Board members are the guiding force behind your nonprofit. They oversee your nonprofit’s operations, make strategic decisions, assist with financial management, support your fundraising efforts and identify potential risks. However, one of the most important tasks they assist with is donor stewardship.

Donor stewardship is the practice of strengthening donor relationships to encourage supporters to stick around and ultimately give at higher levels. A robust donor stewardship approach helps you retain donors and maintain a thriving community surrounding your cause.

This is equally true for your planned giving program. A great donor stewardship plan should not only provide a platform for discussing legacy giving but also create opportunities for managing these gifts and involving donors more deeply in your mission. In this guide, we’ll explore how your board can support legacy donor stewardship to increase impact and continue your nonprofit’s success.

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1. Setting Goals

Board members know where your nonprofit’s priorities stand. Using their knowledge of your organization’s operations and information from your latest strategic plan, board members can help you set legacy donor stewardship goals that are realistic and aligned with your mission.

To create well-rounded goals, have board members follow the SMART goal framework, which stands for specific, measurable, achievable, relevant and time-bound. Here’s what an example SMART legacy donor stewardship goal may look like:

Specific: During our next capital campaign, we will increase engagement with mid-level donors to steward them into legacy donors.
Measurable: We will aim to identify at least 35 potential legacy donors before the campaign and build stronger relationships with them by reaching out to each one at least four times.
Achievable: Last year, we stewarded 23 mid-level donors into legacy givers, so reaching 35 seems like a challenging yet realistic benchmark.
Relevant: Securing more legacy gifts will increase future revenue, allowing us to improve budgeting and allocate more funds toward our mission.
Time-bound: For the next six months leading up to the campaign, we will identify prospects, gauge interest and strengthen relationships with potential legacy donors.

With a SMART goal like this one in place, your board can easily measure progress and ensure the team stays on track to achieve its main objectives.

2. Providing Oversight

Proper legacy giving management ensures you can continue stewarding legacy donors and allow your program to thrive. Just as your board members provide oversight for other areas of your nonprofit’s operations, they can guide legacy giving management by:

Reviewing gift acceptance policies. Board members should review the types of planned gifts your organization accepts, such as bequests, charitable remainder trusts and life insurance policies. As your nonprofit grows and legacy giving options expand, board members should work with staff and accounting team members to update these policies.
Ensuring proper documentation and compliance. Since legacy gifts are subject to various legal and tax regulations, your board must work with experts like attorneys and accountants to properly document, report and acknowledge legacy gifts per relevant federal and state laws.
Monitoring resource allocation. Lastly, board members should ensure your organization allocates legacy gifts following donor preferences and your current priorities. For example, if a legacy donor to a healthcare organization wants their contribution to go toward research for a specific disease, board members should verify that their funds are used according to this restriction.

For any gifts without donor restrictions, board members should provide guidance on the specific programs or areas these funds should go toward based on their knowledge of your organization’s priorities. Then, the board should update legacy donors on how your nonprofit intends to use their gifts.

3. Building Relationships

Fostering planned giving requires more than simply soliciting donations. It necessitates strong donor relationships, which board members can build by engaging current and potential legacy donors in your supporter base. They can create these bonds and encourage legacy giving by:

Leading by example. By contributing legacy gifts themselves, board members can demonstrate their commitment to your organization and legacy giving program. Instead of speaking generally about the benefits of planned giving, board members can discuss their experience and answer questions about program participation firsthand.
Sending personalized communications. Current and potential legacy donors should feel like they matter to your nonprofit as individuals, not just financial contributors. Have board members communicate with constituents often to learn more about them and show gratitude for their support. eCardWidget’s guide on how to thank donors recommends thanking them not only once they’ve made a gift but also on special occasions, at milestones and after successful campaigns.
Keeping donors updated. Make donors feel part of a larger community by giving them regular updates on your organization. Consider having board members compile a newsletter highlighting new programs, initiatives and events so donors always know what’s happening. Additionally, share impact updates that let donors know how you’re using their previous gifts.

To keep your relationship-building activities organized, Aly Sterling Philanthropy recommends creating a donor stewardship matrix. This type of visual helps board members map out different outreach strategies, create associated timelines and assign team members to different tasks.

4. Creating a Legacy Society

Make your program more enticing and encourage legacy givers to stick around with a dedicated society. The exclusivity a society provides may help mid-level donors who are on the fence ultimately decide to increase their giving with a legacy gift.

Board members can oversee the creation and management of your legacy society, providing strategic direction for staff to offer benefits like:

Special recognition events. Gather legacy donors for events like luncheons, dinners and private facility tours to show that you value their contributions and help them meet other like-minded individuals.
Public shoutouts. Let the rest of your community know about legacy donors’ generosity by highlighting different legacy donors and how their gifts will make an impact. You may post these shoutouts in your newsletter, on your website or on social media.
Additional engagement opportunities. Give legacy donors other ways to get involved in your organization, such as volunteering, advocacy or leadership roles. That way, they’ll feel more connected to your mission.
Legacy donor newsletter. In addition to your standard newsletter, have staff members develop a legacy donor newsletter with updates on the program and its impact.

Consider developing a legacy giving page on your website that details the benefits of joining your program, including participation in your legacy giving society. That way, interested donors can easily learn about the perks they’ll receive after making a legacy gift.

5. Assessing Your Efforts

Once you have a solid legacy donor stewardship strategy in place, evaluate your efforts. Have staff members review relevant engagement data to determine which tactics are most effective and share these insights with board members. For example, they may compare attendance rates for different types of recognition events or click-through rates (CTR) for different iterations of your legacy donor newsletter to determine what resonates with your legacy donors.

Additionally, explore legacy donors’ preferences more deeply by surveying them directly and analyzing the responses with your board. Ask questions about different stewardship activities, events or program offerings, leaving space for open-ended answers that allow donors to explain exactly what they like, express any concerns and suggest improvements.

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Board members should play a pivotal role in advancing your legacy donor stewardship efforts. If you need help optimizing your strategy or incorporating your board into the process, partner with a nonprofit consultant.

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Donor Retention

Alec Hollingsworth

Content Manager

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