What Is Planned Giving?
Planned giving, also known as gift planning or legacy giving is a donor’s desire to contribute a major gift to an organization, beyond their lifetime. Unlike an annual gift, a planned gift is for the future. In short, a potential donor makes arrangements for a planned gift in the present, but they are only given at a later date – such as when the donor perishes. These major gifts from a donor can be made as part of their financial or estate plans.
The good news, planned giving is not limited by a donors’ current wealth. Instead, planned giving provides donors’ the ability to contribute gifts they wouldn’t ordinarily be able to make on a yearly or recurring basis. As a result, planned giving donations end up being substantially larger and typically aren’t dependent on the donors’ regular income. That’s why you’ll see most planned gifts contributed by donors are in the form of life insurance, equity, real estate holdings, artwork and many other forms.
Planned Giving is critical to nonprofits longevity and livelihood as planned gifts tend to be the biggest donation the organization receives. Planned giving greatly aids nonprofits while nurturing the donors’ everlasting legacy.