Resource Development: Planned Giving
Nothing makes a nonprofit executive's eyes gloss over faster than the subject of planned giving. It's a scary term for many people. It's complicated, unfamiliar and unknown to so many in the nonprofit space. Let's uncomplicate it a bit.
Planned giving has two definitions that I like:
Planned giving is securing an investment/donation today that will be realized in the future. Think #realestate, #wills/bequests, giving of stocks, bonds and yes, even perhaps #cryptocurrency. In this understanding of planned giving, you ASK for the investment today but the investment/donation is RECEIVED at a future time. -- AND/OR --
Planned giving is a major donation/investment given out of non-discretionary/non-recurring income. We think of regular donations as given from ongoing income (like a paycheck) or liquid assets (like a savings account). Planned gifts are more sophisticated donations that are given from investments, illiquid assets or even money/assets you expect to receive in the future.
The common path for nonprofits is to grow regular and recurring donors into planned givers. This requires cultivating the donor and growing their gift year over year. Planned giving becomes the natural next step as donors increase their investment to an organization over time. But planned giving also requires the organization have a path by which individuals can give planned gifts. It needs to be integrated into the resource development strategy of the organization. The good news? You don't have to be the expert. Many nonprofits do not employ a planned giving officer or manage these investment internally. This is where partnership is golden. Nonprofits can work with a community foundation or local bank to have planned gifts managed and held.
There are also individuals and organizations that specialize in planned giving like those you'd find at https://tinyl.io/7iK8. The bottom line is to get educated about the concept of planned giving, demystify it and make a plan in 2023 to integrate planned giving into the resource development strategy of your nonprofit.
