America’s Coming Generational Wealth Transfer: Part II
By Carolyn Kley Fanning, president of Planned Giving Solutions, Inc. based in Alexandria, VA.
In the first part of this series, we discussed the enormous wealth transfer—almost $60 trillion—occurring over the next 55 years. This transfer is an opportunity for donors and nonprofits alike to pursue planned gifts. Such gifts empower donors to determine how their estates will eventually be distributed and enable nonprofits to give donors a way to advance freedom even after their deaths.
Some of your supporters may have already included your organization in a will or other document. Keep in mind that for every bequest you know about, there are two to three more that you don’t know about. Therefore, it is important to encourage your donors to tell you about their intentions.
To make sure that your organization is included in your supporters’ estate plans, here are some easy and inexpensive ways you can educate your donors about the opportunity of charitable bequests and other estate gifts.
In your upcoming direct mail fundraising letters, consider adding a sentence or post-script and include some of type of response device in the mailing. Here’s an example:
“Have you remembered [name of your group] in your estate plans? Please let us know so that we may thank you and acknowledge your commitment to our shared ideals.”
“Make sure that your assets are used to support your principles and ideals. Consider an estate gift to [name of your organization] today. It requires no upfront commitment of assets and is completely revocable prior to your death. Gifts in a will or other estate plan produce important estate tax savings as well.”
You may also wish to inform your top 100–200 major and frequent donors that you are soliciting various planned gifts (bequests, beneficiary designations, etc).
One section of your reply device might read:
I have included [name of your organization] in my will or other estate plans. The approximate value of this gift is ____________________________.
Please send me more information about including [name of your organization] in my will or other estate plans.
I have provided for [name of your organization] through the following accounts:
If you send out a regular newsletter to your supporters, you can include an advertisement encouraging donors to include you in their estate plans and to notify you when they do. Sample language might read:
Who is the beneficiary of your estate? Your family? Charitable organizations? Or Uncle Sam?
Make sure your assets are used to support your ideals. Consider a tax-saving bequest or other estate gift to (organization name) today. It requires no upfront commitment of assets and is completely revocable before you pass away.
For more information and sample language for you and your attorney, please contact us. If you have already included us in your will, please let us know so that we can recognize your commitment to our shared ideals.
Make sure your website includes information about making a gift from a will or other estate plan. Don’t forget to include your full legal name, tax identification number, and address so an attorney can easily draft the appropriate language.
In addition to short email updates to your supporters, you may also wish to add a line in your email communications or under your signature to encourage bequests and other types of planned gifts. Consider adding one of the following examples below your name:
Have you remembered (organization name) in your will or other estate plans? Ask me how.
Make a gift to (organization name) that requires no upfront commitment of assets.
Contact me to find out how you can help secure freedom for your loved ones for years to come.
Planned gifts can be game-changing for your organization. Even relatively smaller planned gifts can be used to sustain certain programs or facilities, add capacity, establish endowments, or launch major new initiatives. You can ask for planned gifts on a regular basis without it costing much money or time, and yet reap amazing windfalls for your organization. So if you haven’t yet launched a planned giving program, now is the time to start! Work to develop meaningful relationships with the people who believe in your cause, and give them the opportunity to create a lasting legacy. What better way to unlock the giving potential of all of your supporters, not just the ones who can afford to give now.
