Planned giving has a way of dividing nonprofit leaders. Some see it as essential to long-term sustainability. Others see it as something only large universities, hospital systems, or national organizations can realistically pursue.
And many small to mid-sized nonprofits quietly wonder:
“Is planned giving actually worth it for us, or is it just another fundraising trend we don’t have capacity to execute well?”
Let’s unpack what often gets misunderstood.
Myth #1: Planned Giving Is Only for Large Organizations
It’s true that sophisticated planned giving programs such as charitable remainder trusts, gift annuities, complex estate vehicles, … require infrastructure, legal expertise, and scale. But most planned gifts are far simpler. The majority of planned gifts in the United States are:
- Simple bequests in wills
- Percentage-based estate allocations
- Beneficiary designations on retirement accounts
You do not need a gift planning department to tell donors:
“You can include us in your will.”
That’s not complexity. That’s communication.
Myth #2: Planned Giving Is About Money You’ll Never See
One common frustration is that planned gifts feel too long-term to matter. If your organization needs revenue this year, what good is a gift that may materialize decades from now? That’s a fair concern. But planned giving is not a replacement for annual fundraising. It is a parallel strategy that strengthens:
- Donor retention
- Lifetime value
- Emotional commitment
- Multi-generational impact
When a donor includes your organization in their estate plans, something shifts psychologically. They stop thinking like annual contributors and start thinking like legacy investors.
That deepens engagement now, not just someday.
Myth #3: It’s Not Worth Promoting Unless You Build a Formal Program
Many organizations overcomplicate planned giving before they begin. You don’t need:
- A glossy legacy brochure
- A named giving society
- A 12-page technical guide
To start, you need:
- A sentence on your website
- A checkbox on your donation form
- Occasional mention in newsletters
- Board members who understand and model it
Planned giving becomes intimidating when we treat it as a separate fundraising silo instead of what it is: a natural extension of long-term donor relationships.
The Real Question: Do We Have the Right Donor Base?
Here’s where discernment matters. Planned giving is most effective when:
- You have loyal, multi-year donors
- Your mission resonates across decades
- You maintain consistent stewardship
- You have basic financial stability
If your organization is struggling with donor retention, lacks consistent messaging, or has unresolved governance issues, planned giving won’t fix that. Legacy commitments are built on trust. And trust is built on operational credibility.
The Governance Angle
Boards often misunderstand planned giving in one of two ways:
- They assume it’s too advanced for their size.
- They assume it requires no oversight because it’s “future money.”
Both are problematic. Planned giving requires:
- Clear gift acceptance policies
- Basic financial tracking
- Documentation of donor intent
- Responsible communication
It does not require complexity. But it does require discipline.
What Small Organizations Should Actually Do
If you are a small or mid-sized nonprofit, consider this phased approach:
Phase 1: Normalize the Idea
- Add simple language to your website: “Consider including us in your estate plans.”
- Mention legacy gifts in one annual communication.
Phase 2: Identify Loyal Donors
- Look at donors who have given for 5+ years.
- Schedule stewardship conversations.
- Ask about long-term connection to the mission.
Phase 3: Keep It Simple
- Encourage bequests and beneficiary designations.
- Refer complex vehicles to professional advisors.
- Avoid administering instruments beyond your capacity.
You are not becoming a financial planner. You are inviting donors to align their values with their legacy.
What You Might Be Missing
The real value of planned giving is not just deferred revenue. It is stability. It signals to donors, funders, and staff that the organization is thinking beyond this fiscal year. It reinforces permanence. It deepens belonging.
In uncertain times, politically, economically, even socially, permanence matters.
But Here’s the Caution
Planned giving is not a shortcut around hard fundraising work. If:
- Your board won’t fundraise
- Your annual revenue is unstable
- Your financial reporting is inconsistent
Then start there. Legacy commitments are built on trust in leadership and governance. Without that, marketing planned gifts can feel premature and even irresponsible.
What Are We Missing?
Planned giving is neither a silver bullet nor a distraction.
For organizations with loyal donors and basic stability, it is a low-cost, high-alignment strategy that strengthens long-term sustainability.
For organizations still building foundational systems, it is something to phase in thoughtfully. Do not rush.
The question isn’t, “Should we launch a planned giving program?” The better question is:
“Are we stewarding our most loyal supporters in a way that invites them to think about their legacy?”
If the answer is no, that’s the opportunity.
Contact the Nonprofit Snapshot
Planned giving isn’t just for large institutions. Explore when legacy fundraising makes sense, what it requires, and how small nonprofits can approach it wisely.
The Nonprofit Snapshot can help organizations take this first step by offering a clear view of organizational health, capacity, and risk as critical foundations for effective advocacy. Please share your questions and comments on our Nonprofit Snapshot page on LinkedIn.