Strategic Preparedness In Planned Giving: A Blueprint For Nonprofit Fundraising Success

Created By: Steve Orr
September 4, 2024

The Great Wealth Transfer represents more than a financial shift; it’s a critical opportunity for nonprofit organizations to harness the power of planned giving. By integrating planned giving into fundraising strategies, organizations can ensure long-term sustainability and transformative impact. In the current philanthropic climate, the question is not whether to incorporate planned giving, but how to do so effectively. This ‘how’ necessitates a thoughtful and strategic approach.

In our first article, we discussed the strategic imperative of planned giving. Now, we turn our focus to the crucial need for preparedness. As nonprofits face an unprecedented opportunity to secure long-term sustainability through planned giving, the importance of thorough planning cannot be underestimated.

The Need for Preparation

Planned giving is not just about good intentions; it’s a complex strategic endeavor. Many organizations are not equipped to handle the intricacies of planned gifts because they lack the necessary groundwork. Success in planned giving requires thorough planning and organizational readiness. Unlike one-time, or even annual donations, planned gifts represent a donor’s lifetime of financial planning and charitable intent. Therefore, a proactive and structured approach to planned giving is vital, allowing an organization to meet donors where they are and to anticipate future impacts.

A Multidimensional Approach to Organizational Readiness

Effective planned giving strategies require more than aspirational leadership or enthusiastic development teams. They need strategic alignment, operational capability, financial oversight, and governance. This means clear policies and procedures for accepting and managing planned gifts, responsible investment of these donations, and compliance with laws and ethical standards are crucial.

To successfully manage a planned giving program, it is crucial to involve not only the Chief Development Officer but also key leaders such as Chief Operational Officers, Chief Financial Officers, and investment committees early in the process. These leaders do not just bring financial acumen; they ensure that the strategies developed are sustainable, compliant with financial regulations, and aligned with the organization’s long-term goals. Their financial and operational expertise is essential for crafting gift acceptance policies, managing gifts, safeguarding organizational interests and ensuring ethical stewardship of donor intent.

Further, effective executive collaboration allows for clear communication of financial needs to donors, fosters a culture of collaboration, ensuring successful service and program delivery, and establishes metrics and processes to set realistic goals and maintain accountability. Every department plays a pivotal role in not only in the success of a planned giving program but also in achieving the organization’s broader mission.

An Enhanced Understanding of Planned Giving

With executive collaboration in place, the next step is to deepen your organization’s understanding of planned and non-cash giving. This involves exploring the possibilities for building a robust program, updating gift acceptance policies, and structuring a planned giving program that identifies the necessary partners and stewardship strategies needed for success. Additionally, it is crucial to understand which assets are to be accepted (e.g. bequests) and the giving vehicles donors can leverage (i.e. DAFs, CLATs, Premium Life Finance).

“When considering premium financed life insurance structures, it’s crucial for organizations to fully understand the complexities and opportunities these vehicles offer. Our legal expertise ensures nonprofits are well-prepared to navigate these sophisticated planned giving strategies.”

— Alex Burgess, VP & Principal, The Burgess Group

To be truly prepared for planned giving success, an organization must ensure that they have a framework in place that outlines the program structure, policies for gift acceptance, a list of strategic partners, and the necessary infrastructure, staffing, and administration to manage the program. With these elements in place, an organization can move from being simply prepared to being fully ready. By implementing structured, thoughtful strategies around planned giving, nonprofits can secure substantial future funding and build enduring relationships with donors. Preparedness is the first step towards leveraging the power of planned giving effectively, ensuring growth and sustained impact.

Orr Group applies a business mindset to provide sustainable, revenue-driving solutions for our nonprofit partners. Get in touch to learn more about our planned giving services, from strategy development to management and administration.

Steve Orr is the Co-Founder and Managing Partner of Orr Group. Steve draws from his investment banking and finance background to bring a problem-solving approach, a focus on metrics, and an outcomes-driven perspective to the nonprofit sector.