The end of any calendar year is an exciting time for a non-profit organization. Gifts come in rapidly, making it difficult to keep up with the various ways to thank donors: phone calls, handwritten thank-you notes, emails, and text messages.
The person who opened the mail at our office (an important part of the separation of duties, a topic for another blog!) walked into my office and dropped off a check for $25,000 on my desk. A nice surprise for a random Tuesday!
Looking up his name in our database, his largest gift previously was $50, and all his giving was in honor of his wife. The latest gift was in memory of his wife. This was not a scenario where an email nor a text message would do.
He answered the phone on the third ring, I immediately thanked him for his gift. I asked about the change of designation, and he began crying. His wife had passed away a few weeks before, and he decided to do something larger in her memory. He decided to support the project of a medical school student to jumpstart the researcher’s career. His wife’s name became part of the project, and he felt like good was being done in her name.
In our conversations over the next few months, he mentioned that he was in his mid-70s. Wanting to support a researcher again in the next round, I suggested that he give through a Qualified Charitable Distribution (QCD).
Starting at age 70½, a QCD is a direct transfer of money from your IRA provider, payable to a qualified 501c3 charity. QCDs can be counted toward satisfying your required minimum distributions (RMDs) for the year. The best part is that because the gift is sent directly to the non-profit organization, the QCD is not taxable as a RMD would normally be. The donor saves on taxes allowing the organization to move its mission forward.
After a few discussions, he decided to give through his IRA that year and subsequent years. He continued giving through his IRA for many years; his wife’s name is remembered, he saves on his taxes, and the mission moves forward.
Encouraging donors to give from their IRA is a creative way for a donor to give with impact and save on taxes. The impact is the same whether a donor gives from their bank account or their IRA. A QCD gift is a win-win!
Retaining donors is more cost-effective than acquiring new ones. Learn practical strategies nonprofits can use to improve donor retention and grow sustainably.
If you need a single, compelling reason to prioritize planned giving this year, here it is: around 46 billion dollars flows to charities every year through bequests. In fact, the latest Giving USA numbers show that bequests in 2024 totaled about $45.84 billion—roughly 8% of all U.S. charitable giving for the year. That’s not a rounding error; it’s a transformative funding stream your mission can’t afford to ignore.
One of the most interesting parts of planned giving is that you never know what is going to happen! Planned gifts will surprise you. In an earlier blog, I talked about the planned gift that I DIDN’T accept. That was not even close to the most interesting gift that I ever received.
And this one isn’t either. But it was something I never expected.
Be the first to get notified when we go live with our will product.
