Mid-level donors are often overlooked when it comes to legacy giving conversations. They’re consistent, loyal, and quietly generous—yet rarely approached for more transformative gifts.
That’s a mistake.
Years ago, Tom Ligare and his colleagues at Planned Giving Marketing Solutions coined a term for a powerful strategy: Legacy Life Giving. It’s time to bring that concept back into the spotlight—with a modern twist.
What Is “Legacy Life Giving”?
Legacy Life Giving is a simple but underused technique: The donor purchases a life insurance policy, names your nonprofit as both owner and beneficiary, and spreads the premium payments over time—or pays in full upfront.
The result? A mid-level donor can leave a $50,000+ legacy gift with a relatively modest outlay of cash.
Why It Still Works Today
We talk often about Donor-Advised Funds, appreciated stock, and blended gifts. But life insurance has quietly remained one of the most efficient vehicles for legacy giving, especially for donors in their 50s and 60s who are:
- Past their high-expense years (college, mortgages, etc.)
- Looking for tax-advantaged ways to give back
- Eager to leave a legacy that aligns with their values
Unlike traditional charitable bequests—which feel abstract and distant—Legacy Life Giving is tangible, structured, and appealing to donors who like to see the impact of their gifts—even if it comes later.
Example (Still Relevant Today)
Let’s say a 60-year-old donor purchases a $50,000 policy. She can pay:
- $16,126 as a one-time premium, or
- Five annual payments of $3,495
Upon her passing, your nonprofit receives the full $50,000.
Multiply that by ten donors. Now imagine a hundred.
This is what we mean when we talk about scalable, sustainable giving strategies.
How to Introduce the Idea to Donors
Start with mid-level donors who have given consistently for 5+ years. Use language like:
- “There’s a way to make a $50,000 gift for less than the cost of a daily coffee.”
- “Would you consider a legacy gift that doesn’t reduce your current cash flow?”
Better yet, embed this idea into your overall Legacy Planning strategy. Tools like LegacyPlanner make it easy to present options in a clear, non-intimidating way.
The Bottom Line
Legacy Life Giving isn’t new—but in today’s climate of donor fatigue and budget cuts, it’s more relevant than ever.
If you’re not offering it, another nonprofit will.
Looking to modernize your planned giving outreach?
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