Table of Contents:

Introduction to Legacy Giving
Types of Legacy Gifts
Starting Your Legacy Giving Program
Identifying and Approaching Potential Legacy Donors
Managing Your Legacy Giving Program
Marketing Your Legacy Giving Program
Stewardship of Legacy Donors
Legal and Financial Considerations
Measuring Success
Resources and Tools

Introduction to Legacy Giving for Beginners

What is Legacy Giving?

Legacy giving for beginners, also known as planned giving or estate giving, is a type of charitable donation where supporters make arrangements to leave gifts to a non-profit organization after their passing. These gifts are typically planned well in advance as part of a donor’s estate planning process and represent a meaningful way for donors to leave a lasting impact on causes they care deeply about. Understanding legacy giving for beginners is crucial for maximizing these opportunities.

According to the National Council of Nonprofits, nearly $9 trillion will be inherited over the next decade, representing an enormous opportunity for non-profit organizations to secure their financial future through legacy giving programs.

Why Legacy Giving Matters for Non-Profits

Legacy gifts are critically important for non-profit organizations for several reasons:

Financial Sustainability: Legacy gifts often represent the third-largest source of charitable contributions (after individual donations and foundation grants)
High ROI: Legacy gifts offer the highest return on investment of all fundraising types, with an average return of $56.83 for every dollar spent (compared to $33.33 for major giving)
Unrestricted Funding: Many legacy gifts come as unrestricted funds, giving your organization flexibility
Stability for Long-Term Planning: Knowing future legacy gifts are in the pipeline helps organizations plan for the future
Deepened Donor Relationships: The legacy giving process creates deeper connections with your most committed supporters

Common Misconceptions About Legacy Giving

Many non-profits delay starting legacy giving programs due to several misconceptions:

Organizations should prioritize clarity when discussing legacy giving for beginners to ensure donors feel comfortable.

Legacy giving for beginners can be approached in several ways, including bequests and other planned vehicles.

“It’s only for large organizations”: Organizations of any size can establish a legacy giving program
“Only wealthy donors make legacy gifts”: Many legacy donors are loyal supporters who have given small amounts consistently over time
“It’s too complicated”: While some gift vehicles are complex, bequest giving (the most common form) is straightforward
“We need to wait until we’re more established”: If you have loyal donors who believe in your mission, you can start a legacy program
“We don’t have the expertise”: You can start with basic bequest giving and expand your program as you learn

Types of Legacy Gifts

Bequests

Bequests are the most common and straightforward type of legacy gift. They involve a donor naming your organization in their will or trust to receive:

When considering legacy giving for beginners, organizations should focus on educating their donors about the long-term benefits of such gifts.

Additionally, embracing legacy giving for beginners can enhance donor relationships and ensure a stable financial future.

For many organizations, legacy giving for beginners opens doors to financial sustainability and long-term growth.

A specific dollar amount
A percentage of their estate
Specific assets (property, stocks, etc.)
The remainder of their estate after other bequests

Understanding legacy giving for beginners can empower non-profits to tap into the substantial potential of planned donations.

Bequests require minimal administration from your organization and are accessible to donors of all financial backgrounds.

Life Insurance Policies

Donors can name your organization as a beneficiary of their life insurance policy, or they can donate a policy they no longer need by transferring ownership to your organization. The donor receives an immediate tax deduction, while your organization receives the full value of the policy upon the donor’s passing.

Retirement Plan Assets

Donors can designate your organization as a beneficiary of their retirement accounts such as IRAs, 401(k)s, or pension plans. This is particularly tax-efficient for donors, as retirement assets left to individuals may be subject to both income and estate taxes, while those left to non-profits avoid these taxes entirely.

For many, understanding legacy giving for beginners is the first step toward making a significant philanthropic impact.

Charitable Gift Annuities

A charitable gift annuity is a contract between a donor and your organization. The donor makes a gift, and in return, your organization provides the donor (or their designee) with fixed payments for life. After the beneficiary passes away, the remaining funds go to your organization.

Charitable Remainder Trusts

With a charitable remainder trust, a donor transfers assets to a trust that provides income to the donor or other beneficiaries for a specific period or for life. After this term ends, the remaining assets go to your organization.

Charitable Lead Trusts

A charitable lead trust is essentially the reverse of a remainder trust. Your organization receives income from the trust for a set period, after which the remaining assets go to the donor’s heirs or other beneficiaries.

Retained Life Estates

With a retained life estate, a donor gifts real estate to your organization while retaining the right to live in or use the property for their lifetime. After their passing, your organization takes full ownership of the property.

Starting Your Legacy Giving Program

Assessing Organizational Readiness

Before launching a legacy giving program, ensure your organization is prepared by confirming:

Leadership Support: Your board and executive team understand and support the long-term investment
Organizational Stability: Your organization has a track record of fiscal responsibility and mission effectiveness
Donor Base Assessment: You have loyal donors who have given consistently for 5+ years
Resources: You have staff time (even if limited) to dedicate to the program
Mission Longevity: Your organization’s mission has relevance for the long-term future

Setting Up the Foundation

When establishing your legacy giving program:

Develop Policies: Create gift acceptance policies that clarify what types of gifts you’ll accept
Establish a Committee: Form a legacy giving committee with board members, staff, and volunteers
Build a Budget: Allocate resources for marketing materials, donor cultivation, and professional development
Create Infrastructure: Set up systems to track, acknowledge, and steward legacy donors
Define Roles: Clarify who will manage different aspects of the program (donor communication, gift processing)

Start Simple, Then Expand

Begin with a basic bequest program focused on will and trust designations before expanding to more complex gift vehicles:

Phase 1: Focus on bequest giving in wills and trusts
Phase 2: Add life insurance and retirement plan designations
Phase 3: Incorporate charitable gift annuities (if appropriate)
Phase 4: Consider more complex vehicles like charitable trusts

Identifying and Approaching Potential Legacy Donors

Who Makes Legacy Gifts?

While each donor is unique, those who make legacy gifts often share certain characteristics:

Implementing a structured approach to legacy giving for beginners allows organizations to maximize their outreach.

For non-profits, understanding legacy giving for beginners is essential to engaging potential donors effectively.

Long-term supporters (5+ years of giving)
Donors without heirs or with heirs who are financially secure
Individuals with strong emotional connections to your mission
Volunteers and board members (current and former)
Donors aged 55+ (though younger donors increasingly consider legacy giving)
People who have benefited from your services
Consistent giving history (amount is less important than regularity)

Having the Conversation

Legacy giving involves sensitive topics around mortality and financial planning. When approaching potential legacy donors:

Focus on Impact: Emphasize the lasting impact their gift will make
Ask for Consideration: Request they consider including your organization in their will
Provide Resources: Offer information about different gift options without overwhelming
Listen Carefully: Understand their philanthropic goals and motivations
Be Patient: Legacy giving decisions often take time and multiple conversations
Respect Privacy: Acknowledge the personal nature of these decisions
Include Family: When appropriate, involve family members in the conversation

Creating a Legacy Society

A legacy society honors those who have included your organization in their estate plans and serves as:

A stewardship and recognition vehicle
A community of like-minded supporters
A way to track legacy commitments
A marketing tool to promote legacy giving

When creating a legacy society:

Give it a meaningful name related to your mission
Determine membership criteria
Decide on recognition and benefits
Plan regular communications and events

Managing Your Legacy Giving Program

Staffing Considerations

Depending on your organization’s size:

Small Organizations: The Executive Director or Development Director typically manages the program alongside other responsibilities
Mid-size Organizations: A Development staff member might dedicate 25-50% of their time to legacy giving
Large Organizations: A dedicated Planned Giving Officer or team manages the program

Whatever your setup, ensure someone is responsible for:

Responding to inquiries
Maintaining donor relationships
Tracking legacy commitments
Coordinating with professional advisors
Managing marketing efforts

Record Keeping and Documentation

Maintain thorough records of:

Legacy Commitments: Documentation of donors’ intended gifts
Gift Details: Information about gift type, approximate value, and any restrictions
Contact Information: For donors and their professional advisors
Stewardship Activities: Records of communications, events, and recognition
Marketing Efforts: Track the effectiveness of different approaches

Use a CRM or database system to track this information securely and accessibly.

Working with Professional Advisors

Build relationships with financial planners, attorneys, and accountants who can:

Refer clients interested in charitable planning
Provide technical expertise on complex gift structures
Help donors implement their charitable intentions
Serve as resources for your organization

Consider creating a professional advisory council to engage these professionals more deeply with your organization.

Marketing Your Legacy Giving Program

Develop Clear Messaging

Create compelling messaging that:

Connects legacy giving to your mission’s future
Emphasizes the impact of these gifts
Addresses common questions and concerns
Makes the process seem accessible and straightforward
Appeals to both emotional and practical motivations

Multi-Channel Marketing Approach

Promote your legacy program through:

Website: Create a dedicated legacy giving section with clear information
Newsletters: Include stories of legacy donors and the impact of their gifts
Email: Send targeted communications to appropriate segments of your donor base
Social Media: Share brief testimonials and impact stories
Print Materials: Develop brochures, inserts, and leave-behind materials
Events: Host informational sessions or recognize legacy donors at existing events
One-on-One Meetings: Most effective for cultivating specific prospects

Stories and Testimonials

Collect and share stories that:

Highlight donors’ motivations for making legacy gifts
Demonstrate the impact of previous legacy gifts
Show how legacy gifts align with donors’ values
Feature diverse donors to help others see themselves as legacy givers
Include photos and personal quotes to increase authenticity

Stewardship of Legacy Donors

Recognition Strategies

Acknowledge legacy donors through:

Legacy society membership
Recognition in publications and annual reports
Special events and gatherings
Personalized tokens of appreciation
Named funds or programs (when appropriate)
Memorial tributes after their passing

Ongoing Communication

Maintain relationships with legacy donors through:

Regular updates on your organization’s work
Invitations to special events and behind-the-scenes opportunities
Personal check-ins from leadership
Anniversary acknowledgments of their commitment
Information about any changes to your organization that might affect their gift

Respecting Donor Wishes

Honor donors’ preferences regarding:

Public recognition vs. anonymity
How their gift will be used
Communication frequency and methods
Involvement of family members
Legacy stories and testimonials

Legal and Financial Considerations

Gift Acceptance Policies

Develop clear policies that address:

What types of gifts your organization will accept
Minimum gift amounts for certain gift vehicles
How to handle gifts with restrictions
The process for gifts requiring review (real estate, closely-held securities)
Who has authority to accept different types of gifts

Tax Implications

While you should always refer donors to their own tax advisors, be familiar with basic concepts:

Income tax deductions for certain lifetime gifts
Estate tax benefits of charitable bequests
Special considerations for retirement assets and appreciated property
Recent tax law changes affecting charitable giving

By establishing a legacy society, organizations reinforce the importance of legacy giving for beginners.

Ethical Considerations

Maintain high ethical standards by:

Never pressuring donors
Avoiding conflicts of interest
Recommending independent legal and financial counsel
Being transparent about how gifts will be used
Respecting confidentiality
Adhering to the Donor Bill of Rights

Measuring Success

Key Performance Indicators

Track metrics such as:

Number of known legacy commitments
Estimated value of legacy pipeline
Number of legacy society members
Conversion rate from prospects to confirmed legacies
Marketing response rates
Legacy gifts received
ROI on program expenses

Long-Term Impact Assessment

Beyond immediate metrics, evaluate:

Percentage of operating budget supported by legacy gifts
Stability provided by legacy income
Programs sustained or expanded through legacy support
Organizational capacity built through legacy gifts
Cultural shift toward long-term planning

Resources and Tools

Professional Organizations

Connect with organizations that provide training and resources:

National Association of Charitable Gift Planners
Partnership for Philanthropic Planning
Association of Fundraising Professionals
Council for Advancement and Support of Education

Technology Solutions

Consider tools to support your program:

CRM systems with planned giving tracking capabilities
Marketing automation platforms
Gift illustration software
Planned giving websites and microsites
Online will-writing platforms with charitable giving options

Educational Resources

Invest in ongoing education through:

Webinars and online courses
Professional conferences
Books and publications
Peer networking groups
Consultant guidance

Conclusion

Starting a legacy giving program represents a commitment to your organization’s future and creates meaningful opportunities for supporters to extend their impact beyond their lifetimes. By starting with a focused approach, emphasizing relationships, and building your program gradually, you can establish a successful legacy giving program regardless of your organization’s size or resources.

Remember that legacy giving is fundamentally about connecting donors’ deeply held values with your organization’s long-term mission. When approached with this perspective, legacy giving becomes not just a fundraising strategy but a profound way to honor donors’ lifelong commitments to causes they care about.

This guide is intended as a starting point. Always consult with legal and financial professionals regarding specific aspects of your legacy giving program.

Regular communication on legacy giving for beginners can significantly improve donor retention.

Ultimately, focusing on legacy giving for beginners fosters a culture of generosity that can transform communities.

Legacy giving for beginners is a profound way for supporters to contribute to lasting change.

Consulting legal professionals ensures that all aspects of legacy giving for beginners align with best practices.

Understanding the legal and financial implications of legacy giving for beginners is essential for both donors and organizations.

Check Out Another Article: Best Legacy Giving Software Tools for Non-Profits in 2025

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