Planned Giving

A few weeks ago I visited in the foundation/development office of a large organization that has been very successful each year in meeting very impressive fund raising goals. During my visit with one of the foundation's vice presidents, I asked about their planned giving program. He answered that they really did not have one. His comment was, "It's all about the money. Leadership is only concerned about the cash that comes in the door that can be spent now."

The organization in order to meet the requirements of its mission and meet the needs of those it serves does need generous current funding and that does mean cash "now." However, they are missing a vital element of a well rounded fund raising program. It may be hard to measure but I suspect that if a solid planned giving program had been in place over the last five to seven years that their annual "cash" income could be an additional 20 to 30 percent more.

Planned giving, which used to be referred to as deferred giving, generally has to do with bequests, charitable trust and other charitable gift agreements where the charity does not receive the "gift" until after the death of the donor or some other "triggering event." It is a great way for your loyal donors to make provision for continued support after they are no longer with us.

Any not-for-profit organization can have a planned giving program no matter the size. Even if you have a limited staff and development budget there are ways to encourage and ultimately receive mission sustaining planned gifts. In future postings I will mention a few things you can do. In the meantime, find a colleague somewhere that has a successful program and ask for tips. Better yet, contract with a consultant to review your development program and have him/her set up a planned giving program that specifically meets your organization's needs.

I guarantee that before the current recession is history the foundation office where I visited will be wishing they had invested in a planned giving program a few years back. Maturing planned gifts sure can help in tough economic times.