If you volunteer on a nonprofit board, here is a way you can help!
Planned Giving is the next great frontier in philanthropy. There are approximately 77 million Baby Boomers retiring with $40 trillion in assets. It is estimated that 60% of Boomers intend to leave some portion to their estate to a non-profit. Here are three tips to a successful Planned Giving program.
Who is a potential Planned Giving donor? It can be easy to fall into the trap of thinking that only the super-wealthy leave estate gifts. In fact, donors at all levels have the potential to leave a transformational gift to a nonprofit. It is very likely that you already know your best Planned Giving prospects. There are seven criteria that make someone a high-potential prospect. Here are the top three: over 55 years old, seven years of consistent giving to your organization, and has made at least one “major” gift. If you can generate a list of people who meet these criteria, you are well on your way to developing a Planned Giving prospect list.
Passive and Active Strategies. There are two ways to build a Planned Giving program. The traditional program includes letter and brochures explaining the benefits of estate planning as a charitable tool. These methods are considered passive as they rely on the potential donor to respond. An active program includes events that create awareness of Planned Giving and one-on-one visits to solicit interest in making a Planned Gift. While these strategies produce more results than passive strategies, they aren’t mutually exclusive. A blend of both will produce a healthy response to your efforts.
Focus on mission over methods. Many Planned Giving brochures and letters focus on the tax benefits of making a gift or on the types of gifts, such as Charitable Remainder Trusts or Charitable Gift Annuities. These deal with the methods of Planned Giving. Recent research indicates that tax advantages rank lower in terms of donor motivation than you might think. The top reason a person makes a Planned Gift is because of their relationship with the nonprofit. We suggest you focus on mission first. Take time to describe your history, your current successes, and the challenges that are on the horizon. Consider sharing the testimony of a current donor. These mission moments establish a connecting to the potential donor which lays the foundation for a future conversation about the methods of Planned Giving.
We understand nonprofits.
Nonprofits have unique needs, and we're here to help. Whether you need tools to manage donations, new ways to accept payments at events, guidance with a planned-giving campaign or new opportunities to engage board members, we're here for you.
Copyright © 2022 Old National Wealth Management - The material contained in this report may not be copied, reproduced, republished, posted, transmitted or otherwise distributed without prior written permission.
Investment instruments utilized by Old National Wealth Management are not FDIC insured, are not deposits or other obligations of Old National Wealth Management, Old National Bank, its parent company or affiliates, and involve investment risk including the possible loss of principal invested.
Investment and securities information presented herein is unique to Old National Wealth Management's approach to investment management. All information and opinions have been obtained from sources believed to be reliable and current at the time of publication, but are not guaranteed and do not claim to be a complete statement of all material factors. Examples or other representations made herein are for illustrative purposes and are not intended to be specific legal, tax, or investment advice and do not represent a solicitation.
Investments and strategies that may be presented may not be suitable for all investors. Old National Wealth Management Client Advisors and Portfolio Managers will work with interested parties to execute plans developed in consultation with their attorney or tax advisor.
The comments, views and opinions expressed herein are those of the author and Old National Wealth Management. From time-to-time, Old National Bancorp affiliates may issue reports or have opinions that are inconsistent with, and reach different conclusions from, this report. Old National Bancorp and its affiliates do not accept any liability for any direct, indirect or consequential damages or losses arising from any use of this report or its contents.