A planned gift is a charitable donation that a donor arranges in advance, often as part of their financial or estate planning. These gifts can be made during the donor's lifetime or as a bequest upon their death, and they typically involve assets such as bequests, charitable gift annuities, or charitable remainder trusts. Planned gifts are often significant in size and can help ensure a lasting impact for the nonprofit organizations that receive them. They provide donors with the opportunity to support a cause they care about while also allowing them to potentially receive tax benefits and retain control of their assets during their lifetime. Nonprofits can benefit from planned gifts by establishing a planned giving program that encourages donors to consider such contributions in their financial preparations.
Fact: While planned gifts can be substantial, they are not exclusively for wealthy donors. Individuals from various economic backgrounds can make planned gifts in a way that aligns with their financial capabilities. Many planned giving options, such as bequests or beneficiary designations, allow donors to contribute to their chosen charities without requiring immediate cash outlay.
Planned gifts can provide various benefits, both to the donor and to the organization. For donors, these contributions may offer tax advantages, such as estate tax deductions, and can ensure they leave a legacy aligned with their philanthropic values. For organizations, planned gifts can lead to larger gifts than might otherwise be made during the donor's lifetime, providing long-term financial support.
To include a planned gift in your estate planning, consider contacting a financial advisor or estate planning attorney who can assist you in choosing the right vehicle for your donation (such as a will, trust, or beneficiary designation). You can also reach out to the nonprofit you wish to support to understand their specific planned giving options and requirements.
Yes, planned gifts can often be modified, depending on the type of gift and the terms outlined in the initial agreement. It's important to communicate with the nonprofit organization and, if necessary, consult with your estate planning attorney to understand the implications of changing your planned gift.