Planned giving is one of the most powerful yet underutilized tools in fundraising. Unlike annual or major gifts, planned gifts—such as bequests, charitable trusts, and beneficiary designations—are made as part of a donor’s estate planning, often providing significant future funding for nonprofits.

For many organizations, a well-executed planned giving program can secure long-term financial sustainability while allowing donors to leave a meaningful legacy. Yet, many fundraisers shy away from it, assuming it’s too complex or that their donors aren’t interested. This guide will demystify planned giving and give you a practical approach to incorporating it into your fundraising strategy.

Why Planned Giving Matters

Unlike one-time donations, planned gifts:

• Provide long-term financial stability for nonprofits
• Allow donors to make a more significant impact than they could during their lifetime
• Encourage legacy-minded philanthropy, fostering deeper donor commitment
• Can be structured to provide tax benefits for donors and their heirs

Planned giving is about helping donors align their values with their legacy—not just asking for money.

Types of Planned Gifts (And Who They’re Good For)

Planned gifts come in many forms, but here are the most common ones and the types of donors who might consider them:

1. Bequests (Wills and Living Trusts)

• What it is: A donor designates a nonprofit as a beneficiary in their will or trust.
• Best for: Older donors who want to leave a legacy without impacting their current finances.
• Key benefit: Simple to set up and highly flexible.

How to talk about it:
“Many of our supporters choose to include a gift in their will to ensure their impact lasts beyond their lifetime. Would you be open to a conversation about making a legacy gift?”

2. Beneficiary Designations

• What it is: A donor names a nonprofit as a beneficiary on a life insurance policy, retirement account (IRA, 401k), or annuity.
• Best for: Donors who want an easy way to give without modifying their will.
• Key benefit: Quick, avoids probate, and can reduce estate taxes.

How to talk about it:
“Updating a beneficiary designation is a simple way to create a lasting impact without affecting your assets today. Would you like information on how to do this?”

3. Charitable Gift Annuities (CGAs)

• What it is: A donor makes a gift to a nonprofit in exchange for fixed lifetime payments. After their passing, the remainder goes to the charity.
• Best for: Donors who want reliable retirement income while supporting a cause.
• Key benefit: Provides tax advantages and guaranteed income.

How to talk about it:
“Did you know you can support [nonprofit name] while securing a steady income for yourself? A charitable gift annuity lets you do both.”

4. Charitable Remainder Trusts (CRTs)

• What it is: A trust that provides income to the donor or beneficiaries for life, with the remainder going to a nonprofit.
• Best for: High-net-worth donors with appreciated assets (stocks, real estate).
• Key benefit: Reduces capital gains taxes and estate taxes while providing income.

How to talk about it:
“A charitable remainder trust allows you to receive income now and support [nonprofit name] in the future—all while minimizing taxes.”

5. Donor-Advised Funds (DAFs)

• What it is: A donor creates a fund through a community foundation or financial institution, receiving an immediate tax deduction while recommending grants over time.
• Best for: Donors who want flexibility in how and when they give.
• Key benefit: Immediate tax benefits with ongoing philanthropic involvement.

How to talk about it:
“If you have a donor-advised fund, you can recommend a grant to support [nonprofit name]’s mission today.”

How to Introduce Planned Giving to Donors

Many fundraisers avoid discussing planned gifts because they fear it’s too personal or complicated. However, planned giving is simply another way to help donors achieve their philanthropic goals. Here’s how to introduce the conversation:

1. Start with gratitude. Recognize their past support before discussing legacy options.
   • “Your generosity has already made such an impact. Have you ever thought about how you’d like to continue that impact for years to come?”
2. Normalize the conversation. Make planned giving feel natural, not intimidating.
   • “Many of our donors choose to include [nonprofit name] in their estate plans as a way to leave a lasting legacy.”
3. Offer information, not pressure. Some donors need time to consider their options.
   • “Would you like us to send you information on how a legacy gift could support our mission?”
4. Share real examples. Highlight donors who have made planned gifts and the impact their legacy created.

Stewarding Planned Giving Donors

Planned giving donors are investing in your mission for the long haul, so it’s crucial to steward them well. Unlike annual donors, they aren’t giving immediate cash gifts, so traditional donor recognition strategies don’t always apply.

How to Keep Legacy Donors Engaged:

• Create a legacy society to recognize planned giving donors.
• Send personalized updates about how their future gift will support your mission.
• Host exclusive events or calls with leadership to keep them involved.
• Regularly check in to keep relationships warm—donors may increase their commitment over time.

The more connected they feel, the less likely they are to change their minds about their planned gift.

Overcoming Common Objections

Planned giving conversations can sometimes bring up concerns. Here’s how to address them:

• “I need to take care of my family first.”
  • “Absolutely. Many donors include a small percentage of their estate for charity while ensuring their loved ones are cared for.”
• “I don’t have enough money to make a major gift.”
  • “Planned gifts aren’t just for the wealthy. Even a modest bequest can make a lasting impact.”
• “I’m not sure where to start.”
  • “I’d be happy to send you some simple resources on how to include a charitable gift in your plans.”

Final Thoughts

Planned giving isn’t just about fundraising—it’s about helping donors create a legacy that aligns with their values. By making these conversations approachable, providing clear options, and stewarding donors well, you can build a strong planned giving pipeline that secures your nonprofit’s future.

Want to get started? Identify five loyal donors and begin introducing planned giving conversations this year. Small steps lead to transformative gifts.