As I’ve celebrated more birthdays (a.k.a., gotten older), I’ve learned that life is not an either/or proposition.
It’s both/and.
I can be grateful and overwhelmed, optimistic and concerned, organized and hectic.
The idea that both can be true at the same time also exists in planned giving, particularly in our relationships with other fundraising departments, like major gifts.
Being open to a both/and mentality creates exciting new possibilities. What would it look like if we stripped away the “planned” and “major” titles and embraced a more holistic, simplified gifting philosophy? Loosened the ties that bind on separate departments and said it’s both.
Because for donors, their gift is a major gift that they’ve planned to make. See? Both/and.
A Few Reasons Why Planned Giving and Major Gifts Teams Can Give Each Other a Boost
Collaboration, not competition, is what’s best from your donor’s point of view. They don’t care about your nonprofit’s internal job titles and delineation of job functions, titles and organizational structures. They do, however, care about how easy it is for them to make the gift, the clarity in making it, and the goodwill, knowledge, resources, tools and tips of those guiding the way.
Here are some real benefits for planned giving when collaborating with major gifts teams.
- It reveals planned giving prospects, likely some who weren’t on your radar. These potential donors may have significant assets that could be both a major gift and a planned gift.
- It creates an opportunity to deepen relationships with high-net-worth donors who’ve already raised their hands. By creating a united front, you and your major gifts partner demonstrate a greater commitment to a donor’s long-term vision.
- It gives your teams tools and flexibility to curate a gift that lets donors achieve more. An ask that blends a major gift with a planned gift respects a donor’s current financial commitments and may allow them to make a gift they thought was out of reach.
- It looks better to the donor. Presenting a united front conveys that your nonprofit respects its donors above internal politics—and that you work together for the good of the mission.
Three Broad Steps To Establish a Collaborative Environment With Your Major Gifts Teams
#1 Get Buy-In From the Top
The single most important reason your board and top leadership should say yes to greater collaboration: a planned gift increases a donor’s overall giving, i.e., more financial support to your organization.
Consider this finding from Dr. Russell James, who analyzed charitable giving as part of the University of Michigan Health and Retirement Study (HRS). After studying responses from thousands of participants relative to annual and planned giving, Dr. James found that the average total gift from study participants before making a planned gift was $4,210.
After making a planned gift, however, their average total gift was $7,381, an increase of $3,171 per gift. Multiply that just ten times over and you’ve added $30,000 to your organization’s coffers simply by choosing to collaborate with other departments like major gifts.
#2 Be Willing To Share the Credit
Consider this scenario, for example: Major giving identifies a donor who wants to make a gift in her will. You both meet with the donor, not as gift officers from your respective departments but as representatives from your organization. You provide the bequest language and get a signed gift intention.
Because you both worked together to secure a gift that strengthens the deferred gift pipeline, each of you receives credit for closing the gift. Generous or “gratitude” crediting encourages both you and the major gifts officer to explore additional opportunities for collaboration.
#3 Establish Shared Metrics
To establish shared metrics between planned giving and major gifts, focus on tracking key indicators that support collaboration. Metrics can include:
Overall pipeline value—monitor the combined value of potential future gifts from both planned giving and major gifts prospects across different stages of the cultivation process
Referrals—note how many times you received a referral from major gifts and your follow-up action to further the gift, plus how many you gave to them
Joint visits—record how many outright visits you made with a major gifts officer and whether they resulted in a gift
Solicitation conversion rate—calculate the percentage of solicitations that resulted in a successful gift for both planned and major giving
Finally, word on the street says …
Two of our clients share how and why they’re working with their major gifts teams.
“In the past, the major gift and planned giving effort was pretty siloed, but there has been a concerted effort over the last couple years to work more collaboratively. We did some trainings last year that made the annual/major gift officers more comfortable in talking about planned gifts, and we have some shared metrics in our goals.”
—Director, Gift Planning at a nonprofit that protects endangered species and their habitats
“Doing what’s best for our mission and donors often ultimately yields more impactful gifts. While our Advancement team is goal- and outcome-oriented, we don’t ascribe to a traditional ‘moves management’ structure … at the expense of developing and maintaining genuine long-term relationships with donors.”
—Senior Director of Gift Planning at a collections-based educational and research institution
Consider the possibilities of a ‘both/and’ mentality—and the benefits to your planned giving program. How are you working with other teams like major gifts within your organization to see success?