Every year, if you are over 70.5 years old, you can support a cause you care about AND save on your taxes. If you have an IRA, you can either take a required minimum distribution (RMD) or take a Qualified Charitable Distribution (QCD). The RMD would be taxable, while the QCD is not taxed.
It is the best of both worlds, the donor can support your mission and lessen their tax burden!
What is even better is that these donors are an important group to have the planned giving discussion with! Here are a few reasons why:
The above three reasons are just the tip of the iceberg of why IRA donors are an important group to include in your planned giving communications.
Typically, I have included IRA donors in my Legacy Society because they are making a gift out of their retirement account. This includes them in the society, allowing them to feel a part of the group and encouraging them to leave a planned gift.
A QCD benefits you and the donor in the short run and opens up the larger discussion about planned giving. Find this group in your database and continue educating them on the crucial work you do every day and how they can become an even bigger part of it through a planned gift!
michael@lifelegacy.io
The word “increase” is a bit of a conundrum. Many nonprofits are being asked to do more (increase) with less (no increase). Your planned giving program is no different. Raising more planned gifts with increasing headcount is not just a recommendation but a requirement.
Planned giving has long been a vital—yet underutilized—source of revenue for nonprofits. Unlike annual donations, which fuel today’s operations, planned gifts create a pipeline of sustainable funding for tomorrow. According to Giving USA, planned gifts account for billions of dollars each year, with bequests alone contributing more than $40 billion in 2023. Yet many nonprofits, even those with strong donor bases, fail to maximize this powerful opportunity.
In today’s increasingly digital world, nonprofits have more tools than ever at their disposal to engage donors and increase impact. But when it comes to planned giving—one of the most meaningful and transformational forms of donor support—many nonprofits are finding themselves stuck between a rock and a hard place: do they partner with a large tech company with little experience in the fundraising world that sees adding a nonprofit vertical as a revenue play, or do they work with a lean, experienced team that has decades of combined fundraising experience and an advanced online estate planning platform?
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