In the movie, Knives Out, the Thrombey family gathers eagerly for the reading of Harlan Thrombey’s will, only to be stunned when they learn they will inherit none of his $60 million estate. Instead, the entirety of it is left to Marta Cabrera, Harlan’s devoted nurse—someone he had come to regard as a friend and confidant in his final years. Though Marta never sought the inheritance, she became the sole beneficiary. Harlan’s children were already financially secure. The scene underscores a powerful truth: no one is entitled to a gift, and genuine relationships carry more weight than expectation.
Planned gifts are no different. In Andy DeBraber’s webinar “Planned Giving: Empowering Donors to Give Forward,” he described planned giving as a lifelong investment for both parties. “What the donor is doing is raising your organization to the level of family… just like [donors] want to see their kids thrive, they want to see your organization thrive.” Just like any stewardship strategy, planned giving deepens relationships with donors.
Here are five key takeaways about planned giving from Andy’s webinar:
- Planned Giving can be a driving factor in an organization’s sustainability.
- On average, a planned gift is 200 times larger than an annual gift. This size of gift can open new programs, expand established ones, or save an organization from going into a budget deficit.
- While some people may worry that planned gifts reduce donors’ current giving capacity, the opposite actually happens. When a donor has included an organization in their end-of-life plan, they feel more committed to that mission, and their annual giving often increases by 50-75%.
- Planned Giving benefits both the organization and the donor.
- For the organization, planned giving can provide confidence for the future. When staff know about planned gifts, they can use that knowledge as a foundation to support their long-term goals.
- For the donor, planned giving provides assurance that their assets will benefit the community well into the future and that their legacy of generosity will outlive them.
- Planned Giving takes a long time to implement, and that’s a good thing.
- The average planned gift takes 7-10 years to realize. As a result, the best planned giving prospects aren’t the people who give the most money, but the people who give the most consistently.
- Since planned gifts take a long time to materialize, there’s no need to rush into the ask. Planned giving offers the highest return on investment, so spending a few hours a week identifying prospects or creating infrastructure can snowball into funding for years to come.
- Planned Giving conversations don’t have to be hard!
- While some donors may be hesitant to talk about planned giving, there are many ways to naturally integrate it into a conversation.
- Instead of focusing on end-of-life plans, connect the conversation to your responsibility as a fundraiser: “I wouldn’t be doing my job if I didn’t ask you if you have considered a planned gift.”
- Instead of focusing on pragmatics, ask about their hopes and dreams for the world. Your shared excitement could encourage them to invest in your organization’s future.
- Instead of focusing on cash, consider what assets they could give. Some donors may be hesitant to talk about finances but would be more generous with physical items or stocks.
- While some donors may be hesitant to talk about planned giving, there are many ways to naturally integrate it into a conversation.
- Planned Giving doesn’t end after the gift.
- Even if a donor has included you in their will, they can always revoke it. Continue to thank donors for their current and future generosity. Many organizations have a legacy society where current and prospective planned givers can interact and be celebrated.
Planned Giving strengthens the relationship between donor and nonprofit. In fact, asking donors about planned giving might be the encouragement they need to write a will, which not only takes a load off families, but ensures that the person has complete agency over where their money goes. By having infrastructure for planned gifts, organizations and donors show a commitment to each other’s past, present and future.
Written by Lindsey Gram, Winter 2025 Intern