Gift planning and legacy giving conversations don’t just have to be about death and mortality. In fact, they can and should be beautiful conversations about how donors can care for the long-term needs of their families, AND, how they can make significant impact for the causes they care most about.
Kristi Brennan, Chartered Advisor in Philanthropy, is the Divisional Director of Gift Planning at The Salvation Army Empire State Division. She and I sat down together recently to talk about charitable gift planning, what it is, how it works, and why it’s one of the most impactful areas of philanthropy.
Whether she’s talking with a donor who gives $1.00/month and plans to leave a $25.00 legacy gift upon her death (a true mark of generosity, if you ask me!), or an ultra-high net worth donor who is thinking about how to leave a multi-generational legacy that cares for his children and grandchildren while also achieving long-term philanthropic goals, Kristi gets to engage with generous community supporters on a regular basis.
Some of the great insights that Kristi shared with us include:
- Every gift is a puzzle where we get to match up philanthropic goals with family impact objectives
- While some donors are hesitant to talk about legacy giving because they’re uncomfortable, others love it because it allows them to see into the future and plan the impact they want to make even after they leave this earth
- Increasingly, high net worth donors are seeking opportunities to engage with charities both to achieve broad philanthropic goals and help them develop strategies to protect their families while still helping future generations understand the value and importance of work.
- The COVID crisis resulted in many (primarily older women) supporters of The Salvation Army to create “war wills” because of the urgency and highly uncertain times.
- The current trends in the economy and stock market may not be negatively impacting annual giving from high net worth donors, but it is causing some to reconsider long-term giving commitments and to delay major decisions in these areas.
- As we all know, and with all types of giving, gift planning decisions are ALL about understanding the donor’s timelines. Nonprofits should never plan for legacy gift revenue as part of their current year revenues because we have no control over them.
- According to Dr. Russell James, approximately 92% of donors are never asked if they have a charitable intent. However, when donors ARE asked this question, the likelihood that they will in fact make a legacy commitment increases significantly.
- One of The Salvation Army’s most effective approaches to surfacing gift planning opportunities is their work partnering with “allied professionals”, including estate attorneys, financial planners, and other trusted advisors who support donors. These professionals often know more about a donor’s desired philanthropic intent than any nonprofit, and they have a seat at the table in the donor’s major decision-making points. Building these relationships allows you to create high-trust referral pipelines for donors who might want to support your important work.