of tax savings.
How can you help?
- Build strong relationships with the organization’s patients, partners, and vendors.
- Make a point to publicly share the organization’s mission.
- Make the choice to learn more about your organization’s planned giving opportunities.
How do you develop relationships with donors? Share your experiences.