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Before,
During, and After the Bequest
by Phillip Adcock
Much has been written on
the importance of effectively communicating the concept of charitable
bequests to donors and prospective donors to charitable organizations
and institutions of many different types. Why? Because gifts by
bequest have consistently comprised the vast majority of gift
planning funds, even for the most sophisticated gift planning
programs — as much as 70% or more of realized funds for many programs.
 Much
of the focus of discussion has surrounded the process of encouraging
charitable bequests through effective file segmentation as well
as utilizing appropriate communication strategies designed to
motivate potential bequests. Debates on how to record bequest
commitments, how to determine the potential income from bequests,
budget issues, and other functions that relate to the mechanics
of bequest development have also been the topic of many articles
and other communications in recent years.
While it can be interesting
and is important to work on and discuss the many nuances of a
planned gift development effort, it can be easy to overlook some
basic principles that are important to success.
Three stages of bequest
giving
It can be helpful to think
of bequest gift efforts in terms of three time periods: before
the bequest is made, after notification from a donor that he or
she either intends to leave a bequest or would consider leaving
a bequest to your organization or institution, and after the death
of the benefactor and receipt of funds.
Before the bequest
The first step in nurturing
a successful bequest program is carefully managing relationships
with regular donors today. When a donor is acquired, it is important
to have a clear system in place that says thank you to all that
give, regardless of the size of the gift. Recognition societies,
listing donors names where appropriate, and keeping donors informed
about your organization’s progress are other activities that
make the difference in retaining donors and building the types
of relationships necessary to motivate bequests.
After notification of
intention
The next time someone notifies
you that they have included your organization or institution in
their will, think about what that means. Who is usually mentioned
in a person’s will? Family most likely, and perhaps close friends.
By remembering your organization in his or her will, a donor has
in some respects elevated your cause to the status of family.
Recently I heard a presentation
by a university president to a group of alumni on this very subject.
He stated that he believed a gift through one’s estate plans is
“a profound act of love and a profound act of confidence in our
institution.” When a donor takes steps to arrange such a profound
act of generosity, gift planners must be poised to acknowledge
the bequest with the same thoughtfulness in which it was made.
In many cases you will never
have the opportunity to thank donors who include charitable gifts
in their wills and other long-term plans. Recent studies, including
one published last fall by NCPG, indicate that many donors prefer
not to share their estate plans with others. Consider, on the
other hand, the mindset of those who do decide to inform you of
their decision.
It is vitally important
that such persons be thanked in a timely and appropriate manner.
If, for example, your average bequest is valued at $35,000, respond
as if each notification is equivalent to a current gift at that
level.
After death of benefactor
This is an area that is
most often neglected — and understandably so. The estate administration
process is often handled by the legal or other administrative
offices within the organization, in some cases with little or
no communication with the development staff. In some cases family
members feel that they, too, have in some respects made a gift
to the organization because the funds given to charity would most
likely have otherwise been theirs. For this reason the staff members
and legal counsel who are interacting with family members should
be sensitive to the donor relations aspects of the estate settlement
process. Programs that successfully integrate the estate settlement
process with development efforts often find that a bequest can
be the beginning of a long relationship with surviving family
members who may decide to continue the investment in the organization
made by their parent, sibling, or other loved one.
I recall an instance several
years ago when I was working as a development executive for a
nonprofit organization. One day a check was received for $1 million.
It was a specific bequest that was restricted for use in a particular
state. No one in the organization knew or had prior knowledge
of the benefactor.
A building campaign was
under way and these funds were just the amount needed to complete
the project. The board approved the use of the bequest to finish
the building. While very pleased with the gift, the staff member
in charge of the program told me that he simply could not rest
at night. He knew that legally there was no problem in using the
funds as the board had directed, but he really wanted to know
what the donor had in mind when making a gift of that magnitude.
He decided to contact the
executor of the estate, who happened to be the son of the benefactor.
The staff member explained the plans for the bequest and then
asked, “Before moving forward, I want to make sure the use of
these funds in this manner is what your father would have wanted
”. The son indicated that he thought the father would approve
of the funds being used for a building. His next question was,
“Do you think your father would have liked to have the building
named in his honor?” The son’s answer was yes.
After the building was completed,
a dedication ceremony was held which involved the surviving family
members of the donor. During the ceremony, the family presented
another check — larger than the original bequest — to handle the
future needs of maintaining the building that was named for their
loved one. This is just one example of what can result when attention
is paid to surviving loved ones following a bequest, and they
are treated as the major donors they often feel they are.
Personal treatment is
key
As I mentioned earlier,
we must keep in mind the highly intimate and personal nature of
the charitable bequest. Whether from the large estate of a high-profile
philanthropist or the modest estate of a retired teacher, a bequest
to charity is often a donor’s single largest, most thoughtful
charitable gift in their lifetime. This is the reason why gift
planners should attend to bequest donors with extreme care.
Consider taking the time
to arrange for systems and procedures that result in establishing
communication between internal departments that handle bequest
administration and the development function, a system that acknowledges
family members appropriately and creates an environment that can
give rise to personal relationships with them and their advisors.
Attention paid to this process can pay surprising dividends for
the time invested. A bequest to charity is often the single largest,
most thoughtful charitable gift a donor can make.
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