What, exactly, are you waiting for?
Stop waiting and start moving!
I was fortunate to view a webinar provided by Pamela Grow’s Simple Development Systems membership program.
The presenter was the amazing Leah Eustace of Good Works. She talked to us about bequest fundraising for small shops.
Yes, you read that right.
As I listened to her practical advice, I realized too many smaller shops don’t even attempt some kinds of fundraising.
Maybe you believe you’re too small. But if you’ve ever said, “Oh, planned giving? We can’t manage that.” or “Monthly giving? Let’s wait until we have more donors.” then you’ve been cheating your organization of the support it needs.
Many of the things we know we should be doing are possible. Too often, we allow fear or bureaucracy to get in the way.
Waiting to start a planned giving program?
Is your first stop a big board committee and lawyers? Are they focused on your largest donors and securing complex planned gifts?
Figure on that taking years…
Leah suggests you start by making sure donors know you’ll accept bequests. Get that on your website and all your fundraising materials.
That wasn’t so scary, was it?
Then what if you looked for the most loyal donors on your list and sent them a simple and personal mailing? There’s a lovely example here on SOFII.
I know planned giving sounds scary. You immediately think of complicated legal documents and tax maneuvers.
But most legacy gifts are bequests. Bequests are not that complex. And you won’t be handling the legal work. (Read some more good advice on the topic of bequests here from my friend Michael Rosen.)
This is definitely a situation where some action is far better than doing nothing!
Monthly giving is another thing you should start now
Years ago, I read an article by Harvey McKinnon about monthly gifts. (I’m pretty sure it was in Mal Warwick’s newsletter at the time, but I can’t find a link. Here’s a presentation that might help, though.)
I guess I didn’t know any better because my first thought was “let’s do this!” It wasn’t all that complex.
The biggest hurdle was selling the idea internally.
I knew it would take time to build a program – maybe years. But I also knew any step in the right direction was positive.
So I came up with a name for the program. Wrote some copy. Targeted some of our most loyal donors. And just did it.
Does the organization now have hundreds of monthly donors? Nope.
But the program grew every year that I solicited for it and we saw very little attrition.
What else are you putting off?
Is your website very 1995? It’s far less expensive and easier to set up a decent site now than it was then. Do a little research and push for a refresh, because you’re probably losing money every day!
Are you short on staff, but blessed with a loyal donor base? Have you ever read Mal Warwick on raising $1000 gifts by mail?
I read an article he wrote on the topic years ago. (I’ve since read the book – and you should, too. As he promises, it’s “mercifully brief” and packed with good information.)
Following his suggestions, I put together a very personal mailing. The early responses were great. (Unfortunately, it was the fall of 2008. And just as I started getting responses, the market crashed. Some timing, you just can’t control.)
Your smaller size shouldn’t prevent you from starting
You can roll things out for smaller groups and see how they work. You probably don’t have to climb through layer on layer of bureaucracy before you go ahead. And you can offer donors very personal attention. That’s a huge advantage.
The things you put off aren’t likely to raise any money.
Mary, thank you for sharing my post with your readers. Here’s another post folks might find useful when assessing how worthwhile a bequest program might be: “Free, Electronic Bequest-Potential Calculator Unveiled” (https://michaelrosensays.wordpress.com/2013/11/08/free-electronic-bequest-potential-calculator-unveiled/). The calculator allows any fundraiser to easily and quickly determine his or her organization’s bequest potential. With that information in-hand, one can evaluate how much it would be worth to invest in a planned giving program.
I should also point out that while bequests are thought to be the most common form of planned giving, the use of wills as an estate planning tool has been on a sharp decline in recent years. Rather than being a cause for alarm among nonprofit organizations, it is actually a great opportunity.
One of the reasons fewer wills are being written is that individuals can pass many assets via simple beneficiary designations. Such designations do not require reams of paperwork or an attorney. For example, one can designate who will be the beneficiary of a life-insurance policy. Depending on state regulations, other assets can also be assigned via a beneficiary designation (i.e.: bank accounts, real estate, retirement funds, etc.). Guess what? Individuals do not need to designate another individual as a beneficiary. People can designate charities.
So, in addition to encouraging folks to include the charity in their will, charities should also encourage individuals to include the charity in their beneficiary designations.
Here are some other planned gifts or quasi-planned-gifts that are easy to seek:
+ Appreciated Stock. With the stock market at a record high, and with approximately half of Americans holding stock, there’s a real opportunity. By donating appreciated securities, donors can avoid the capital gains tax and still receive a charitable gift deduction. As year-end approaches, charities should remind donors of this great giving opportunity.
+ Donor Advised Funds. Many donors have established a Donor Advised Fund from which they make charitable gifts. Charities should find out which donors have established a DAF and then encourage them to include the charity on the recommended gift list.
+ IRA Rollover. At some point, Congress will likely renew the rules that would allow older Americans to make charitable contributions from their IRAs. If and when Congress acts, charities should be ready to take advantage of the opportunity.
If readers are interested in learning more about simple planned gift marketing strategies, they can check-out my book, “Donor-Centered Planned Gift Marketing” (http://bit.ly/eRgSum).
Michael, thank you very much for all that great information!
Mary – Fantastic post! I love that you are encouraging nonprofits to take any steps they can towards bigger and better fundraising. There’s no time like the present to get started. I agree – what are you waiting for?
Along the same lines – major gifts. I’m constantly encouraging my clients to get started with major gifts – even if it’s only 5 or 10 larger gifts per year – it makes a real difference!
Yes! It’s just a matter of focus. They should be doing all that’s needed already with donors. Make it more intentional!
Thanks so much for reading and taking the time to comment, Amy. I’m honored!