New research shows younger people, even in their 30s, are less resistant to include a charity in their estate planning than people in their senior years. Why is that so interesting? Well, for much of the last decade, planned gifts were marketed exactly the opposite of these findings.
Have you noticed all of the new research data and information available about planned giving lately? What I find most interesting is younger people, even in their 30s, are less resistant to include a charity in their estate planning than people in their senior years.
Why is that so interesting? Well, for much of the last decade, planned gifts were marketed exactly the opposite of these findings--the majority of nonprofits focused their planned giving efforts on older supporters. Times and generations, they certainly are a-changin'.
So, apparently, with the exception of charitable gift annuities, many nonprofits may be marketing to the "wrong" group of supporters.
A recent report, prepared for Campbell & Company, indicated people in their 40s were making wills. And just last week, The Stelter Company hosted a webinar, which showed that even folks in their 30s have begun estate planning in one way or another.
It makes sense I guess. At this point, just about everyone knows they should start their IRAs, 401(k)s, and general retirement planning as early in life as possible. And, it's generally the younger population who are getting married and having babies; thus, buying insurance and making wills. All of these lifestyle changes and milestones can be integrated into planned giving efforts, which means now is the time for nonprofits to appeal to these donors, while they're in the midst of making their plans for the future.
It's easier to make a planned gift commitment when you're young and feel you have yet to make your fortune and will have plenty of time to make revisions to your estate plan down the road. Yet, more research shows it's rare for people to change their minds about their charitable giving once they've put a favorite nonprofit in their plan (as long as you treat them right, of course).
What would you rather do: suggest a planned gift to someone when they're just beginning to investigate the process, or ask someone who's older and thinks they've already completed their plans to their satisfaction? True, you will have to wait longer for the gift to mature, but over the years, you will also probably receive a lot more, especially for a percentage gift, in many different ways.
BUDGETLESS PLANNED GIVING
Planned gifts are very often the largest contribution a donor ever makes. Yet sometimes it takes some convincing to get resources allocated to this type of campaign and if belt tightening becomes an issue for a nonprofit, this is an area that generally gets cut back first....
Bequests and Charitable Gift Annuities
The most difficult part of bequest campaigns, in my opinion, is getting people to let you know once they have taken the necessary steps. It's believed only about 1/3 of the people who make testamentary gifts will self-identify in advance.
THE PLANNED GIVING ADVISORY COUNCIL: Get Yourself Some Help
I believe that being able to ask for guidance and/or assistance is highly professional in almost any field and actually shows true confidence and competence. After all, nobody knows everything!
