Introduction to Planned Giving

Securing Your Nonprofit’s Future

Planned giving is a powerful tool that can help secure the long-term financial stability of your nonprofit organization. By encouraging donors to include your organization in their estate plans, you can create a lasting legacy that supports your mission for years to come. This week, we will explore the different types of planned gifts, how to promote planned giving to your donors, and the legal and financial considerations involved.

Understanding Different Types of Planned Gifts

Planned giving encompasses a variety of gift types, each with its own benefits for both the donor and the organization. Some common types of planned gifts include:

• Bequests: A bequest is a gift made through a donor’s will or trust. It can be a specific amount of money, a percentage of the estate, or a particular asset. Bequests are one of the simplest and most popular forms of planned giving.
• Charitable Gift Annuities: This type of gift allows donors to make a significant contribution while receiving fixed payments for life. After the donor’s lifetime, the remaining funds go to the nonprofit.
• Charitable Remainder Trusts: Donors can transfer assets into a trust, which provides them with income for a specified period. After that period, the remaining assets are transferred to the nonprofit.
• Retirement Plan Beneficiary Designations: Donors can name your organization as a beneficiary of their retirement accounts, such as an IRA or 401(k). This can be a tax-efficient way for donors to support your cause.
• Life Insurance Policies: Donors can name your organization as a beneficiary of a life insurance policy or transfer ownership of the policy to your nonprofit.

How to Promote Planned Giving to Your Donors

Promoting planned giving requires a thoughtful and strategic approach. Start by educating your donors about the benefits of planned giving and how it can make a lasting impact on your organization. Use your website, newsletters, and social media channels to share information about the different types of planned gifts and their benefits.

Personalized communication is key. Reach out to donors who have a history of giving and may be interested in making a more significant impact. Share stories of other donors who have included your organization in their estate plans and the difference their gifts have made.

Consider hosting informational events or webinars on planned giving. Invite financial advisors, estate planners, and attorneys to speak about the benefits and logistics of planned giving. These events can provide valuable information to your donors and help them understand how they can support your organization through planned gifts.

Legal and Financial Considerations in Planned Giving

Planned giving involves several legal and financial considerations that both the donor and the organization need to be aware of. It’s essential to work with legal and financial professionals to ensure that planned gifts are structured correctly and comply with all relevant laws and regulations.

For your organization, it’s crucial to have clear policies and procedures in place for accepting and managing planned gifts. This includes working with legal and financial advisors to ensure that all gifts are properly documented and complies with all legal requirements.

Planned giving is a powerful way to secure the long-term financial stability of your nonprofit organization. By understanding the different types of planned gifts, promoting planned giving to your donors, and addressing the legal and financial considerations involved, you can create a lasting legacy that supports your mission for years to come. Remember, planned giving is not just about securing funds; it’s about building lasting relationships with your donors and ensuring that their legacy lives on through your organization.