Benefits of planned giving
Till just a few years back, planned giving was criticized by many nonprofit leaders. They felt that it was better spending resources on programs that yielded funds in the short run rather than spending time on raising resources through estate gift or other planned giving programs. These programs were also considered ‘too technical’ or cumbersome for small organizations.
But the perceptions have changed in the last 2-3 years. What was seen as a complex fund raising mechanism is slowly becoming a very popular long-term fund raising method.
As per an estimate, U.S.A nonprofit organizations raised funds worth more than USD 9 trillion through planned giving programs in the year 2009.
As a fundraiser, If you’ve not yet joined the bandwagon here are some reasons why you should add planned giving programs to your fund raising plan :
1. Unlike all other fund raising where there is no tangible return to the donor, planned giving is a win-win for both the organization and the donor.It is therefore easy to convince people to consider estate gifts as compared to annual or capital gifts.
2. Having once set up a planned giving program, you will find that it produces a sizable amount of expected inflows every year in the form of expectancies.
3. A planned gift generally brings greater ticket size funding for the organization as compared to annual or capital gifts.
4. Planned giving program has a wider target market – can be ‘sold’ to any one interested in estate planning unlike ‘capital gifts’ which is targeted primarily at institutional fund-givers.
5. Planned giving programs are more involving for the constituents/ donors and is therefore a great opportunity for organizations to stay connected to them for a long term.
To execute such programs, what is needed of nonprofit leaders is a basic understanding of the underlying concepts and simple cost-effective marketing of the program.
Additional reading resource on planned giving –