Nonprofit Expert
Home » Planned Giving

Planned Giving

What are planned gifts… Planned gifts include gifts through a will, charitable gift annuities, gifts of life insurance, charitable trusts and more. Below is a brief list of
some of the most common types of assets that you can donate to charity. Note some may have implications. Please consult a professional advisor for more details.

  • Cash & Cash Equivalents
  • Publicly Traded Securities
  • Closely Held Securities
  • Life Insurance
  • Real Estate
  • Personal Property
  • Retirement Assets
  • In-Kind Gifts & Pro Bono Services
  • Volunteer Time

Source: Minnesota Tool Kit For Giving

A bequest is when a supporter of your nonprofit makes a charitable gift to your organization by naming the organization as a beneficiary in their wills. In general there are three ways donors make bequests:

Specific Bequest -The donor designates a specific dollar amount, specific percentage, or specific property to the nonprofit.

Residual Bequest – The donor’s estate will pay all debts, taxes, expenses, and specific bequests. The remaining amount–the residue–will be transferred to the nonprofit.

Contingent Bequest – A donor decides to give the designated nonprofit all or a portion of their estate only under certain circumstances. For example, naming the nonprofit as a beneficiary of the estate only if there are no surviving close family members. Childless couples sometimes provide for the entire estate to go to the surviving spouse, or if the spouse does not survive, to one or several nonprofits.

Another way for a donor to contribute is through a Life Income Gift. In this case a donor irrevocably transfers some assets to the nonprofit now, and in return, the donor (and a survivor, if they wish) receive income for life. An example of a life income gift is called a Charitable Gift Annuity. In exchange for your gift of cash or marketable securities the nonprofit agrees to pay the donor (and a survivor or other beneficiary) a fixed amount annually for your lifetime. The transfer is part gift and part purchase of an annuity. The rate of return is attractive and the payments are guaranteed for life.

Gift of Life Insurance is another gift some donors give when they find that they no longer need their life insurance coverage that was purchased years ago to provide for children or other family members. The donor is allowed to claim a charitable deduction for approximately the policy’s cash surrender value, and the proceeds are completely removed from their estate.

Planned Giving Today serves the planned giving community as a practical resource for education, information, inspiration and professional linkage. We help gift planners enable others to give generously, prudently and joyfully.

The National Committee on Planned Giving is the professional association for people whose work includes developing, marketing, and administering charitable planned gifts. Those people include fundraisers for nonprofit institutions, consultants and donor advisors working in a variety of for-profit settings.

Do you raise funds for a charity or counsel charities and donors? Taxwise Giving and Philanthropy Tax Institute can help you in many ways. Development professionals ­you and your program will benefit from the how-to books on all aspects of planned giving, the monthly newsletter and comprehensive planned giving courses.

The purpose of the Canadian Association of Gift Planners is to support Philanthropy by fostering the development and growth of gift planning. The Association creates awareness, provides education and is an advocate of charitable giving. The Association brings together professionals from various disciplines to ensure that the gift planning process achieves a fair and proper balance between the interests of donors and the aims and objectives of registered charitable organizations in Canada in accordance with the Association’s Standards of Professional and Ethical Practice.

DISCLAIMER: This information is not intended to provide legal or accounting advice, or to address specific situations. Please consult with your legal or tax advisor to supplement and verify what you learn here.

GivingTuesday Templates