Understanding Planned Giving: A Lasting Legacy

Planned giving is a strategic way for individuals to support charitable organizations by making financial contributions as part of their long-term estate or financial planning. Unlike regular donations, planned gifts are typically arranged in advance and often provide financial benefits to both the donor and the recipient organization.

 

How Planned Giving Works

Planned giving can take many forms, including:

• Bequests – Naming a charity as a beneficiary in a will or trust.

• Charitable Gift Annuities – Providing donors with fixed payments for life in exchange for a charitable donation.

• Charitable Remainder Trusts – Allowing donors to receive income for a set period before the remaining funds go to a charity.

• Life Insurance Policies – Naming a nonprofit as a beneficiary of a life insurance policy.

• Retirement Assets – Designating charities as beneficiaries of IRAs or 401(k) plans.

Benefits of Planned Giving

✔ Creates a Lasting Legacy – Ensures continued support for causes you care about.

✔ Maximizes Tax Benefits – Can reduce estate taxes and provide immediate tax deductions.

✔ Enhances Financial Security – Some planned gifts provide lifetime income for the donor.

✔ Flexible Giving Options – Can be tailored to personal financial goals and charitable intentions.

✔ Increases Impact – Enables larger contributions than might be possible through one-time gifts.

✔ Supports Future Generations – Helps charities sustain their mission over the long term.

Planned giving is an impactful way to align your philanthropic goals with financial planning, ensuring that your generosity extends well beyond your lifetime. Whether you’re passionate about education, healthcare, or environmental conservation, a planned gift can make a meaningful difference.