All Gifts are Planned Gifts

"A deferred gift is a present decision to make a future gift, evidenced by a legal contract. While the name 'deferred giving' is best known to professionals in the field, it is not a term that communicates very much to the average donor. Therefore, we suggest the term 'planned giving.' When a person makes a planned gift, it suggests forethought." Robert F. Sharpe, Jr.-Give & Take, a publication of the Sharpe Group, August 1972

Back in 1972, Bob Sharpe shared this definition of “planned giving.” Since then, we’ve gone through gift planning, philanthropic planning, and other terms and the definition has expanded to cover pretty much any gift, current or deferred, that isn’t cash. With much sincere respect to Mr. Sharpe, a wonderful man and a legend in the fundraising field, the definition of a “planned gift,” indeed, even the term “planned gift” has perhaps outlived its usefulness.

This definition was created, and spawned an industry, based on a legalistic understanding of the “how” of a gift – many early adopters were lawyers. But charitable bequests have been created for more than a thousand years, and “asset” gifts have been around as long as people have had assets to give.

But I believe that every gift is a “planned gift”, and gift planning is a process that encompasses most giving. Gifts are planned individually, emotionally, as part of a broader giving strategy, based on current, perceived, and anticipated means, and for lots of other reasons and purposes. Calling a gift a “planned gift” mistakes the process for the gift.

Any gift can be a planned gift

I love baby goats and I have friends who run a wonderful farm animal sanctuary in Pennsylvania. (lancasterfarmsanctuary.org). I met them back when I worked at another sanctuary and gave a presentation on fundraising for potential sanctuary founders.

They are geniuses at social media! I watch their videos every day, I know the names of most of their residents, I share pictures with my teenage son (who has donated a lot of his saved money to them). I might make an immediate, emotional decision to hit “donate” on Facebook every time my friends post a picture of a sick goat they rescued, but my support for them is quite considered – as well as emotional. I’m a sucker for a baby goat, of course. Aren’t we all?

Pic of my son, Jamie, with Robin, the baby goat whose surgery he helped fund with his saved allowance and birthday money:

But supporting farm animal advocacy organizations is part of my broader, considered goal to end factory farming and animal cruelty. This is a priority of my family’s giving now – and potentially later. It’s a cause that reflects our values as well as who we aspire to be as people of integrity. Our giving now supports a world I’d like my son to grow up in, where no sentient creature suffers for our convenience.

Are my Facebook donations “planned gifts”? Or part of a gift planning process? They are from my discretionary income/cash (since I don’t have assets to give.) And I don’t think twice before hitting that “donate” button. Does that make them less considered than if I had stock to give? I don’t think so.

A legacy gift can be a type of gift, or a way of making a gift. But sometimes it’s not a financial gift at all – mentoring young people can be a legacy; instilling values in your children is a legacy; working within your community can be a legacy….

All fundraisers should be gift planners

There is nothing inherently difficult or esoteric about deferred gifts and no reason all fundraisers should not feel capable discussing these with their donors.

I often conduct trainings for gift officers. And for years, I’ve wondered why we have major gifts (and other non-planned giving) officers who don’t seem to be able to have holistic conversations with donors about the full scope of their giving. Of course, the way we structure major gifts programs and set metrics creates negative consequences for asking for anything that might take a while to show up! That’s another post – I could rant for a long time about the ways we structure fundraising programs…

But I believe that ANY fundraiser who works in any capacity directly with donors should feel comfortable building deeper relationships with donors, where they can learn about the why of the donor’s giving and can discuss all the ways in which a donor can make the impact they hope to have, no and in the future. To my mind, this is a baseline competency for every fundraiser. And the fact that is not is one reason most organizations are dramatically underperforming in the deferred giving area.

News alert – in my 20+ years of planned and major gifts fundraising, most of my conversations with donors have not been technical. I did not grow up with money – I learned over time (and in conversation with donors) how people give, how people with higher net worth manage their money and their giving and learned enough to not give bad advice (and remember, we’re not advisors). While I have a law degree, I was never a trusts/estates attorney – I practiced securities litigation and white-collar defense! I didn’t know anything more about tax/estates than any other reasonably motivated fundraiser.

What is fundraising, after all? Passion for the cause, good manners, curiosity, and a vast enjoyment of working side by side with our supporters to create a better world.

Let’s stop putting “planned giving” in a silo and do better by our communities, our organizations, and our supporters.