Let’s face it—gift planning can feel like a mystery. But it doesn’t have to be. This post is here to enlighten and inspire you with practical ways to weave planned giving into your major gifts strategy—and build long-term sustainability while you’re at it.
Why Planned Giving Matters
Planned gifts—also known as deferred gifts, legacy gifts, or bequests—are some of the largest contributions your nonprofit may ever receive. Unlike annual gifts, which often come from a donor’s discretionary income, planned gifts tap into non-cash assets, where most of the nation’s wealth is held.
In fact, over 90% of U.S. wealth is in non-cash assets like real estate, stocks, retirement accounts, and life insurance. (Source: Giving USA, National Philanthropic Trust)
Planned giving is especially powerful during times of economic uncertainty. Why? Because legacy gifts don’t require donors to give today. They allow supporters to make a meaningful commitment without affecting their current lifestyle—making them a win-win for donors and nonprofits alike.
Key Terms to Know
First, let’s break down some of the most common planned giving vehicles:
- Legacy Gift: A significant gift that creates long-term impact, usually arranged through a will, trust, or estate plan.
- Deferred Gift: A contribution arranged now but received by the nonprofit at a future date, often after the donor’s passing.
- Planned Gift: Any charitable donation made as part of a donor’s overall financial, tax, or estate planning strategy.
- Bequest: A gift left to a nonprofit in a will or trust, often a percentage of the estate or a specific amount of money.
- Life Insurance: A policy in which your organization is named as a full or partial beneficiary, providing future support.
- Real Estate: Property donated to a nonprofit, either outright or through an estate, instead of giving cash.
- Stock: A gift of publicly traded securities that may offer tax advantages for the donor and support for your organization.
- Donor-Advised Fund (DAF): A charitable account from which donors can recommend grants during their lifetime and beyond.
- IRA Qualified Charitable Distribution (QCD): A direct transfer from an IRA (for donors 70½+) to a nonprofit that may reduce taxable income.
- Retirement Assets: Naming a nonprofit as a beneficiary of an IRA, 401(k), or similar account, which can avoid heavy taxation to heirs.
- Charitable Remainder Trust (CRT): A trust providing income to the donor or others for a set time, with the remainder going to charity.
- Charitable Lead Trust (CLT): A trust where the nonprofit receives income first, and the remainder eventually goes to the donor’s heirs.
Understanding these terms will be helpful as you incorporate planned giving into your major donor giving strategy.
Who Are Your Best Prospects?
We know it can feel overwhelming to incorporate planned giving into a fundraising strategy. Here’s the good news: your best planned giving prospects are already giving.
Long-time annual donors are statistically the most likely to consider leaving a legacy gift. They already believe in your mission and have shown a consistent commitment—now it’s about opening the door to a deeper conversation.
The average planned gift is 200–300 times larger than a donor’s largest annual gift, making it one of the most impactful forms of giving a nonprofit can receive (PlannedGiving.com).
The Magic Age: When Do People Start Planning?
Studies show that most people begin thinking about writing a will around age 44. That makes midlife the perfect time to start introducing legacy options into your conversations.
Identifying key life events in your annual donors can open the door to meaningful planned giving conversations. Watch for milestones such as:
- Marriage or divorce
- Birth or adoption of a child or grandchild
- Purchasing a home or relocating
- Retirement or career transitions
- Receiving an inheritance
- Significant health changes or diagnoses
When you have strong relationships with annual donors, you’ll be in tune with these milestones—and able to gently introduce the idea of legacy giving at just the right moment.
Conversation Starters
Start by incorporating planned giving into your conversations, campaigns, and newsletters. You might say:
- “Have you considered leaving a legacy gift to support the mission you care about?”
- “You’ve been such a generous supporter over the years—would you be open to discussing ways your impact could live on?”
- “Some of our most meaningful gifts have come from bequests. We’d love to talk more if that’s something you’d consider.”
- “Many supporters choose to name our organization as a beneficiary of their life insurance policy—it's a simple way to make a lasting difference.”
And yes—in case you were wondering–naming opportunities for deferred gifts are absolutely appropriate. It may even encourage donors to give more now as they plan for the future. Legacy naming opportunities can include anything from a trailhead, bench, a garden, a scholarship fund, or named space like a classroom or gallery. You can read more about planned giving by reading one of our previous articles, “Weaving Planned Giving into Major Donors Conversations.”
Set Your Team Up for Success
Now it's time to get the ball rolling. Planned giving is a long game—and it’s worth investing in the people and tools to support it:
- Dedicated staff: Ideally, a senior development officer and a support role who can follow up and manage records.
- Wealth screening tools: Use software to identify high-capacity donors who may be ideal candidates.
- Strong CRM: Your database should help track conversations, life events, gift intentions, and estate details.
- Clear gift acceptance policies: Make sure your organization is ready to handle complex gifts (and consult legal/financial professionals when needed).
Planned giving strategies thrive when you have the right systems and people in place to support it.
Make the Process Easy
Most donors don’t spontaneously think to include you in their will. You have to ask—and then make the process easy for donors and staff.
Offer simple tools:
- Sample bequest language
- Online form to request more info
- Contact for a confidential conversation
- Legacy society brochure
- Customizable contracts
Once the door is open, it’s all about thoughtful follow-up and relationship-building. Donors want to make a lasting difference in the world. Be the organization that gives them the opportunity to leave a legacy that lives on.
Stewardship That Builds Legacy
Donors who include you in their will are trusting you with a piece of their life story. That’s no small thing. So steward those relationships with care:
- Celebrate them—publicly or privately, based on their preference.
- Depending on gift size, offer naming rights.
- Invite them to behind-the-scenes tours or intimate gatherings.
- Keep them updated on how your mission is evolving.
- Make it personal, meaningful, and consistent.
Planned giving is deeply meaningful for donors. When you honor their legacy with genuine appreciation, you strengthen the bond that inspires others to follow their lead.
Build the Muscle
Legacy giving isn’t about flashy pitches or quick wins—you can’t boil the ocean. It’s a long-term journey of building fundraising muscle, one relationship at a time.
Start where the energy is strongest: focus on your most loyal donors and celebrate each step along the way. Bring your team together to listen deeply, understand donor motivations, and nurture genuine connections.
Because when it comes to lasting impact, few things are more powerful than a donor choosing to include your mission in the story of their life.
Need a Partner to Help You Launch or Strengthen Your Legacy Program?
At Mighty Penguin, we love demystifying the world of gift planning and helping organizations build programs that are thoughtful, donor-centered, and easy to implement. Whether you’re just getting started or looking to expand your strategy, we’re here to help.
Reach out—we’d love to dream big with you.
