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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
- 199% of fundraising energy targets just 1% of donor wealth held in cash, while 90–99% of American wealth sits in untouched assets like stocks and real estate.
- 2Donors who include a charity in their estate plan increase their current annual giving by 75–77%, not decrease it.
- 3The average bequest is $70,000–$78,000 and comes from loyal middle-class donors, not the ultra-wealthy.
- 4Living donor stories close the will-giving gap more effectively than deceased donor stories or legal explanations.
- 590% of planned giving revenue comes from the simplest vehicle: the bequest. You can launch a program with one question.
- 6Organizations accepting securities grow at 6x the rate of cash-only nonprofits over five years.
Most nonprofits focus their energy on a small fraction of available resources. We dedicate 99% of our fundraising energy to the 1% of American wealth held in cash, essentially the pocket change in donor checking accounts, according to IRS personal wealth statisticsSource 3: IRS, Personal Wealth Statistics. Federal data on the composition of household wealth..
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.
IRS dataSource 3: IRS, Personal Wealth Statistics. Federal data on the composition of household wealth. shows that 90% to 99% of American wealth is held in assets like stocks, real estate, and retirement accounts. This balance sheet represents a donor's true capacity. To move toward transformational fundraising, we must stop asking for what is in their wallet and start inviting them to share from their wealth.
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.
The data suggests the opposite.
When a donor includes a charity in their estate plan, their current annual giving actually jumps by an average of 75% to 77%, according to Dr. Russell James's extensive research at Texas Tech UniversitySource 2: Dr. Russell James, Texas Tech University, *Planned Giving Research*. The foundational body of research on legacy giving behaviour and messaging.. This is a fundamental shift. 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.
"They feel so much closer to you because they've put your work, your mission, and your values right alongside their husband, wife, children, and grandchildren. Because they've placed the nonprofit alongside their loved ones in their will, they feel a deeper, lifelong connection to the mission." Dr. Russell James, Texas Tech UniversitySource 2: Dr. Russell James, Texas Tech University, *Planned Giving Research*. The foundational body of research on legacy giving behaviour and messaging.
This reframes the entire donor journey design. A planned gift is not the end of the funnel. 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
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.
The average bequest in the United States is between $70,000 and $78,000, according to Giving USASource 1: Giving USA Foundation, Annual Report on Philanthropy. Definitive sector data on charitable giving including bequests. and the National Association of Charitable Gift PlannersSource 4: National Association of Charitable Gift Planners, Practitioner Resources. Industry standards and vehicles for planned giving programs.. For a donor who gives $100 annually, this represents a transformational moment, per bequest data from Giving USASource 1: Giving USA Foundation, Annual Report on Philanthropy. Definitive sector data on charitable giving including bequests.. They may not fund a new wing today, but a simple bequest ensures the mission they love continues.
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
Dr. Russell James's researchSource 2: Dr. Russell James, Texas Tech University, *Planned Giving Research*. The foundational body of research on legacy giving behaviour and messaging. highlights a "will-giving gap" between a donor's interest and the moment they actually sign the document. Technical explanations do not close this gap. Living donor stories do.
The research shows:
Stories of deceased donors remind people of their own mortality, which causes them to pull away. Sharing stories of living peers who "signed their will today" normalizes the act as a positive life decision.
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
Organizations often delay starting a program because they fear the technical complexity of trusts and annuity funds.
However, 90% of all planned giving revenue comes from the simplest vehicle: the bequest, according to Giving USASource 1: Giving USA Foundation, Annual Report on Philanthropy. Definitive sector data on charitable giving including bequests..
The "1% Strategy" is a powerful entry point. Ask loyal supporters:
"Did you know you could leave 1% in your will to our mission, leaving 99% for your family?"
This is accessible and requires no intimidating legal jargon. It is a simple question that starts a vital conversation. You can implement this by next Tuesday.
Where to Begin
The 6x Growth Advantage: The Cost of Staying Cash-Only
Focusing calls for cash alone limits organizational sustainability.
Research on over a million nonprofit tax returns, compiled by Dr. Russell JamesSource 2: Dr. Russell James, Texas Tech University, *Planned Giving Research*. The foundational body of research on legacy giving behaviour and messaging. and corroborated by Giving USA dataSource 1: Giving USA Foundation, Annual Report on Philanthropy. Definitive sector data on charitable giving including bequests., shows a massive growth disparity:
That sixfold difference is driven by the ability to accept non-cash assets.
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 5: IRS, Topic No. 409 Capital Gains and Losses. Federal reference on capital gains treatment relevant to appreciated-asset gifts..
If the donor gives the asset directly before it is sold, the nonprofit receives the full value. The donor avoids capital gains and receives a full fair market value deduction. Accepting the asset unlocks more generosity at no extra cost to the donor.
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.
The data confirms the value, drawn from Giving USASource 1: Giving USA Foundation, Annual Report on Philanthropy. Definitive sector data on charitable giving including bequests. and legacy giving research:
The shift from cash-focused asks to asset-based conversations is the most significant opportunity for long-term growth.
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 unlocks access to 90–99% of a donor's wealth that traditional cash fundraising never touches. According to Giving USASource 1: Giving USA Foundation, Annual Report on Philanthropy. Definitive sector data on charitable giving including bequests., charitable bequests totaled over $45 billion in recent years, making it one of the largest sources of philanthropic revenue. For most nonprofits, the average bequest of $70,000 to $78,000 dwarfs years of annual fund 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 UniversitySource 2: Dr. Russell James, Texas Tech University, *Planned Giving Research*. The foundational body of research on legacy giving behaviour and messaging. 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 USASource 1: Giving USA Foundation, Annual Report on Philanthropy. Definitive sector data on charitable giving including bequests. 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 powerful, non-threatening 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 researchSource 2: Dr. Russell James, Texas Tech University, *Planned Giving Research*. The foundational body of research on legacy giving behaviour and messaging. 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?
Research by Dr. Russell James comparing over a million nonprofit tax returnsSource 2: Dr. Russell James, Texas Tech University, *Planned Giving Research*. The foundational body of research on legacy giving behaviour and messaging. found that organizations accepting securities grew at 66% over five years, compared to just 11% for cash-only organizations, a sixfold difference. The mechanics are simple: when a donor sells appreciated stock and gives you cash, they pay capital gains tax of up to 50%, reducing the gift. But when they donate the stock directly, the nonprofit receives the full value and the donor avoids the tax entirely while receiving a deduction for the full fair market value. 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.
- 1Giving USA Foundation, Annual Report on Philanthropy — givingusa.org
Definitive sector data on charitable giving including bequests.
- 2Dr — encouragegenerosity.com
Russell James, Texas Tech University, *Planned Giving Research*. The foundational body of research on legacy giving behaviour and messaging.
- 3
- 4National Association of Charitable Gift Planners, Practitioner Resources — charitablegiftplanners.org
Industry standards and vehicles for planned giving programs.
- 5IRS, Topic No. 409 Capital Gains and Losses — irs.gov
Federal reference on capital gains treatment relevant to appreciated-asset gifts.
- 6Indiana University Lilly Family School of Philanthropy, Bank of America Study of Philanthropy — scholarworks.indianapolis.iu.edu
Research on affluent household giving including planned vehicles.
Related questions
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.
