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Whether you call it a Heritage Society, Legacy
Society, or a name associated with your mission
or history, you most likely have, or need
to establish, a recognition society that honors those who
have made a long-term gift commitment. Membership
in these societies is usually reserved for donors who
have arranged for a gift through a bequest provision,
gift annuity, trust or other life income gift, lead trust,
life insurance or retirement plan gift, or other planned
gift arrangement.
In many cases donors receive specific benefits when
they become a member of a planned gift recognition society,
such as personal mementos like lapel pins or plaques
and/or invitations to special events such as luncheons and
informational seminars. While donors may enjoy certain
rewards from a recognition society, the eventual charitable
recipient is the one that will benefit the most from
creating and maintaining a donor recognition society.
Simple morale booster
Having a recognition society for planned gift donors
lets them know you appreciate them and the gifts they
have made. Donors who make planned gifts have most
likely given in the past and, as such, may have grown
accustomed over the years to being a member of a particular
gift recognition society. Acknowledging donors for
their planned gifts as well with special, separate giving
societies is an easy way to show them they are important.
Such programs also allow you to continue to recognize
them publicly for their forethought and generosity—even
as they may be reducing the amount and frequency of
their current gifts.
Strengthening the ties that bind
Simply by the nature of most planned gifts, a person
has made a long-term commitment to a charitable recipient,
raising it to the level of a friend or family member.
Maintaining a recognition society allows staff to keep in
touch with planned gift donors and, therefore, provides an additional opportunity to strengthen long-term relationships
with them.
Perhaps you invite recognition society donors to an
annual luncheon in their honor. Or your CEO may host
a holiday reception for these special donors. They may
also be included in broader recognition events that have
already been scheduled. A recognition society can provide
more continuity of contact, which in turn can create
opportunities to meet with your supporters and get to
know them better one-on-one. And once you learn more
about your donors, you may be in a better position to help
them discover other planned gift ideas that may be of
interest to them.
Reduce the risk of removal
If an organization is inattentive to donors of planned
gifts due to staff turnover, poor record keeping, or other
factors, it runs the risk of alienating them and perhaps
losing their gifts altogether. Keep in mind that many
planned gifts are revocable. For example, a bequest provision
or retirement plan beneficiary designation is easily changed during the donor’s lifetime, as are the remainder
interests of many otherwise irrevocable charitable remainder
trusts.
With an effective, ongoing recognition society in place,
you can reduce the risk of being removed from a donor’s
estate plans. As noted above, planned gift donors may be
reaching the age at which their current giving may be
decreasing. A planned gift recognition society can be key to
managing the natural “downgrading” of donors. The society
provides a way to continue to acknowledge a donor’s
past and future involvement. In addition, you may see
more planned gift commitments from prospective donors
when they see that planned gift donors—not just donors of
current gifts—are also given the recognition they deserve.
Conduct a reality check
No matter how many “benefits” you offer to donors
through membership in a planned gift recognition society,
realize that few people will face mortality, change their
estate plans, and/or incur a legal fee to make a gift that
“earns” them a lapel pin or certificate. As a matter of fact,
many bequest and other planned gift donors will
never tell you of their gift during their lifetime, and a
percentage of others who do inform you will normally
wish to remain completely anonymous and may not
want to participate in a recognition society—publicly
or at all. Informal surveys have shown that, at most,
20-30% of estate donors will inform you of their gift
provisions in advance. For many broad-based organizations,
that percentage may easily be 10% or less.
Though relatively few planned gift donors will
provide advance notification of their gifts, and many
of those who do tell you may not want recognition,
the donor recognition society remains a vitally important tool in managing gift planning relationships. Those
who will inform you of their gift commitments and who do
enjoy membership in your recognition society are a very
special group. They have set themselves apart and are
demonstrating to you that they want to be more involved
with you during their lifetime. This increased level of dedication
may be the reason why studies have also shown
that bequests received from donors who informed charities
in advance of their bequest, whether or not they accepted
membership in a recognition society, are often two or three
times the amount of bequests received from those who do
not notify charitable interests in advance of their gift.
So while your recognition society may honor only a
relatively small group of bequest and other planned gift
donors, remember that this type of relationship building
can help strengthen and cement long-term donor friendships,
which can lead to significant additional gift income
in the future.
Editor’s note: The preceding article is excerpted from
Session X of “An Introduction to Planned Giving.” See www.sharpenet.com/seminars for the latest information
about upcoming Sharpe training opportunities.
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