A Time to Plan

Success with planned gifts is on the rise, and major gifts have declined. But now could be a good time to lay the foundation for a major gifts program.

Twice a year since summer 1998, the Center on Philanthropy at Indiana University has asked fundraisers nationwide for their views on the fundraising climate at the time and their expectations for six months in the future. The Center uses those results to calculate the Philanthropic Giving Index (PGI), its semiannual confidence index for charitable giving and an indicator of future fundraising conditions.

The PGI also asks fundraisers about the success of various fundraising techniques, from e-mail to special events. In the PGI report for December 2008, fundraisers reported less success with major gifts than in summer 2008—perhaps no surprise, given that the PGI also reached an all-time low. Efforts for planned gifts, however, were more successful.

Planned Gifts on the Rise

More fundraisers reported success with planned gifts in December 2008 (72.9 percent) than in summer 2008 (67.6 percent), and fewer reported success with major gifts (73.1 percent, down from 81.6 percent). These shifts are side effects of the recession, says Timothy L. Seiler, director of public service and The Fund Raising School at the Center on Philanthropy.

Major gifts—often defined as 5 to 15 times an organization’s average annual gift—are typically made from wealth, not income, Seiler says.

“Because a lot of major gift donors’ portfolios may have decreased in value, an outright gift could be more difficult to commit to right now,” he says. A planned gift, however, allows time for a donor’s investments to recover, and some planned gifts generate immediate income for donors.

Laying the Foundation for Major Gifts

Seiler says now is a good time to plan a major gifts program, which your organization can launch during better economic conditions. He offers these tips:

• Take a look at yourself. Answer fundamental questions, such as how you will fund and staff your major gifts program—which can be quite time- and labor-intensive—and what the gifts will be used for. How will major gifts help your organization better serve its beneficiaries and the community? “It won’t be a compelling case to say we’re starting a major gifts program because we need to raise more money,” Seiler says.
• Listen to potential donors. Share your organization’s vision and values with potential donors, but perhaps more importantly, listen to why they want to give. “Ask, ‘What would you like to accomplish with your philanthropy?’” Seiler says.
• Find common ground. “Match up what donors are trying to accomplish with what the organization is doing,” Seiler says. “A major gift can both fulfill a donor’s dream and help an organization move ahead with its work.”

More Info

Contact or purchase the PGI report.