Planned Giving Proves to Be a Fundraising Lifeline in the Pandemic

When I reported on fundraising issues during the Great Recession, several development officers and consultants told me that planned giving remained strong in that economic downturn—and even kept some organizations afloat that otherwise might have shut down. Now, amid the economic freefall caused by the pandemic, the same thing is happening, a recent survey suggests.

The survey, which polled more than 320 charitable organizations with planned giving programs, found that since the health crisis began, their supporters have expressed increased interest in all types of deferred gifts, with bequests generating the greatest interest, followed by donor-advised funds and charitable distributions from retirement plans. Respondents also noted a slight uptick of interest in charitable gift annuities, large gifts that a charity invests in return for a fixed-income stream for the donor.

More importantly, most organizations (63%) report planned-giving donors increased gift amounts during the pandemic. And nearly half of the organizations (46%) reported they’ve had donors decide to switch some or all of their planned gifts into outright cash donations. Nearly one-third of the nonprofits (32%) said that their overall gift planning revenues have increased since the start of the pandemic, and more than half (53%) said that planned giving returns have remained stable.

The survey, conducted by fundraising consulting firm Marts & Lundy and the National Association of Charitable Gift Planners, used responses obtained from planned giving officials in 45 states and the District of Columbia.

Another sign that planned giving remains healthy during a tough year marred by twin health and economic crises: 42% of nonprofits in the survey said that their supporters’ response to planned giving marketing materials has increased compared with last year, and 48% said it has remained the same. Nonprofits reported finding innovative ways to stay in touch with planned giving donors during a time when in-person contact is not possible, including offering virtual estate planning workshops and video tours of their operations.

The results are all the more impressive, considering that the economic woes of the pandemic prompted many organizations in the survey to cut their planned-giving budgets (83%), implement salary reductions or cancel raises for planned giving staff (39%), adopt hiring freezes (37%) or let planned-giving staff go (26%).

In addition to highlighting the importance of planned giving in a time of economic crisis, the experts who conducted the survey had some recommendations for fundraisers. Among them: Examine and adopt some of the innovations that survey respondents reported for staying in touch with planned-giving donors. Another tip: Stay on top of planned-giving incentives and opportunities that may emerge with a new presidential administration and pandemic relief legislation.

The researchers also advised fundraisers to communicate with colleagues (who may not grasp the importance of deferred gifts) to advocate for planned-giving programs. “Gift planning,” they wrote, “is a durable area of fundraising, even in a pandemic.”

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