1. What’s your legacy?
Implementing a planned
giving program
Lisa M. Chmiola, CFRE
October 14, 2020
Nonprofit Hub

2. About Lisa:
Lisa M. Chmiola, M.S., CFRE, has nearly 19 years in
philanthropic development experience:
• Major and planned giving roles in education (public
and private) and religious institutions, following initial
career experience in event-based philanthropy
• AFP Master Trainer since 2014
• Presented at four AFP International Conferences, and
a variety of AFP and other industry association
regional conferences, chapter meetings, and webinars.
• Adjunct instructor in Rice University’s Center for
Philanthropy and Nonprofit Leadership.
As Chief Fablanthropist for Fablanthropy
(fablanthropy.com), she is available for consulting,
training, and 1:1 coaching opportunities.

3. What we will cover:
• Background on planned giving
• Structure to support a successful legacy giving program
• Prospecting for and documenting of planned gifts
• Common objections to planned giving
• Communication and stewardship strategies
• Next steps to implement
www.fablanthropy.com

4. Why is planned giving so scary?
• Spoiler alert: everyone dies!
• Contemplating legacy is a long, emotional process
• Psychology of planned giving has been extensively researched by Dr.
Russell James: www.encouragegenerosity.com
• Impostor syndrome: planned giving often viewed as complex
www.fablanthropy.com

5. What exactly IS planned giving?
• Planned giving/gift planning/legacy giving
• “The act of making a commitment to give a charitable
organization a major gift, over time or at death, as part of the
donor’s overall financial and estate planning.” – The Fundraising
Authority, LLC
• “The integration of personal, financial, and estate planning
concepts with an individual donor's plan for lifetime or
testamentary giving.” – Association of Fundraising Professionals
Sources: http://www.thefundraisingauthority.com/planned-giving/launch-planned-giving/
http://afpglobal.org/topics/planned-giving

6. Most common planned gift vehicles
• Bequests
• Gift made via a will; can be a set amount or percentage, or remainder
of estate (“remainder beneficiary”)
• Estimated $43.21 billion in 2019, or nearly 10% of all giving, per Giving
USA 2020
• Make sure your organization has sample language available for
donors/advisors who may not contact you:
• Example: “I (we) hereby give, devise, and bequeath the sum of $__________ (or
_____ percentage of….. or residual of my estate) to Organization, address, tax
ID, or its successor organization, for its general purposes (unrestricted) or for
(specific purpose e.g. endowed fund).
Sources: https://givingusa.org/tag/giving-usa-2020/

7. Most common planned gift vehicles
• Beneficiary designation on retirement account
• Gift made by naming organization through administrator of account
(e.g. Vanguard, Fidelity), therefore, easy to change
• Avoids income & estate taxes
• Must be a percentage of proceeds, not specific dollar amount
• When working with donors, be aware if your organization is a primary
or contingent beneficiary
• Contingent or secondary/tertiary beneficiaries only receive funds if primary
beneficiary does not
Source: https://www.letsmakeaplan.org/blog/view/lets-make-a-plan-blogs/leaving-a-charitable-legacy-with-an-ira

8. Most common planned gift vehicles
• Gifts of insurance
• Simplest: name organization as a beneficiary on policy
• Whether a group term (e.g. employer provided) or individually-owned policy
• More complex: Donor can also name organization owner of
individually-owned policy (irrevocable)
• If policy is not paid in full, charity would need to continue to make premium
payments or policy may lapse; donor may make cash gifts to offset this
• If policy is valued at more than $5,000, a qualified appraisal will be required
Source: https://charitablesolutionsllc.com/new-book-charitable-gifts-of-noncash-assets/

9. Other planned gift vehicles
• Charitable Gift Annuities
• Trusts
• Real Estate
• Gifts of real property (e.g. artwork, jewelry)
Source: https://charitablesolutionsllc.com/new-book-charitable-gifts-of-noncash-assets/

10. But first, build a solid foundation
Before embarking on a planned giving program, assess these
aspects of your organization:
1. Donor Base – solid annual support, moving into major gifts work
2. Leadership Support – both staff leadership and board of directors
3. Strategic Plan – ensure your organization has a plan for the future
4. Gift Acceptance Policy – what kinds of gifts will you accept?
5. Staffing – who will handle day-to-day work of PG?
6. Communication Plan – for organization overall
7. History – at least 10 years’ existence is recommended
8. Patience – results may not show for 5-10 years
Source: https://afpglobal.org/topics/planned-giving

11. Who are planned gift prospects?
• Existing legacy donors
• Organizational leadership (volunteer and staff)
• Loyal donors
• Younger donors
• YOU!
www.fablanthropy.com

12. How to document planned gifts?
• Why is documentation important?
• Confirms donor’s wishes are known
• Clarifies if donor is comfortable with being acknowledged for gift
• What should be documented?
• Contact information (donor/executor/advisor)
• Gift intent (unrestricted vs. restricted)
• Gift vehicle and value (if known and willing to share)
• Permission for public recognition/request for anonymity
• Example:
https://louisiana.giftlegacy.com/org_files/2013/pdf/planned%20giving%20form%20fillable.pdf
www.fablanthropy.com

13. How to document planned gifts?
• Additional materials can include:
• Copy of donor’s will, beneficiary designation, insurance policy
• Gift agreement
• Correspondence with donor
• Additional considerations:
• Storage of document hard copies – fireproof
• Storage of electronic information – backups
• Who has access to each?
www.fablanthropy.com

14. What if they object?
• What about my family?
• I’m not wealthy; why would I give this way?
• I don’t have a professional to assist me.
• Won’t making a bequest be costly to me?
• I don’t want my plans to be known.
Source: https://bloomerang.co/blog/obstacles-ahead-dealing-with-objections-to-planned-giving/

15. How to communicate your plan?
• Inclusion in existing marketing/communications/proposals
• On response devices, include check box at minimum for “I have already
included organization in my legacy plans.”
• BONUS: “I would like information on including organization in my legacy
plans.”
• When feasible, consider a planned gift component in a major gift proposal,
especially for endowed fund gifts.
• Targeted planned giving communications
• How will responses/inquiries be handled?
• What is the procedure for receipt of a notification or gift?
www.fablanthropy.com

16. Stewardship … it’s for life!
• Likelihood of gifts realized in your tenure = low
• Upon notification:
• Prompt and appropriate acknowledgement
• Attention to documentation/record keeping
• Over time:
• Regular visits/conversations when/where feasible
• Inclusion in important communications
• Invitations to events
• Engagement as volunteers
www.fablanthropy.com

17. What we covered & action steps
• Continue to educate yourself/team on planned giving:
• Local planned giving council
• National Association of Charitable Gift Planners: https://charitablegiftplanners.org/
• Encourage Generosity (Dr. Russell James’ research): http://www.encouragegenerosity.com/
• Find a mentor or coach
• Assess your organization on foundational items:
• Donor base
• Board support
• Strategic plan
• Gift acceptance policy
• Staffing
www.fablanthropy.com

18. What we covered & action steps
• Build a prospect list
• Create/evaluate documentation plan
• Explore objections
• Build communication plan
• Create stewardship strategies
www.fablanthropy.com

19. Questions?
Let’s connect:
www.fablanthropy.com
• links on Resources page
• sign up for Fabulous + Philanthropy on Contact page
@fablanthropy (Facebook, Twitter, Instagram)
lisa@fablanthropy.com