As the weather warms and we move from spring into summer, several special occasions dot the calendar. In the coming days and weeks, Americans will observe Mother’s Day, Father’s Day, and Memorial Day. Known as “memorial season,” this is an important opportunity to encourage donors to make their gifts more personal by honoring or remembering some remarkable people.
Educate on Gift Options
For donors looking to recognize special individuals, there are a number of options for paying tribute and creating a lasting legacy.
• A gift in a will. There are many benefits to creating a gift in a will. Donors often find it helpful to plan now and give later, making a possibly larger gift without impacting current finances. However, donors may not be aware that they can easily use a charitable bequest to show appreciation for someone who has passed or recognize a cherished friend or family member. In fact, research shows donors are more inclined to make a charitable bequest when the gift request is framed as making a donation in honor of a loved one. With honorary or memorial bequests, a donor may want to designate the gift for a specific purpose that reflects the passions or interests of the recognized individual.
Educate donors about this meaningful option and encourage them to inform you if they make such a bequest. This ensures that the gift can be accomplished as intended and has the flexibility to meet unforeseen circumstances.
• Endowment gifts. Endowment gifts are a powerful way to pay tribute to a loved one while helping ensure the longevity and financial stability of your organization. A donor can establish an endowment in a loved one’s name and can specify the purpose for which the funds will be used, creating a lasting legacy and supporting specific work or programs their loved one valued well into the future.
• Donor-advised funds. A donor-advised fund (DAF) is a popular and easy way for donors to make meaningful and tax-advantaged gifts while leaving a lasting legacy. Donors can name their DAF in honor or memory of a friend or family member and can structure it to support causes and organizations that were meaningful to the individual being recognized. As an added bonus, many DAFs are family affairs, with multiple generations participating in preserving a legacy. Schwab Charitable reported that 66% of their donors involve family members with their donor-advised fund.
Handle with Care
A tribute gift is, by nature, extremely personal for the donor. It must be handled with the utmost care and sensitivity. When facilitating these gifts, consider the following suggestions to ensure you approach the donor and the donation with the appropriate level of respect.
• Communicate options. Donors may not be aware that there are powerful and effective ways to remember and honor loved ones with a planned gift. Use your website, newsletter, social media accounts, and other means of communication to educate donors on their options and offer to work with them to create a gift that is impactful, beneficial, and meaningful.
• Express gratitude. A tribute gift often involves a lot of thought and can be an emotional process. It may also be a larger gift than the donor would otherwise give. A prompt and personal expression of gratitude, such as a phone call or personalized letter, will be greatly appreciated by the donor. Good stewardship of memorial gifts is pivotal to building a relationship with the donor and creating a philanthropic partnership.
• Follow up. After the gift, it’s important to share with the donor the positive impact of their contribution. Be mindful that making a tribute gift on behalf of a loved one doesn’t have to be a one-time gesture. Consider thoughtful follow-up, such as reaching out on the anniversary of the gift, to honor the memory of their loved one and potentially inspire future gifts. This personalized approach not only deepens the connection with the donor but also fosters a lasting commitment to philanthropy that spans generations.
This memorial season, remind donors of the power of honoring their loved ones through purposeful giving. Whether through a bequest, endowment, or donor-advised fund, donors can create enduring legacies while supporting organizations like yours that are close to their hearts. Handle these gifts with the utmost care, express heartfelt gratitude, and maintain ongoing communication to nurture lasting philanthropic partnerships with your supporters.
