Tips for Understanding Donor Fears about Money

In the planned giving field, much more goes into obtaining donor gifts than simply “the ask.” You have to know your donor’s ability to give, their interest in giving, and their blocks to giving. While planned giving professionals often explore a donor’s ability and interest in making a charitable gift, understanding a donor’s fears related to money (both rational and irrational) is also crucial. Such insight helps you adequately address those fears, rather than simply ignore them. Once you identify the blocks to giving, you can then work toward planned gift arrangements that best meet your donor’s financial and philanthropic objectives.

Common Fears
There a number of fears people hold with respect to money and finances:

• Fears of the unknown can loom large in the financial arena, especially for people who are not well--informed of their overall financial situation.
• Women, who frequently outlive men, may have fears of running out of money
• As people age they can have fears regarding the costs of long-term care
• Many people fear not having enough money to live comfortably as they age

What can charitable organizations do to address these fears?

• Talk about the fears with donors. Listen to donor concerns. Recognize the fears.

• Planned giving education is vital. Make sure donors are fully informed of multiple gift options, tax advantages, and financial benefits of charitable planned gifts. For instance, a bequest might work for someone raising a family who fears not having enough funds on hand to satisfy financial obligations. A charitable gift annuity might work for someone older who wants a reliable stream of income.

• Discuss the importance of planned giving in the big picture. What are the donor’s philanthropic goals? What legacy would the donor like to leave?

• Consider additional steps a donor can take to feel more comfortable with a gift, such as meeting with a financial advisor and an estate planning attorney.

• Help donors understand that philanthropy can occur at every wealth level.

At Pentera, our pioneering Life-Stage Gift Planner™ and Life-Stage Marketer, ™developed and based on 35 years of experience and research, allow donors to thoughtfully craft planned giving decisions that satisfy their philanthropic and financial goals. Contact us today to learn more about planned giving strategies that achieve optimal results for donors and charitable organizations.