Planned Giving: ‘How Old Are You and Did 
You Know You Could … ?’

Asking questions and educating prospects about ways to make gifts are the hallmark of our jobs as fundraisers. In this article, we will describe how to ask strategic questions to obtain key information; how to introduce the topics of bequests, charitable gift annuities and charitable remainder trusts; how to encourage membership in a heritage society; and how to make a combined planned- and major-gift solicitation to a prospect.

Along the way, we will describe some common cues and clues for various types of planned gifts, providing information that’s useful for both veteran and novice gift-planning officers.

Throughout this discussion, we assume that we are talking with prospects who have been screened using the tools available to us, and whom we believe could make future gifts — both outright and deferred — to benefit our organizations.

We are beginning the process of assessment and cultivation. Our objective is to ask open-ended and leading questions in an effort to determine whether a prospect has affinity for our organization and the capacity to make a gift. Along the way, we will begin to cultivate that affinity.

To truly excel at cultivating prospects for planned gifts, we need to be able to listen and respond to cues and clues that our prospects share. We will identify cues to listen for and prepare you to respond appropriately when those clues are raised by educating your prospects about gift options that will fulfill their financial needs and their philanthropic objectives.

10 key questions for donors and prospects

1. How old are you?
Depending on the type of organization for which you work, you may have extensive records on your constituents: home and business addresses, phone numbers, work history, family, board memberships and gift history. One thing you may lack, however, is a prospect’s date of birth. This key piece of information can help you in many ways.

First, if you are in a campaign, age might well be a factor in counting revocable gifts or in determining the net present value of a future interest. Second, to prepare accurate calculations of tax deductions and income interests for life income gifts (charitable gift annuities, charitable remainder trusts, charitable lead trusts and pooled income funds), you will need the prospect’s date of birth — and perhaps also a spouse/significant other’s date of birth. Third, during the cultivation period (and beyond), birthday cards are excellent tools to maintain contact, especially for those prospects and donors who do not have any family members and who live at a distance from your organization. Finally, to ensure that limited marketing dollars are well-spent and marketing pieces are directed to the most appropriate audiences, you will want to be able to segment your database on the basis of age.

Our mothers taught us that it isn’t good manners to ask people how old they are — and it isn’t generally wise to guesstimate. Usually, the prospect provides an opening for you to ask this question. She may mention being “old” or celebrating a “milestone” birthday; talk about retiring at a set age or in the near future; or mention physical ailments she suffers from that usually strike “older” people. But what do you do when a prospect doesn’t volunteer this information?

One possibility is to explain that you want to update your records and then confirm all biographical information including the address, phone numbers, e-mail address, spouse/significant other’s name and date of birth. Another possibility is to simply state that you gather dates of birth for statistical purposes or to notify the appropriate age groups of tax law changes (such as the Pension Protection Act of 2006).

From time to time, someone will object, refuse to answer or even ask for your birthday! But these are exceptions, and the date of birth is an important piece of information to have to further your planned-giving program.

Some age-related cues and clues include the following:

“I’m too old to be thinking about giving now. I gave when I was younger and I was working.”
Possible response: “We appreciate all the gifts you have made. Are you aware that others have decided to make their ultimate gifts — a capstone of their lifetime giving — by including bequests under their wills? Can I tell you more about this great type of gift?”

“I’m too young to think about having a will. What other options are there?”
Possible response: “There are plenty of options. Gifts of cash are the most popular. Another option — if you have a retirement plan or IRA — is to designate our organization as a beneficiary. Would you like more information about those or other options to help you with your charitable planning?”

“What techniques do you recommend for an octogenarian like me?”
Possible response: “Others in your age group have found charitable gift annuities attractive due to the fixed payouts, relatively high rates and partially tax-free income. Another option is a bequest under your will. Can I tell you more about either of these options?”

“Planned giving is for older folks, not for 40-somethings like me.”
Possible response: “Actually, planned giving is for everyone. At its most basic, ‘planned giving’ is about finding the best option(s) for you to make a gift, considering your age, income and assets. Are you aware there is a planned-gift option that enables you to give money to charity today, gain an income tax deduction and lock in a relatively high rate for an annuity you can receive when you retire?"

If your organization doesn’t have a research office, invest some of your training budget on a research seminar. There are also many free Internet sites that provide accurate information (including Google, Zillow and Salary.com) and others that provide valuable information at very reasonable costs (including LexisNexis, WealthEngine, iWave/NOZA and Foundation Director). Don’t forget to research current investment rates as well.

“I really don’t need the required minimum distribution from my IRA.”
Possible response: “You could consider giving the amount you receive to our organization and benefit from an income tax deduction. And I will add your name to a list I am maintaining to let you know if there are any tax law changes (as there have been in the past) that would benefit you.”

2. How long have you been married/together? 
(If the prospect is married or has a significant other.)
While our organizations and their missions are important to donors, they are generally willing to provide for our needs only after they have met the financial needs of their families. The length of a marriage or relationship doesn’t tell us everything, but it may offer some insight into the likelihood that assets are pooled.

In many second (or beyond) marriages, assets are kept separate and charitable interests may differ. One or both persons may have children that are not children of both, leading to differing treatment under their wills. If the couple is not close in age, they may have different responsibilities related to caring (physically and financially) for parents, children and grandchildren.

A widow or widower with children may have been left financially secure or close to destitute at the death of the first spouse. It is good practice to meet with a couple, not with only one member, and casual conversation sparked by the pictures on the bookcase or a casual remark about family or travel can lead to a wealth of information.

It is important to note who answers which questions and how much each person reveals. Do they refer to assets as “his,” “hers,” “mine” or “ours”? Small talk has a purpose.

Suppose you meet a couple outside a restaurant and introduce yourself. You compliment them on the car they are driving, the bag she is carrying, the restaurant they have chosen. You can soon be engaged in a very comfortable conversation that reveals how they feel about money, how they spend their money and often whether they have the same priorities.

Some cues and clues relating to relationships and giving include the following:

“I have to care for my ailing husband, but I hope to help [charity] at some point.”
Possible response: “I understand. Perhaps we can discuss a bequest under your will at the right time. Why don’t I send you materials to read until we have a chance to meet again.”

“My partner doesn’t have a pension, so I worry about her running out of money.”
Possible response: “Would you like to hear about a gift option that could secure your partner a fixed income stream in her retirement years?”

“My wife and I share everything. Can we both receive income?”
Possible response: “Sure! You can both receive an income stream from several options. Are you interested in a fixed income, or in one that varies and could increase over time?”

“My husband always made the financial decisions. I am just learning what we really have.”
Possible response: “I would be pleased to help you determine what type of gift might make sense based on the assets that you have. Those who own stocks have some good options, as they find they can turn those assets into an income stream for life. And those who have retirement plans have to designate beneficiaries, and we find that our organization is often named a beneficiary in order to establish a fund in someone’s honor. Let me know how I can assist you.”

3. Do you have children/grandchildren?
The phrase “our children” can mean vastly different things in different families. In our experience, the very best gift-planning prospects — the ones we are all seeking — are single persons or married couples without children. Why is this? Because these prospects have almost always pondered what will happen with their assets and how they want to be remembered when they pass on. Other constituents need to be educated or reminded to do some planning, or even to have basic wills; seldom is that the case with childless prospects.

Childless prospects don’t always remain so. Younger childless prospects may have or adopt children, even into their 40s. They also may find surrogate families in nieces and nephews, kind neighbors, or personal aides who look after them as they begin to age. However, just because a prospect has a child doesn’t mean your organization won’t receive a planned gift, or that if they don’t have children, you will. There are growing numbers of millionaires who refuses to spoil their children and will leave large shares of their estates to charity, in an effort to share their values about the importance of philanthropy.

Also, some children are more well-off than their parents and don’t need inheritance. Finally, there are some parents who, for whatever reason, have disowned or terminated their relationships with their children.

Some cues and clues related to planned giving and children/lack of children and financial support include:

“I survived all my family members — my father, mother, first husband, brother-in-law, sister and second husband.”
Possible response: “You are a true survivor. Tell me what some of your concerns are. Have you thought about where you would like your assets to go?”

“I don’t know how I can give to [charity] because I have two children.”
Possible response: “I am in the same situation. Taking care of children is our top priority. I have spoken with other parents who decided that a particular charitable cause was important enough to carve out an amount to pursue a specific purpose (such as establish a scholarship fund). This can be done during lifetime or under a will.”

“I already did my planning. I don’t need a will because I have two assets: a retirement plan (which I am leaving to my kids) and a life-insurance policy (which I am leaving to [charity]).”
Possible response: “Thanks for sharing your intentions with me. Have you discussed your plans with an estate-planning attorney? There are adverse income tax consequences when an individual — but not a charity — receives retirement assets. You may want to explore this with a qualified attorney so you can maximize what your beneficiaries receive."

“I recall buying life insurance when my children were younger, but they’re grown now.”
Possible response: “Are you aware that you could donate your life-insurance policy to our organization — perhaps to establish an endowed fund? Several members of our legacy society have taken this otherwise untouchable asset and created a fund while they were still living, something they didn’t know they could do until we had a discussion about their charitable goals.”

“I am concerned that my son will squander the large inheritance I plan to leave to him.”
Possible response: “That must be difficult. I can suggest two courses of action for you to consider, if you would like to leave something to our organization. First, you could decide what amount to give to us that is meaningful but would not really deprive your son of his inheritance. Second, you could minimize the amount he could squander by setting up a gift that provides him with an income stream for his life, and whatever is left passes to our organization to fulfill your charitable intentions.”

“I am the last ‘Brovey’ — when I pass away the surname will be gone forever.”
Possible response: “I see. People in a similar situation have sometimes decided to memorialize a family name or a family member by establishing perpetual funds in their honor. Would you like to hear more about how this works?”

“My son is disabled. I worry about how he will manage his finances after I am gone.”
Possible response: “That is a common concern of all parents, but especially those like you who have to care for someone beyond the childhood years. I would encourage you to see an estate-planning attorney to assist you. There are gift options that can enable you to provide an income stream to him for life, while providing for our organization at a time when he no longer needs the funds. However, I encourage you to discuss these ideas with a qualified attorney to ensure that any public funds he might receive would not be jeopardized.”

“My daughter has never been able to manage money.”
Possible response: “This will become more of a problem if she inherits a large amount in one lump sum from you, as you have probably realized. Are you aware that there are gift options that would enable you to provide an income stream to her for her lifetime?”

“My children have more money than I do.”
Possible response: “If only I could be so fortunate! If your children don’t need to receive an inheritance from you, then you are free to give your assets to those who are less fortunate. Did we ever talk about the community outreach our hospital does for children who have never received dental care?”

4. Why have you given to [charity] in the past?
We know that at a very basic level, donors give because they are asked to give. What can you discover about earlier “asks,” and how might that information affect future solicitations? Who asked and in what way? Was the donor responding to a general request for funds, or was there someone who had a particular impact on her? Did the inspiration to give come from within or outside of the institution?

Of course, donors also give because they want to support a charitable cause, either in general or through a specific program. Many donors are looking to accomplish something or solve a problem, suggesting that charities must find a way to engage them meaningfully in this work.

This can present a real challenge for the charity located many states away or one that does not have a natural constituent group. But whether you are with the local hospital or the international hunger relief organization, you need to understand the donor’s motivations. We have to resist the urge to explain the charity’s needs before we understand the prospect’s passion.

Planned gifts provide the donor with financial benefits, but the gift still has an underlying price tag. The donor is giving money away, and there must be charitable intent.

What has this donor already done for your institution or any other institution? Research suggests that it is the consistency of giving rather than the size of the individual gifts that matters. Some gift-planning offices market bequests to “loyal” donors. Loyalty can be defined in various ways, including donors who have given in the most recent three years, in five of the last eight years, or in 10 or more years.

Contrary to popular belief, annual-giving and planned-giving offices can support each other, and this is just one instance. A consistent donor is a better prospect for a planned gift.

Prior large gifts may suggest untapped capacity or financial or tax issues that could be addressed through gift planning. Does your annual-giving staff alert the gift-planning staff to large gifts, or is there a way for gift-planning officers to discover this information on their own? If the donor’s gift patterns have changed, ask about them: “Thank you for your recent gift to [purpose]. I notice that this gift is much larger [or smaller, or is for a different project] than your past support. Is there a reason?”

We have noticed that otherwise loyal donors stop making gifts or cut the size of their gifts at some point. This often coincides with retirement, when future living expenses become a big concern. These donors might appreciate knowing they could continue their generous giving patterns by including bequests in their wills or establish a better and perhaps more secure cash flow through life income gifts. They also would appreciate (and deserve) good stewardship for the gifts they have made. These relationships are good ones to cultivate and can have big payoffs in future years.

Some cues and clues relating to charitable inclination include:

“My mother always told me that charity starts at home.”
Possible response: “Some of my family members have expressed the same feelings. And yet you have made a few gifts to our organization, so you must understand the need to help others.”

“My wife and I have each given to our undergraduate alma maters and to our church.”
Possible response: “That’s great! So you both understand how valuable your gifts can be to those institutions. What types of causes have you supported at your undergraduate alma mater?”

“I wish there was an easy way to make a gift; my cash is limited.”
Possible response: “There are ways to give other than by depleting your checking account. If you have appreciated stock, that is often a tax-wise asset to donate. Another possibility — and one of the easiest ways to make a gift — is to designate our organization as a beneficiary of a retirement plan/IRA or life insurance-policy.”

“I owe everything to ‘dear old State.’ My education made everything else possible.”
Possible response: “It’s great to hear that! Others who have shared your fond feelings have established perpetual funds here as a way of giving back to dear old State. Would you like to hear more about setting up such a fund, perhaps in honor or memory of a beloved family member?”

“The nurses took such good care of me.”
Possible response: “Our nurses win awards year after year (and I myself experienced their good service). Someone who shares your good feelings decided to pay the nurses back, in a way, for their great service by establishing an annual award program. Can you think of any creative ideas to reward good service?”

5. What makes [charity] special to you/your family?
The answer to this question gets to the heart of why the donor has provided (or the prospect is considering) monetary support. The response enables you to provide very specific and focused cultivation and/or stewardship to encourage future gifts.

Putting a donor in touch with a doctor who provided services to a family member, a professor who advised on a thesis, or a coach who encouraged excellence in sport and life will further cement the donor’s relationship with your organization, and make the donor an ambassador for a cause. Although CEOs and presidents love them, donors who make unrestricted bequests are among the most difficult to steward for lack of a specific cause to report on. On the other side are prospects who have multiple interests — each one makes the bond to your organization that much stronger.

Don’t let the donor surprise you with a complaint that you should have seen coming. As you prepare for a visit, investigate past gifts. The donor needs to know that his gift — regardless of size — is important to the institution. If a previous gift was earmarked for a particular project, be sure the donor has been kept informed.

Research past gifts, and come prepared with updated information to share. If you are managing funds in a life-income gift, research the performance, and be prepared to respond to questions. It is also important to know how your performance compares with benchmarks, including your own endowment. All good stewardship is cultivation for the next gift.

Some cues and clues relating to feelings toward the charity include:

“I find the materials I receive from your organization interesting, especially the stories.”
Possible response: “Which one did you find the most relevant to your situation?”

“I am happy to meet with you, but I hope you are not coming to solicit us for a gift.”
Possible response: “Thanks for your honesty! I am coming because we are reaching out to our donors to find what truly motivates them to give and to continue giving. I would like to review with you how your funds have been used and express our appreciation for your generosity. I promise not to raise the issue of gifts unless you wish to discuss something specific.”

“I haven’t heard from you guys since your last campaign.”
Possible response: “Well, we have tried to maintain contact through our written materials, but you’re right — there is no equivalent to a meeting. I hope you will give me a few minutes of your time so I can bring you up-to-date and listen to your thoughts as we pursue excellence in the future.”

“I can earn more than you are earning in the endowment. We’d both be better off if I just hung on to my money.”
Possible response: “You might very well be able to earn more money, but we are very proud of the performance of our endowment, which ranked among the top in the country [if this is true!]. You can continue to have your money managed on your own (for a fee, of course) if you wish, but if a time comes when you are ready to allow us to steward your assets, know that we are doing well with others’ money. We have more than [number] donors who have contributed to our endowment; all of those people can’t be wrong in relying on our investment managers to grow the assets, and the future looks bright!”

“I don’t like your president, the dean, football coach …”
Possible response: “Why don’t we talk about your feelings about our leaders for a few minutes?”

6. Where does giving to charity in general fit in your life?
Donors know what you do for a living and often pre-empt the discussion by letting you know that they would make gifts to (charity) but … Your role is to listen for the objection and suggest one or more solutions. While some solutions seem obvious, you don’t have to have all the answers at your fingertips. You listen to the problem and restate the possibility: “What if it was possible to make a gift and still … ?”

Promise to follow up with ideas that show how a planned gift will allow them to make gifts and retain income, or avoid capital gains tax, or diversify their portfolios or otherwise solve their problems. This gives you a wonderful opportunity to ask additional probing questions: “I may be able to help you, but I need to know a little more about the nature of your investments, your income tax bracket or your real-estate holdings.”

Some cues and clues relating to a donor’s propensity to give include:

“I am considering early retirement, but I don’t think I can live on what we have put away so far.”
Possible response: “That is a concern many of us share. There are some planned-giving options that can enable you to be philanthropic and gain a fixed income interest for your retirement years. Would you like to hear about these options?”

“Only my daughter has ever seemed interested in taking over the business. It is my biggest asset, and she depends on it for income. How do I divide my estate to treat all of my children fairly?”
Possible response: “This can be a tricky situation. I would suggest that you visit with an estate-planning attorney to discuss succession of your business. If you would like some ideas on how to be philanthropic, I would be pleased to work with you and your attorney.”

“I don’t care what happens to the farm after I am gone. I just want to farm until I die.”
Possible response: “Farming is an admirable occupation. However, just as you have cultivated your land, you likely enjoyed reaping the benefits at harvest time. In the same way, doing some planning now can ensure your land can continue to be farmed or not as you desire. It would be a shame to let your lifetime of work possibly be undone in a few months because of taxes or lack of a successor or succession plan.”

“My accountant says that I can’t use the deduction; I make too much money.”
Possible response: “What is your motivation for giving? If you can’t stand the thought of losing the deduction (but in any given year you likely ‘lose’ the ability to deduct some of your gifts anyway due to the Alternative Minimum Tax and other deductions), you can wait until next year to complete your gift if that is best for you.”

7. What other charitable organizations do you support?
We know that our donors are likely to have multiple charitable interests. It is important to understand which interests they are willing to support financially and why. Are there other charities with which the donor has had a relationship in the past but where they no longer are willing to provide support? For example, a donor may support her graduate alma mater, but not her undergraduate alma mater, due to additional attention, financial support, perceived need, lasting friendships or professional opportunities.

If you have researchers on your staff, they can often glean giving information, particularly if the donor has an existing private foundation or by reviewing the published annual reports of other charities. Just because a prospect has one or two favorite charities doesn’t mean that the prospect won’t give to your organization.

Often a donor gives to an organization because he or she feels an obligation to the organization or to an individual associated with the organization. If your prospect is philanthropic, your job of convincing him or her of the need to give is probably easier than with someone who never gave to charity before. If you uncover her passions, you are likely to secure larger transformational gifts.

There are planned-giving options that enable a donor to give to multiple charitable organizations, including bequests, charitable remainder trusts, charitable lead trusts, life-insurance policies and retirement plans.

Charitable gift annuities and pooled income funds are gift options used to give to one particular organization, but the donor could fund one of these planned gifts at multiple organizations since the minimum amounts are often much lower. Many prospective donors struggle with the choice of charities, unaware that they can provide for all of their charitable interests.

The prospect may share volunteer group participation and other ways she spends her time. I occasionally ask what sort of solicitations the prospect receives and gauge the response. You could check the Web sites of those organizations for a published annual report and verify whether the prospect is listed as a donor and at what level of giving.

Some cues and clues relating to the donor’s support of other charities include:

“I give to my graduate alma mater because my graduate degree is relevant to my current field of practice.”
Possible response: “That’s great—you understand how important it is to give. Can you tell me more about your work/your career?”

“I give to my undergraduate institution because it is a state school and state schools provide more opportunities for needy students to get an education.”
Possible response: “State-funded schools are in need of funds — we all read about this in the major newspapers. But you have made a few gifts to our organization in the past, and I would like to share how your gifts have been used at our organization and express our appreciation, again, for your gifts.”

“I would love to create a trust with you, but the hospital and the church want me to do the same thing for them. I don’t have the resources to satisfy everyone.”
Possible response: “It’s fabulous to hear that you are so philanthropic! You may be surprised to know that you might be able to achieve all of your philanthropic goals. There are several gift options you could consider. A bequest to each organization under your will is a common technique for giving to multiple organizations. A charitable remainder trust enables you to designate more than one charitable beneficiary, after you receive an income stream for your life and a tax deduction.”

8. Have you ever explored the idea of a “planned gift”?
Too often donors and development officers separate the idea of the “major” (i.e., current) and “planned” (i.e., deferred) gift, when in reality one often serves as the motivation and natural complement to the other. The institutional goal is to leverage the largest possible gift — a gift that will be valuable to the institution and help the donor to achieve his or her personal objectives. A satisfied donor is likely to make additional gifts.

Sophisticated programs often pursue a three-part ask: an annual unrestricted gift to continue the donor’s pattern of giving and provide much needed unrestricted funds; a pledge of a major gift such as an endowed fund or campaign commitment; and a planned gift to enhance lifetime giving. The lifetime gift offers greater opportunities to steward the future gift. The future gift — both its existence and its uncertainty — offers opportunities to contact the donor and possibly pursue another current gift.

When we understand how an individual wishes to be remembered, we are better positioned to suggest opportunities for lifetime gifts.

When you work on three-part gifts, it is important to understand just how much the donor knows about planned giving and how he has learned what he knows. Whether you discover that your donor is a novice or a more experienced philanthropist, it is always good to summarize in follow-up correspondence the gift ideas you have discussed and the reasons that the ideas have been rejected or are still being considered. People absorb information in different ways.

A personalized gift illustration of the concepts can be very helpful as well. And it is wise to define terms that seem obvious. If an outright gift can be pledged over a term of years, say so.

Some cues and clues relating to whether discussion of a planned gift is appropriate include:

“I wish I could give, but I worry I will run out of money like my mother did.”
Possible response: “Did you know that you could give assets other than cash and retain an income stream for life [charitable gift annuities, charitable remainder trusts, pooled income funds]? Did you know that you could include a bequest in your will to [charity] so you don’t deprive yourself of assets during your lifetime?”

“I don’t trust the stock market; I prefer ‘safe’ investments like CDs that provide me with a fixed income.”
Possible response: “Can I tell you about a gift option that would provide you with a fixed income, part of which is tax-free [charitable gift annuities]?”

“[Charity] is in my will. What more can I do now?”
Possible response: “There are other options that could provide you with an income stream and save you taxes during your lifetime [charitable remainder trusts, charitable gift annuities, pooled income fund, gift of appreciate stock].”

“I should do something about this large block of stock that I own.”
Possible responses: “Did you know that you could donate stock instead of cash to make your annual gift?” “Did you know that you could turn that stock into an income stream [charitable remainder trusts, charitable gift annuities]?”

“I am frustrated by the low dividends on my stock.”
Possible response: “Did you know that you could lock in a good rate and receive an income stream for life [charitable gift annuities, charitable remainder trusts]?”

“I don’t have liquid assets. My investments are mostly in real estate.”
Possible response: “Did you know that we accept gifts of real estate [outright gifts, gifts to fund a charitable remainder trust, gifts of remainder interests]?”

“I don’t have the energy to take care of my vacation home, and none of my children want to inherit or use it.”
Possible response: “Did you know that we accept gifts of real estate [outright gifts, gifts to fund a charitable remainder trust, gifts of remainder interests]?”

“I need more income in my retirement, as my pension is small.”
Possible response: “Did you know that there are gift options that would provide you with an income stream in your retirement [charitable gift annuities, charitable remainder trusts, pooled income funds]?”

“I don’t mind paying taxes, but I think I pay more than my share.”
Possible response: “Charitable contributions are tax-deductible. You can’t eliminate taxes completely, but you could use a charitable deduction to offset up to half of your adjusted gross income. Would you like to hear about some possible ways to gain a tax deduction?”

9. Do you have a will?
Bequests are the lifeblood of any planned-giving program. According to recent surveys of charities, the average age when a will which contains a charitable bequest is signed is 80; the average age at the last gift is 82; and the average age at death is 85. Charitable bequests accounted for 7.6 percent of the total gifts in 2007, or $23.15 billion. Would your organization like to share in this largesse?

Whether or not a prospect has a will determines to some extent his sophistication and planning efforts, as well as his readiness to move to the next level of planned-giving discussion. The answer to this question can also directly lead to the next question if answered in the affirmative: “Did you include any charities — including our organization — as a beneficiary?” Use this opportunity to encourage the donor to share specifics on the bequest with the charity to ensure that his purposes can be accomplished. Be sure to provide information on your legacy society if you have one.

We have found that many of our major-gift colleagues avoid asking a donor or prospect whether he or she has a will. Some prefer to ask, “When did you last update your will?” More frustrating are those major-gift officers that fear talking to donors who have already shared the fact that they have included the organization in their estate plans. We suggest that major-gift officers always ask, “Have you done your estate planning, and would you consider including our organization as a beneficiary?”

Our colleagues should appreciate the usefulness of this question, particularly when a prospect has responded “no” to a major gift ask with the stated reasons of lack of available or liquid funds, or fear about future health care costs. Unfortunately, these prospects are often downgraded because of lack of current gift intent, when they may be quite amenable to bequests or other planned gifts. And, if they have already included your organization in their estate plans, the discussions should center on insuring that the donors’ intents can be realized. The donor has opened the door to an in-depth discussion of passions and interests that will make it so much easier to talk with him about lifetime support.

If a donor responds that she has included your organization in her will, you should consider doing any or all of the following:

• Immediately thank the donor, tell her about your legacy society (if you have one—see below) and let her know she will receive an invitation.
• Request a copy of the relevant documentation for your files.
• Discuss the allocation of the proceeds, if any. (Occasionally, the donor cannot recall, so this is another reason why you should request the documentation.)
• Follow up after the meeting with a second “thanks” for the planned gift, and then be sure the donor receives a legacy society invitation.

Often legacy society membership will put the donor in an enhanced mail/contact category, and the donor will begin to receive more news about your organization and hopefully feel more connected. Remember that most bequests are revocable; the donor’s ability to change his or her mind (and in our experience there are a few who do this) means you now have the responsibility of keeping the donor informed and happy.

If your organization does not yet have a legacy society, you should lobby for one to be created for the stewardship opportunities. Once you have a society, you need to market it. This applies to both new and more well-established legacy societies. Your Web site should have a special section devoted to the legacy society, membership and qualifications for membership. Marketing your legacy society is marketing planned gifts, and vice versa.

Some cues and clues regarding your prospect having a will containing a charitable bequest include:

“I have already taken care of [charity] in my own way.”
Possible response: “Thanks! Would you care to define this for my benefit? Have you included our organization in your estate plans already?”

“Is there specific language that I need to use to include [charity] in my will?”
Possible response: “Yes, there is; thanks for asking. I will send the information to you, and you can also access our Web site for some additional information about our legacy society.”

10. Can we get together again to continue our discussion?
Donor cultivation is a process, not a single act — a marathon, not a sprint. Your initial visit should be the start of a beautiful relationship. That relationship is with your organization, not with you. You are representing the institution. The relationship should be deep and needs to have many touchpoints. You should consider how to involve others — president or CEO and other executive management, board members, and colleagues in a particular college or unit.

While it might be counterintuitive, you probably shouldn’t try to address every possible aspect of your organization in your first meeting, or even have a ready answer to every question a prospect asks. You should always end the meeting and leave the prospect wanting more.

Some in the charitable arena go so far as to suggest never leaving the meeting without scheduling another one! You should always have a reason (other than thanking prospects for their time) to write or call, so you can continue the relationship. If you have asked the necessary questions and have listened attentively, there will generally be plenty of opportunities for follow-up. One example is an article that addresses a donor’s interests—even an interest unrelated to your organization. The New York Times looks like Swiss cheese in our houses on Sunday mornings, and we aren’t clipping coupons! The challenge will be finding a means to track these interests.

Perhaps your database lists key interests: art, travel, sports interests or the lack thereof. As you really begin to know your prospects, your job becomes easier, and you will be surprised how easy conversation will come. Always remember, however, that the objective is to build a relationship that leads to a gift for your charity.

Set an agenda for each meeting. What do you want to accomplish? It really has to be about more than lunch. Develop a strategy for each prospect. Set tasks or next steps as well as immediate and long-term goals. Listen when the donor suggests a time frame.

Some cues and clues to determine your time frame for solicitation include:

“I have three kids in college and can’t consider a major gift at this time.”
Possible response: “I understand. I myself have a child in college now, and I know the expense — as well as the worries. I hope you can continue making an annual contribution in whatever amount your means allow, and I look forward to keeping in touch with you over the coming years. Today’s students continue to have needs for additional funds, and we appreciate your support at any level.”

“I am hoping to retire by 60, and I worry about income.”
Possible response: “I wish you the best in reaching your goal. If you don’t mind, how old are you/how many years do you have to work before turning 60? Would you be interested in hearing about ways to combine philanthropy and retirement planning so you can create an additional income stream for your retirement years?”

“I need to rewrite my will now that my husband is gone.”
Possible response: “I am so very sorry for your loss, and I appreciate your willingness to meet with me. Some of the people with whom I meet are interested in hearing about ways to honor and memorialize their loved ones. Would you like to hear more about this option?”

“I have just been diagnosed with cancer and will begin chemotherapy soon.”
Possible response: “Wow, I can’t even pretend to understand what you are going through. (Note: If you are a cancer survivor or share the donor’s illness and wish to share this personal bit of information, you may find a unique connection to the donor.) If it won’t be a burden, I would like to check in with you from time to time to see how you are doing. Perhaps when your therapy is finished, we can celebrate over lunch.”

LISTEN for the answers
The questions we have suggested are just that — suggestions. Your personality and individual style will dictate how these questions are asked and answered. You won’t be completing a survey or reading from a script.

Except for noting a date of birth or updated biographical information, you likely won’t be taking notes. At the end of your first face-to-face meeting, you should be able to make an initial assessment. Is this someone that has the capacity to make a gift and the affinity to your organization that you could cultivate toward a major and/or planned gift?

Record not only the facts that you have learned and the information that was gathered, but also your assessment. Don’t forget to input a next step or strategy if you are going to cultivate this prospect.

There is no “bright line” that defines when you move from assessment to cultivation, and in reality the donor continuum has no end point. You begin with identification, then assessment (usually one or two meetings, although you might assess the prospect at different times for different reasons), then cultivation (usually the longest stage and where you discover the most information about the prospect), then pre-solicitation (where you determine, often with the prospect, what the prospect is going to fund, for how much, when and with which assets), then solicitation (this is “the ask” — the essence of being a fundraiser), then stewardship (an often overlooked phase, and one that can be synonymous with cultivation if done properly).

Listening continues to be of primary importance in every stage. In the words of one of our colleagues: “You have two eyes, two ears and one mouth — use them proportionately!”

If you have assessed this prospect as having planned-giving potential, but you haven’t really steered the conversation to the topic, you will need to direct the conversation to explore these possibilities. While still open-ended, your questions will be more probing and often leading.

Some additional examples of leading questions include:

• Would you like to learn some ways you can support [charity] while also taking care of yourself and your family?
• Are you concerned about providing for your family or heirs after you are gone?
• Would opportunities for more income or lower taxes on your income be of interest to you?
• Has it been difficult to save for retirement?
• How has the stock market treated you?
• Have you thought about the legacy that you want to leave?
• Are you comfortable with the advice you have been getting from your own advisers as it relates to securing your future?
• Has your adviser ever asked about your charitable intentions?
• Have you considered including a provision for (charity) in your will?
• If you could give your home to (charity) now and receive an income-tax deduction but continue living in it, would you consider this a viable gift option?

Finally, we encourage you to maintain your sense of humor, and have fun! Your feelings toward your organization will become transparent to prospects and donors as you spend more time with them. And in the words of an unknown author, in our planned giving cultivation calls we should all strive to be more like the “Wise Old Owl” in a children’s nursery rhyme:

The Wise Old Owl sat on an oak.
The more he saw, the less he spoke.
The less he spoke, the more he heard.
Why can’t we all be like that wise old bird?

Alexandra Brovey is senior director, gift planning, at North Shore-LIJ Health System Foundation, and Patricia Roenigk is director of planned giving and endowments at The Pennsylvania State University.

(This article published courtesy of the Partnership for Philanthropic Planning (www.pppnet.org).