Hope mural

How 13 Nonprofit Donors Yields a $1 Million Philanthropic Legacy

Hope mural13 happens to be my lucky number. I want it to be lucky for you too.

Today, I’m going to reveal to you how you can make this happen.

A recent survey of wills reported on by the Chronicle of Philanthropy reveals the average bequest by everyday donors is $78,630.

Some people will leave less; some people will leave more. What this survey reveals, however, is you only need 12 to 13 donors making a provision for your organization in their will to reap $1 million.

If a major gift for your organization is $1000 (or even 5000 or 10,000), I imagine this sounds off the charts to you. Guess what?

Legacy giving is off the charts!

In fact, bequest marketing produces the highest ROI (return on investment) of any fundraising activity.

The first step to making this happen for your organization is to encourage bequests. Actively.

Promote Charitable Bequests, or Else

If you don’t actively encourage charitable bequests, people are unlikely to make them.

Why? There are three primary reasons:

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Treat Nonprofit Board and Donors Like Family. Or Else.

Family, diverse, on stoopPeople are more generous when they feel more connected.

Like members of your community. Or, if you will, your family.

This isn’t just an opinion;

In fact, it’s documented in a study in the Personality and Social Psychology Bulletin.

The study found people have three basic psychological needs: relatedness, competence, and autonomy.

Today I want to examine relatedness and autonomy as they connect to success in fundraising.

Relatedness

Relatedness is particularly important for promoting pro-social behavior. Like philanthropy. The study found certain words — community, together, connected, and relationship — invoked feelings of relatedness.

Sharing feelings of relatedness also promotes pro-social behavior. This is why asking donors to share their own stories about why they volunteer, give or help in any other way is an effective fundraising strategy. Likewise, when you share with donors how you feel related to them this will make them feel good about how they’re affiliating with you.

4 Action Steps to Invoke Relatedness to Trigger Philanthropy

Here are strategies to engender feelings of being part of a family or community:

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Legacy Gifts Don’t Usually Fall From the Sky

If you’ve been around ten years or more, and have demonstrated you have staying power, it’s time to start thinking about promoting legacy giving. And not just a little. A lot.

Even during a pandemic. Why?

Because once you have a steady stream of legacy gifts maturing, you’ve secured your nonprofit’s future — in good times and bad. Not 100% of course. You’ll still need to continue with annual fundraising. But you’ll be confident in the knowledge that every year or so unanticipated income will flow into your nonprofit’s coffers, like a windfall from heaven. In fact, after a while you’ll even be able to conservatively budget for a certain amount of bequest income (based on your averages) each year.

Legacy gifts can be quite transformative for the financial trajectory of your nonprofit. Think about this for a minute. While not every bequest will be six or seven figures, it’s rare to see a two or three figure bequest. They’re all major gifts!

Except… legacy gifts won’t usually fall from the sky unless you seed the clouds.

So let’s take a look at how to do that.

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How to Help Donors Give Astutely Before Year-End

I’ve written about some of the new charitable deduction opportunities included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act signed on March 27, 2020 before. But a recent post shared by Greg Warner of Market Smart — Dr. Russell James’ tips to help donors give wisely before this year ends — plus a recent conversation with a financial advisor, reminded me it’s a very good time to share with you again.

You see, there are several things that will impact donor deductions – THIS YEAR ONLY. It’s good for you to be aware of these as a fundraiser, because making your supporters mindful of these opportunities may lead to them making more, and larger, gifts to your organization.

Of course, you’re not in the business of offering legal, tax or financial advice.  And it’s easier to tell yourself donors’ own advisors will likely tell them about these new provisions. And that “this isn’t really your responsibility.” Yet…

Not all of your donors have their own accountants or financial advisors.

And not all tax advisors are up to snuff, especially when it comes to charitable deductions. Do you want to risk not receiving generous gifts you could have otherwise received, just because you’re too lazy to share this useful information?

The Genuine Job of the Philanthropy Facilitator

Sorry about using that “L” word, but too many fundraisers (IMHO) don’t 100% understand their job as a philanthropy facilitator. Do you?

Your job is to do everything within your power to make giving easy, joyful and meaningful for your supporters. Everything. Doing everything means

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At the Intersection of Major and Planned Giving: Moving to Asset-Based Philanthropy

Most organizations, large or small, public or private, local or national, arrive at the intersection where major gifts and planned gifts cross, come into question, or even merge. Which road should they take? Should the major gift officer learn planned giving? Should the planned giving officer become a major gift officer? What business mo will…

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Inspiring chalk drawing

Should Your Nonprofit Legacy Program Be on Hold?

You may feel talking about mortality right now is a big ‘no-no.’

You’d be wrong.

I know some of you will argue with me. I’ve already seen one fundraising guru (who I generally admire greatly) say this is the only type of fundraising they’d not recommend right now. They called it ‘creepy.’

I understand the impulse to avoid this subject.

Especially now. Because it may feel insensitive. A bit like ambulance chasing.

Yet that’s not what legacy philanthropy is about. Not today. Not ever.

What’s Different in an Era of Pandemic?

Honestly, nothing. At least in this particular area of fundraising. Other stuff must be postponed or canceled, sure.

  • You may have to put your events on hold.
  • You may have to put planned spring and summer appeals on hold (assuming they were targeted for particular programs that don’t seem relevant or urgent at this point in time.)
  • You may have to put targeted legacy giving mailings on hold.

You don’t have to stop promoting meaningful legacy giving.

Why?

Because right now we’re all questioning the meaning of life. And our individual lives in particular. What can we do, as individuals, to make a difference? Not just today, but for tomorrow?  What will our legacy be?

Whether we live or die, we’re all thinking about what life will be like on this planet moving forward.  Yes, we’re in a pandemic. It’s scary and uncomfortable as all get out. Yet, let’s face it. People are seldom comfortable confronting the notion of their own death. Nevertheless death is as natural as birth. It’s inevitable, sooner or later, for everyone. Of course, we all hope for later.

Promoting legacy giving is not about actively seeking out folks on the verge of death and asking them to sign their estate over to you.  That would, indeed, be crass. Again, legacy giving programs are not ambulance chasing! And, anyway, most of your supporters are not sick. Most will survive. Yet…

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Easy-to-Implement Legacy Giving Strategies for Small Nonprofits – Do’s and Don’ts

A society grows great... legacy quotationYou’re stretched thin.

Competition for philanthropic dollars has intensified. You know long-term survival depends on strengthening revenue streams.

What are you doing about it?

If you’re like too many nonprofits, you’re missing what’s right in front of your eyes: legacy giving.

The lion’s share of philanthropy in the U.S. comes from individuals. Nearly 70% of people make gifts to charity during their lifetimes; only 10% leave a bequest. Why? No one asks them!

It turns out that the act of asking makes a huge difference. And don’t tell me you can’t ask because you’re too small or understaffed.

Just because you can’t afford (or aren’t quite ready yet) to mount a full-on legacy giving campaign is no excuse to avoid the basics.

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