When it comes to making a long-term impact, planned giving is one of the most effective, but underutilized, methods of fundraising in the nonprofit industry. With a planned giving strategy, both a nonprofit and a donor can make a lifetime impact. When a nonprofit agency is managing multiple revenue sources, incorporating a plan for planned giving and technology to support this strategy is essential.
That's where planning giving software can help. Organizations can use this technology to successfully manage complicated estate gifts, communicate with individuals making these gifts, and keep accurate records. In this blog, we will examine how planned giving software relates to your ecosystem of methods, including other solutions such as Fluxx, which assists with grant management.
How Planned Giving Software Works
A planned giving application is a technology tool specifically designed for handling deferred, legacy, or estate gifts that have been pledged to a non-profit organization. Such gifts can come in different forms, such as bequests, charitable remainder trusts, donor-advised funds, life insurance gifts, real estate gifts, among others.
Unlike traditional donor management databases or fundraising software, planned giving database software is designed with the specific purpose of dealing with gifts of a complicated nature which may not reach their full potential value for a number of years. Such databases provide nonprofits with the tools to manage donor intent, attorney relationships, and future income calculations.
One of the most prominent examples of planned giving software available in the market is PG Calc, which provides gift planners, donor managers, and automatic workflow solutions especially for gift officers and financial teams.
Such software can therefore assist in making a rather complicated, manual, and paper-filled process a transparent and manageable one and in coordinating it with other fundraising operations.
Who Uses Planned Giving Software?
The software is used in different departments in non-profits, with a focus on those dealing with long-term strategic fundraising and financial planning. Some of the teams which benefit most include:
- Major Gifts Officers and Planned Giving Officers, dealing with legacy gift prospects
- Finance Teams, who require insight into future assets, donor intent, and timelines for estates
- Executive Leadership, who require forecasting accuracy in order to make organizational plans for the future
- Legal or Compliance Staff, requiring access to safe documents and information pertaining to an estate
Wherever a nonprofit organization finds itself with, say, major gift development programs of a certain scale, this type of software will allow them to maintain a level of consistency in donor relationships and make sure all communications from different departments are in sync when it comes to a
Features To Look Out For
Not all planned giving solutions are equal. As you begin your search for a solution, key considerations include:
- Donor Management Tools: Relationship tracking, interaction, and gift type
- Gift Tracking & Valuation: Pledged gifts, estimated values, & maturity dates
- Legal Document Storage: Organize your will, trust agreements, and other estate documents in one safe location
- Automated Workflows: Reminders for follow-ups, deadlines, or changes in an estate
- Reporting & Forecasting: Create reports for board members and executives to forecast future income sources
- Compliance Support: Make sure gifts follow IRS rules and charitable guidelines
The right platform will make a complicated process simpler, with all parties being transparent and in control.
Tax Benefits For Users
A major benefit of planned gifts is tax savings. Persons supporting non-profits through gift planning may be eligible for charitable income tax deductions, reduced taxes on their taxable estates, and gifts of appreciated assets without incurring capital gains tax liability. Such a benefit makes gift planning an ideal strategy for supporters seeking to maximize gifts and tax savings.
Although planned giving software is not a replacement for tax planners, it is a critical tool in handling paperwork, tracking donor intent, and generating acknowledgment letters necessary for tax purposes. To the nonprofit organization, it provides stewardship and ensures a good relationship with major, high-end legacy clients.
How It Fits into The "Giving" Space
Gift planning takes place within a continuum of fundraising in nonprofit organizations. While annual gift programs, major gifts, and campaigns focus on generating immediate financial support, gift planning focuses on sustainability within a nonprofit organization.
Instead, planned gifts work in addition to other fundraising methods and therefore improve them by providing a diversified source of funding. The approach demonstrates a level of sophistication in a nonprofit’s fundraising program and provides a mechanism for dedicated supporters to make a meaningful impact based on their personal beliefs.
How It's Different Than Grant Management Software
Although both planned gift software and grant management software relate to funding, they function in different manners because:
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Feature
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Planned Giving Software
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Grant Management Software
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Primary Use
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Administer gifts, including deferred gifts, from individuals
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Manage institutional grant lifecycles
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Main Users
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Development, Legal, Finance
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Programs, Finance, Compliance
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Gross Revenues
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Individual Contributions (future)
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Institutional Funds (Current or Future)
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Compliance Focus
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IRS or Estate laws
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Grantor guidelines, audit trails
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Timeline
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Often Long-term or Posthumous
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Typically current or ongoing
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While planned gifts are relationship and legacy based, systems for grant management such as Fluxx are more suitable for formal, frequently restricted, institutional needs with deliverables and timeframes.
Why You Need Fluxx for Grants
The role of planned gift software and grant management software is to complement each other in a not-for-profit’s technology toolkit. One will focus on future legacies, and the other will focus on tracking, measuring, and reporting all current institutional support.
Fluxx was developed with a focus on handling complex grant lifecycles, helping non-profits successfully manage a variety of grant sources, regulatory requirements, and grant reporting obligations. Their platform integrates grant applications, disbursements, programmatic results, and other information to make it simpler for different teams to collaborate with each other.
As a complement to donor-facing solutions such as planned giving tools, Fluxx builds an ecosystem in which your organization can function with efficiency and effectiveness. With gifts, large grants, and other income, your organization can function with confidence.
Establishing a Sustainable Philanthropic Strategy
A planned gift application is an important tool for nonprofits in using their resources in developing a future-focused development strategy. A planned gift application can offer you insight into legacy gifts and improve relationships with your most loyal supporters.
With a tool such as Fluxx, a grant management system, your organization can confidently manage both current and future funding. A solid technology stack will not only make things simpler for your organization but will help you grow in a smarter way.
Want to see how Fluxx can revolutionize your grant operations and complement your fundraising strategy? Request a demo today and see why non-profits love Fluxx for all your grant management needs.
