Compelling Conversations about Planned Giving

My friend Laurie Selik and I wrote a book called “Compelling Conversations for Fundraisers” that was meant to help those who are charged with raising money a starting point for getting gifts.  What I want to do in this article is  to have a compelling conversation with you about Planned Giving.

 The problem with planned giving, of course, is that it can be very technical.  There are so many vehicles—CRATs and CRUTs, CGTs, lead trusts, tangible…well, you get the message.  And here’s the good news:  You really don’t need to know much about any of these.  

When I talk with my clients about their conversations with donors and prospects, I caution them not to talk too much about the specifics of the various programs offered by the organization.  That is the quickest way to get the prospect/donor’s eyes to glaze over and for them to start thinking about how to end this conversation.  Likewise, planned giving.  All those vehicles—honestly, who cares?  Oh sure, at some point they will care and that’s when you must turn to an expert..

Your job is to get someone to say, “Yes.  I am interested in learning more.”

 But who do you ask about planned gifts?

Popular wisdom says “Rich old people.” But as a not terribly rich old person, I have to say that my estate plan is pretty done and dusted.  Younger people—ideally those between 45-55 are probably the best prospects, but I wouldn’t allow age —too young or too old—to deter me.  I would, rather, err on the side of bringing it up and maybe getting someone excited than not.  So you might ask someone my age about a planned gift, and perhaps we might say, “I already have made my decisions.”  Use that as a stewardship moment—“That’s wonderful.  Would you share with me what organizations will benefit?”  The reason you want to know this is so you get to know the donor better, know what matters to them….and perhaps be able to suggest a way that they can enhance the legacy they will be leaving by adding a legacy to you. 

 So not necessarily rich old people.  Who, then, do you think is the best prospect?

 YES.  The best prospect (as always) is already on your donor list.  The one caveat is that before you start talking with them about a planned gift, make sure that they haven’t already made a planned gift to your organization.  

Let’s imagine you are out with Rob and Sal and your main purpose to talk about their next (large) gift. How could you get them to start thinking about planned giving while considering a current gift?

 You might say: “While we are talking about a gift that will benefit our organization now, I also want you to think about leaving a legacy for the future.  You’ve told me that you care passionately about….”  

AH, here’s the rub.  What if they’ve never told you about their passions, their values, what they want to accomplish through their philanthropy?

 This is the perfect time to have that compelling conversation.  You could simply ask them what they want to accomplish through their philanthropy.  Or what programs you have that are aligned with their wishes.  

 You can also ask:

• What values underpin your philanthropy?  Do you feel that our organization embodies/shares those?  Values, I’ve found over the years, are critically important for all giving.  They are even more so if you want to understand the legacy they may want to leave.  

 Think about the values that guide you.  How does your organization embody those values?  Share that with your donor and tell them that is why you have remembered your organization in your estate plan.

 What?  You haven’t done that?  Maybe it is time to do so.  It may not be the large, planned gift you are hoping to bring in, but the best ask for any kind of gift is “Join with me,” and you’ll be able to speak more eloquently about a planned gift if you’ve included your organization in your will or trust.

 Joy—the happiness that comes from doing something meaningful—is another aspect of making someone want to ensure that your organization lasts beyond them.  You might ask:  As you think about your philanthropy over the years, what has given you the most joy?  And then shape your response to their answer.

 “I loved when I was able to help poor school kids get books they may not otherwise have gotten” may—if you work for say a performing arts organization—make you wince and think: Uh oh.  But most of you have education programs that help with the same population.  And the arts are known to improve children’s educational outcomes. 

 But what if their response is really so far from what you do?  “I support an animal shelter and it makes me so happy that we are a no-kill facility.”  Which, mind you, is great, but not exactly what any of you do.  That’s when this all important question comes into play: 

“That sounds wonderful.  Can you tell me more?” 

Tell me more allows people to talk about yes, their values and what brings them joy.  And in this way, you get to know them, know what truly moves and matters to them, and help them to make a meaningful planned (or truthfully, any) gift.

 Sometimes, of course, you are not talking with an existing donor—what do you do when it’s a first or second meeting with someone who is not yet engaged with you?

I would ask similar questions—those geared to getting to know them:

How did you learn about us?

                  Based on what you know, what appeals to you about what we do?

                  What do you need to know more about?

 But I might not yet start talking about leaving a legacy or making a planned gift.  The yet here is important.  That conversation would happen at the latest at the time I was asking for the current gift.  But honestly, better to bring up the possibility sooner rather than later.

 How might you introduce the idea of leaving a legacy for your organization to a newer donor?

 How about:“Many of our donors believe that what we do adds so much value to their lives that they want to make sure that we can continue to for their kids and their kids”

 You're probably not prospecting for planned givers, but as you are prospecting for donors, you want to remind them that they can make a planned gift and plant that seed

 Planned gifts are often ways that a donor can make a much larger gift than they might be able to do currently.  And if the donor likes the idea of an integrated gift—part done so the money is available now and some available down the line, sometimes very far down the line, unless you are the PG officer, it is time to bring those professionals in. 

I once had a donor who told me that he wanted to make a significant gift to us AND that he was drowning in appreciated stock.  I told him—and I was always a pretty frank fundraiser who did not try to cover up what my job was—that I wanted to do two things:  One was to talk more about that significant gift; the second was to call my planned giving department and set up a time for them to get together to talk about the best way to handle all that appreciated stock.  The planned giving officer and I stayed closely in touch, and we were able to make a joint proposal that made this donor very happy.  And, I might add, made us even happier.

But what if you don’t have a planned giving department?  No worries.  Make sure you have connected with planned giving attorneys, CPAs, Financial Planners.  And ask them for help.

 Sometimes, however, a person will say “Oh, I’ve already made your organization part of my estate plan.” Which is great and you still have more work to do.

 Most PG are revocable.  That means, the donor can change their mind.  Usually, they don’t, but you never know.  You want to make sure that what the donor promises, the donor will actually give and ensure that these planned gifts are irrevocable. 

 “Can I set up a meeting with our president so we can make sure that the gift is set up in the best possible way for you?” Is a wonderful question to ask.  Your president may not know a whole lot more than you do, but it cements the relationship.

 Even if they are not willing, it is important that the right people know about his promise so they can keep on top of it.

 And finally, sometimes someone will tell you that a planned gift is definitely not something they are interested in. 

 I’m a big believer that except for dating, no is never really no.  It may be not now, not for this project, wrong time, wrong amount.  It may even be that you are the wrong person to be asking. 

 “Tell me more” is great here also.  As is asking them if they have made arrangements for what happens to their assets when they die (or if like too many Americans you don’t want to use that “D” word, pass on, are no longer around-whatever euphemism feels good to you—but do always remember this isn’t really about death, it is about leaving a legacy and ensuring that what they value lives on). 

 They may simply say no and cut off anything else you want to say, but I’ve had some fascinating conversations with donors who have told me things like they don’t want to think about it, or they think they are too young to worry.  And here is where being straightforward helps.  Because if they don’t want to think about it, they need to understand that if they don’t, the state will make the decision.  Which may be fine if you want to leave everything to your parents or your spouse, but if you don’t, well you need to do something that will ensure things will go where you want them to.  And as for being too young—alas, there is no guarantee how long you will live.  We’ve all known, heard about, read about people who die very young.  So much better to know that your estate is the way you want it to be.

 I hope you have realized that all donors are worth a conversation about how they can ensure that their generosity continues to support something that matters to them.  And all of your donors should be getting marketing materials that reinforce your message, telling them that as they are supporting your organization today, it would wonderful if they would also consider leaving a legacy and making a tomorrow gift.