Charitable giving through planned giving instruments, such as bequests, charitable gift annuities and life insurance designations, has become an increasingly vital source of revenue for non-profit organizations. As donors seek to maximize their charitable impact while minimizing tax burdens, charities require sophisticated strategies to cultivate and steward these planned gifts. Enter the Planned Giving Advisory Council—a powerful tool for the charitable organization that harnesses the expertise and influence of external professionals to strengthen a charity’s planned giving program.
Role of a PGAC
A PGAC plays a pivotal role in identifying and engaging potential planned giving donors. Its members leverage their professional networks to connect with individuals who may have a genuine interest in supporting the nonprofit’s mission through planned gifts. Their expertise instills confidence in potential donors, assuring them that their philanthropic goals will be met with care and precision.
A PGAC also excels in nurturing donor relationships and relationship building, providing personalized attention and expertise to donors who have expressed interest in planned giving. Council members understand the importance of acknowledging donors’ generosity and ensuring their contributions are recognized and celebrated.
Who’s on a PGAC?
A well-rounded PGAC is characterized by a diversity of expertise among its members. With their knowledge of estate planning and charitable gift arrangements, private client attorneys play a pivotal role in ensuring that all planned gifts adhere to legal requirements and regulations. They provide guidance on the nuances of bequests, charitable remainder trusts and other planned giving vehicles, offering donors peace of mind that their philanthropic intentions will be honored.
Financial advisors bring a wealth of knowledge regarding investment strategies, tax implications and financial planning. Their insights help donors optimize the financial aspects of their planned gifts, maximizing the benefits for both the donor and the nonprofit. By understanding the potential tax advantages and investment considerations, donors can make more informed decisions about their planned giving strategies.
Estate planners round out the council’s expertise, offering a comprehensive understanding of the entire planning process. They guide donors through the intricacies of creating a comprehensive estate plan that aligns with their philanthropic goals. This can include determining the distribution of assets, considering family dynamics and addressing any potential challenges that may arise during the implementation of the planned gift.
Forming a PGAC
Establishing a PGAC can be a transformative step for a non-profit organization, enhancing its planned giving program and strengthening its financial sustainability. Below are the key steps to consider when forming a PGAC:
- Assess your organization’s needs and goals. Before forming a PGAC, it’s essential to identify your nonprofit’s specific needs and goals. Determine what you aim to achieve with your planned giving program and how a council can contribute to those objectives. Consider factors such as financial stability, donor engagement and the development of a diverse range of planned giving options.
- Identify potential council members. Leverage senior staff at the organization by appointing a major gifts officer or planned giving specialist role to lead the council. Your board should consist of individuals with expertise in relevant fields such as law, finance, estate planning and philanthropy. Ideally, your PGAC members should share a passion for your organization’s mission. Look within your existing donor pool, professional networks and connections to identify potential council members who can bring valuable insights and networks to the table.
- Define roles and responsibilities. Clearly outline the roles and responsibilities of PGAC members. Determine how often the council will meet, what its primary objectives are, and how members will collaborate with your nonprofit’s staff. Assign specific roles, such as chairperson or secretary, to ensure the council operates effectively.
- Draft a PGAC charter. Create a formal charter or document that outlines the PGAC’s purpose, structure and governance. Include details about membership criteria, term lengths, meeting frequency and decision-making processes. A well-structured charter will serve as a reference point for council members and clarify their roles.
- Recruit and onboard council members. Invite individuals to join once you’ve identified potential members and defined the council’s structure. Hold orientation sessions to familiarize them with your organization’s mission, values and planned giving program. Emphasize the importance of their role in advancing the nonprofit’s goals.
- Establish communication channels. Create effective communication channels between the PGAC and your nonprofit’s staff. Regular meetings, email updates and collaborative platforms can facilitate information sharing and ensure that both parties are aligned in their efforts.
- Develop educational programs. Collaborate with council members to develop educational programs that benefit both your nonprofit and the council members themselves. These programs could include seminars, workshops or webinars on topics related to planned giving, tax law changes or estate-planning strategies. Ensure that these programs provide opportunities for council members to earn continuing education credits (for financial advisors), CPA credits (for accountants) and CLE credits (for attorneys).
- Engage in strategic planning. Work with the PGAC to develop a strategic plan for your planned giving program. Define measurable goals, strategies and a timeline for implementation. Regularly review and update the plan to adapt to changing circumstances and opportunities.
- Celebrate success and recognize contributions. Acknowledge the contributions of PGAC members and celebrate the achievements of your planned giving program. Recognize their efforts through awards, public acknowledgment or appreciation events. A culture of appreciation can foster long-lasting commitment among council members.
- Evaluate and adjust. Periodically evaluate the performance of the PGAC and your planned giving program as a whole. Seek feedback from council members on their experiences and insights. Use this feedback to make adjustments and refinements as needed to continually improve the effectiveness of your PGAC.
Building a Lasting Legacy
For nonprofits seeking to establish or enhance their planned giving programs, forming a well-structured advisory council isn’t just a prudent choice; it’s an essential step toward building a lasting legacy. By leveraging council members’ diverse expertise and passion, nonprofits can secure their organizations’ future financial health and continue to pursue their vital missions.
*This article is an abbreviated summary of “The Strategic Value of a Planned Giving Advisory Council in Nonprofit Success,” which appears in the October 2024 issue of Trusts & Estates.
