Raise More by Asking for Two Gifts at Once

Has your organization received any planned gifts this year? If so, it just might be thanks to the hard work of one of your predecessors.

The Smartest Fundraisers Ask for Two Gifts at Once

Back when I started fundraising, big organizations had different staff members who were responsible for raising major gifts and others who solicited planned gifts. Many organizations still operate this way.

However, this separation of responsibilities never made sense to me, because major gifts and planned gifts go hand-in-hand.

Blended Gifts are the Key

Planned giving provides an opportunity to raise significantly more money for your organization now and in the future. Every time you ask for a major gift, you can also bring up the idea of a planned gift, which might result in your organization getting a bigger, blended gift (a combination of assets).

All fundraisers who solicit individual donors should be empowered to encourage donors to make the largest gifts possible using creative financial planning — in other words, blended gifts.

Blended gifts enable donors to make larger gifts than they could with cash flow (checks or credit card) alone.

For example, if you ask someone for a $50K gift and they can’t manage that, they might be able to give $10,000 in cash, $10,000 in stock, and leave $30,000 in their will.

True… the organization wouldn’t get the full $50,000 right away. But this style of fundraising enables the donor to give a much larger gift than they would have with cash alone.

That’s the power of planned giving.

Planned Gifts: Many Types and Many Benefits

My rudimentary definition of a planned gift is one that requires planning on the part of the donor — sometimes with the assistance of the donor’s accountant, attorney, or financial planner.

Gifting Assets

My above definition includes the gifting of assets, including:

• Stock
• Real Estate
• Personal Property (jewelry, artwork, etc.)
• Life Insurance

Gifting Through Financial Vehicles

It also means making a gift through various legal and financial vehicles, such as:

• Charitable bequest / Will
• Retirement funds
• Trusts
• Charitable gift annuities

All of the above fall under the definition of “planned gifts” and require some planning and thought on the part of the donor.

Many Tax Benefits of Planned Gifts

There are a number of tax benefits for donors that make planned gifts, but it’s safest to leave that discussion to their accountants.

Remember — you are not an accountant, lawyer, or financial planner. You should not be giving legal, tax, or financial advice. Refer donors to their own professional advisors. But you can certainly let them know there are tax benefits to be enjoyed through many types of planned gifts.

Planned Giving for Current or Future Needs

Depending on the type of gift made, planned gifts can benefit the organization in the short or long term. Gifts of stock, distributions from retirement funds, real estate and more, generally benefit the organization immediately. In other words, the organization receives the gift during the donor’s lifetime.

Other gifts, such as bequests, charitable gift annuities, life insurance policies, and trusts become available to the organization after the death of the donor.

Revocable or Irrevocable? That is the Question…

Some planned gifts are revocable while others are not. Revocable simply means the donor can change their mind.

The most common example of a revocable gift is a bequest. A donor can add a charity to their will and take it out the very next day… or ten years later. There’s no guarantee with a charitable bequest.

On the other hand, most other planned gifts are irrevocable. These include gifts of stock, real estate, personal property, charitable gift annuities and more. Once made, donors cannot change their mind about these types of gifts.

What Makes a Good Planned Giving Prospect?

You don’t need to be an expert at planned giving to ask for a blended gift. In fact, the vast majority of planned gifts are bequests (approximately 90% of planned gifts are bequests). You simply need to listen for clues that your donor might be a good candidate for a planned gift.

There are a few key indicators that someone should be asked for a planned gift:

1. Loyal donors – Anyone who has given to your organization for ten years or more.
2. Older donors – Those who are age 60 and over.
3. No heirs – While people with children and grandchildren do frequently make planned gifts, those without children often leave bigger planned gifts.

So What are You Waiting For?

If you’re not currently soliciting planned gifts as a regular part of your fundraising, you’re doing a great disservice to your organization, clients, and donors.

So if you haven’t asked for any (or many) planned gifts this year, what’s holding you back? Tell me about it in the comments.