Creating a Planned Giving Plan

Send us Fan MailPlanned giving plans are hard because it’s hard to talk about the end, right? Wrong! Lori Kranczer opens our minds to the possibilities of planned giving outside of estate gifts. While bequests are a form of legacy giving, they’re not the only form. “Legacy giving is bigger than planned giving.”Somehow, along the fundraising journey, the sector began to associate legacy giving with bequests, estate gifts, and post-mortem benevolence most commonly referred to as “planned giving.” The truth is, a legacy gift can be the seed money for an endowment fund, support through a donor-advised fund (DAF), or even a non-cash gift. The distinguishing factor is that the process is donor-centric and the mechanism is tied to the individual or family’s legacy. When we take a broader and more creative approach to addressing planned giving, it becomes easier - both for us and for our supporters!“Everyone has the capacity to do some sort of legacy gift.”I share a story in this episode about a transformational gift an organization I formerly led received through a bequest. The gift was completely unexpected and came from an individual who would not show up on any wealth research engines or top donors list. He was a humble, dedicated, volunteer who donated no more than $100 over the course of any one year. He died unexpectedly and the liquidation of some of his property funded a renovation of one of the organization's oldest buildings. My intent in sharing that story was to demonstrate that planned giving is not an activity reserved for top donors. Lori confirms this belief and stated it far more elegantly: “everyone has the capacity to make some sort of legacy gift.”When and How to Get Started with Planned GivingPlanned giving gets so much buzz these days that newer nonprofits may feel pressure to take it on as a fund development initiative. Lori recommends waiting until year ten, and only after annual fundraising is in good shape. For mature organizations that have their annual funding in a healthy place, the time to start is now. Lori reminds us that while planned giving is cemented in a one-on-one conversation, it needs to be part of your organization’s marketing strategy and annual plan. She describes working with her clients to not only prioritize featuring planned giving but to work into gaps or complementary areas of their marketing and communications. Acronyms and Terms MentionedDAF | Donor-Advised Fund: A donor gifts funds to a public charity (often a Community Foundation) and thereby receives an immediate tax deduction. Over time, the donor can recommend the funds be granted out per their desires. QCD | Qualified Charitable Distribution: This giving vehicle provides a way for donors who are 70.5  or older to donate up to $100,000 total to one or more charities directly from a taxable IRA instead of taking their required minimum distributions.Bequest: a gift of assets that occurs after death, typically through a will. Endowment (fund): a gift to an organization that is held in a fund that receives and dispurses income to the nonprofit on an annual basis.  Support the showGet free nonprofit professional development resources, connections to cause work peers, and more at https://nonprofithub.org