Spoiler Alert: Legacy Giving and Planned Giving Are the Same Thing
When it comes to charitable giving, the terms “legacy giving” and “planned giving” are often used interchangeably. And here’s the spoiler: they mean the same thing! Both refer to gifts donors arrange during their lifetime that are typically realized after they pass away. Whether through a bequest in a will, a beneficiary designation on a retirement account, etc. these gifts allow supporters to leave a lasting impact on the causes they care about—often in ways they never could during their lifetime.
One difference between Legacy Giving and Planned Giving is that donors typically understand what a legacy gift is better than a planned gift. This is similar to Dr. Russell James‘ study on the wording used by nonprofits when asking for these gifts. In a survey of 24 bequest gift descriptions among nearly 10,000 participants, the best was: “Make a gift to charity in your will to support causes that have been important in your life.”(1). This reinforces the concept of not getting too technical; most donors will understand the question if you keep it simple, asking for a gift in their will vs. asking for a bequest.
(You can learn more about this in the LifeLegacy Marketing Handbook under Dr. Russell James Education and view the presentation for “How To Ask For The Gift In A Will.”)
For nonprofit leaders and development folks, the impact of planned giving is profound. Unlike annual or one-time donations, which fuel a nonprofit’s immediate needs, legacy gifts provide long-term sustainability. Organizations that actively promote planned giving programs create a pipeline of future funding, ensuring they can continue their mission for generations to come. In fact, planned gifts tend to be significantly larger than traditional donations, making them a critical component of any fundraising strategy.
For nonprofits, embracing legacy giving isn’t just about securing future funds—it’s about deepening relationships with donors. Many supporters want to leave a meaningful mark but may not realize how simple it can be to include a nonprofit in their estate plans. By offering the right tools, guidance, and communication, organizations can empower donors to align their philanthropic goals with their financial planning. Ultimately, legacy giving/planned giving is a win-win: donors get to cement their legacy, and nonprofits gain a reliable source of funding that helps them thrive well into the future.
Jordan@lifelegacy.io
A Qualified Charitable Distribution (QCD) is a powerful tool that allows IRA owners to donate directly to qualified charities, bypassing the usual tax implications of IRA distributions.
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!
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