Planned Giving Programs INT1358 - Print

PLANNED GIVING PROGRAMS

INSTITUTIONAL

Planned Giving Programs

Integrating a planned giving strategy into an overall strategic plan can be one of the most impactful actions taken to further an organization’s success. Planned giving focuses on the long-term sustainability of an organization. While day-to-day operations and funding are often the priority, by establishing a planned giving program, an organization has the opportunity to secure its future success and viability. Planned gifts can take many years of cultivating donor relationships before financial benefits are seen. However, this makes it all the more important to start now. A planned gift is a process of charitable, legal, financial and tax planning that enhances your philanthropy and enables you to address other financial and/or estate planning issues while making a gift. PLANNED GIVING TECHNIQUES There are four general categories of planned gifts: 1. Outright gifts that require enhanced planning. Examples include gifts of appreciated assets, gifts of life insurance policies, or lifetime gifts from retirement plans. Donors often receive tax benefit during lifetime. 2. Gifts that create an income stream to the donor during lifetime, but at death pass to a nonprofit organization. Examples include Charitable Gift Annuities and Charitable Remainder Trusts. Donors may receive tax benefits during lifetime and/or to the estate of the donor upon death. 3. Gifts that create an income stream for the nonprofit organization for a period of years and then pass to the family or other non-charitable beneficiaries. An example would include a Charitable Lead Trust. Donors may receive tax benefits during lifetime and/or to the estate of the donor upon death. 4. Gifts that become payable to the organization upon a donor’s death. Examples include a simple bequest within a will or trust, a beneficiary designation within a life insurance trust or retirement plan, or a continuing trust for the benefit of nonprofit organization. The estate of the donor typically receives tax benefits after the donor is deceased. DEVELOPING A PLANNED GIVING PROGRAM Planned giving programs are not all created equal. However, the backbone of a successful program is to have well-defined gift acceptance policies. It is important for the board to consider which types of gifts are a good fit for the nonprofit and develop strategies to receive and manage these assets. Many organizations may hesitate to approach planned giving due to the perceived complexity of the subject. To overcome this hurdle, it is critical to have partners in place to assist with the education elements of planned

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