Is Your Board Ready to Support
A Planned Giving Program?

By Jane Mackey, Vice President
Kansas City

Has your board decided it is now time for your organization to enter into the planned giving arena?

Many boards read the announcement in the local paper about the multi-million dollar estate gift left to another local organization and decide that they want to start a planned giving program. After all, could there be an easier way to raise millions of dollars from just one donor?

In starting a planned giving program, you must first look at the role of the board. The board will serve a number of purposes in a planned giving program. Before an effective planned giving program can begin, you must first outline the goals of the program:

Will it be funding an endowment? How will the endowment be used? What types of gifts will you accept as part of the planned giving program? How will the funds be managed? What are the minimum gift amounts for recognition? Do you have a Legacy Society or other recognition group in place?

The board must then step up and personally commit to making a planned gift. Just like any other fundraising activity, if the board does not lead the way by making the first gifts, why should anyone else? For board members with limited capacity, you will need to show them how even a portion of a modest estate can make a difference to your organization. Recently, an organization received one third of what would be viewed as a small estate. The estate was valued at about $100,000. But, one third of the estate equaled nearly $35,000, which for the organization was a fairly substantial gift. Help your board understand the importance of estate plans and how planned gifts at any level can help your organization.

Next, the board must be willing to help open doors to other donors and tell the reasons why they have made their planned gift to your organization. Through regular reports from the organization, they will be able to share the success of the program and the stories about how the gifts are making a difference.

Planned giving programs will not solve short-term fundraising goals or generate instant returns. But, with a well-thought out plan with goals for both the staff and board, a planned giving program can play an important role in your organization’s fundraising success.