In a recent live call with participants in the Veritus Group Academy, one participant asked, “Do I really need a legacy society?”

This is a question we hear a lot from non-profit fundraisers and leaders. That’s why we asked our Director of Planned Giving Services, Robert Shafis, to share how to know if you do need a legacy society and how to get one started.

Read the Transcript:

SUMMARY KEYWORDS
donors, legacy society, gifts, plan, planned giving program, organization, giving, recognition, planned giving, charter members, Veritus, irrevocable, type, benefits, creating, membership, members

SPEAKERS
Jeff Schreifels, Robert Shafis, Richard Perry

Jeff Schreifels
Does your organization really need a planned giving program or legacy society? We get this question a lot. First, let’s talk about the benefits. When done well, these programs can help you better serve your qualified caseload donors, by giving them an opportunity to do even more for the causes they care about. In our podcast today, Bob Shafis, our Director of Planned Giving Services at Veritus, talks with Richard and me about what to consider when setting up a planned giving society to ensure your success.

[Recorded]
Welcome to the Nothing But Major Gifts podcast from Veritus Group, featuring Richard Perry and Jeff Schreifels. Twice a month we bring you the latest and best thinking about major gift fundraising, so you can develop authentic relationships with your major donors. Here are your hosts, Richard and Jeff.

Jeff Schreifels
Welcome to the podcast today. I have Richard Perry with me and Bob Shafis, our Director of Planned Giving Services. And Richard, we’re getting a lot of questions these days on whether a non-profit should have a planned giving or legacy society.

Richard Perry
Yeah, I know, we are. And on the surface, this might seem like, well, you know what, it’s just not a big deal. I mean, who cares? I mean, who cares whether a planned giving society exists or not? I mean, does it really add any value?

Jeff Schreifels
I know, which is why we have so many people who are questioning its value and whether they need it. And that’s why we have our resident expert on today’s podcast to give us all the answers we need.

Richard Perry
I know, let me interrupt for just one second, though, because, so if you’re listening to this, and you’re thinking to yourself, you know what, this topic has, you know, doesn’t really relate to me, no need to waste my time with it at all. If you’re thinking man, now just hold on a second. Because here’s why. This topic has everything to do with giving, and your qualified caseload donor and what they’re doing. It gives them an opportunity to do even more for your organization. So just stick with us there.

Jeff Schreifels
Yeah, that’s exactly it. I think this is so important to properly serve the needs of the donors. Right. That’s what it’s about. So, okay, let’s get Bob to finally answer the question, Bob, should an organization have a planned giving society?

Robert Shafis
Well, as a good lawyer, I’m going to say it depends. It depends on a lot of things that relate to the type of the charity, the structure of the charity, the way it’s managed. And the opinion of your donor base, how do they look at this type of concept? You know, having said that, for the most part, charities should seriously consider having a legacy society or planned giving society.

Robert Shafis
Okay, so hang on, Bob, it sounds, it sounds like you can do it or you can’t do it. So does it really make any difference? I mean, really?

Robert Shafis
Well yeah, I think it does. Because a planned giving society helps motivate donors to self-identify as people who have either done something already in their estate plans or would be interested in making a planned gift. So it also provides a pool of future planned and major gift donors for your organization. Most importantly, it provides a vehicle for the recognition and stewardship of your existing known planned giving donors and new planned giving donors as you generate them. And finally, it’ll increase the amount and value of new planned gifts, especially irrevocable ones.

Jeff Schreifels
Wow. Okay. Well, I mean, seems to me that you’d be making a grave mistake not to have a planned giving program.

Richard Perry
I know, I know.

Robert Shafis
So as a rule, you would. But here’s the other thing that I want to mention before we go too much further. We know that there’s significant attrition of existing plan gift donors once they pass away. Some recent data that shows that of those who have a reported executed will, about 45% failed to probate it. Also, of those with an executed trust, only 76% fully implement those things at death. Now you combine that fact with only about 55% keep a charitable gift in their plans for more than 10 years. So that’s a clear indication of the need to identify existing donors. And as new planned gift donors are known to implement a strong recognition and stewardship program. You know, with a good planned giving society, you can stay connected and in touch with your donors and put into practice good stewardship principles. They’ll feel connected, valued, and appreciated. And here’s an additional bonus. To the extent that you help donors create new planned gifts. Studies show that they will become more significant donors in years ahead towards your general fundraising program through annual and major gifts.

Richard Perry
Wow, okay. Okay. Okay. I’m convinced. So it’s important to have a planned giving society but give us some input on how to do it. I mean, how do you actually do it and what should you consider if you’re going to do it?

Robert Shafis
Well, you know, when you put together a planned giving society, there are a number of factors you should consider. First of all, and perhaps most importantly, what type of gifts are you going to recognize in that society? Most organizations are going to recognize things that you classically think about as planned gifts, bequests, beneficiary designations, various types of irrevocable planned gifts. You know, the answer to this question lies in what type of gifts your organization will discuss with donors. And also what’s the capacity of the organization to manage irrevocable planned gifts and possibly outsource the management of certain types of gifts?

Jeff Schreifels
Okay, so let’s be clear on this point, Bob. So you are saying that you have to start with what the organization is equipped to actually handle and accept, right?

Robert Shafis
Yes. And this includes addressing what the organization is going to handle gifts from donor-advised funds. And also from qualified charitable distributions from IRAs. These are concepts that are becoming more and more important in the fundraising community.

Richard Perry
You know what is dawning on me, guys, is this sort of like a commercial company or a retail store? You sort of need to decide what you’re going to sell.

Jeff Schreifels
Right?

Richard Perry
And then be ready to do it. So okay. So alright, let’s say that that’s in place. What are the next steps, Bob?

Robert Shafis
Well, you know, the basic components of the new planned giving society are the name, very important. The initial charter members of the society that is those you’ve already identified as current planned giving donors who will become members, and we’ll talk in a few moments about how you get additional charter members. What benefits they may receive for becoming members of the society, a recognition plan, and how that recognition will be rolled out and implemented. And also important is an upgrading plan to make sure that your identified planned giving donors have opportunities to create larger, new irrevocable planned gifts, as well as additional current gifts.

Jeff Schreifels
Okay, so let’s talk about the name of the society. What should you call your planned giving society?

Robert Shafis
Well, this is an area I get in arguments with friends about. Very dull arguments, but I get in arguments with friends. And some of them say, you know, you should name it something simple, like “Legacy Society” or “Founders Society.” So the donors know exactly what the existence of this society is. Otherwise, you can also name it after something quite specific to the organization, creating the society, the name of a founder, a beloved building, or institution in the society, or something else personal to the organization. You know, it ultimately comes down to what the organization feels will work for its donors.

Richard Perry
Okay, so you have the name nailed down. It seems like that plan for recognition, and a method of recognition is also important. And probably the next step.

Robert Shafis
Yeah, yeah, this is especially true if you already have some existing planned gift donors, and are creating the society from scratch. In addition to how that recognition will be implemented, there needs to be some discussion to take place on how to ensure that donors can remain anonymous if they want to be. And if the organization that they’ve made the planned gift to will allow them to be anonymous. Also, how those names will be published, if they’re published, and whether that’s going to be in a print on a print piece, or increasingly online.

Jeff Schreifels
So one question I have, all right, if I’m a planned gift donor, is why would I even want to belong to the planned giving society myself, like, what do I get out of it? You know, Richard and I have written a lot about donor benefits from their giving and stuff. So what do I get out of this? If I’m the planned gift donor?

Robert Shafis
Yeah, it’s basically the same dynamic. The benefits or the perks, if you will, of a society are always an important element to address. And usually they include some type of recognition piece or certificate, annual or more frequent events or a series of events where individuals get proper recognition and stewardship, as well as something that I’ve seen donors really appreciate, which is some kind of backstage information, giving them knowledge about what’s going on in the institution before it’s perhaps more broadly disseminated to its constituency. They should always feel connected to the charity. Tours, private meals with leadership, and other connections to the mission of the organization often become part of that process as well.

Richard Perry
Alright, so we have the name, the recognition part, the benefits of belonging. It seems to me Bob that you know, starting up a planned giving society or rebooting a dormant society is often structured much like a campaign. I mean, like you would start by identifying certain important people and members of leadership to make initial commitments. And then you’d convey that information to a board or other important persons in the organization. And then perhaps some of those early joiners would become spokespeople for the planned giving society or something like that. Isn’t that makes?

Robert Shafis
Yes. Yeah, that’s right. And what you’re talking about, Richard usually starts with the implementation of a charter membership drive. If you’re starting a new planned giving society or maybe some type of new membership driving the event, you have many existing planned gift donors. So this will usually take place with some type of direct invitation, either in person to significant donors, or to the board, or to the broader donor base through some type of mass marketing approach.

Jeff Schreifels
That’s really good. So it seems to me that one of the things you want to communicate in the startup campaign or ask is that you’re creating a charter membership drive that will end on a certain date in the future. Like all those who become members of the planned giving society before that date will always be recognized as charter members. Isn’t that kind of how it works?

Robert Shafis
Yeah, that’s exactly it. And usually, there’s some sort of celebratory event after that date that is stated, and new members will always become part of the plans of the organization in the future. And these future plans usually include regular mailings to new members annual event, a membership requirement for new leadership, which is often a really helpful thing to do. And a plan, and this is important, to ask each donor who’s being considered for a major gift to consider becoming a member at some point in the strategy for that donor.

Richard Perry
Okay, this is really, really good. So let’s summarize what you said so far, in starting up a planned giving society first, the organization will need to decide what types of planned giving gifts they will handle. So that’s, that’s number one, then you need to come up with a name for the society. Next, a recognition plan must be created. And then there’s the whole benefits list, what are the benefits of belonging that you’ve been through? And then once we have that nailed down, we need to have a membership drive to get the program going. Does that sort of cover it all Bob?

Robert Shafis
Yeah that pretty much covers it all. I do want to share one final thing, a few final thoughts. One is patience from all concerned is important. Your initial membership may be relatively small, but don’t get discouraged. Remember that what you’re doing is the beginning of a long-term process to be implemented each year. And another thing that we know this is a little scary is the two-thirds of the people who’ve made some sort of plan for a planned gift to your organization will probably never tell you. So everything you can do to help them self-identify to you, is going to help you assure that they’re going to go through with their plans, because you can effectively steward them.

Jeff Schreifels
Well, I mean, there you have it, how to start a planned giving society. One detail is to make sure you are monitoring your marketing methods and growth in your society, as it will help you plan effectively for future growth. And you probably don’t want see any actual distributions from these planned gift donors until a period of five to 10 years after you even start the process. So you should remember that the average life expectancy of a planned gift owner is in the range of about 15 to 20 years. So all of this is a long-term program, you got to remember that, and your leadership has to remember that, well, this is an investment in the future.

Jeff Schreifels
Now, if you’d like to learn more about how to start a planned giving program more broadly, I highly recommend that you check out our free white paper on How to Start a Successful Planned Giving Program. In this resource, Bob shares about creating a planned giving society and other aspects of creating buy-in and ensuring your success in planning giving.

Jeff Schreifels
Okay, thanks so much, Bob for spelling this out in detail. And by the way, Bob is available to help you get your planned giving society started, if you’re looking to partner to guide you in that process. So all you need to do is contact our colleague, Amy Chapman, go to our website, veritusgroup.net. Her information is right there and get the conversation started, about how we can support your planned giving efforts. So thank you for joining us today and for this conversation and we look forward to partnering with you in your planned giving program. Take care everyone and we’ll see you next time.

Richard Perry
Thank you.

Robert Shafis
Thank you.

[Recorded]
Thank you for joining us for the Nothing But Major Gifts podcast from Veritus Group. Richard and Jeff also write an ongoing blog that you can subscribe to for free at veritusgroup.net. Please join us again next time.

 

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