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Planned Giving
 Marketing Solutions |

All the resources you need to take your planned giving program to the next level.

SUMMARY
  • Planned giving (legacy giving) enables individuals to make substantial donations to cherished causes, typically arranged during life but activated later, offering both philanthropic impact and financial advantages.
  • Most planned gifts range from $35,000 to $70,000, providing nonprofits with reliable, long-term financial support that helps sustain their missions for generations.
  • The Baby Boomer generation is driving an unprecedented $30 trillion wealth transfer, creating significant opportunities for charitable giving and legacy creation.
  • Key planned giving vehicles include bequests through wills, charitable gift annuities providing lifetime payments, charitable remainder trusts offering term-based income, and donor-advised funds for flexible giving.
  • Financial planners, estate attorneys, and nonprofit specialists collaborate to structure these gifts, maximizing tax benefits while ensuring legal compliance.
  • Pioneer institutions like Harvard University and organizations like PlannedGiving.com have developed innovative approaches to make planned giving more accessible.
  • Successful planned giving programs focus on building deep donor relationships, sharing impact stories, and helping donors fulfill their philanthropic dreams.
  • Beyond financial aspects, planned giving enables donors to create lasting legacies that reflect their values and transform communities for future generations.
  • Nonprofits that develop strong planned giving programs can tap into significant long-term funding while helping donors achieve their charitable goals.
  • Organizations should start planned giving programs early to avoid missing opportunities with loyal donors who might direct their legacy gifts elsewhere.

What Is Planned Giving?

Planned giving, often called gift planning or legacy giving, is a thoughtful way for individuals to make impactful contributions to causes they care about. These gifts are typically arranged during a person’s lifetime but often take effect later, such as after the donor has passed. Essentially, planned giving connects personal financial goals with philanthropic values, helping donors support meaningful causes while also reaping financial and tax benefits.

For nonprofits, planned giving provides a stable foundation. Unlike annual donations that rely on regular contributions, planned gifts tend to be larger and provide long-term support. This makes planned giving an essential strategy for organizations aiming to sustain their missions for years to come.

Planned Giving Vehicles

Planned giving offers a variety of options tailored to different donor goals and situations. Here are some of the most popular ways to give:

1. Bequests

Bequests are the simplest and most widely used form of planned giving. By including a nonprofit in their will or living trust, donors can leave a specific amount, a percentage of their estate, or the remainder after other obligations are met.

How It Works:

  • Donors keep control of their assets during their lifetime.
  • It’s easy to adjust if circumstances change.
  • It allows donors to leave a legacy without immediate financial impact.

2. Charitable Gift Annuities (CGAs)

A charitable gift annuity is a straightforward agreement between a donor and a nonprofit. The donor contributes assets, and the nonprofit provides them (or someone they designate) with fixed lifetime payments. After the donor’s lifetime, the remaining funds benefit the nonprofit.

How It Works:

  • Offers financial security through steady payments.
  • Provides immediate tax benefits.
  • Creates a win-win for donors and nonprofits.

3. Charitable Remainder Trusts (CRTs)

A charitable remainder trust allows donors to transfer assets into a trust, providing them or their beneficiaries with income for a set period. The remaining assets go to the nonprofit at the end of the trust’s term.

How It Works:

  • Flexible income options tailored to donor needs.
  • Significant tax benefits, including avoiding capital gains taxes.
  • Ensures a future gift for the nonprofit.

4. Charitable Lead Trusts (CLTs)

Charitable lead trusts work in reverse. A nonprofit receives income from the trust for a specified time, and the remaining assets return to the donor’s family or other beneficiaries.

How It Works:

  • Reduces estate taxes for heirs.
  • Allows donors to support a nonprofit immediately while preserving wealth for their family.

5. Donor-Advised Funds (DAFs)

Donor-advised funds are flexible giving accounts. Donors make contributions, receive an immediate tax deduction, and recommend grants to nonprofits over time.

How It Works:

  • Simplifies charitable giving.
  • Offers flexibility in deciding when and where to give.
  • Allows for anonymity, if preferred.

6. Beneficiary Designations

Naming a nonprofit as a beneficiary of life insurance policies, retirement accounts, or financial assets is a simple way to give.

How It Works:

  • Easy to set up and doesn’t require changes to a will.
  • Avoids probate, ensuring quick asset transfer.
  • Enables impactful gifts without affecting current finances.

7. Gifts of Real Estate

Donors can give real estate—homes, commercial properties, or undeveloped land—to nonprofits. These gifts can be outright, part of a life estate agreement, or managed through a trust.

How It Works:

  • Provides a substantial gift without needing to liquidate assets.
  • Avoids capital gains taxes.
  • Can offer lifetime income if structured through certain vehicles.

8. IRA Charitable Rollovers (Qualified Charitable Distributions)

Individuals aged 70½ or older can donate directly from their IRA to a qualified charity. Known as Qualified Charitable Distributions (QCDs), these gifts help fulfill required minimum distributions without adding to taxable income.

How It Works:

  • Counts toward required minimum distributions (RMDs).
  • Tax-efficient for retirees.
  • Streamlines the giving process.

The Complexity of Planned Giving and Why Advisors Matter

Planned giving isn’t always straightforward. Many vehicles, such as charitable trusts, involve intricate legal agreements, tax rules, and financial strategies. For example, structuring a charitable remainder trust requires precise calculations to meet IRS regulations while aligning with the donor’s financial goals.

That’s where expert advisors come in. Financial planners, estate attorneys, and nonprofit specialists work together to:

  • Maximize the donor’s tax benefits.
  • Design gift structures that fit the donor’s unique circumstances.
  • Ensure compliance with legal and financial standards.

By partnering with advisors, donors gain peace of mind and confidence that their legacy is both impactful and financially sound.

Pioneers in Planned Giving

Planned giving has grown over decades, thanks to the vision of innovative institutions and individuals:

1. Harvard University

Harvard was one of the first institutions to embrace planned giving, launching programs in the early 20th century. Its creative use of charitable trusts and annuities has become a model for other nonprofits worldwide.

2. Indiana University Lilly Family School of Philanthropy

A hub for philanthropy research and education, the Lilly Family School has been pivotal in training professionals and advancing the field of planned giving. Their studies provide valuable insights that shape best practices.

3. Jonathan Gudema

Jonathan Gudema, Esq., is a respected thought leader in planned giving. Over his career, he’s helped nonprofits raise millions by integrating planned giving into broader fundraising strategies, proving its transformative potential.

PlannedGiving.com: Shaping the Future of Philanthropy

PlannedGiving.com has set the gold standard in planned giving marketing, empowering nonprofits with innovative tools and resources. Their acquisition of domains like PlannedGiving.com, MajorGifts.com, and Philanthropy.org underscores their leadership in the field.

What They Offer:

  1. Tailored Marketing Solutions: From personalized websites to print materials, PlannedGiving.com helps nonprofits connect with donors in meaningful ways.
  2. Educational Content: Their resources make it easy for professionals to understand and communicate complex planned giving options.
  3. Domain Authority: By leveraging high-value domains, PlannedGiving.com builds trust and credibility, positioning themselves as thought leaders.

Major Gifts and Planned Giving Boot Camp

Through the Major Gifts Boot Camp, PlannedGiving.com equips fundraisers with skills to secure significant gifts. By combining planned giving and major gift strategies, they help nonprofits achieve lasting success.

Why Planned Giving Matters

Planned giving isn’t just about numbers or legalities—it’s about stories, legacies, and making a difference. For nonprofits, these gifts provide the resources to dream big and create lasting impact. For donors, planned giving offers a chance to reflect their values, support future generations, and leave a meaningful mark on the world.

Organizations like PlannedGiving.com are making this process accessible and impactful. By combining expertise, education, and innovation, they ensure that planned giving remains a powerful force for good.

Importance of Planned Giving

Building Your Nonprofit’s Future Through Planned Giving: Why Every Gift Tells a Story

Picture Sarah, a dedicated volunteer who spent 20 years serving meals at her local food bank. When she decided to include the organization in her will, she didn’t just leave a gift – she left a legacy that would help feed families in her community for generations to come. This is the power of planned giving, a profound way for donors to create lasting impact for the causes they cherish most.

Why Planned Giving Matters: More Than Just Numbers

While planned giving might sound technical – involving wills, trusts, and estate planning – at its heart, it’s about people like Sarah who want their life’s work to make a difference long after they’re gone. As noted on plannedgiving.com, these gifts typically range from $35,000 to $70,000, but their true value goes far beyond dollars and cents. They represent donors’ deepest values, hopes, and dreams for the future.

A Once-in-a-Generation Opportunity

Think about Clara, a retired teacher who grew up during the Great Depression. Like many of her generation, she lived modestly but invested wisely. Now, as Baby Boomers like Clara enter their retirement years, we’re witnessing the largest wealth transfer in history – over $30 trillion passing between generations. Behind this staggering number are millions of individuals who want their life savings to create meaningful change.

The Magic of a Strong Planned Giving Program

Creating Tomorrow’s Success Stories

When the Thompson Animal Shelter launched their planned giving program, they didn’t expect to hear from Jim, a quiet weekly volunteer who walked dogs every Tuesday. Jim revealed that he wanted his life insurance policy to help build a new wing for senior dogs – a cause close to his heart after adopting his own elderly golden retriever. These are the kinds of connections that planned giving creates.

Building Deep Bonds

Maria, a development director at a community arts center, discovered that planned giving conversations often led to the most meaningful discussions with donors: their childhood memories of first experiencing art, their hopes for future generations, and their vision for their community. These weren’t just fundraising talks – they were opportunities to share dreams and build lasting relationships.

What Happens When We Miss These Opportunities?

Real Stories of Missed Connections

Consider the story of Robert, a modest but loyal donor to his local library. When he passed away, his entire estate went to another organization – not because he cared about them more, but because they had taken the time to talk with him about leaving a legacy. His regular library had never brought up the possibility, missing out on both a significant gift and the chance to help Robert achieve his philanthropic goals.

The Hidden Costs

When organizations shy away from planned giving conversations, they lose more than future donations. They miss chances to:

  • Help donors like Sarah fulfill their charitable dreams
  • Learn touching stories about why donors care about their cause
  • Build relationships that could inspire others
  • Create lasting community impact
  • Honor donors’ legacies

The Competition Reality

Jane, a nonprofit consultant who trains organizations through the Planned Giving Boot Camp, often shares stories of small nonprofits that transformed their futures through planned giving. Those who don’t develop these programs risk watching their most dedicated supporters direct their legacy gifts elsewhere.

Building Your Program: Start with Heart

Leadership That Listens

Successful planned giving starts with leaders who understand its human dimension. Take David, a board member who made his own legacy gift and now shares his story to inspire others. His personal commitment shows other donors that the organization is worthy of their trust and long-term investment.

Telling Stories That Matter

When the Riverside Hospital Foundation shares planned giving information, they don’t just talk about tax benefits – they share stories of donors like Eleanor, whose scholarship fund helps train new nurses, carrying forward her own passion for healthcare after 40 years as a nurse herself.

Making It Work in Your Organization

Starting Small but Thinking Big

Even small organizations can begin building meaningful planned giving programs. Start by:

  • Having authentic conversations with long-time donors about their dreams for the future
  • Sharing stories of impact in your newsletters
  • Training staff to listen for opportunities to discuss legacy giving
  • Creating simple materials that focus on donor stories and impact
  • Building relationships with donors’ families and advisors

Growing with Grace

As your program develops, focus on:

  • Creating opportunities for donors to share their stories
  • Developing ways to honor donors during their lifetimes
  • Building a community of legacy donors
  • Helping donors see their future impact
  • Celebrating every legacy gift, large or small

Measuring What Matters

Beyond tracking numbers, successful programs measure:

  • Donor satisfaction and engagement
  • Stories collected and shared
  • Lives touched by legacy gifts
  • Long-term community impact
  • Relationships strengthened

Looking to the Future

Planned giving isn’t just about securing future funding – it’s about helping donors like Sarah, Jim, and Clara create lasting legacies that reflect their values and dreams. Organizations that embrace planned giving don’t just build stronger financial futures; they create deeper connections with their donors and stronger foundations for their communities.

When we neglect planned giving, we miss the chance to help donors achieve their philanthropic dreams and to build the future they envision. But when we embrace it, we create opportunities for extraordinary generosity that can transform both our organizations and our communities for generations to come.

The time to start is now – not because of the numbers, but because every day we wait is another day we might miss the chance to help a donor create their legacy of impact.