Part one of this blog series covered:

• Myth #1: Planned giving hurts annual giving.
• Myth #2: All planned gifts are deferred gifts.
• Myth #3: Planned giving is only for older, wealthier donors.

Read it here.

Here, we will look at three additional myths that some organizations cite as reasons they cannot (or should not) start a planned giving program.

 Myth #4: Planned giving is not appropriate for a new organization.

The Reality

• People give based on their passion for a mission, not the length of time your organization has been in existence. If you have donors who can make planned gifts, you need a planned giving program.
• Some planned gifts take years to mature, so the sooner you get started, the better.
• As discussed in Part 1, there are many planned gifts that are current. They offer options donors may not have considered, allowing them to make larger gifts than they may have thought possible.
• Also discussed in Part 1, donors who make planned gifts give 77% more in annual gifts than those who have not made a planned gift commitment.

 Myth #5: I have to know all the technical aspects before I can suggest a planned gift.

 The Reality

While a basic knowledge of planned giving options is certainly helpful, the most important skill for a planned giving fundraiser is listening.

Listen for phrases like “I’d like to give more, but …” Instead of being a tax expert, you will need to recognize when a donor could benefit from structuring a gift beyond an immediate cash donation.

Here are some additional phrases that are clues you are talking with a planned gift prospect:

• “I’m helping my children (or grandchildren) pay for their education.”
• “I have to help a parent (financially).”
• “My company is being bought out (or going public), and I’ll make a gift afterwards.”
• “I don’t want to deprive my children/grandchildren of an inheritance.”
• “I need to conserve assets for my retirement.”
• “I’m receiving so little interest on my savings, and I rely on that to live on.”

Fundraisers should always encourage donors to seek more information from their financial advisors, regardless of the fundraiser’s technical expertise. It is more important for a gift planner to know when to suggest additional ways of giving and to know how a donor can give.

You can also rely on Sharpe Group expertise for that technical knowledge! We often act as “coach” for fundraisers in the gift planning process.

Myth #6: No one wants to talk about death.

The Reality

Not all planned gifts are realized after a donor has passed away. Many are current or deferred for a specific period of time (such as charitable trusts).

Dr. Russell James has a wonderful slide show, which you can access here: “Words That Work: Phrases that Encourage Major and Planned Gifts.” 

We recommend focusing on your donors’ passion for your mission, storytelling and discussions of testamentary gifts or planning future gifts.

What phrases and words have worked well for you? Share your experiences in the comments below or send them to info@sharpegroup.org.

Stay tuned to the Sharpe blog as we cover more myths and the best ways to counteract them in future posts.