Feeling Held Back? 4 Common Planned Giving Fears Debunked
By Patrick Schmitt of FreeWill
Planned giving is a transformative type of fundraising for nonprofits, as it fuels long-term growth and deepens supporter relationships. It can also be uncomfortable for newcomers.
Personal finances, estate planning, and death (even when brought up tactfully or indirectly) are touchy subjects. It takes practice and preparation to feel confident talking about this form of giving. Without thorough preparation, you risk leaving opportunities on the table or even damaging relationships with donors.
You can learn the essentials of planned giving fundraising, but if you’re still feeling nervous, the best first step may be to start by addressing your fears.
What are the planned giving fears that can limit a nonprofit’s success?
Let’s explore these fears, why they shouldn’t hold you back, and how to mitigate them.
Fear 1: Donors will be put off or alienated if I bring up planned giving.
Estate planning is certainly a delicate topic, but it’s important.
Remember, your organization plays an important role in people’s lives and your community. For some organizations, like churches, the discomfort of discussing money and death can blind them to the incredible roles they’ve played in generations of lives.
Your nonprofit may have similar deep-rooted relationships in your community. But even if your planned giving prospects haven’t been connected to your organization for decades, they choose to give to you for one or many reasons—your shared passion, cause, community, concerns, and values.
Those are powerful connections, and if you identify the right prospects, they allow you to bring up touchier subjects in more natural-feeling ways.
Focus on providing value to your prospects through sharing helpful information and resources. Emphasize your shared community, past, and future. Explore their interests in building lasting legacies together. Then, explain the immense benefits planned gifts provide them and your organization’s mission.
Fear 2: Asking for planned gifts feels transactional and impersonal.
Bringing money into a discussion about something as personal as estate planning and legacy building can feel odd and intrusive.
However, the fact is that if you don’t bring up planned giving, other organizations likely will. If you’ve built deep relationships with supporters, you’re most likely to be on their minds if a bequest is the right choice for them, anyway.
You owe it to your mission to be part of that conversation, and donors will understand and appreciate that you’re trying new things to reach your shared goals.
Keep in mind that we’re also in the midst of a historic demographic shift as aging generations shift focus to their estate and financial plans—an estimated $69 trillion will be passed on to heirs and charities as part of the “Great Wealth Transfer.” Now is the time to prioritize planned giving, even if that means overcoming some fears about uncomfortable conversations.
Fear 3: Planned giving is unfamiliar and complicated, so the risks aren’t worth it.
It’s easy to put things off when you assume they’ll be more complicated or time-consuming than they’re worth. However, planned giving is much simpler than many newcomers might assume.
Bequests, simple statements in a will directing a set amount or portion of an estate to go to a beneficiary, are very straightforward. They also make up the vast bulk of planned gifts. You can start with bequests and see positive results without worrying about more complex planned gifts yet (or ever, if you don’t want to).
You just need the infrastructure to track these gift commitments and incorporate them into your normal data processes—not just to project future revenue but also to steward your donors and express appreciation.
Platforms like FreeWill make it easy to start and grow your planned giving program, but even without a dedicated solution, you just need to be organized and proactive. Managing a new giving program takes a bit more work and capacity, but it’s worth it. Remember, planned gifts provide nonprofits with predictable, steady, and often unrestricted revenue. Combined with the stewardship and relationship benefits they produce through thoughtful conversations and engagement strategies, planned giving is a transformational strategy.
Fear 4: Planned giving will negatively impact our current fundraising.
While it’s certainly possible that a donor may choose not to give further gifts once they’ve committed a bequest, you might be surprised to learn that the opposite outcome is more likely. One study found that annual giving from planned gift donors actually increases by $3,000 on average.
It’s important to keep a few things in mind:
Planned gift donors tend to be among your most loyal, longtime, annual donors. These supporters are unlikely to ‘abandon’ you after committing a special gift in their will.
Different types of gifts spring from different motivations and contexts. For example, planned giving typically revolves around building a legacy and lasting impact. Annual donors understand the consistent operating support they’re providing. Capital campaign donors want to contribute to a specific, highly impactful long-term project. When you clearly differentiate between the purposes and timeframes of different forms of giving, donors will understand how their gifts fit into those contexts.
Planned gifts are typically given from saved assets, not cash or liquid wealth. The deferred nature of these gifts (and their beneficial tax implications for heirs) can unlock extra generosity.
Plus, planned giving creates incredible stewardship opportunities that can snowball further engagement and giving. For instance, a thriving legacy society or other program to engage your planned gift donors generates powerful social proof that attracts the interest and engagement of other donors over time.
Essential practices for mitigating planned giving fears
So, what actionable takeaways can help you confidently approach planned giving?
Understand the benefits of planned gifts and the donor motivation behind them. Clearly articulate benefits and align your appeals with donors’ goals, desires, and emotions for much more productive conversations.
Segment and target your donors thoughtfully. While you can lightly promote planned giving to your entire donor base through a marketing plan, you’ll give one-on-one attention to a much smaller group of likely prospects. When you segment your donors to find the top prospects likely to want to build a lasting legacy with your organization, you’ll boost your chances of success from the very start.
Position your organization as a helpful partner. Add value for your donors by actively discussing the importance of estate planning and providing resources. Even if they don’t ultimately create a bequest, you’ve spread the word and helped your donors, which they’ll appreciate.
Stay organized and involved. Managing a planned giving program can become complicated since bequests can be added or removed from wills anytime without your knowledge. Dedicated software helps you keep more organized records and incorporate planned giving donors into your normal stewardship cadences. Stay in touch with these donors and work to deepen your relationships.
Planned giving may be new for your organization, but it’s not uniquely difficult or impossible to discuss. It simply requires careful preparation, strategy, and practice—like all fundraising.
Take the time to understand how it works, how it differs from other types of fundraising, and why donors like it. You’ll be having fruitful conversations and working with donors to secure your mission’s future in no time.
This guest post was written by Patrick Schmitt.
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