As we approach the tax season, now is a great time for your Advancement Office to be educating donors about the importance of planned gifts. Most schools raise funds through the annual fund, events, and special campaigns, but neglect promoting planned gift commitments. The most common reasons are a belief that the return on investment is not immediate, or that the complicated nature of planned gifts isn’t worth the effort.
In reality, when you build and promote a robust planned giving program, those other sources of income often grow—while the truly transformational gifts come to fruition in the years ahead.
Keep Donors Engaged Without Solicitation Fatigue
When creating an Advancement marketing plan, it’s critical to supplement solicitation messages with alternate content. A successful planned giving program gives you multiple ways to stay connected:
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Donor stories. Share narratives about people who have made planned gifts to inspire others to consider doing the same.
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Donor surveys. Ask why people give and whether they’ve considered a planned gift—a low-pressure way to learn donor motivations while planting the seed.
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Recurring gift programs. The best planned gift donor is a loyal donor. Marketing planned gifts to recurring donors is a recipe for future success.
“Donors who made planned gifts increased their annual giving by an average of more than $3,100 per year.”— Russell James, Texas Tech University
Planned Gifts Grow Current Giving, Too
Some people mistakenly believe that talking about planned gifts may distract a donor from a current gift. In reality, the opposite is often true. Russell James, Professor of Personal Financial Planning at Texas Tech University, conducted a study of over 20,000 donors that found donors who made planned gifts increased annual giving by an average of more than $3,100 a year.
Planned gift valuations when a donor shares the current value of a planned gift—can be a creative and exciting way to increase impact. For example:
Example: A donor wants to give $100,000 but can only afford $25,000 now. You ask them to sign a Letter of Intent (LOI) for a planned gift worth the additional $75,000 through a will, trust, or insurance plan. The result: a six-figure commitment celebrated today, with your school’s long-term financial health strengthened.
The Time to Start Is Now
As the Baby Boom Generation continues to age, planned gifts are going to be some of the most impactful gifts your school could receive. If you haven’t developed a planned gift program or strategy yet, start as soon as possible.
Approached in an integrated way, a robust planned giving program and communications strategy will not only benefit your school in the future—it can also inspire current donors to make an even bigger impact today.
What are you waiting for?
