Posts tagged ‘The George Washington University’

June 2, 2016

Avoid a Big Mistake: Stop Asking for Bequest Gifts!

Nonprofit organizations are making a big mistake. Many charities ask individuals to consider making a “Bequest Gift.” Of course, an even bigger mistake is not asking at all. However, there is a better way.

Russell James, JD, PhD, CFP, a leading philanthropy researcher based at Texas Tech University, reports that the latest research shows that asking Words that Work IIpeople to consider “Gifts in your will” generates far more interest. When asking prospects to consider a “Bequest Gift,” 18 percent responded, “I might be/am definitely interested.” By contrast, when prospects were asked to consider “Gifts in your will,” 28 percent expressed interest!

James will offer additional research-based insights in a FREE webinar, Words that Work II: The Phrases that Encourage Planned Giving, hosted by MarketSmart on Wednesday, June 8, 2016 at 2:00 PM EDT. Registration is required and space is limited so click here now.

During the webinar, you’ll get the following information:

  • How to describe bequest gifts and tax benefits in a way that will increase a person’s desire to learn more;
  • What elements of a charitable gift annuity advertisement make people want to get one;
  • What the latest data patterns say about trends in charitable estate planning;
  • The best “front door” phrase to get people to read about planned giving information;
  • Test results that showcase the responses to different charitable gift annuity advertising messages;
  • And much more of great interest and value!

In short, James’ webinar will provide you with powerful, practical insights that will help you enhance your planned giving results.

So, why is asking for a “Bequest Gift” less effective than asking for “Gifts in your will”?

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July 26, 2013

Prospects Are Not Feeling Their “Wealth”

Seventy percent of people with investible assets of $1 million or more do NOT consider themselves “wealthy.”

That stunning news comes from The UBS Investor Watch for the third quarter of 2013. For the report, UBS surveyed 4,000 investors in the US.

The report also found that four out of five survey respondents are either supporting adult children or elderly parents to some degree.

The current edition of The UBS Investor Watch has significant implications for Poor Little Rich Girlnonprofit organizations and their fundraising programs, especially planned giving efforts.

This is particularly true if we take a moment to consider what other studies have revealed about perception of wealth and giving. Research projects have shown that many donors think that planned giving, even bequest commitments, are something that only wealthy people do.

For example, in one focus group study, The George Washington University learned that some alumni held the mistaken belief that bequests involve very large financial commitments from those who are very wealthy. As I describe in my book, Donor-Centered Planned Gift Marketing, three problems arise from this thinking:

First, prospects believe that bequest giving is simply not for them, but rather the wealthy—many who are truly wealthy do not perceive themselves as such and, instead, think of themselves as merely ‘comfortable.’ Second, while some prospects might be willing to give through a bequest, they might not actually do so because they feel their gift would be too insignificant to matter. Third, some prospects expressed embarrassment over the notion of giving a modest bequest gift while the perceived norm is much larger.”

As the UBS study shows, a great number of wealthy individuals do not consider themselves wealthy. As other studies have shown, many people think planned giving is something that only the wealthy do. This means that many people with significant assets will fail to make a planned gift believing it is not something for them.

So, how can nonprofits overcome this perception?

Charities do not need to convince people that they are truly wealthy when they do not think that to be the case. That would certainly be an awkward and unproductive conversation. Instead, nonprofit organizations must do a better job of educating prospects so that they understand that the organization needs and appreciates all planned gifts, assuming that’s the case.

As I share in my book:

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