Category: Planned Giving Marketing

Keyboard image with Bequets and OPerating Expenses spelled over it.
Beneficiary Designations
Doug White

Is It Okay To Use A Bequest For Operating Expenses?

Question My nonprofit organization currently uses all bequest proceeds for operating expenses. The family of a recently deceased donor has questioned this and wants us to designate the funds for endowment (what is an endowment). What should we do? Answer It’s important to remember that only funds explicitly restricted by the donor can serve as a true endowment (importance by Deb Ashton). If a donor’s will does not specify a restriction, these funds are technically unrestricted and can be used at the nonprofit’s discretion. However, that doesn’t mean organizations should spend them without careful consideration. One approach is to treat them as “quasi-endowment” or “board-designated endowment,” meaning the board voluntarily decides to invest the funds rather than spend them outright. This way, the principal remains intact, and the nonprofit can utilize annual drawdowns based on a responsible spending policy. The larger question your nonprofit must address is: What is your policy on unrestricted planned gifts, and does it align with donor expectations? Best Practices for Bequest Usage Many organizations don’t give much thought to unrestricted planned gifts and simply use them to fill gaps in their operating budgets. However, best practice suggests having a formal policy in place—one that respects the donor’s likely intent while ensuring financial sustainability. Most donors assume their bequests will help sustain the organization long-term, not just cover short-term expenses. A strong donor-centered policy could involve: Directing all or a majority of unrestricted planned gifts to a board-designated endowment. This approach ensures long-term financial health and aligns with donor expectations. Learn more about board-designated endowment funds. For legal considerations, see McGuireWoods. Allocating a small portion (for example, 5-10% or $5,000-$10,000) of each unrestricted planned gift for operating expenses. This provides immediate support while preserving the principal for future needs. Giving the board the flexibility to override this policy if needed for urgent financial priorities or to honor a donor’s family’s preference. Flexibility ensures that the organization can adapt to unforeseen circumstances while maintaining donor trust. By setting a clear policy, you send a powerful message to donors: Their legacy matters, and their gifts will be used wisely. The Bigger Picture: Why This Matters for Planned Giving Success By Viken Mikaelian Planned gifts, especially bequests, are often the largest contributions a nonprofit will ever receive. These gifts represent a donor’s lifelong commitment to your mission, and how you handle them directly impacts future giving. The problem? Many nonprofits treat planned gifts like short-term revenue instead of the strategic, long-term investments they were meant to be. The Donor’s Perspective Most donors assume that when they leave a bequest, their gift will provide lasting support—not just disappear into next year’s budget. If nonprofits spend these funds too quickly, it can discourage future legacy donors who want to know their gift will have a long-term impact. This is why nonprofits with clear bequest policies attract more planned gifts. Donors feel confident knowing their gift will be handled responsibly, and nonprofits benefit from a growing endowment that provides financial stability. Discover the benefits of planned giving for both donors and organizations. What Nonprofits Should Do If your organization doesn’t have a policy for unrestricted bequests, now is the time to create one. A simple, donor-friendly approach might include: Allocating a small portion (5-10%) to operating expenses and directing the rest to a board-designated endowment. This balances immediate needs with long-term sustainability. Communicating your bequest policy transparently to donors, so they know how their gift will be used. Transparency builds trust and encourages more planned gifts. Educating fundraisers and board members on the importance of endowment-building through planned gifts. An informed team can effectively convey the value of planned giving to potential donors. Explore how to launch a planned giving program. It’s a Strategic Move Planned giving is evolving, and nonprofits that take a strategic approach to bequest management will attract more legacy donors. A well-structured bequest policy signals trust, responsibility, and long-term vision—the exact qualities that inspire donors to include your nonprofit in their estate plans. Next Steps Does your nonprofit have a clear policy for unrestricted bequests? If not, now is the time to create one. A strong planned giving strategy can increase donor confidence and secure more legacy gifts for your organization’s future. Need help crafting a planned giving strategy? Contact us today. FAQ Accordion Frequently Asked Questions Can unrestricted bequests be used for an endowment? Yes, if the board designates them as such. Even though the donor did not restrict the funds, nonprofits can voluntarily allocate them to a board-designated endowment. How should nonprofits handle unrestricted planned gifts? A best practice is to have a policy that directs a portion to operating expenses (5-10%) and invests the remainder in long-term sustainability. Do most donors expect their planned gifts to go to operating expenses? No. Most assume their gifts will contribute to the long-term health of the organization, making an endowment allocation a stronger donor-centered approach. Can a nonprofit override its bequest policy? Yes. Policies should include flexibility so that the board can make exceptions when needed, especially if a donor’s family expresses a preference. What percentage of a bequest should go to operations? Many nonprofits follow a model where 5-10% of unrestricted planned gifts go to operating expenses, while the remainder is directed to a board-designated endowment. How can nonprofits encourage more planned gifts? Nonprofits can increase planned gifts by educating donors about their impact, offering donor recognition programs, and maintaining transparency about how these gifts are used. What are the benefits of having a board-designated endowment? A board-designated endowment provides long-term financial stability, helps build donor trust, and allows nonprofits to generate income while preserving the principal. Should nonprofits inform donors about how their bequests will be used? Yes, transparency is key. Clearly communicating the nonprofit’s policy on unrestricted bequests ensures donor confidence and can increase the likelihood of receiving future legacy gifts.

Read More »
Doug White April 8, 2016 No Comments

What a Planned Giving Professional Can Learn from a Realtor

By Two Cent Steve, Planned Giving Director at one of PlannedGiving.com’s university clients Two hundred and fifty three brave souls signed on for a recent webinar with Viken Mikaelian and Tom Ahern. That’s two out-of-the-box thinkers with a habit of saying it like it is … bound to get interesting.

Read More »
Dan Rice July 30, 2015 No Comments

Are you a Binge Marketer?

The classic cry of the binge marketer is “Oops… business is slow. I guess I’d better do some marketing and send out a mailing.” If you find yourself in the middle of a quiet spell, thinking that a few actions, a couple of phone calls and a mailing here and there will get things moving again, you need to rethink your strategy.

Read More »
Viken Mikaelian August 15, 2014 No Comments

Who’s Your Tom Bond?

You’d never guess by looking at Thomas Chandler Cruikshank Bond, III, that he battled drug addiction for two decades, that he was jailed half a dozen times, or that he spent four years living in abandoned houses in East Baltimore. In fact, even if you had met him during most of those dark years, you never would have guessed what was really going on under his façade. He had a good job with an expense account, wore a suit and tie and drove a nice car. But, he says, “inside I was a wreck, miserable.” By 2002, Tom had been homeless or jailed for the past four years. He was injecting heroine and cocaine and had wasted away to 150 pounds. “I really thought I’d end up dying in the projects of Baltimore,” he says. Then, during yet another stint in jail, Tom heard (for the third time) about the Helping Up Mission, an organization that helps men break the grip of homelessness, poverty, addiction and mental illness. This time, Tom was finally ready to seek help. He entered the mission, and after graduating from their one-year spiritual recovery program, he was hired on staff. He continued moving around to different positions within the organization, and now he is Director of Programs and Services and oversees a team of 40 staff and eight programs serving 500 men. What a difference a year can make Tom Bond is a face and a story to a problem. He breaks the stereotype of the greasy-haired bum on the street. “The picture of homelessness and addiction that most people have isn’t accurate. The larger picture is the kid that breaks his leg and gets hooked on oxycodone and within a year or two goes to heroine. It’s a gigantic, terrible mess.” So Tom tells his story over and over and over. In his role at Helping Up Mission, he often gives tours to donors and foundation representatives. “Invariably my story pops out during the conversation. They’ll look at me in my suit and they’ll say ‘No way man. No way were you homeless.’” So who’s your organization’s Tom Bond? Who has a story that will compel your donors to give generously? Who can speak with emotion to represent the reality of what you are trying to accomplish? The story doesn’t have to be dramatic with drugs and jail time. It just needs to make people feel something— compassion, anger, excitement, or even guilt. If you’re a university, maybe your storyteller is a graduate doing breakthrough technology research. If you’re a Food Bank, perhaps it’s the blue-collar family who swears they would have starved that one tough year if not for your assistance. If you’re an elderly care facility, maybe it’s the 89-year old woman living with dignity and comfort and playing poker with her girlfriends on Thursday afternoons. But please don’t talk generically about all the residents; talk about this one. Tell her story. Here’s a quick mental marketing exercise to do. Envision all of your marketing materials, all your website copy, all the verbiage you use when talking to prospects, every PowerPoint presentation you’ve ever done. Imagine it all typed out on a multi-page document. Now imagine you have a bright orange highlighter in your hand. Go through all those words, highlighting only the ones that tell a story or convey real emotion. Most non-profits would see a lot of black and white staring back at them. Now, go find your Tom Bond. Tell stories. Make people feel.   Category: Planned Giving Marketing

Read More »
Viken Mikaelian July 23, 2014 No Comments
Google Uses Direct Mail Like Crazy
Giving
Dan Rice

Google Uses Direct Mail Like Crazy

  So it’s settled. Direct mail is a good idea. My husband and I run a small business. A very small business. So I was a little surprised to find out that we’re on Google’s mailing list. I’d understand if they sent me an email, or maybe a personalized video pop-up on YouTube. But no … the King of the Internet sent me a good old-fashioned letter, in a paper envelope, with a stamp, delivered by the postman. Yes, direct mail.

Read More »
Dan Rice April 17, 2014 No Comments

Year-End Giving 2012

  With the presidential election behind us and the status quo retained, what does this mean for charitable giving as we approach year-end? Over the last three months, this was the number one question on people’s minds – “What happens if after the election, we have the same parties in control of the House, Senate and Presidency? After all, there were lots of tax reform proposals out there during the campaign and we are about to go over the ‘Fiscal Cliff.’” While we don’t have a crystal ball, we are certain about three things which should shape how you approach year-end 2012 and the start of 2013.

Read More »
Viken Mikaelian November 8, 2012 No Comments
Two bubbles - this is your comfort zone, this is where magic happens
Planned Giving Marketing
Dennis Haber

Comfort Zone Treadmill

Are You Sure You’re Ready to Excel? If you continue to do things in the same manner you have always done them, your results are not going to change. Continuing to do things the same old way basically puts you on a treadmill where continuous, ineffective effort and lackluster results flow in a endless loop. It is time to re-examine your belief system. This article offers some ideas guaranteed to get you off that treadmill, to put money in your organization’s pocket, and help you become the consummate professional you want to be. As 2011 came to an end, you promised yourself that 2012 would be better. It would be a year of accomplishment; a year of achievement both for you and your organization. However, as you now review 2012 to date, are you finding your results mirror those of 2011? Let’s start with some brutal facts:

Read More »
Dennis Haber November 4, 2012 No Comments
There Is Money Out There
Giving
Viken Mikaelian

There Is Money Out There

But did you hear about the doggy hotel your nonprofit is competing with? $175 per night. Your pooch can enjoy a poolside room with a view ($50 extra), an evening backrub ($25 extra), and even a bedtime story ($20 extra).

Read More »
Viken Mikaelian September 27, 2012 No Comments
Nonprofits Are Not Special
Planned Giving Marketing
Viken Mikaelian

Nonprofits Are Not Special: Think Like a Business

That’s right. Being a charity doesn’t magically change business, economic, or marketing realities. So think like a business. Not like a nonprofit. Because the biggest problem among nonprofits is the “non.” There are quite a few people in the nonprofit world who do not want to hear this. In fact, our least popular webinar has consistently been the one that Jeff Comfort and I presented titled, “The IRS Considers You a Business. Act Like One.” We focused very much on finances, P&L (profit and loss) statements, setting goals, and accountability. Apparently, no one wants to think like a business. I cannot emphasize this enough: If you truly want your nonprofit to succeed, you need to think like a for-profit. Focus on these first: Advertising Marketing Sales Personal Relationships Too many nonprofits drive their prospects away before they’ve even had a chance to get started. Here’s what I recently saw on a nonprofit’s pledge card: “We need the funds now to maintain our property today.” Talk about giving off a bad impression. What does the donor hear? “Give us some bucks now to take us out of our misery.” Can you imagine if a business used that same tactic in its advertising? “We need you to shop our electronics sale today, because we need to repair our leaky roof and still have enough left over to pay our employees.” How can you say it better? “We’re working on securing our future, so we can continue doing what we do today even better tomorrow.” This presents a much better image of your nonprofit to the public — and it simply builds trust and respect. According to Stanford Business, “When nonprofits act like businesses, transparency improves … a 12-year study reveals that charities that adopt modern strategies are more likely to share and collaborate.” A survey found that nonprofits that were early adopters of managerial practices have been able to adapt quickly to become more transparent and collaborative. And of course, become more sustainable. Finally, in critical times mission positioning is important. So is tact and prudence as words carry emotion. This blog post may carry too many topics, but it’s all interrelated and critical for your organization, and personal success. Categories: Planned Giving Marketing, Relationships

Read More »
Viken Mikaelian September 26, 2012 No Comments
Logo White

2103 Bayshore Boulevard
Unit 1501
Tampa, FL 33606

Products & Services

Subscriptions

Special Links

Contact