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The Power of Legacy and Planned Gifts: How Nonprofits and Donors Work Together to Change the World

A guide for Legacy Gifts for Small and Mid-sized Nonprofits

"I read the books. I went to the planned giving seminars. I tried it all. It didn't work"

... are the words of a very competent nonprofit executive with 17+ years of experience.

Most how-to and reference books on planned gifts were written from experience and perspectives gained from fundraising at large institutions. The authors appropriately and accurately write about what they know: big institutions, big budgets, and large numbers of donor prospects. The nature of small and mid-size groups and the needs and expectations of their donors can be quite different.

If this rings
a little too true for you,
we should talk.

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Purpose of Book

The purpose of the book is to enable small nonprofits to build a pipeline of estate gifts that will sustain them in the years to come. It will lead them through simple steps to help nonprofit leaders connect loyal donors with the larger values and impact of the work of the nonprofit. This will not only translate into larger gifts today but also create a stream of future gifts to sustain and build their organizations. As a result, they will become competitive in the donor marketplace for bequests and other gifts through estate planning.

Because the global recession is forcing charities to downsize, most small charities will not be able to afford a Planned Giving Expert on staff. The one professional fundraiser will need and want to add planned giving to his or her work plan and they will need a practical guide.

The Madoff scandal makes Board members even more eager to exercise due diligence as prudent members. Most planned giving books focus on the legal technicalities and are more likely to scare off volunteer leaders who want to begin fundraising in this field. A simpler, clearer guide written in plain language will help conscientious board members take action.

Additional Background and Context:

The marketplace of estate gifts to charity began and stayed primarily within the province of the very wealthy for a great part of the 1900's. Only a small number of large established nonprofits possessed the rather arcane knowledge of the mechanics of such trusts and estate complexities. Congressional action to stem abuses changed all of that in 1968 providing a codified structure for many kinds of charitable giving.

Over the decades of the 70's and 80s the number of large nonprofits wading into the deferred gift field grew rapidly. Copying the initial leaders, they responded by establishing separate staff and defined, siloed, programs.

Intermediate and some smaller nonprofits began to respond to changing population demographics (increased numbers of older prospective donors) and increased concentrations of wealth, and entered the market too. They tended to copy the organizational model of large institutions segregating planned gift staff and focusing on the highly technical side. The result is that by the end of the 1990s thousands of groups had "planned giving programs" and dedicated planned giving staff. Professional advisors - lawyers, CPA's, financial planners - and philanthropic product providers (think Fidelity) followed in vast numbers.

Over this last decade, large, institutional nonprofits invested millions of dollars and countless hours to educate the marketplace of donors about the concept of giving through estate planning. Gifts through estate plans represent billions of dollars of gifts to nonprofits --- about 89% or more in the form of simple bequests (not the complex forms of trusts, annuities, and other "planned gifts"). In effect, this extensive marketing has created the market and its early adaptors. As a direct result, the market is poised to expand significantly.

The result of this and been an accompanying growth in the knowledge base and array of philanthropic products of the market. With the exception of some existing large institutional programs, fewer donors expect or need detailed, legal and tax-oriented advice from nonprofits. Rather they seek guidance about philanthropy, vision and impact. In other words, the planned giving officer and the planned giving program may become an obsolete concept - certainly not one to emulate and initiate new today.

About the Author:

Kevin Johnson has more than 30 years experience working with public service organizations, political campaigns, and start up ventures. He has helped nonprofit groups secure or complete more than 500 legacy and major gifts valued at more than $84 million. In the last 11 years, he has helped start or expand more than 86 major, legacy gifts, and capital projects, and campaigns. His new book on legacy gifts and financial sustainability for small and mid-sized groups, published by Jossey-Bass/Wiley, will be released at the spring 2010 Association of Fundraising Professionals International Conference.