With better data about your donors’ age and wealth, it becomes easier to tailor your planned giving messaging and deepen your relationship with them in order to discover what motivates their giving.
For example, you may have a donor who is still in the workforce and providing funds for their elderly parent, while another donor is a retired widow who has no children. Understanding and addressing your donors’ needs and goals is critical if you want to help them make the best gift for their unique circumstances. Let’s look at some scenarios.
The mid-life, working couple
Middle-aged couples who are still working may be receiving the largest paychecks of their lives. However, they may still have significant financial obligations, e.g., college expenses, an upcoming wedding, taking care of an aging parent, etc.
When you stop and consider the typical mid-life couples’ concerns, it is easy to imagine that, even if they would like to make gifts to your organization and “on paper” have the means to do so, they may be reluctant to part with large amounts of cash or other assets to make major current gifts.
Planned gifts to propose
Here are some options to think about when working with these couples.
- A term-of-years charitable remainder trust that can provide immediate capital gains and income tax savings, while funding a significant gift in the near term.
- The two-life charitable gift annuity to provide an aging parent fixed payments for their lifetime, as well as a tax deduction for the couple when the gift annuity is funded. Or, if the couple has adequate income now but is worried about their future income during retirement, a deferred gift annuity making larger payments to them in future years may offer a solution.
The single donor with no children
Whether never married, divorced or widowed, single donors without children may be especially concerned about how their assets are eventually distributed and what their legacy will be. While they may want to provide bequests for nieces and nephews and friends, these donors may be more aware of the need to plan their estates.
Planned gifts to propose
- A bequest by will or living trust.
- A beneficiary designation in a retirement plan or life insurance policy.
- A current or estate gift in memory of a deceased spouse, perhaps by funding an endowment or program in their name.
As fundraisers, it is critical to listen to your donors and learn as much as possible about their giving motivations and concerns to determine the planned gift that will best help them fulfill their goals. By keeping your donors’ best interests at the forefront, you can help them maximize their giving. ■
