The Minimalist Guide to Planned Giving: Just 3 Simple Steps

The very idea of planned giving can seem overwhelming.

Complicated new tax laws, combined with unfamiliar acronyms like CRAT and CRUT, not to mention strange sounding vehicles like Charitable Gift Annuities… it’s enough to make your head spin! And that just scratches the surface.

Planned Giving Can Make Your Head Spin

There are so many ways donors can make planned gifts. Just off the top of my head, here are a handful…

And the list goes on and on and on.

If you’re going to talk about donating assets, you’ll need to know things like the difference between appreciated and depreciated stock. That’s because there are tax implications to giving stock — depending on whether it has gone up or down.

So if you really want to raise planned gifts, don’t worry about learning everything — cut yourself some slack.

Planned Giving in Just 3 Simple Steps

Instead of learning everything there is to know about planned giving, follow these 3 simple steps and you can’t go wrong.

Step 1: Accept bequests.

Charitable bequests are by far the most common type of planned gift. The last statistic I am aware of is that bequests account for approximately 90% of planned gifts. And they are simple to accept!

In order to accept bequests, all you need is basic language for donors to include in their will. The key is that they get the name and address of the charity correct when naming your charity in their will. They can designate a specific dollar amount or a percentage.

Of course, talking about money and death are perhaps two of the most difficult subjects to discuss. Instead, get donors thinking about what type of legacy they would like to leave, and how they would like to be remembered.

Step 2: Don’t talk about what you don’t know.

This is simple. Don’t try to discuss any type of planned gift you are not completely confident about. Stick with bequests. (Remember, 90% of planned gifts are bequests.)

You are not an accountant or an attorney. You should not be giving tax or legal advice. Refer donors to their own professional advisors.

Step 3: Tell stories.

You’ve probably heard that fundraising relies on storytelling. Telling the story of your organization, your clients, your mission, vision, and impact is a great way to raise money.

You can raise planned gifts by telling stories too. Start by listening. Listen for clues that your donors would like to do something more. Something bigger than they believe they can.

Planned giving is an important mechanism for donors who want to give beyond cash flow. In other words, they’d like to do something greater than what they can accomplish by writing a check.

After asking for a gift, listen for phrases like:

• I wish I could…
• That’s a lot of money…

And when you hear something like that, respond in kind:

Yes, that is a lot of money. And I understand you want to have a big impact…

Now it’s time to start storytelling.

Storytelling in fundraising is all about getting your donor to feel something.

Tell a powerful and uplifting story of how another donor was able to accomplish something bigger than they ever thought possible by using a variety of assets. You might begin by saying something like:

Did you know you can use a variety of assets to make a gift to our organization? We accept all type of gifts, such as bequests, stock, gift annuities, life insurance and more.

Let me tell you about a woman who was able to make a HUGE impact by giving part of her gift now, and the rest later on…

Then move into the heart of your story. Nothing too elaborate — just enough to get the wheels in your donor’s head turning. Your aim is to inspire your donor to think about giving in ways they haven’t before.

Then you can ask if they have financial and/or tax advisors who can advise them on gifts of these types (i.e., refer to step #2 above — don’t talk about things you don’t know).

The World’s Easiest Guide to Planned Giving

And there you have it — the world’s easiest guide to planned giving. To sum up, the core of this guide is one key directive:

Accept bequests.

Of course, you’ll also need to get out there and tell your donors that you accept bequests. Tell them on your website, in your mailings and in person.

And that’s pretty much it — refer back to step #1 above and just start. It’s as easy as that.

If having more details would make you feel more comfortable before you take the plunge into planned giving, check out this video post on planned giving and major gifts. It will help you establish a more detailed plan of action.