5 Tips for Securing Planned Gifts

By DMIGuestBlogger1 • June 6th, 2011

We are pleased to have as our Guest Blogger , Attorney Jodi E. Murphy with The Certified Financial Group in Longwood, Florida who is also a principal with the firm’s Donor Motivation Program.

Jim Donovan, President, DMI

Donors primary concern is usually their FAMILY not the charity. Most donors are worried about making a planned gift, because their fear is that a gift to charity will reduce what they are able to leave their family. Recognize this concern and approach planned giving from a donor- centric position. The largest planned gifts come when you can show donors how they can actually increase both their annual income and the amount they can leave to family through proper planned giving.

Don’t be the Grim Reaper. Face it; no one likes to talk about death or think of their own demise. So when a planned giving professional calls to say “Please consider making a gift to our charity in your will” what donors HEAR is “Hey, we’ve come up with a savvy way to profit from your death, so we are just waiting on pins and needles for you to kick the bucket.” Is it any wonder why donors are hesitant to take action? Go beyond testamentary bequests and focus on what donors can do during their lifetime to start leaving “LifePrints” (but don’t forget #1….donors want to make sure their family is taken care of first and foremost!)

Send a consistent message. When a donor is considering making a substantial gift, they want to know that the charity will be around for the long haul. The best way for a charity to communicate this is to send a consistent message with your marketing and planned giving efforts. Don’t try to reinvent the wheel. Those organizations who constantly try out new methods, end up with a start-stop-start-stop approach. If you decide to give planned giving seminars, do them regularly (we suggest once a quarter).

Don’t limit your outreach to just your “A” donors. Due to time and budget constraints most planned giving officers direct their attention to the donors on their “A” list. However, this approach overlooks those donors on the B or C list, who may be the millionaire next door. The well known book “The Millionaire Next Door” by Thomas J. Stanley reveals that the median annual income of millionaires was $131,000. These millionaires accumulate their wealth by living below their means. It would be consistent with the demographics frugal lifestyle to refrain from making large annual gifts to a charity. However, they could be prime candidates for planned giving. So don’t ignore those donors who make smaller or sporadic annual gifts!

Donors want to leave a legacy. Create a lifelong connection with your donors by showing them how to leave a legacy beyond their financial wealth. Planning encompasses three distinct dimensions: financial, personal, and social. Focusing only on the financial dimension ignores the most important dimensions to the donor, family and social. Planned giving is the most effective when all three dimensions are skillfully blended. Some tools that will help you integrate the personal and social dimensions include ethical wills (“Legacy Letters” by Jodi E. Murphy, J.D. is available upon request) and Priceless Conversations (recorded audio conversations on specific topics that will assist your donor in gaining clarity on what their vision, priority and goals are).