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Start with the donors you already have. Long tenure and modest repeat gifts predict bequests better than wealth screening. Add a legacy question to your surveys and reply cards, publish simple bequest language on your website, and follow up personally with anyone who indicates interest. The programme costs time before it costs money.
Key Takeaways
- 1Most fundraising effort goes into cash gifts, while much of donors' wealth sits in assets like stocks, property and estates.
- 2Donors who include a charity in their estate plan have been found to increase their current annual giving by 75% to 77%, not decrease it.
- 3Bequests usually come from loyal supporters with a long giving history, not only the very wealthy.
- 4Living donor stories close the will-giving gap more effectively than deceased donor stories or legal explanations.
- 5The bequest is the simplest planned gift to offer. You can launch a program with one question.
- 6Accepting gifts of stock and other assets gives donors more ways to give, with clear policies and professional advice in place.
Most nonprofits focus their appeals on cash gifts. A planned giving programme also asks which assets a supporter may wish to use, and when they want the gift to take effect.
When we ask for a cheque, the donor compares that gift to their daily expenses. We end up competing with routine household purchases for attention.
A much larger pool of wealth exists beyond the checking account.
Stocks, real estate and retirement assets can offer other ways to support the mission. Start by checking which types of non-cash gifts your charity is ready to accept.
It is the shift from asking for a transactional gift to asking for a legacy.
The "Giver's Glow" Effect: Why Estate Planning Boosts Current Giving
Fundraisers often worry that a legacy commitment means the donor will stop giving today. They assume the donor has "checked the box" and completed their obligation.
A legacy conversation need not replace current stewardship.
Do not assume that a legacy commitment ends annual giving. Continue asking donors how they want to support the mission now and in the future.
This changes how the donor sees the gift. The donor no longer views their gift in the context of a coffee or a meal. They view it against their total net worth.
By including a mission in their legacy, they move from casual supporter to primary stakeholder.
A legacy conversation can connect the mission with the people and values a donor wants to remember. Russell James’s Inside the Mind of the Bequest Donor (2013)Source 1: Inside the Mind of the Bequest Donor. Russell James, 2013. Psychology of bequest communication. examines the psychological context of those decisions.
This reframes the entire donor journey design. A planned gift, arranged now to support a charity in the future, can deepen the relationship. It is the start of a deeper relationship. Organizations should stop treating bequests as a future conversation and weave legacy messaging into stewardship as soon as a donor shows consistent commitment.
Loyalty Over Zeros: Your Best Prospects Are Not Who You Think
Who to ask about legacy gifts
Select a column to focus on it
- Largest single gifts
- Wealth screening only
- Long, loyal giving history
- Regular, consistent donors
- Deep connection to the mission
Use this diagram with the Your Planned Giving Starter Kit (guide).
We often mistake planned giving for an exclusive club for the ultra-wealthy. Boards envision glossy brochures for millionaires and assume they need a specialized legal team.
In reality, legacy giving is a middle-class phenomenon.
Practical prospects are not those with the highest wealth ratings. They are loyal donors who have given consistently for 10 or more years, regardless of the gift size.
A modest annual donor may also want to leave a legacy. Ask about their interests rather than estimating the size of a future bequest from current gifts.
Understanding what truly drives your donors, their personal story and "why," makes these conversations feel natural.
The profile of an ideal prospect looks for:
If you have a mid-level donor program, you already have a planned giving pipeline. The task is simply shifting the focus from annual support to lifetime impact.
The "Living Story" Breakthrough: Messaging That Closes the Gap
Interest in legacy giving is not the same as a completed estate plan. In our experience, donor stories can help open a conversation, but staff should not treat interest as a confirmed commitment.
Ask interested supporters what information or professional advice they need before deciding.
Record only the legacy intentions donors voluntarily share, and distinguish an expression of interest from a documented plan.
In our experience, stories from living supporters can make a legacy conversation easier to introduce. Test the approach sensitively rather than assuming every donor responds in the same way.
This mirrors effective storytelling in fundraising. Stories should center on donor identity. When a donor sees a peer making a legacy commitment, it signals that this is a community standard.
Practical Application
The "Next Tuesday" Rule: Simplicity as Strategy
Make the next legacy conversation manageable
Select a step to trace the sequence
Use this diagram with the Your Planned Giving Starter Kit (guide).
Organizations often delay starting a program because they fear the technical complexity of trusts and annuity funds.
A bequest is a gift left in a will. Russell James’s Visual Planned Giving: Law and Tax (2025)Source 2: Visual Planned Giving: Law and Tax. Russell James, 2025. Gift vehicles and conditional tax treatment. explains this and other charitable planning vehicles. Keep introductory materials simple and refer technical questions to qualified advisers.
The "1% Strategy" is a simple starting point. Ask loyal supporters:
Did you know you could leave 1% in your will to our mission, leaving 99% for your family?
This simple question starts a conversation without legal jargon. We recommend asking interested donors to discuss the wording and implications with their own qualified adviser.
Where to Begin
The Growth Advantage: The Cost of Staying Cash-Only
Focusing calls for cash alone limits organizational sustainability.
Accepting non-cash assets gives supporters additional ways to give. It also requires clear policies, suitable accounts and professional advice.
Assess which assets your charity can accept safely before promoting them to donors.
Do not promise a particular growth rate from adding a stock-giving option.
Consider the tax implications. When a donor sells stocks to give cash, Uncle Sam takes up to 20% in long-term capital gains taxes, and potentially more depending on state taxes and income, per IRS Topic No. 409Source 4: IRS, Topic No. 409 Capital Gains and Losses. Federal reference on capital gains treatment relevant to appreciated-asset gifts..
A direct gift of appreciated assets may receive different tax treatment from a sale followed by a cash donation. Eligibility, holding periods, deduction limits and the donor’s circumstances matter. Refer donors to qualified tax advisers rather than promising a full deduction.
Making It Operational
The Question of Legacy
Planned giving is a conversation about the life of your nonprofit.
It ensures the mission continues for subsequent generations. By moving past technical details and speaking to donor values, you offer them a way to be remembered for the work they championed.
Use the following checks to assess whether your charity is ready:
The shift from cash-focused asks to asset-based conversations is the most significant opportunity for long-term growth.
Put this into practice
Choose these tasks as a starting assignment for your team. The roles and review timing below are suggested working arrangements, not benchmarks.
1. Set the starting scope
Suggested owner: Executive director. Agree which legacy conversations the charity is ready to support and name a staff contact. Record acceptance, governance and documentation questions for qualified legal and financial advisers before promoting an offer.
2. Prepare plain-language information
Suggested owner: Communications lead. Draft a page explaining the long-term mission and how interested supporters can start a conversation. Deliver materials for organisational and professional review without promising tax outcomes.
3. Create a donor-led follow-up process
Suggested owner: Relationship owner. Record voluntarily expressed legacy interest and the donor's requested next step. Write a staff procedure naming the follow-up owner and how to refer technical questions to qualified advisers.
Check progress: At a quarterly review, check whether enquiries received the agreed response and whether unresolved policy questions prevent broader promotion. Do not treat an expression of interest as a confirmed future receipt.
Your homework
Planned giving does not require an elite legal department or an ultra-wealthy donor base, because ninety percent of legacy revenue arrives through simple bequests from loyal, everyday supporters. Securing these commitments transforms casual givers into core stakeholders, driving an average increase of 75% to 77% in their current annual giving (Dr. Russell James, Texas Tech University) while positioning your organisation for long-term growth.
To unlock this support, charities must move away from technical estate jargon and cash-only appeals toward living donor stories and non-cash assets. Starting simply with clear bequest messaging and basic asset acceptance will safeguard your mission for future generations without burdening your staff.
Before you move on to anything else, complete these three tasks:
1. Export a spreadsheet list of all donors who have given consistently for ten or more years from your database by this Friday.
2. Draft a one-page legacy summary document featuring a living donor testimonial and the one percent bequest proposition by next Tuesday.
3. Submit an application form to a financial custodian by next Friday to open an organisational brokerage account for accepting non-cash securities.
Resources
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Frequently Asked Questions
QWhat is planned giving and why does it matter for nonprofits?
Planned giving refers to charitable gifts that donors arrange during their lifetime but that typically transfer to the nonprofit at death or through structured vehicles like bequests, charitable trusts, or beneficiary designations. It matters because it reaches wealth held in assets and estates that cash appeals never touch. A single bequest can be worth many years of annual gifts from the same donor. When integrated with a strong donor journey strategy, planned giving becomes the natural culmination of a lifelong relationship.
QWon't donors stop giving annually if they commit to a planned gift?
This is one of the most persistent myths in fundraising, and the data thoroughly debunks it. Research by Dr. Russell James at Texas Tech University shows that donors who include a charity in their estate plan actually increase their current annual giving by 75% to 77%. The psychological explanation is compelling: once a donor places your organization alongside their family in their will, they shift from being a casual supporter to a primary stakeholder. Their giving becomes an expression of identity, not a transaction. This is why listening for the deeper driver behind a donor's giving is so important. The planned gift does not close a door. It opens one to a much deeper, more generous relationship.
QWho are the best prospects for planned giving?
Forget capacity ratings and wealth screenings for a moment. The best planned giving prospects are your most loyal donors: people who have given consistently for 10 or more years, regardless of the check size. Legacy giving is a middle-class phenomenon, not a rich-person strategy. Look for behavioral signals: donors who attend events, respond to surveys, open every email, and give multiple times per year. If you have been building a mid-level donor program, those caseload donors are your primary planned giving pipeline. Personalized direct mail is one of the most effective channels for nurturing these relationships toward a legacy conversation. Life-stage signals also matter: mentions of retirement, grandchildren, downsizing, or estate planning are natural openings for a legacy conversation.
QHow do I start a planned giving program with limited resources?
You do not need a planned giving officer, a law degree, or a glossy brochure. Ninety percent of planned giving revenue comes from the simplest vehicle: the bequest, the category Giving USA tracks as charitable bequests. Start with four steps. First, add a single line to your donation thank-you emails inviting donors to consider including you in their will. Second, create a simple legacy page on your website featuring a living donor story and a contact form. Third, survey your long-term donors with one question: 'Have you already included us in your estate plan?' Many already have and you do not even know it. Fourth, train your development team to listen for estate-planning signals during donor conversations. The '1% Strategy,' asking donors if they would leave just 1% to your mission so their family inherits 99%, is a gentle, practical way to open the door. Apply strong project management discipline to track your progress and keep the initiative on course.
QWhat messaging works best for planned giving?
Dr. Russell James's research is clear: living donor stories outperform every other approach. When you share stories of deceased donors, you inadvertently remind people of death, which causes them to pull away. But when you share the story of a peer who made a legacy commitment today, it normalizes the act as a joyful life decision. The data shows that seven living donor stories cut the will-giving gap from 10.2 percentage points to just 4.1. Feature living legacy donors in your newsletter, create short video testimonials, and use peer-driven storytelling across your campaigns. Lead with identity and community, not legal vehicles and tax benefits.
QHow does accepting stock or securities help a nonprofit grow?
Accepting gifts of stock and other assets gives supporters more ways to give, but we would not promise a particular growth rate from adding it. When a donor sells appreciated stock to give cash, they may owe capital gains tax first (IRS Topic No. 409Source 4: IRS, Topic No. 409 Capital Gains and Losses. Federal reference on capital gains treatment relevant to appreciated-asset gifts.), so a direct gift of the stock can leave more for the cause. Tax treatment depends on the donor's circumstances, so refer them to a qualified tax adviser. Setting up a brokerage account at Schwab, Fidelity, or Vanguard is straightforward. Add a 'Give Stock' option to your website, mention it in year-end appeals, and train your team to recognize when a donor might benefit from this approach. The story-driven brand messaging you use during campaigns can naturally incorporate this giving option.
Evidence
Every statistic and study referenced above links to its primary source. Each entry has a stable anchor, so citations stay consistent over time.
- 1Inside the Mind of the Bequest Donor · encouragegenerosity.com
Russell James, 2013. Psychology of bequest communication.
- 2Visual Planned Giving: Law and Tax · encouragegenerosity.com
Russell James, 2025. Gift vehicles and conditional tax treatment.
- 3
- 4IRS, Topic No. 409 Capital Gains and Losses · irs.gov
Federal reference on capital gains treatment relevant to appreciated-asset gifts.
- 5Indiana University Lilly Family School of Philanthropy, Bank of America Study of Philanthropy · scholarworks.indianapolis.iu.edu
Research on affluent household giving including planned vehicles.
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About the author and our standards
Founder & CEO, SA Philanthropy
Sarah Ali is the founder and CEO of SA Philanthropy, helping mission-driven organizations raise more and scale their impact.
This article was reviewed by the SA Philanthropy editorial team before publication. We source every statistic, name every author, date every update, and correct errors on request. Read our editorial policy.
