Planned Gift Donors - User Journey
The planned giving donor journey consists of three decision stages. Planned giving offers substantial tax savings to donors, which can truncate their income tax liabilities and avert capital gains tax.
The Major Stages In The Journey
- The planned giving donor journey is similar to that of a buyer’s journey and primarily consists of three decision stages, which are awareness, consideration, and decision.
- In the awareness stage, donors veer their attention to the problem and the need for a solution. Various charitable organizations endeavor to get themselves identified with the donors at this stage and project themselves as a potential part of the solution.
- The consideration stage of the journey is very donor centric and it is where giving donors are more decisive, as they begin to believe that they can make make a difference. The donors in this stage shift their focus and begin to deliberate and mull over the various ways in which they can make the biggest impact.
- The decision stage is the final step in the journey of a planned giving donor. At this stage, the donors have already sieved through the various charitable options available to them and have zeroed-in-on the organization that is best suited to them to solve the problem.
- One of the key rewards of planned giving for the donors is the satisfaction that they garner from the act of giving a legacy to a philanthropic support that is close to their heart. The satisfaction arises from the fact that their contribution can help ensure the future health of the organization.
- Another key tangible reward of planned gifts/giving is that it offers substantial tax savings to donors, especially on appreciated properties and securities. The donors can truncate their income tax liabilities and avert capital gains tax through planned gifts.
- Planned gifts also offer the donors the opportunity to support their charitable organization in a meaningful way without giving a large outright gift.
- Some rewards associated with planned gift/giving include providing inheritances for scions at a reduced tax cost, diversifying investment portfolio, receiving income from residence, and act as a potential alternative to averting the probate process.
- Inattention, insufficient income, over-spending, and fear of charity failure are some common barriers that people donating planned gifts encounter and which prevent them from planned giving.
- Planned gift donors are rarely able to articulate consistent, evidence-based approaches to choosing the right recipients of their aid and, hence, rarely give as much as they would like.
- According to SSIR.org, small hassles, such as finding a stamp, filling out a form, providing payment information, or searching for the right website can easily prevent people from following through on giving.
- As reported by a survey, 81% of donors have concerns around the transparency of the non-profit organization they plan to donate to and also the impact of their giving. In addition, 48% of the respondents had concerns that their charitable donations will not be put to good use.
- Also, 75% of the planned giving donors have concerns or questions about engagement with charities that act as a barrier for them and 33% of them averred that it is hard to find an opportunity to get more involved with charities or issues.
- Organizing and tracking their charitable giving (65%), concerns about social and familial obligations around giving (45%), and personal finances and the ability to fund their giving (75%) are among other major barriers for planned gift donors.
- Baby boomers in a survey highlighted that their inability to identify the starting point for their estate planning acts as a major barrier in planned giving.
Questions The User Has Along The Way
- As stated in a survey by Fidelity Charitable, one of the key questions/dilemmas that the donors have during their giving journey include "How much can I afford to donate and still have enough funds for myself and my family’s needs and wants?"
- In addition, some 81% of donors have questions around the ways their donations are utilized and put to use by the charities.
- Few donors also stated that they have difficulty identifying new nonprofits to support.
We began our research by consulting various media articles from Forbes, WSJ, Business Insider, Bloomberg, etc; surveys around US planned giving donors from Pew Research, Deloitte, Nielsen, etc; various planned giving information blogs and charity information blogs such as Charity Navigator, NCF Giving, SSIR.org, etc; and websites, blogs, and filings of some organizations involved in the field of planning giving, such as Campell Company, Fidelity Charitable, etc.
Based on all the above sources, we were able to collect detailed insights around the journey of planned donors in the US and the details around the various stages of the decision-making process, key barriers to giving planned donations, major rewards that donors seek from giving such planned gifts, and the various queries and dilemmas they have during the donation journey.
All the detailed insights found were regarding planned donors in general, rather than targeted towards Lutheran or Christian individuals specifically. During the research, we found sources that stated that the information was applicable for all types of planned donors. For example, something like tax rewards or benefits is a reward during the journey for all kinds of planned giving donors, despite their faith or religion.