Why do only a small percentage of your best long-time donors make a planned gift to your organization?

There are a variety of reasons.  Let’s examine some here, along with tips on breaking through those roadblocks.

Lack of awareness that your organization accepts planned gifts 

Lighthouse Counsel often asks during a capital campaign readiness study if the individual has made or would consider a planned gift to the organization. Frequently we hear the individual was not aware that the organization accepted or desired planned gifts. Therefore, organizations need to clearly state that planned giving is an important part of their long-term financial viability. Send clear, easy to understand materials about planned giving options, including real-life success stories of people who’ve made planned gifts.  Deliver these messages frequently through various channels.

Lack of understanding

Donors often don’t fully understand what planned giving entails or how it works.  Terms like “bequests,” “trusts” and “estate planning” can feel intimidating and unfamiliar, so they avoid considering it. Help simplify the process by offering assistance with the technical details and access to estate planning professionals or legal advisors who can help guide them through the process. Additionally, provide templates and simple forms for people to initiate their planned gifts.

A common misconception is the assumption that planned giving is only for the wealthy.   It is important to show examples of people like themselves that a modest gift can still have a meaningful impact.  Share examples of how planned gifts of all sizes contribute to your mission’s fulfillment. 

Lack of certainty about finances

Reassure donors that planned gifts can be structured in a way that they don’t impact the donor’s current financial situation. Show, for example, that a charitable gift annuity can provide them with income while also benefiting the organization. Share examples of planned gifts that are structured so that they only happen after the donor’s lifetime.  Emphasize that they can retain control over their assets as long as they live.

Lack of urgency

Procrastination in making a planned gift often is the result of multiple forces in play, such as:

• the viewpoint that there is no urgent, immediate need by the organization that the donor would support, and
• the idea that talking about planned giving forces the donor to think about his or her own mortality.   

As a result, the would-be planned giving donor puts it off, thinking they’ll get to it later – but later never comes. Encourage action by reminding donors that planned gifts are a way to take a concrete step toward fulfilling their values and continuing the good work they have supported and are continuing to support.  As in all giving, make it about the donor and not the organization.  

In conclusion

The more donors know about planned giving, the more likely they are to engage in it. As in all giving, helping potential donors see how their gifts can have a meaningful, lasting impact is critical to motivating them. Reassure them by addressing their concerns about finances, control and complexity to help ease their anxieties. You can eliminate many of their objections by showing them that many planned gifts are simple, easy and straightforward.

You can increase the likelihood that donors will consider and follow through with planned gifts to support your organization’s mission by addressing these common objections in a thoughtful and supportive way.