Thinking Beyond Cash: How to Ask for Blended Gifts

Major gift fundraising is about helping donors achieve their philanthropic goals. Of course, it’s about achieving your mission, too. But it’s important to remember the purpose from the prospective of your donor.

And many donors would like to do more for your mission than they think they can — which would, of course, benefit your organization.

Getting Donors to Think Beyond Cash Gifts

Typically, when you ask for a donation, donors think with their checkbooks — in other words, with cash flow. It’s your job to get donors to think beyond cash. If they did, most could give significantly more (and often do).

When a donor considers what they can give in cash (aka, a check), they might be able to give only $5,000 or $10,000. But once they start thinking about other things — stock, retirement funds, life insurance, etc., the possibilities get much, much bigger.

What is a blended gift?

Let’s start with the basics. So what is a blended gift?

A blended gift is a donation made with a combination of cash and other assets. As mentioned above, a blended gift can be made up of cash, plus one or more of the following assets:

What to listen for:

It’s appropriate to raise the possibility of a blended gift when, after you’ve asked for a gift, your donor says something like:

• I wish I could.
• That’s a lot of money.
• I’m on a limited income.

Let’s run through your response to each of these statements.

When you hear, “I wish I could…”

You respond with something like:

I’m thrilled you want to have a really big impact. Of course, a big impact often costs a lot of money. I was recently speaking with a donor who also wanted to have a big impact. Like you, she wasn’t sure she could make such a large donation. Ultimately, she was able to make a really large gift by making a blended gift. She used a combination of assets to achieve her philanthropic goals. Is that something you’d like to learn more about?

When you hear, That’s a lot of money…”

You respond with something like:

You’re right. That is a lot of money. But that’s what it’s going to take to make a really big impact. Have you ever considered making a gift with a variety of assets? Many of our donors who want to have a really big impact make larger gifts than they normally would by using stock, life insurance or real estate. Is that something that would interest you?

When you hear, “I’m on a limited income…”

You respond with something like:

I completely understand. Did you know there’s a popular way to make a charitable gift and receive income for life? Are you interested in learning more about it?

It’s called a charitable gift annuity. Donors give $10,000 or more (generally with stock they’re not relying on for living expenses) and the charity provides them with income for life.

NOTE: Organizations can generally accept Charitable Gift Annuities by participating in a joint fund with their local community foundation.

Asking for bequests

Of course, many donors make the largest gift they’ll every make via bequest. In other words, in their will. So be sure to ask all of your loyal supporters to consider including your organization in their will.

When in Doubt, Ask for Blended Gifts

So when your donor expresses hesitation at the amount you ask, be prepared to ask them to consider a blended gift. You’ll be glad you did.

But if you feel uncomfortable or unsure of any of the assets mentioned above, do not mention them. Remember, you are not a financial planner, a lawyer or an accountant. Do not offer any financial, legal or tax advice. Always refer donors to consult with their own professional advisors before making a major financial decision.

Do you have any experience asking for blended gifts? Tell me about it in the comments.