By: Pierre Zarokian
PlannedGiving.com’s CEO, Viken Mikaelian, learned something while working for the University of Pennsylvania’s Office of Development in 1992. Despite the vast resources at the disposal of large nonprofit organizations, they appeared to be neglecting one important aspect of fundraising: planned giving and legacy gifts. Even today, estimates suggest that only around 1% of nonprofit organizations have a dedicated planned giving program that they are actively marketing to potential donors. Given projected economic trends, nonprofit organizations may benefit from addressing this area more strategically to avoid missing out on a significant fundraising opportunity.
The numbers indicate that within the next two decades, Gen X and Millennial individuals stand to inherit trillions of dollars in assets. Some economists have estimated that inheritances could total around $72 trillion in assets for Gen X and Millennials, while Bank of America has suggested an even higher estimate of $129 trillion in assets.
While the economy prepares for changes as family wealth transitions at an unprecedented rate, Mikaelian suggests that nonprofit organizations should be among those considering ways to engage with these transfers of wealth. “Many nonprofits may need guidance in setting goals to achieve new heights. Planned giving can play a role in that,” he emphasizes. Planned giving represents a significant potential for wealth transfer, making effective planned giving marketing a potentially valuable tool for the sustainability of nonprofits in the next two decades. While nonprofit organizations may recognize the benefits of legacy gifts, many have yet to overcome the social hesitations associated with asking for donations through a person’s will.
However, organizations like PlannedGiving.com are demonstrating that marketing planned giving programs does not have to be awkward, stilted, or complicated. Mikaelian favors an approach to marketing that is warm, personal, and educational. “Planned giving is a people business. It’s about relationships,” he explains. “While other vendors lead with attorneys, legal language, and esoteric details about planned giving vehicles, we focus on simplifying the language so that donors are attracted to the gifts, see the opportunity to create a lasting legacy, and feel the desire to become a bigger part of a nonprofit’s ‘family.’”
In tandem with its personal approach, PlannedGiving.com has also worked to educate potential donors on the importance of estate planning. More than half of Americans have not written a will or considered the possibility of specifying legacy gifts in their wills. In response, the company aims to show people how planned giving can fit into their estate planning process in a simple, straightforward manner.
PlannedGiving.com also emphasizes the importance of nonprofit organizations having a planned giving website. Some nonprofits may not have considered this as an option due to the misconception that seniors, their primary target audience for planned giving, are resistant to using the latest technologies. Studies indicate that the majority of seniors regularly use the Internet, making online marketing an increasingly relevant aspect of planned giving outreach.
By adopting new marketing methods, nonprofit organizations may be better positioned to take advantage of the unique opportunities presented by the “Great Wealth Transfer.” Nonprofits may increasingly recognize the value of planned giving over time as they recognize the importance of this strategy in fulfilling their missions. Those who take proactive steps to educate their donors, refine their messaging, and integrate online strategies may find themselves better prepared for the coming shift in wealth. Legacy gifts have the potential to create la asting impact, supporting vital causes for future generations. Now could be an opportune time for nonprofits to embrace planned giving as a core fundraising strategy, fostering deeper relationships with donors and reinforcing their financial sustainability in an evolving philanthropic landscape.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial, legal, or estate planning advice. Nonprofit organizations and individuals considering planned giving strategies should consult with qualified professionals to assess their specific needs and circumstances.
Published by Tom W.
