Legacy Giving Programs

If your nonprofit leaders ever say things like “Let’s be data-driven.” “Decisions should be evidence-based.” “Show me the numbers.” …then these are the numbers to start with: 2.3%. 60%. 77%. 6X. 50X. They all tell the same story: fundraising that focuses only on cash is stuck in the kiddie pool. Major gifts of assets (a.k.a., planned giving) move you into the ocean. This article collects previous posts explaining the numbers: ·       2.3% of household wealth is held in cash and checkable accounts; stop ignoring the other 97.7% ·       60% of the largest gifts to colleges included no cash ·       77% sustained increase in giving after estate commitment ·       6X faster growth in long-term contributions with asset-based fundraising ·       50X greater likelihood of making asset gifts among legacy society members If you want large, transformational gifts, the data all point in the same direction: move conversations from disposable income to wealth, from cash to assets. Here are the free books/audiobooks/videos to help you do it: The Storytelling Fundraiser (Chapter 6); The Socratic Fundraiser (Chapters 6 & 7); The Biblical Fundraiser (Chapter 4); Visual Planned Giving (All Chapters). All books are free to read at EncourageGenerosity .com https://lnkd.in/dAP9ZPVV or available in print at Amazon.

I once watched a major gift officer spend ninety minutes in a couple's living room and barely mention the organization he represented. He asked about their lives. Their careers. Their family. What kept them up at night. What gave them hope. The conversation wandered through one donor's childhood – growing up poor in rural Appalachia, a teacher who changed her trajectory by believing in her when no one else did. She talked about education with the kind of passion that only comes from lived experience. He didn't learn any of this from a wealth screening report or a donor database. He learned it by listening. Six months later, she made a transformational gift to fund scholarships for first-generation college students from rural communities. The ask wasn't hard. He simply invited her to do what she already wanted to do – in a way that aligned with what he'd learned about her values. That's what listening does. It creates the foundation for everything else. In the immortal words of Jerry Panas, "The true art of asking lies in listening." I've been in this work for more than thirty-five years. And over those decades, one pattern has become unmistakable: the major gift officers who consistently produce results – not one-time wins, but sustained, long-term generosity – share a common set of instincts. Chief among them is this: they lead with questions, not asks. But here's the uncomfortable truth. Most of our fundraising systems are designed to do the opposite. We assume we know what donors care about and broadcast it back to them through one-way messaging. We build systems for efficiency and scale – not for listening. And donors can tell. They know when they're being heard and when they're being sold. The difference is visceral. When you listen, donors lean in. When you talk at them, they pull away. This isn't just good fundraising technique. It's the donor's return on investment. When people ask "what's in it for the donor?" – this is part of the answer. The feeling of being valued. Of mattering. Of genuine connection. For many donors, that experience is as meaningful as the impact their gift creates. Listening is one of a fundraiser's most important skills. It's one of what I refer to as the Seven Behaviors – disciplines that define exceptional major gift work and that I believe must become the foundation of all fundraising. Not just for the top one percent. For every donor. These seven behaviors are at the heart of my upcoming book, 𝗔 𝗕𝗲𝘁𝘁𝗲𝗿 𝗪𝗮𝘆 𝘁𝗼 𝗙𝘂𝗻𝗱𝗿𝗮𝗶𝘀𝗲: 𝗧𝗿𝗲𝗮𝘁 𝗘𝘃𝗲𝗿𝘆 𝗗𝗼𝗻𝗼𝗿 𝗟𝗶𝗸𝗲 𝗮 𝗠𝗮𝗷𝗼𝗿 𝗗𝗼𝗻𝗼𝗿. The book argues that the technology now exists to operationalize these seven behaviors at scale, and that the future belongs to organizations that commit to extend these behaviors across their donor base and begin treating every donor with the dignity and respect they deserve – or, to put it simply, to treat every donor like a major donor. More to come... #aBetterWay

The 70-year-old donor who's given faithfully for 15 years has never been asked about including you in their will. You're leaving millions on the table. Let me paint you a picture of your biggest missed opportunity: Mrs. Henderson has donated $2,000 every year since 2009. She attends your events, volunteers at your fundraisers, and talks about your organization to her friends. She's 73 years old, has no children, and considers your mission part of her legacy. You've never once mentioned planned giving to her. You're so focused on her annual gift that you've ignored her lifetime gift. You're managing a $2,000 relationship when you could be stewarding a $200,000 opportunity. Meanwhile, Mrs. Henderson is getting planned giving materials from three other nonprofits she supports. They're having conversations about legacy and impact that extend beyond her lifetime. They're positioning themselves as worthy of her most significant gift. You're not even in the conversation. Here's what's tragic: Mrs. Henderson would love to leave a bequest to your organization. She's been waiting for someone to ask her about it. She's been hoping you'd recognize that her faithful giving indicates deeper commitment. But you've never brought it up because planned giving feels "too aggressive" or "too complicated" or "too morbid." Your discomfort with legacy conversations is costing your organization transformational gifts from your most loyal supporters. Stop treating your long-term donors like annual fund prospects. Start treating them like the legacy partners they want to become. Because in fundraising, the gifts that change everything often come from the donors you've known the longest, not the ones you are hoping to meet.

Every nonprofit leader I speak to sighs when I mention multi year funding. We all know the grind: you land a grant, celebrate for a moment, then rush straight back onto the hamster wheel looking for the next cheque. It is exhausting, and not sustainable. The good news is that multi year funding exists, and more funders are seeing that lasting change needs long term investment. But you cannot pitch it the same way as a one year project. You need to show three things: Purpose, People and Proximity. Purpose: Funders back clarity. Spell out the long term difference your work will make and why their support matters over several years, not just twelve months. People: Demonstrate capacity. Show that your team, systems, and governance can spend and govern resources responsibly and adapt as the work scales. Multi year support is about trust. Donors want to see that you have the right people in place to deliver. Proximity: Bring funders close to the story. Share evidence of strong relationships with communities and partners, and invite funders into that journey. The closer they feel to the impact, the more willing they are to walk with you for the long haul. When you weave these three threads through your proposal, you give funders confidence that their commitment will multiply results over time. Multi year funding stabilises programmes, frees up energy for impact, and deepens relationships on both sides. Think of it like planting an orchard: one year’s grant buys seedlings, but three years of support nurtures trees sturdy enough to bear fruit season after season. 🌱🍊 How are you positioning your organisation for multi year funding?

The majority of your current donors will be gone within 20 years. That isn’t morbid. It’s demographics. And it should affect how you lead. In one recent donor file review, a client realized that well over half of their most loyal donors were already past traditional retirement age. For years, they had thanked them for annual gifts but had never invited them to consider a legacy gift. Not because they were indifferent, but because they didn’t want to “make anyone uncomfortable.” They "didn't want to talk about death." Here are the facts: - Avoiding legacy conversations doesn’t protect relationships. It simply ensures that many donors will never be asked to make the most meaningful gift of their lives. A thriving legacy giving program is not about pushing complex tax tools. It’s about three simple commitments: - Honor your donors’ stories. Give them space to reflect on what shaped them and how they want to be remembered through their giving. - Normalize the conversation. Talk about bequests, beneficiary designations, and endowments the same way you talk about monthly giving or major gifts, as a natural next step in a generous life. - Protect your mission’s future. Use legacy commitments to build reserves and endowments so the people you serve aren’t at the mercy of next year’s budget or the next downturn. If most of your donors will be gone within two decades, the real question isn’t, “Should we build a legacy program?” It’s: When will your donors hear from you about it? #PlannedGiving #Fundraising #Nonprofits #Endowment #Legacy

Charitable giving is a great tax savings strategy implemented by many philanthropists with big pockets. Some of the best methods: 1. Donate appreciated assets directly to charities. If you donate stocks, bonds, real estate, or other long-term appreciated assets (held over a year), you avoid owing capital gains taxes on appreciation and can deduct the full fair market value as a charitable deduction (generally up to 30% of your adjusted gross income). 2. Use donor-advised funds (DAFs). Contribute cash or appreciated assets to a DAF and take an immediate deduction, while retaining flexibility to advise on distributions to charities in future years. The assets can grow tax-free within the fund, and DAFs make “bunching” or multi-year donation strategies easier. 3. Bunch or aggregate multiple years of giving. Concentrate several years’ worth of donations into a single tax year to exceed the standard deduction threshold, allowing you to itemize and maximize deductions in higher-income years, then claim the standard deduction in off years. 4. Make qualified charitable distributions (QCDs) from IRAs (age 70½+). QCDs go directly from your IRA to a charity, counting towards required minimum distributions but not increasing taxable income. These aren't deductions - they lower your adjusted gross income and potentially reduce the taxes paid on Social Security and Medicare premiums. 5. Charitable estate planning. Designate charities as beneficiaries in your will, retirement plans, or trusts, effectively removing those assets from your taxable estate and possibly reducing or eliminating estate taxes. 6. Charitable trusts. For complex or large giving plans, vehicles such as charitable remainder trusts and charitable lead trusts can provide income, generate immediate tax deductions, and ultimately benefit charitable organizations.

There are two things everyone should know about charitable donations—and they can make a huge impact on your financial planning. First, charitable donations can mitigate up to 75% of your net personal taxable income and can be a corporate tax dedcution each year. And if you don’t use the full amount, you can carry forward those credits for up to 5 years. But here’s the game-changer that most people don’t know: Charitable donations on death can eliminate 100% of estate taxes. That’s right. Let’s say you’ve done an estate freeze on a business valued at $50 million. You’re facing a $10 million tax bill. Instead of scrambling for ways to cover that tax, why not use charitable donations as your strategy? Imagine creating a $20 million insurance policy—on a cash-flow-neutral basis—and donating that to charity upon your passing. You’d receive a charitable receipt for the full $20 million, wiping out your $10 million tax liability and leaving your legacy intact. Now, instead of writing a check to the tax department, you’re remembered for your generosity and the lasting impact you made. This is the power of incorporating strategic philanthropy using life insurance into your estate planning. It’s about protecting your wealth, reducing taxes, and ensuring your legacy lives on in the most meaningful way possible. - Follow Mark Halpern CFP, TEP, MFA-P for all things Estate Planning, Life Insurance, Strategic Philanthropy and Tax Mitigation. I’m on a mission to create $1B dollars a year of charity and to help you go from Success to Significance.

Ever wonder why nonprofits seem to be in constant fundraising mode? After two years of helping organizations build sustainable giving programs behind the scenes, I discovered an uncomfortable truth: They have to be. Because here's what happens with traditional giving: A passionate supporter makes a generous $50 donation in December. The nonprofit puts it to immediate, meaningful use. Then January comes. February. March. And that same nonprofit now has to spend precious time and resources—up to 5 times more [Network for Good is now Bonterra, 2022]—trying to reconnect with that donor instead of focusing on their mission. This isn't just about numbers. It's about missed opportunities for real, lasting change. A one-time $50 gift is meaningful - it might provide emergency groceries to a family tonight. But when that same donor gives $5 monthly, something transformational happens. The nonprofit can now: 👏 Count on that $60 annually (with monthly donors typically staying for an average of 8+ years!!) [Neon One Recurring Giving Report 2024] 👏 Spend less time fundraising, more time serving 👏 Make bold, long-term commitments to communities 👏 Say "yes" to opportunities for growth The data is clear: Monthly donors have a retention rate of 90% compared to just 45% for one-time donors, and they give 42% more per year on average [Blackbaud Institute, 2023]. This giving season, I'm asking you to consider something powerful: Could you convert what would have been a one-time gift into a monthly commitment? Even if it's just $5 or $10 a month? You're not just giving money. You're giving stability. Confidence. The ability to plan for real, systemic change. You're saying, "I believe in your long-term vision." Who's ready to transform their impact through monthly giving? I'd love to hear about the causes you're committing to support month after month. #NonprofitImpact #MonthlyGiving #SocialChange #RecurringDonors

The rules under OBBBA change the math on charitable giving starting in 2026. Two new limits kick in: a charitable “floor” that blocks the first 0.5 percent of your contribution base each year, and a 2/37 phase-out that trims itemized deductions once you hit the top bracket. The takeaway is blunt: a charitable dollar given in 2025 is worth more than the same dollar given in 2026. Spreading gifts over multiple years means getting hit by the floor repeatedly. Bunching gifts into one year minimizes the haircut and can boost the actual deduction dramatically. Lifetime giving also beats waiting for a charitable bequest. It reduces your estate, generates income tax savings now, and lets you see the impact while you’re here to enjoy it. If philanthropy is part of your long-term plan, this is the moment to re-run the numbers and rethink your timing. #OBBBA #CharitableGiving #TaxPlanning #PrivateWealth #EstatePlanning #WealthManagement #HighNetWorth #TaxStrategy #Philanthropy

Short-term fundraising can feel like a never-ending sprint. But what if there was a strategy that offers something many nonprofits urgently need: long-term stability? In the latest episode of Nonprofit Nation, I sat down with Tony Martignetti, the “Planned Giving Evangelist” and host of Tony Martignetti Nonprofit Radio, to talk about why planned giving is within reach for organizations of all sizes, not just large institutions. With nearly three decades of experience and over $150 million raised through planned gifts, Tony shares: 🔍 Why planned giving is more relevant than ever 🧰 How to start (or restart) a program without needing a big team 📣 Communicating about legacy gifts in a way that resonates 👥 Identifying and building relationships with potential donors 📈 The role of planned giving in long-term financial health Whether you’re just beginning or looking to refocus your efforts, this episode offers grounded, practical guidance. 🎧 Listen here: https://lnkd.in/e_tJ89NF