A Good Little Article on Planned Giving

Here's a quick read with some helpful thoughts about planned giving...

Plan Ahead for Planned Giving
By Margaret Battistelli, editor in chief, FundRaising Success

Most organizations experience a marked decrease in annual gifts from longtime donors once they enter their retirement years. In response, many organizations pay less attention to their older donors, often "writing them off" and opting instead to focus on acquiring new, younger donors with more disposable income.

The approach seems to make sense, on the surface, but ignoring older donors can severely hinder your planned-giving efforts and alienate a potential gold mine of future gifts, cautions Robert F. Sharpe, president of The Sharpe Group, a philanthropic-planning company with offices in Memphis, Tenn. and Bowie, Md.

Sharpe, speaking recently at a luncheon hosted by the Direct Marketing Fundraisers Association in New York City, urged nonprofit organizations to take special care of their elderly donors. But it's not as easy as simply keeping them on your files to receive every mailing that goes out. Sharpe recommends strategically reducing current gift appeals to long-term donors of smaller amounts.

"One of the most successful organizations in both mass-oriented current giving and planned gifts reduces renewals from eight times a year to four for those over age 75 who have never given more than $15 in one year," Sharpe said. "The resources that are saved through this approach are redirected to programs designed to encourage bequests."

It's also important to acknowledge every gift from older donors, regardless of the size of the gift, he said, citing studies that show "there is absolutely no correlation between lifetime giving amounts and the size of bequests."

Your $25-a-year donor could surprise you just as easily with a large bequest as your $1000-a-year donor, Sharpe said, mainly because folks nearing the end of their lives don't have to worry as much about making ends meet or saving for the future. Because of that, they often feel free to make the kind of large donation they might have wanted to make earlier in life but couldn't afford.

Sharpe also stressed that organizations should recognize donors based on the longevity of their giving. Basically, ... let them know that you know--and appreciate--how long they've been loyal supporters.