Created By: Victoria Becker, Sarah May Campbell, and Caitlin RettaliataNovember 15, 2023 Nonprofit organizations across the sector, and independent schools in particular, often channel their energy into annual funds and major gifts during fundraising campaigns. However, planned giving, which is sometimes relegated to the sidelines, holds significant untapped potential. Contrary to the misconception that it’s a luxury reserved for well-funded teams, more institutions are recognizing the value of incorporating planned giving into their fundraising programs. Orr Group recently convened a group of independent school advancement leaders from Baltimore and surrounding areas to share ideas and learn from each other about how these institutions are incorporating planned giving into their strategies. We were honored to be joined by co-host Lynne Brynes, Director of Stewardship and Planned Giving at the Bryn Mawr School, as well as 15 other independent schools in the area whose planned giving programs ranged in maturity from ‘fully-fledged’ to ‘just getting started’. The perspectives shared were just as varied. Attending organizations included Archbishop Spalding High School, Boys’ Latin School of Maryland, Bryn Mawr School, Calvert School, Friends School of Baltimore, Garrison Forest School, Gilman School, Key School, Loyola Blakefield, Maryvale Preparatory School, Notre Dame Preparatory School, St. James Academy, St, Paul’s Schools, Waldorf School of Baltimore. Below are several key questions attendees brought to the table, and the answers that came out of our robust conversation. 1. How do you get your Board on board with planned giving? Many advancement officers expressed a struggle with convincing their Board “why” they should be investing in a planned giving program. Demonstrating the return on investment (ROI) is crucial in gaining the support of your board. Showcase how planned giving translates into an increase in cash flow now, supporting both immediate needs and future initiatives. When making your case, be sure to emphasize the following points: Long-Term Planning for Success A strong planned giving program is akin to planting seeds for a flourishing future. It provides a stable foundation for the organization, ensuring its longevity and sustained impact. And in an ever-changing economic landscape, planned giving offers stability. It allows your organization to weather financial uncertainties and adapt to economic shifts. Increased Cash Flow from PG Donors Planned giving isn’t just about the future; it can bring immediate benefits. By cultivating relationships with donors who include your organization in their estate plans, you can secure a reliable source of funds that helps meet current needs. Planned giving has been found to trigger a 75% increase in annual gifts, with bequest donors increasing their annual giving by more than $3,000 in the following years. Those who have shown their commitment through an estate gift tend to be more inclined to support the organization’s current needs so they can start to see the impact of their giving during their lifetime. Increased Capacity for Campaign Goals Incorporating planned giving with intentionality at the outset of a campaign equips your organization with the capacity to take on ambitious campaign goals. It provides the financial backing needed for projects ranging from infrastructure development to program expansion. Be sure to strike a balance between immediate financial needs, such as capital projects, and the capacity to defer funds. This thoughtful approach ensures that your organization can thrive both in the present and the future. 2. For those just starting out, how do you start a planned giving program with no budget? And for those more established, what elements are a part of your program? Small Ways Even with limited resources, there are simple yet effective ways to introduce planned giving. A dedicated section on your website and a series of targeted marketing emails or annual appeals can subtly promote this option to your supporters. If you don’t have a planned giving program in place, consider this an opportunity to evaluate interest within the community and begin educating donors about alternative ways they can support and heighten their impact with a simple bequest intention. Medium Ways Allocate part of a Full-Time Equivalent (FTE) to planned giving, establish comprehensive documentation and policies, invest in staff training, and implement donor education initiatives. These steps create a solid foundation for integrating planned giving into your organizational culture and overall development approach. Big Ways Elevate planned giving by making it a board requirement, organizing special events, creating exclusive societies for legacy donors, and integrating it into broader campaigns. This not only raises awareness among constituents but also positions planned giving as a pivotal aspect of your organization’s fundraising strategy. You can also begin to incorporate more complex planned giving vehicles, such as charitable gift annuities, life insurance, and gifts of stock. Beyond their philanthropic impact, these vehicles are great conversation starters and cultivation tools for finance-minded donors who view philanthropy as an investment to both maximize their assets and leave a lasting mark. 3. Who are you targeting for planned gifts, and how are you approaching them? Many organizations are starting to have planned giving conversations with constituents as early as 40 years old, and some even earlier. For those organizations looking to document and count bequest gifts towards your campaign and fundraising goals, consider focusing on those aged 65 and older. Identify consistent donors over the last decade and individuals in the process of will writing. Those without dependents can also be strategic targets for planned giving. What about alumni vs. parents? Targeting alumni for planned giving can be particularly effective. Alumni often have a deep connection to the institution and may be more inclined to contribute to its long-term success. When engaging past parents in planned giving, consider requesting a gift in honor of their children to add a personal touch. Highlighting the impact on future generations can be a compelling motivator. 4. Are you documenting your bequests, and if so, what information are you including in your documentation? Any major gift intention or endowed bequest gift should be documented. Choose a level that’s right for your organization, such as gifts over $100k. Create a gift agreement like you would for any major or endowed gift that includes the donor’s intention, naming (if applicable), and an estimated amount. Request that the donor share with you the first, last, and relevant pages (those that mention your organization) of their will. Emphasize the importance of ensuring the donor’s intentions are accurately captured while they are still present, fostering a sense of continuity and impact. When tracking bequests internally, it’s crucial to capture essential details such as the estimated gift amount and the donor’s age. These details provide a comprehensive understanding of your planned giving landscape. As was evident throughout our conversation, planned giving isn’t just a strategy for well-endowed institutions; it’s a dynamic tool that can be tailored to suit the unique needs and capacities of independent schools and nonprofits, wherever they are in their journey. By embracing planned giving as an integral part of your fundraising program, you’re not just securing financial support for today, but laying the groundwork for a resilient and impactful future. It’s never too late to develop a planned giving strategy. Orr Group has the expertise to support your organization in all areas of planned giving, from strategy development to management and administration. Get in touch with us to learn more. Contact Us Victoria Becker is an Associate Director at Orr Group. Victoria collaborates with our partners to develop and execute fundraising strategies and drive revenue to enhance programs and services. Victoria specializes in fundraising campaigns and crafting effective messaging. Sarah May Campbell is a Director at Orr Group, specializing in planned giving strategy, major and principal gifts, stewardship, and donor relations. Caitlin Rettaliata is a Director at Orr Group. Caitlin partners with nonprofits to develop, implement, and execute innovative fundraising strategies with a specialty in leading development operations.
Planned Gifts: A Blueprint For Nonprofit Fundraising Success Published Date 2025 Planned Gifts: A Blueprint For Nonprofit Fundraising Success Created By: Steve Orr Updated May 7, 2025 Planned giving is a fundraising opportunity worth trillions that nonprofit teams can—and should—leverage. The Great Wealth Transfer (the mass transfer of $124 trillion from baby boomers to younger generations through 2048) represents more than a financial shift; it’s a critical opportunity for nonprofit organizations to harness the power of planned giving. In fact, experts expect $18 trillion to be donated directly to nonprofits. By integrating planned giving into their fundraising strategies, organizations can take advantage of this massive opportunity, ensuring 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. In this guide, we’ll define how planned giving works and explore essential best practices so your organization can cultivate a thoughtful, strategic, and lucrative planned giving approach. What is planned giving? Types of Planned Gifts Preparing Your Team for Planned Giving More Best Practices for Collecting Planned Gifts What is planned giving? Planned giving is when donors set money or assets aside to be donated to charitable causes in the future, either after a set amount of time or after they pass away. The Benefits of Integrating Planned Giving into Your Fundraising Program Unlike fundraising strategies that prioritize immediate returns, planned giving plays a critical role in building long-term sustainability. These future-focused gifts can unlock powerful, lasting benefits for nonprofits, including: Long-term financial stability. Planned giving creates a reliable, future-focused revenue stream that helps nonprofits weather uncertainty and plan confidently for what’s ahead. Increased donor engagement. Making a legacy commitment is a deeply personal and thoughtful act. It can strengthen a donor’s connection to your mission and increase their sense of loyalty as they shape the impact they’ll leave behind. Identify new prospects. Planned giving can attract donors with non-liquid assets, opening up a new pool of prospects. It also creates opportunities to deepen relationships with current and future supporters. Some gift types offer tax advantages, like capital gains exemptions, making participation more appealing for donors and beneficial for your organization. Support for large projects or endowments. Like capital campaigns, planned gifts are often larger than everyday contributions (studies show that a planned gift is 200 to 300 times the size of a donor’s largest annual gift), making them ideal for supporting large projects. Stewardship opportunities past the donor’s lifetime. Even once a donor passes away, a planned giving commitment allows your nonprofit to convey the donor’s impact to their loved ones, and you could potentially earn new supporters in the process. Planned giving is a powerful way for donors to help advance your mission for years to come. To harness the transformative potential of planned gifts, your organization must educate your donors about leveraging this opportunity and support them through the process (more on that later). Types of Planned Gifts While planned giving is far more nuanced in practice, below are some common types of planned gifts you might receive: Type of Planned GiftDescriptionDonor BenefitsTimelineExampleBequestsGift made through the donor’s will or trust after their passing.Estate tax deduction, more control over assets during life Deferred (after donor’s passing)Donor specifies 10% of their estate will be donated after their passingGifts of life insuranceGift made when a donor’s life insurance policy is paid out.Premium payments are tax-deductible.Deferred Donor names a nonprofit as a beneficiary that receives 10% of the policy payout upon their passingRetained life estatesDonor transfers property to a nonprofit but retains the right to live there until their passing.Charitable donation benefits while still retaining a residenceDeferred While the donor is still alive, they add the nonprofit to the deed so the nonprofit gets ownership rights when they pass. Charitable gift annuities (CGA)Donor contributes to a nonprofit in exchange for a fixed income payment for life.Donors can reduce income taxes and avoid capital gains taxes.Lifetime of the donorDonor contributes $60,000 for an annuity of $500 per year for the rest of their lifeCharitable remainder trusts (CRT)Donor contributes appreciated assets in a trust in exchange for a fixed income payment based on the original contribution’s value, and the nonprofit gets the remainder.Donors can reduce income taxes and avoid capital gains taxes.Lifetime of the donor or other specified termDonor donates $60,000 to a CRT with an annual income payment of $3,000 (5%) per year. The nonprofit keeps the leftover money from the trust upon the donor’s passing.Charitable lead trust (CLT)Opposite of a CRT; donor funds a trust that provides income to a charity for a set period. After said period, the remaining assets go back to the donor’s heirs.Potential estate tax savings on top of tax-deductible donationIncome to charity for a set period during the donor’s lifetime Donor contributes $60,000 to a CLT, which provides the nonprofit with $3,000 (5%) per year for 10 years. After 10 years, the remaining amount in the trust goes back to the donor’s heirs. Gifts of securitiesDonor contributes appreciated assets (like stocks or bonds) to a nonprofit.Donor avoids capital gains taxes and receives a charitable tax deductionImmediate transfer and the nonprofit sells the assetsDonor contributes $60,000 in appreciated stock to a nonprofit, avoiding paying taxes on the appreciated revenue.Pooled income fundsDonors contribute to a communal fund, receiving income based on the value of the original gift for life. Donor receives income for life, a charitable tax deduction, and can be part of a greater impact.Lifetime of the donorDonor contributes $10,000 to a pooled fund worth $200,000. They receive 5% of the total income paid out. Preparing Your Team for Planned Giving Planned giving is a complex strategic endeavor, representing a donor’s lifetime of financial planning and charitable intent. Therefore, a proactive and structured approach is crucial to meet donors where they are and anticipate future impacts. Yet even with the best intentions, many organizations struggle to fully prepare for the intricacies of planned giving. Success requires more than a plan on paper—it demands organizational alignment, internal readiness, and a shared commitment to integrating planned giving into daily practices. The following steps can help you lay the groundwork for a sustainable and successful program.: 1. Collaborate with the Executive Team To fully align your strategy across teams, your leadership team must be heavily involved with the process from day one. This includes your Chief Development Officer, Chief Operational Officer, Chief Financial Officer, and investment committee. These leaders ensure that the strategies you develop are sustainable, compliant with financial regulations, and properly positioned with your organization’s long-term goals. Moreover, 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, ensures successful service and program delivery, and establishes metrics and processes to set realistic goals and maintain accountability. To collaborate effectively with the executive team, you’ll need to: Set regular meetings with them to provide updates on your program and review new opportunities in the planned giving space. Establish messaging guidelines to instruct executives on how to discuss and promote planned giving opportunities with donors. Create a clear action plan so executives understand their role in your planned giving process. Regardless of your nonprofit’s scope or available resources, the end goal of this step should be to secure buy-in from the most important decision-makers on your team. Provide a clear value proposition and answer any questions to steer your team in the right direction. 2. Build Your Planned Giving Program Framework Now that you’ve involved your executives in your planned giving strategy, it's time to define the fine print of your planned giving program. To be truly prepared for planned giving success, ensure your framework outlines the following elements: Program structure. Defining your program’s structure helps get it up and running by determining resource allocation, project goals, types of planned gifts you’ll focus on collecting, donor engagement strategies, and responsibilities of key team members. Policies for planned gift acceptance. Decide which types of gifts you’ll accept, how the gifts are valued, and which restrictions or conditions are attached. Ensure these policies align with ethical standards and your nonprofit’s mission. Necessary management infrastructure. Analyze your current capacity and resources to understand if you’ll need additional support (such as more staff members or a new team structure) to manage the program. Strategic partners. To facilitate your planned giving program, your nonprofit might work with financial advisors, planned giving experts, general fundraising consultants, attorneys, and more. Start building a network of partners to help your efforts go off without a hitch. As you develop these fundamental policies, collect input from executives across the team to gain various perspectives and keep everyone in the loop. 3. Educate the Whole Team Every department plays a pivotal role in your planned giving program’s success. With executive collaboration in place, the next step is to deepen your entire organization’s understanding of planned giving. Educating your entire team about planned giving requires a unique approach. Streamline your efforts by: Starting small. Even if your nonprofit has the resources to invest in a large program immediately, remember that you must build the groundwork first. Once you receive executive buy-in, begin by training your development and finance team members before providing nonprofit-wide training to refine your program. Encourage interdepartmental collaboration. Once you’ve trained those with the most prominent role in the planned giving program, involve the entire team in your program rollout. Develop department-specific training resources so everyone understands their unique responsibilities and is equipped to identify planned giving opportunities when they encounter them. Integrate planned giving into daily operations. Now that everyone is prepared to contribute toplanned giving success, you can ramp up your efforts and dedicate more time to planned giving strategies in your daily activities. Include planned giving messages in your communications with mid-level and major donors, and report on progress in your organization-wide meetings. Your team will undoubtedly have questions when implementing such a transformative giving initiative. Give them plenty of time to adjust, get the information they need, and become comfortable with your planned giving strategy. More Best Practices for Collecting Planned Gifts Your planned giving approach will depend on your nonprofit’s unique goals and strengths, but all organizations should keep these best practices in mind: Handle planned giving delicately. By its nature, planned giving can be a sensitive topic, and your team must handle it with care. When approaching prospects about deferred planned giving options, keep the focus on securing a legacy. Initiate these conversations strategically, timing-wise; pay attention to donors’ personal lives and giving behavior to avoid coming across as insensitive, pushy, or out of touch. Cross-promote planned giving with other fundraising strategies. Asking for planned gifts on their own can be challenging, but the conversation can start more organically when introduced alongside other asks. For instance, you might pitch planned giving opportunities as part of your capital campaign appeals, positioning them as a component of a long-term, proactive fundraising approach. Keep donors in the loop about future activities. Showing impact is critical for building donor trust, but it can be challenging for planned gift supporters to visualize their future impact. Keep them informed about future initiatives so they understand how you’ll use their donations. If you don’t know the exact programs or initiatives yet, speak about how you envision expanding your mission. Offer and maintain educational materials. If your supporters are aware of planned giving, they might have preconceived notions that can reduce their likelihood of donating. Create donor-facing materials that explain how planned giving works, the types of planned gifts you collect, and the benefits of participating. In addition to pamphlets and a page on your website, offer planned giving informational sessions where your senior leaders can walk interested donors through the process. As you roll out your planned giving program, watch how donors react and adjust your outreach approach. Also, collect their feedback to iterate on your efforts and align with their needs and preferences. Wrapping Up If you’re eager to get started with planned giving but need additional support, look no further than Orr Group. 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.
Leveraging IRA Distributions & Qualified Charitable Distributions To Maximize Year-End Giving Planned Giving Published Date 2024 Leveraging IRA Distributions & Qualified Charitable Distributions To Maximize Year-End Giving Explore how nonprofits can benefit from approaching their donors about utilizing IRA distributions and QCDs, and why the timing of these gifts is so crucial.
Exploring Planned Giving: The Rise Of Life Insurance As A Charitable Tool Planned Giving Published Date 2024 Exploring Planned Giving: The Rise Of Life Insurance As A Charitable Tool As we explore financially-savvy fundraising strategies, let's understand the opportunity that life insurance presents as a planned giving vehicle for donors and nonprofits.