Planned Giving: Ask and You May Receive

It’s no secret that not-for-profit organization’s success is directly related to the donations it receives. The good news is that most people want to contribute to charitable organizations and do; more often that not, however, these donations take the form of annual contributions. According to national statistics, very few people take advantage of another equally important way to support the worthy causes of their communities: planned giving.

Armed with this knowledge, the Toledo Area Planned Giving Council (TAPGC) recently commissioned Stanford H. Odesky and Associates to study attitudes and awareness related to planned giving in Northwest Ohio . Plante & Moran underwrote the cost of the study. During January 2005, 400 respondents were randomly selected and interviewed by telephone. Survey participants were more than 35 years old and earned more than $75,000 annually. And although the survey focused on people who live in Northwest Ohio communities, not-for-profits, donor advisors, and others can use the results as a guide to general behaviors and attitudes among the donor population as well.

Some of the results were not surprising; for example, a purposeful mission and long-time meaningful donor relationships are crucial to making planned gifts to charities. However, there were other observations that not-for-profits may also find helpful in soliciting donors to make planned gifts.

Planned Giving Is an Integrated Process

More than 90 percent of the respondents support one or more organizations with annual contributions. Nearly 15 percent of the respondents made charitable provisions in their estate for organizations they support annually; conversely, only one percent made provisions in their estate to include an organization to which they don’t give on an annual basis. Therefore, it’s clear that donors who make regular annual gifts to charities are potentially the best sources of planned gifts.

Younger Donors Make Planned Gifts, Too

When it comes to planned gifts, charities typically target older donors. According to the survey, however, the average age when a donor first includes a charity in an estate plan is 40. Charities that raise awareness of ways to make planned gifts to this younger group through methods such as bequests, contingent beneficiary designations on life insurance, and retirement assets will grow their organizations’ planned giving expectancies in years to come.

Ask and Say “Thank You”

While many organizations send general or planned giving newsletters to constituents informing them of the various ways to make planned gifts, most don’t tend to ask for a gift directly. Only 25 percent of the respondents were asked specifically to include an estate gift for charity. So be bold; it’s okay to ask for what you want.

Respondents indicated that the preferred method of solicitation was a letter. Once you’ve received a gift, it’s important to make the donor feel good about their planned gift and understand the significant impact the gift will have on a not-for-profit organization. A personalized thank-you letter was the preferred method of communication (75 percent); continued contact with the organization ranked second, at 55 percent, and a personal phone call came in third at 34 percent. Only 15 percent of respondents indicated designation into a recognition category to be important.

Few Donors Notify Charities in Advance

Only 18 percent of respondents had informed the charity of a forthcoming planned gift. Why? Because they just hadn’t gotten around to it yet. Charities that communicate consistently with constituents and ask for planned gifts will open the door for notification.

Planned Giving Does Not Replace Annual Giving

The best news? Annual gifts continue even after a planned gift has been made. Fifty-nine percent of respondents indicate that their annual giving continues at the same level after including the organization in their estate with a planned gift. In fact, one in ten increases the annual gifts after providing for a planned gift.

So it’s a win-win situation. Be bold. Communicate. Initiate. Appreciate. Organizations that epitomize these behaviors position themselves to reap the benefits of planned and annual giving, now and into the future.

To view the survey results in their entirety, go to http://www.plantemoran.com/services/fwa/documents/ TAPGC_report_7_7_05.pdf.