Ruminations on Donor Recognition for Legacy Givers

By Susan D. Rostkoski, Principal Consultant

First, I’m making an assumption that the most used words in your communication with donors are “Thank you!” I’m also assuming that your team sends thank yous for every gift large or small; financial, in-kind, or pro bono; and that you do it in person, in print, and on social media and at events.

But when a donor chooses to make a planned gift, the stewardship playbook should be different. That’s because planned gifts are the ultimate gift, a highly personal, and very likely emotional, decision. People may choose to give some or all of their estate to a nonprofit when they die. This type of gift has the potential to help sustain an organization’s budget and future. Successful planned-giving programs enable nonprofits to generate significant gifts from donors who may not have the ability to give sizable amounts of cash now. So, it’s not enough to simply send a thank-you letter and follow up with more solicitations.

To honor this special group of donors, many nonprofits establish recognition societies that pay tribute to those who have made a gift through their estate or other long-term commitment. Membership in these societies is reserved for donors who have arranged for a gift through their will or living trust, a life insurance or retirement plan beneficiary designation, gift annuity, charitable remainder trust, or other life income gift.

In addition to being recognized publicly for their commitment, these donors typically receive other benefits when they become members of a planned gift recognition society. Examples include personal mementos such as lapel pins or plaques and/or invitations to special events such as luncheons, volunteer opportunities, and informational seminars.

No matter how many “benefits” you offer to donors through membership in a planned gift recognition society, few people, as they face mortality, will change their estate plans and/or incur a legal fee just to make a gift that “earns” them a lapel pin or certificate. In fact, many bequest and other planned gift donors will never tell you of their gift during their lifetime. A percentage of others who do inform you may wish to remain anonymous and not want to participate in a recognition society—publicly or at all.

If an organization is inattentive to donors of planned gifts due to complacency, staff turnover, poor record keeping or other factors, it runs the risk of alienating them and perhaps losing their gifts altogether. Yes, most planned gifts are revocable. I have done that myself. The organization to which I had designated a planned gift couldn’t seem to keep track of that fact and kept soliciting me to “consider legacy giving.” After multiple emails, letters, and phone calls over two years, I contacted my attorney and removed that organization from my estate plans.

On the flip side, planned and personalized contact with such donors may reap huge rewards. One example occurred in an organization with which I consult. “John” had let leadership know of his estate gift many years ago and estimated its value at $50,000. Recently, citing the deep connection he had gained through regular and meaningful contact, John increased his estimated gift to $100,000.

Above all, the real reason people decide to leave a legacy gift is a deep, abiding commitment to your mission, the work you are doing and will do, and the people most affected by your efforts to do good in the world. Take every opportunity to reinforce that special relationship.

Contact us if we can help you accomplish your mission (www.strategic-cc.com).