The Benefits of Planned Giving

Last updated: March 19, 2021

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Whether your nonprofit already has a planned giving program in place or is considering developing one, it helps to have a clear idea of what planned giving means for both your organization and your donors.

One of the best parts about planned giving is that it’s not only beneficial for your nonprofit, but advantageous for donors as well. Marketing and communicating this clearly to your prospects is the key to encouraging planned gifts. With a winning planned giving marketing strategy in place, your nonprofit will be better positioned to achieve its short and long-term goals.

iWave’s nonprofit fundraising solutions draw from billions of datapoints to deliver the accurate information you need to secure major donations, including planned gifts. Discover how we can help you harness the benefits of planned giving by scheduling a free demo or assessment today!

What Is Planned Giving?

Simply put, a planned gift is made by a donor in the present and then gifted in the future, after they have passed. More often than not, these donations are incorporated into a donor’s will, known as a bequest, or in a trust. Some other types of planned gifts include:

  • Appreciated securities
  • Life insurance
  • Real estate or personal property
  • Retirement plans
  • IRA rollovers

Planned gifts have wide-reaching effects, not only for your organization, but for your dedicated donors as well.

Planned Giving Benefits Overview

For the Nonprofit

For the Donor

Greater chance of long-term stability

Tax deductions

Tapping into highest level of donor pyramid

Supporting their passions for years to come

More major gifts

Cementing a philanthropic legacy

What Planned Gifts Can Do for Your Organization

Since the day-to-day of running a nonprofit demands so much attention, energy, and resources, long-term plans can sometimes fall by the wayside. However, a crucial part of achieving future goals is to incorporate them into your present initiatives. This ensures you’re continually improving and working on expanding the impact of your organization.

If you’re looking for ways to better incorporate long-range goals and strategic planning into your nonprofit’s initiatives, developing a planned giving program can help you do just that. This is because planned giving is a multi-faceted process that sets your organization up to receive future funds.

It’s important to keep in mind that planned giving is also a very delicate type of philanthropy, as it goes hand in hand with someone’s passing. The benefits to your organization are important, but you should always think of your supporters first.

Long-Term Vision

When you have a clear path forward, donors may be more inclined to commit to something as meaningful as a planned gift. With a clear and focused action plan, you can demonstrate the longevity of your organization to your prospects. Developing a planned giving program can help you take stock of the present, while actively planning for the future.

The fundraisers on your team, whether they’re focused on planned gifts, major donations, or all contributions, need to be prepared to field questions related to planned giving. Your outreach and marketing teams should also be able to promote your planned giving program with confidence.

Wider Donor Reach

Planned giving also opens the door for major donations from a wide variety of donors, regardless of wealth. Those without the necessary funds to make a major gift from their discretionary income can do so with a planned gift. By establishing a planned giving program, you can:

  • Connect with a variety of dedicated donors
  • Take the necessary steps to secure a planned gift
  • Reap the benefits of that gift down the line

This provides your organization with a more sustainable and reliable revenue stream. Since a planned gift is a gift your nonprofit won’t receive right away, it sets you up for success later on.

More Major Gifts

Once put in place, in many cases, planned gifts will make up some of the most substantial donations your nonprofit receives each year. Major gifts keep nonprofits going and a slight change in the winds can have a tremendous influence over the course of your organization’s development.

By expanding the playing field that donors can participate in, planned giving creates more opportunities to gain substantial donations. Possibly the greatest benefit of planned giving is that it opens the door to securing more major gifts.

Check out our Major Gifts Guide

How Planned Giving Helps Donors

Along with being highly beneficial to your organization, planned gifts are equally beneficial to philanthropic-minded individuals involved in your nonprofit. For example, planned giving enables someone who has volunteered regularly, attended events, and made lower-level donations to your nonprofit for years to make a final, lasting impact.

Tax Deductions

Donors have the opportunity to earn income and capital gains tax relief. As with all things tax related, this can quickly become complicated. Having a designated planned giving expert on your team or hiring outside help will mitigate this and streamline the process.

Greater Control

When donors choose to make a planned gift, they also determine where the funds go and how they are spent. Whether through a will, a trust, or something else, planned gifts are legal contracts.

This means the donor determines the specifications for their gift when the contract is created. Compared with other types of donations, planned giving enables donors to call the shots, solidifying their legacy with the part of your organization they care about most.

Leaving a Legacy

Speaking of legacies, planned giving is often referred to as legacy giving. Especially for long-term supporters, a planned gift acts as the culmination of their passion and part of their life’s work through their contributions to your nonprofit.

After they’re gone, a donor’s planned gift will live on, providing vital resources to your organization and to those positively impacted as you fulfill your mission.

Our Nonprofit Fundraising Solutions Can Help You Secure More Planned Gifts

The positive legacy created by a planned gift is something that donors, their families, and nonprofit organizations alike can all be grateful for.

Reliable prospect research empowers you to reach your top planned giving prospects at the right moment to secure a major gift. iWave’s nonprofit fundraising solutions are completely customizable, because no two nonprofits or donors are the same.

Such intelligence paints a comprehensive picture of a prospect’s wealth capacity as well as their affinity for giving. iWave looks at granular pieces of information regarding personal information, assets, and real estate holdings.

Speaking of real estate, iWave examines factors like donor age and geographical expenses, contrasting them with primary residences and other real estate holdings. With this information, we can see a more complete picture of the donor’s lifestyle.

This holistic approach ensures you don’t dismiss any viable prospects. For example, just because someone downsizes their home later in life does not diminish their wealth capacity. These are just a few of the kinds of factors we’ll uncover for your organization!

Improve Your Planned Giving Program with iWave’s Fundraising Intelligence!

At iWave, we’re all about empowering organizations just like yours. Our personalized onboarding process and unlimited support means you’ll be able to take full advantage of all the intelligence at your disposal.

Let us show you how planned gifts can help your nonprofit grow by scheduling a free demo or fundraising assessment today.

Written by Admin

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