When a donor makes an annual gift, most nonprofits have a simple response: to properly thank the donor so she will want to make future gifts. But when a donor chooses to make a planned gift, the stewardship playbook should be much different.
That’s because planned gifts are the ultimate gift. People choose to give some or all of their estate to your nonprofit when they die. This is a highly personal, and very likely emotional, decision. So it’s not enough to simply send a thank-you letter and follow up with more solicitations.
Your stewardship should be personal and continuing. Here’s some advice on how to properly acknowledge donors who make planned gifts. An added benefit: Doing so shows other supporters how much you value those who make legacy gifts.
Don’t ask for proof. Refrain from requesting documentation for the gift. The late fundraising expert Robert Sharpe Sr., likened a nonprofit asking for proof of a planned gift to a grandchild who, upon learning that he is in your will, says: “Can I have a copy of it?”
It’s distasteful to ask for documentation; don’t risk alienating donors. Besides, you gain nothing by having a copy of the will or the bequest paragraph. The gift remains revocable; donors can change their minds anytime. However, if your donor offers documentation, do not refuse it. Accept it graciously and assure her that it will be kept in a secure place. Then treat it as you would a donor’s Social Security number or credit-card data.
Send a heartfelt note of thanks. I like to send handwritten notes, on organization stationery. They need not be long; in fact, brief and sincere is preferable. If possible, have the chief executive and/or board chair sign the note. Even better, send a handwritten note and follow up with a formal letter from the senior leadership. If you have a planned-gift-recognition society, welcome donors to it.
Start a recognition society to honor bequest donors. Ideally, it should be named for someone or something identified with your nonprofit. Avoid the generic “legacy circle” or “heritage fund” and find something iconic to your organization. If your founder or original executive has a distinctive name — say, Abigail Zander — you could call it the Zander Circle. If a building or architectural feature is associated with your nonprofit, you might call it the Bell Tower Society, for example.
Members of your recognition society should be acknowledged on your website, in your annual report, and in other publications. This honors their gift and demonstrates that legacy donors are highly valued.
Honor these donors annually. Take time to thank them in person at least once a year. Some organizations host a lunch or reception for recognition-society members. If your resources are limited, hold a gathering before a larger event, such as a cocktail reception before a planned dinner, or offer preferred seating at a performance.
When I was director of planned giving at a university in New York, we held a day trip to the Culinary Institute of America. Members of the legacy society paid for round-trip bus fare and lunch, and the university picked up the tab for the tour.
Whichever event you plan, be sure that the chief executive attends, to show gratitude from the top. And if your planned-giving donors are too dispersed for in-person events, call them and say thanks. It’s a great way to get to know them.
Tony Martignetti is founder of Martignetti Planned Giving Advisors, which specializes in helping nonprofits create and sustain successful planned-giving programs. A former lawyer, he is also the host of Tony Martignetti Nonprofit Radio.