Gift planning refers to the strategic process of identifying, developing, and securing charitable gifts made by donors, often through specific financial vehicles or methods designed to optimize the donation's impact for both the donor and the charitable organization. It involves working with donors to create giving strategies that fulfill their philanthropic goals while accommodating their financial, estate, and tax considerations. Gift planning can include options such as bequests, charitable gift annuities, trusts, and life insurance policies. By facilitating gift planning, organizations can significantly enhance the size and impact of contributions, ensuring alignment with the donor's wishes and maximizing charitable legacy. Effective gift planning requires skilled communication and an understanding of the donor's motivations, financial situation, and desired outcomes, making it a crucial aspect of overall fundraising strategies.
While larger donations are often associated with gift planning, this approach is accessible to individuals of various financial means. Gift planning can be tailored to people from different economic backgrounds, allowing them to make impactful contributions through options like bequests that require no immediate financial outlay.
Gift planning allows nonprofits to secure larger and more complex donations that can significantly bolster their funding. It helps organizations foster lasting relationships with donors by showing an understanding of their personal philanthropic goals and needs. In many cases, planned gifts can provide a reliable source of income for nonprofits over the long term.
Gift planning often includes a variety of planned gift vehicles such as bequests, charitable remainder trusts, charitable lead trusts, gifts of stock, real estate gifts, and gifts of life insurance. Each of these options can provide different tax advantages and benefits to both donors and the organization.
Nonprofits can communicate gift planning options by providing educational materials such as brochures, newsletters, and webinars. Personal meetings with gift planners or financial advisors can also help in discussing various options and their potential benefits to both the donor and the organization.