Legacy fundraising is a powerful strategy that allows nonprofits and charitable organizations to secure long-term financial support by harnessing the generosity of individuals through wills, bequests, and other planned giving options. This unique approach not only honors the legacies of donors but also ensures the sustainability and growth of organizations dedicated to making a positive impact in the world. In this comprehensive guide, we will explore what legacy fundraising is, how it works, and provide you with best practices to implement this strategy effectively.
Understanding Legacy Fundraising
Legacy fundraising, also known as planned giving or gift planning, involves encouraging donors to leave a lasting contribution to a nonprofit organization through their wills or other planned giving vehicles. These contributions can include cash, property, securities, or a percentage of the donor’s estate. By including a nonprofit organization as a beneficiary, individuals can make a significant impact on causes they care about, even beyond their lifetimes.
Legacy giving provides an avenue for individuals to leave a lasting legacy that aligns with their values and passions. It allows donors to support organizations and causes that have had a profound impact on their lives, ensuring their values continue to shape the world even after they are gone. For nonprofits, legacy fundraising offers stability, enabling them to plan for the future and invest in long-term initiatives with confidence.
How Does Legacy Fundraising Work?
Legacy fundraising follows a step-by-step process that includes the following key elements:
a) Cultivating Relationships: Building strong relationships with potential legacy donors is crucial. Take the time to understand their values, interests, and motivations for giving. Engage with them personally, sharing stories of impact and showcasing the organization’s vision for the future. By developing trust and a sense of connection, you can inspire donors to consider leaving a legacy gift.
b) Creating a Legacy Society: Establishing a dedicated legacy society allows you to recognize and engage with donors who have made a commitment to include your organization in their estate plans. This can include exclusive events, personalized communications, and recognition programs. Legacy societies provide a sense of belonging and community, fostering a deeper connection between donors and the organization.
c) Providing Education and Resources: Many potential legacy donors may not be aware of the various options available for planned giving. Offer educational materials, workshops, and seminars to inform them about the benefits and mechanics of legacy giving. Provide access to knowledgeable staff or volunteers who can answer questions and provide assistance in the estate planning process. Empower donors with the information they need to make informed decisions.
d) Developing a Marketing Strategy: Implement a comprehensive marketing strategy to raise awareness about legacy giving and inspire potential donors. Utilize various channels such as your website, social media platforms, newsletters, and direct mail campaigns to communicate the impact of legacy gifts. Share inspiring stories of individuals who have made a difference through planned giving, showcasing the transformative power of leaving a lasting legacy.
e) Collaborating with Professional Advisors: Legacy giving often involves complex legal and financial considerations. Partner with estate planning attorneys, financial planners, and other professional advisors to facilitate discussions about legacy giving and provide guidance to potential donors throughout the process. Establish relationships with these advisors, sharing information about your organization’s mission and giving options to ensure they can effectively communicate the benefits of legacy giving to their clients.
f) Stewardship and Recognition: Show sincere gratitude and recognition to donors who have included your organization in their estate plans. Develop a comprehensive stewardship plan that includes personalized acknowledgments, donor appreciation events, and regular updates on the impact of their gifts. Maintain ongoing communication with legacy donors, keeping them informed about the organization’s progress and ensuring they feel valued and connected.
Legacy Fundraising: Key Statistics
Understanding the impact and potential of legacy fundraising can provide valuable insights for nonprofits. Here are some key statistics:
- According to Giving USA 2021, charitable bequests in the United States reached $41.19 billion in 2020, accounting for 9% of total giving. Legacy giving continues to be a significant source of support for nonprofit organizations.
- A survey by the National Committee on Planned Giving reported that 78% of nonprofits in the U.S. received bequest gifts. This highlights the widespread adoption and success of legacy fundraising strategies.
- Research shows that the majority of bequest donors are over the age of 55. Engaging with older demographics becomes essential, as they are more likely to engage in estate planning and consider leaving a legacy gift.
Best Practices for Legacy Fundraising
Legacy fundraising requires a strategic approach that focuses on building personal connections, communicating effectively, and providing ongoing support to donors. By implementing best practices in legacy fundraising, nonprofit organizations can create a strong and sustainable program that nurtures relationships, educates donors, and ensures a lasting impact on their mission.
1. Build Personal Connections
At the core of successful legacy fundraising is the establishment of personal connections with potential donors. Taking the time to understand their values, interests, and motivations allows organizations to tailor their communication and engagement strategies accordingly. By showing a genuine interest in donors’ philanthropic goals and aspirations, nonprofits can build trust and develop long-lasting relationships.
2. Develop a Strong Case for Support
A crucial aspect of legacy fundraising is developing a compelling case for support. Nonprofits must clearly articulate their mission, vision, and impact in a way that resonates with potential legacy donors. By effectively communicating how planned giving aligns with donors’ values and provides a meaningful opportunity to leave a lasting legacy, organizations can inspire and motivate individuals to consider including them in their estate plans.
Sharing impactful stories of how legacy gifts have made a difference reinforces the transformative power of planned giving and encourages donors to envision the legacy they can leave.
3. Educate and Communicate
Education and communication play a vital role in legacy fundraising. Nonprofits should provide comprehensive resources, such as educational materials, workshops, and seminars, to guide donors through the process of planned giving. These resources should clearly explain the various options available, including bequests, charitable remainder trusts, and charitable gift annuities. By simplifying the complexities of estate planning and highlighting the benefits and ease of incorporating a nonprofit organization into a donor’s estate plans, nonprofits empower donors to make informed decisions.
4. Collaborate with Professional Advisors
Collaboration with professional advisors is another essential practice in legacy fundraising. Developing relationships with estate planning attorneys, financial planners, and other advisors allows nonprofits to reach potential legacy donors through trusted channels.
By providing advisors with information about the organization’s mission, giving options, and contact details, nonprofits can facilitate conversations about legacy giving and ensure that advisors understand the benefits and process involved. By offering educational sessions or resources specifically tailored for professional advisors, nonprofits can enhance their understanding of legacy giving and strengthen their ability to guide donors.
5. Recognize and Steward Donors
Recognizing and stewarding donors is paramount to building a strong legacy giving program. Expressing sincere gratitude and providing ongoing recognition through personalized acknowledgments, donor appreciation events, and regular communication cultivates a sense of belonging and appreciation among legacy donors. Nonprofits should keep donors informed about the impact of their gifts, sharing success stories, and milestones achieved because of their support. By maintaining open lines of communication, nonprofits can nurture relationships and reinforce the significance of each donor’s contribution.
6. Create a Legacy Society
Creating a dedicated legacy society provides a platform for recognizing and engaging with donors who have made a commitment to include the organization in their estate plans. This society can offer exclusive benefits, such as special events, behind-the-scenes access, and personalized communications. By fostering a sense of community and shared purpose, nonprofits can further strengthen the connection between legacy donors and the organization.
7. Emphasize Ease and Flexibility
Legacy fundraising should emphasize the ease and flexibility of leaving a legacy gift. Nonprofits should clearly outline the different planned giving options and provide assistance throughout the estate planning process. By highlighting the flexibility of legacy gifts, which allow donors to support multiple causes or organizations through a single gift, nonprofits can demonstrate the versatility and impact of planned giving.
8. Monitor and Evaluate
Regularly monitoring and evaluating the effectiveness of the legacy fundraising program is crucial. By tracking engagement levels, conversion rates, and the overall impact of legacy gifts, nonprofits can identify areas for improvement and refine their strategies. This data-driven approach enables organizations to continuously enhance their legacy fundraising efforts and maximize their impact.
Examples of Successful Legacy Fundraising Initiatives
- The Smithsonian Institution: The Smithsonian Legacy Society recognizes individuals who have included the institution in their estate plans. They provide exclusive benefits such as behind-the-scenes tours, invitations to special events, and opportunities to meet researchers and curators. By offering unique experiences, the Smithsonian fosters a sense of belonging and gratitude among legacy donors.
- Cancer Research UK: Cancer Research UK has successfully implemented legacy fundraising as a significant part of their fundraising strategy. Their website provides comprehensive information about legacy giving, making it easy for potential donors to understand the options available. They also share inspiring stories of individuals who have left a legacy gift to support cancer research, showcasing the transformative impact of planned giving.
Conclusion
Legacy fundraising presents a remarkable opportunity for nonprofits to secure long-term support while honoring the generosity and philanthropic spirit of donors. By implementing best practices such as building personal connections, providing education, collaborating with advisors, and recognizing donors, organizations can establish strong legacy giving programs.
By embracing this powerful strategy, nonprofits can ensure their sustainability, advance their mission, and make a lasting impact on the causes they champion. Legacy fundraising allows individuals to leave a meaningful and enduring legacy that transcends their lifetimes, creating a brighter future for generations to come.