1. Earning More Money for Your Non-Profit
Why do so many non-profits struggle to make ends meet? How come they spend so
much time and energy on fundraising, but don’t have much to show for it? What is the secret to
a healthy non-profit?
The answer is planned giving.
Planned giving is highly effective, but also very misunderstood. What exactly is it? As
opposed to small contributions from donors, such as monetary donations, planned gifts are
major gifts made by a donor as part of their overall financial planning. Whether it be real
estate, artwork, life insurance, or part of a retirement plan, planned gifts are designed so that a
donor can make larger gifts that would not be possible on their regular income – oftentimes
after their death.
The key is to treat your non-profit like a business, rather than a mom and pop shop. Put
more of your focus on the long-term goals than on the smaller, “easier-to-get” stuff. It’s
important to immerse yourself in the fundraising aspect of the business, such as making calls
and visiting prospects. The rules are the same whether you’re seeking those immediate smaller
donations, or the larger planned donations.
While events are good and important, planned gifts are surprisingly easier to acquire,
but they require patience. You may choose to do a little bit of research before diving into
planned giving, to make sure you understand what you’re doing. It’s a good idea to meet with
an attorney who focuses on estate law to make sure you understand the ins and outs of wills,
but it’s not necessary. Generally, the more complex gifts are taken care of by the donor’s
attorneys or financial advisors, but it doesn’t hurt to understand how it works.
It’s essential that people understand your business and what their options for donating
are. Put some information together in various formats reminding your prospects why they
should keep your non-profit in mind in their wills. You will eventually use these for pamphlets,
emails or for mailing out. Don’t forget to appoint a contact person to handle questions and
donations.
One of the best things you can do once you have put all of this on paper, is to publish
that document somewhere that is easily accessible. Make space in your budget and time in
your schedule to create brochures and other hand-outs for prospective donors, and create a
planned giving page on your website. The important thing here is to make sure the information
is easy to understand and accessible to everyone who is interested in being a donor.
A great way to launch a planned giving campaign is by approaching your board and
asking them to remember your non-profit in their wills. The best-case scenario would be to
have the board chair broach the subject at a board meeting by seeking complete board
participation. Once the board has been notified, turn to your key donors and supporters. This
should be handled in the same way as any other fundraiser, remembering to call or visit
significant donors. A personal touch goes a long way. If your business makes direct mail asks of
your donors, consider sending a mailing to your donor base asking them to consider
remembering your business in their will. If you do not make direct mail asks of your donor, now
is a good time to consider starting!

2. Be sure to keep a list of all of your planned donors for easy reference when recruiting
new donors. A donor group comprised of all those who have kept you in mind in their wills is a
great way to encourage participation and spread the word.
Finally, and most importantly, include a note in everything your business does. Include it
in correspondences, emails, newsletters, on your website, etc. The more opportunities donors
have to participate, and the more reminders they are given, the more likely they are to
remember your business.
Another mistake many non-profits make is not thinking like a business. They boast
about the $45,000 raised in their last fundraising event, without taking into consideration how
much it cost to throw the event in the first place. Time and overhead are often overlooked as
well, lowering that earnings margin. Careful planning and long-term thinking are important for
any non-profit. When seeking donors or fundraising projects, remember that pushing the
envelope is what gets peoples’ attention. Don’t play it safe. Stay engaged with your prospects
and remember – complaints mean that people are noticing and reading your materials. They
are a great way to open up a conversation and get the ball rolling.
A smart and innovative marketing plan is key. Sticking to tradition is the surest way to
doom your business. You must reach your prospects on an intellectual, practical and emotional
level with proactive messaging that keeps them in mind. Don’t ever make the mistake of
believing that non-profits are special. They are a business, just like any other. The same laws
apply to both non-profits and for-profits and it is important to keep this in mind during all of
your fundraising ventures.
What are the Benefits of Planned Giving?
To put it simply, planned giving is more practical than short-term fundraising. Despite
how it seems, many planned gifts are not deferred – even bequests don’t need to be. It has
been shown that donors who make planned gifts actually increase their annual giving, which
means that planned giving should be your business’s priority.
In a 2011 Miami Herald article titled, With Eye on Future, Nonprofits Shift Focus to
Planned Giving, editor Amy Driscoll writes, “Although organizations need donations now more
than ever, planned giving offers a way for people to declare an intention to assist their favorite
causes in the future – even if they don’t feel financially secure to donate now. That enables
non-profits to strengthen their ties with donors. If financial conditions change, the plan can
change as well.”
Planned gifts establish stronger relationships for future giving and can supplement
annual gifts. And since cash only represents 5% of the nation’s wealth, planned gifts make the
most sense. There are too many non-profits fighting for too little cash and very few of them are
savvy enough to target the remaining 95%. Planned gifts are not as mysterious as they sound.
The fact is that even among the higher strata of non-profits, such as Harvard, Stanford,
or the American Cancer Society, many of the planned gifts received are simply gifts that anyone
can make. As mentioned earlier, once you get into the more complex planned gifts, the donor

3. and their financial advisors or lawyers will generally cut the deal themselves, letting you off the
hook.
Only about 15% of all planned gifts are deferred. The four major planned gifts that can
be tapped into without any legal counsel are gifts from one’s IRA, gifts of appreciated “stuff”
(such as stock, an old car, antique art, etc.), life insurance, and bequests. A frequent
misconception about bequests is that they can only happen in the future, which is why most
fundraisers resist embracing them. A simple will amendment, called a codicil, can be requested,
stating that the donor will donate a certain percentage of their residuary estate to the charity.
What this means, is that the specified amount will be donated after all parts have been paid,
such as children and other kin. Some may give 100%, but that should certainly never be
counted on. The goal here is to cultivate as many bequests as possible, so that, statistically,
these bequests will come to fruition within the next few years – or shorter. Some organizations
have identified over 1,000 bequests over a four-year period, which means some donors were
passing on the “next day.” Those are non-deferred bequests.
The longer a non-profit focuses on the immediate smaller gifts rather than the more
important, larger gifts, they will always be in trouble. Progress cannot be made without
focusing on the future. However, that does not mean to ignore the present, and not to seek out
the smaller donations. It simply means to find a balance between the immediate gifts with the
future gifts. Especially in today’s economy, planned gifts are easier to get, because during cash-
starved times, donors are more likely to give a gift that does not cut into their everyday cash
flow. For them, the money is not immediate, but if done properly, your business will still see
results. And typically, planned gifts are 200 to 300 times the size of a donor’s largest annual gift.
Because of the nature of planned gifts and the relationships with the donors, your non-profit
becomes part of the donor’s family, which makes them more likely to increase their giving over
time. How can that be a bad thing?
Still not convinced? Think of it this way: if you’re not asking your prospects for planned
gifts, someone else is.

4. http://www.thefundraisingauthority.com/planned-giving/launch-planned-giving/