By June Bradham

Q: I work with a large nonprofit and although our annual giving program is sound and our capital campaigns have always been successful, we’ve not done much with planned giving. Any ideas on how to get started?

A. For many fundraising organizations, planned giving offers enormous potential. Often, individuals whose giving capacity is moderate can actually provide planned gifts that far exceed their normal giving.

What is most important to understand is that planned gifts take time to develop. First, such gifts involve conversations about the law, money, and what will happen when you or a loved one dies—so there is a tendency to simply avoid talking about it.

Second, planned gifts tend to come from those donors who are most committed to your cause—the donor literally wants to ensure that your efforts will continue long after he or she is gone. 

At the same time, planned giving is about securing a legacy in a way that will not adversely affect a person’s daily life or finances.

Planned gifts come from assets, not from income. Since the gift affects neither the person while he’s alive—as no money changes hands during his life—nor his family—as the person may specify that gifts pass to the foundation only after the family has been taken care of—this type of gift  can actually be the easiest to secure.

Begin discussions with your older established donors. Your discussions should initially focus on their thoughts about such a possibility (e.g., “You have been such a wonderful supporter—we were wondering if you have ever thought about a planned gift.”). It is important to then provide the prospective donor with information about planned gift mechanisms—what they are, how they work. Assume that such discussions will proceed slowly, as the individual considers the options. Always stress to the donors that it is important that they review any plans with an attorney, tax adviser or accountant.  

In essence, planned gifts offer a donor a unique way to make a significant gift to an organization about which he or she cares deeply. That is the message you want to stress.

Q. I recently made a move from New York to take a job as a development director here in Charleston and I know I’m going to have to adjust my thinking about good donor prospects and how I can most effectively approach them. How can I best introduce myself into the community and find donors who aren’t already committed to other philanthropic groups?

A. Welcome to the South! As I’m sure you’ve noticed already, there are a lot of nuances to doing business (and nonprofit work) here as opposed to in the Northeast. But in many ways, the potential for philanthropic support is even stronger here. Many South Carolinians believe very strongly in the importance of supporting organizations that mean something to them. 

Although Charleston proper is fortunate to be able to include among its residents a number of affluent old families and new families with significant assets, the region surrounding our city is suburban or rural. How many nonprofits reach out to these potential donors? The answer is, besides their churches, not many.

Remember that according to Forbes magazine, South Carolina ranks as the ninth most charitable state in the nation. Our household incomes aren’t as large as those in New England or California but we are more generous with what we’ve got.

The key is to adapt your approach to asking for gifts.

My first suggestion would be to stop talking about your organization—or at least hold off. Talk first about the need in their community. Talk about how Mr. Smith, who lives 40 minutes from downtown, and his family will truly benefit from a new museum building.  Or hospital wing...

I’d also recommend reaching out to large groups of this new type of donor. Just as you hold focus groups with the most affluent and influential before running a capital campaign, why not hold informal town meetings with groups who will be affected by your initiatives? This way, you’ll get not only “top-down” views but a look at how the “everyman” will be influenced by your nonprofit. This type of face-to-face meeting will help you shape your initiative to do the most good while also cultivating countless new donors.

Remember too, people are more likely to give to nonprofit organizations if they know their friends and family have already given.

So, because small communities are likely to pass the word on to their neighbors much more often than in large cities, your donors will do a lot of the work for you.

June Bradham is the president of Corporate DevelopMint, a full-service fundraising consulting firm with offices in Charleston, Greenville, Blowing Rock, N.C., and Memphis, Tenn. Send questions to cdm@corporatedevelopmint.com.

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