Traditional “donor cycles” are failing planned giving programs
If you ever attended a fundraising course or major gift webinar, you probably know what I’m talking about—the constant cycle of qualifying, cultivating, asking, and stewarding. The circle is a continuous loop, always keeping the last gift (and next one) in mind.
If someone hasn’t given in the past year, or if they’re not likely to give anytime soon? Put them on the “back burner” or cut them off entirely.
This model has its place. If you’re a Major Gift Officer and need to make this year’s budget, then the traditional donor cycle will keep you on track.
But, when it comes to gifts made through a donor’s estate, (a gift-in-will, RRSP/ RRIF or other beneficiary designations) a donor can only make the pledge once, then you’re stewarding them for life.
Consider the research
Dr. Russel James’ research shows that over 30% of donors who leave a gift to charity in their Will remove it within ten years of making their pledge. He suggests that one reason why this occurs is because charities will cut off contact with a donor if they stop their annual gifts, (even if they know about the gift-in-will) a common occurrence in a donor’s last decade of life as they go through changes in their health.
And honestly? As someone with over 10 years of experience in our sector, this doesn’t surprise me. There’s no model to tell fundraisers to do otherwise.
Trying to apply the traditional donor cycle we’ve been taught to estate gifts is like trying to fit a square peg into a round hole.
It’s time for something new!
This training model I’ve created actually reflects how we build relationships and raise gifts with estate gift donors. Here’s the breakdown:
Fundraising Foundations
This is the core of any effective planned giving program. Your best prospects for gifts-in-wills and other estate gifts will come from your existing database, so you need a solid fundraising program.
Cultivation
This step is often the most overlooked among charities first starting a planned giving program. Your efforts to get legacy giving “hand raisers” will be much more successful if you share inspiring legacy giving messages with themfirst.
This involves sharing your legacy giving “why” with donor testimonials for social-proof, across various communication channels. It’s about making the case for why a donor shouldn’t just give to your immediate needs, but to your organization’s future.
Acquisition
This step is about getting “hand raisers”. (I.e. Donors who say they’re interested in leaving your organization a gift, or they already have.) It could be done by adding check boxes to your buckslips, distributing a survey, having conversations, using digital ads and more.
If a donor expresses interest, continue to cultivate that relationship. If they tell you they’ve left a gift, move them into “lifelong stewardship”.
Lifelong stewardship
Ensure you stay in the Will! It’s about the long-game. Lifelong stewardship isn’t just about sending thank-yous and having tea. Back-end systems and processes to ensure all donors who leave you an estate gift are stewarded—regardless of their annual gift—must be in place. In practice, this means anyone who leaves an estate gift to your organization should receive a minimum of one to two touchpoints a year through their preferred channel.
Raising gifts from estates doesn’t have to be complicated, but it’s different from any other form of fundraising. I hope this training tool will help you to understand those differences and improve your planned giving program.
With the “Great Wealth Transfer” upon us, fundraising from assets and estates will be essential for any charity who wishes to grow revenue from individuals.
