As fundraisers, we frequently think of donors writing a check, attending a special event, or giving used items to a donation center. These gifts keep our organization running, but there is another form of generosity that sustains organizations in the future: planned giving.
Leaving a gift in a will, setting up a trust, or naming a charity as a life insurance beneficiary requires donors to think about a long-term commitment. But understanding what motivates a person to make this kind of commitment is key to achieving long-term sustainability.
3 Donor Motivations Behind Planned Gifts
Here are three reasons why a donor might consider planned giving:
1. A Lasting Legacy
For donors, a planned gift is a way to express who they were and what they valued. It is an opportunity to look at the future and say, “I want to ensure this work continues long after I am gone.”
Many donors want to make a difference but need their assets during their lifetime to live comfortably. You will see this when a donor says, “I wish I could do more.” A legacy gift enables them to make a larger impact than they ever could through annual or major gift giving.
Many planned gifts are given to organizations that have left a mark on the donor’s life. This might be a hospital that cured a family member, a university that opened doors for them, or a local shelter that aligns with their values.
2. Emotional Satisfaction
There is a psychological benefit to planned giving. Psychologists often refer to the emotional satisfaction of giving as the “warm glow” effect, and it intensifies when connected to a lifelong legacy. It provides a donor peace of mind when they know their hard work will support a scholarship, fund critical research, or protect the environment.
Many non-profits create exclusive “Legacy Societies”, offering donors a chance to connect with other planned giving donors and see their generosity celebrated during their lifetime.
3. Tax Incentives
Making a planned gift is smart financial planning. Planned giving offers powerful tax incentives that benefit both the donor and their heirs. For high-net-worth individuals, it reduces the overall value of their taxable estate. This ensures more of their wealth supports a cause they love rather than going to taxes. When a donor gives appreciated assets — like stocks or real estate — they may completely avoid capital gains taxes and secure a charitable deduction for the full market value.
A common misconception is that making a planned gift means losing financial security. Modern planned giving is designed to give donors peace of mind. Donors can write a charity into their legacy plan and retain full access to their funds while they are alive. If they need that money for healthcare or retirement, it’s theirs. The charity only receives what remains.
How to Market Planned Giving to Donors
Marketing planned giving isn’t like marketing other giving vehicles. You aren’t asking for immediate cash; you are asking them to consider their life legacy and estate. Plus, many donors assume that planned giving is too complicated or that they aren’t wealthy enough to qualify. But this isn’t an exclusive club for the ultra-wealthy, which is why you should integrate planned giving into your regular marketing.
Because planned giving is a deeply personal and emotional decision, your marketing should remove the friction and lead with impact. Here’s how:
- Tell stories and share testimonials or profiles of current legacy society members. Highlight why they decided to give and what it means to them.
- Frame the conversation around their lifetime connection to your cause. Use prompts like: “What do you want your impact on this organization to be 50 years from now?”
- Add a simple checkbox to your regular direct mail slip or digital donation pages:
- “☐ I have included [Organization] in my will.”
- “☐ I would like information on how to include [Organization] in my estate plans.”
- Include a permanent line in your newsletter footers or staff email signatures like: “Have you considered leaving a lasting legacy? Learn more about our planned giving options.”
- Create age-appropriate messaging for each age group in your database:
- For millennials, focus on flexibility, revocable gifts, and that they don’t have to give up assets now.
- For baby boomers, focus on traditional bequests, estate planning, and tax-smart income-producing gifts like Charitable Gift Annuities.
- Dedicate a clear, easy-to-find page on your website to planned giving, including:
- Sample legal language that a donor can easily copy and paste into their will
- A downloadable “Estate Planning Guide”
- A free educational webinar with a local estate attorney, framing it as a service to help them organize their affairs
- Emphasize bequests and beneficiary designations where no money changes hands today. This is incredibly comforting to donors who are worried about their future healthcare costs or outliving their retirement savings.
Tip: Not all donors are ready for a planned giving pitch. Target the ones who show the highest indicators of loyalty (consistent annual donors, monthly gifts, and giving to more than one program), not just high wealth.
Sustain Your Organization Through Planned Giving
While annual donations and event tickets fund daily operations, planned giving is the foundation of an organization’s long-term sustainability. Making a legacy gift — whether through a will, trust, or beneficiary designation — is a deeply personal decision that allows donors to express their lifelong values, maximize their impact without sacrificing current financial security, and enjoy significant tax benefits.
For fundraisers, marketing these gifts requires an impact-first, emotionally resonant approach. By normalizing the conversation across regular channels, targeting loyal supporters rather than just high-net-worth individuals, and removing technical friction with clear, accessible resources, organizations can seamlessly invite donors to secure a lasting legacy that protects a cause they love for generations to come.
Author bio: Jack Alotto, MA, CFRE, is a trainer and consultant for Sanford Institute of Philanthropy. Reach him at jalotto@nu.edu or connect with him on LinkedIn at https://www.linkedin.com/in/jack-alotto-ma-cfre-8920526/