Planned Giving Basics on We Are For Good Podcast

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Overview

Back-to-Basics continues this week with the topic with diving into the ultimate realization of playing the long game: Planned Giving. Planned giving is the convergence of some of our favorite topics - value alignment, having meaningful conversations and telling incredible stories of quite possibly our most rabid fans. We discuss a starting point, Pro Tips and even provide a glossary of terms for those words you've never been brave enough to ask about in a staff meeting. If we can do it, so can you.

“The most important name of the planned giving game is loyalty.”

— Becky Endicott, CFRE

Episode Transcript

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Episode Overview

Back to the basics: Planned Giving (2:00)
Definitions of planned giving (4:00)
The giving vehicles in planned giving (6:45)
Do you have a gift acceptance policy? It is ok to say no. (10:30)
Do your data mining (11:30)
Planned giving pro tips (15:00)
Explore creative hybrid giving options (18:50)

Powerful quotes

“Honestly planned giving is one of the best kept secrets in our industry. This is playing the long game to the ultimate degree.” -Jon

“Planned giving is one of the most untapped areas of our sector because it is complicated.” -Becky

“Planned giving is a convergence of all of our favorite topics. It’s looking for donors, finding value alignment, having meaningful conversations, and discovering how to create legacies.” -Jon

“Planned giving is a vehicle to take ordinary people and make them feel like rockstars. Everyone wants to leave something meaningful behind.” -Becky

“To me, planned giving is about marketing. It is about awareness and telling the story of what is possible. If we are playing the long game, we have to be planting lots of seeds.” -Jon

“There are so many ways people can do this. The most common are bequests, IRAs, life insurance, and real property.” -Becky

“The most important name of the planned giving game is loyalty.” -Becky

“The cultivation and stewardship of the gift is 95% of the game.” -Becky

“Major gifts and planned giving aren’t mutually exclusive. The secret sauce is providing great options for your donors.” -Becky

giving vehicles in planned giving

1. Bequests

This is the number one planned giving vehicle in our sector. Leaving a specific amount of money, remainder of their estate upon their death. This makes up 9/10 planned gifts, and less than 25% of those donors notify the organizations about their gift

2. Life insurance

3. Stocks

4. Property

5. IRAs

6. Donor Advised Funds (DAFs)

A donor advised fund is an account dedicated to charitable giving. As the donor, you have control of where and when the funds are given to charity. There is a significant financial planning advantage to utilizing a donor-advised fund because the tax benefits are so advantageous. Once you move funds to your donor-advised fund, you may claim a tax deduction immediately if you are itemizing. 38.8 billion dollars were contributed to DAFs last year. $25 billion were giving away through DAF grants. This is money that is sitting there and waiting to be inspired and gifted.

7. Gifts in Kind

8. Annuities/Unitrusts/Remainder Trusts

Agreement in which the donor gives a significant gift to a nonprofit, receives a tax deduction at the time of the gift, and then receives payments from the nonprofit during their lifetime.

Where to get started

1. Do you have a gift acceptance policy?

2. Do your data mining

Run the data. Look at anyone with multiple gifts in a year or over an extended period of time. Notice consistent, long-term, unbroken generosity, assess involvement with board members, volunteers, alumni, grateful patients, etc. Don't forget long-term employees and volunteers!

3. Once you have your list, segment it.

Your goal is to keep awareness up and plant seeds. Identify who could provide the highest value of return.

4. Create a donor survey.

5. Have a growth mindset.

If this is new to you, find a class and seminar and dig in. knowledge is power.