Legacy Giving
Legacy giving (also called planned giving) involves charitable gifts that donors arrange during their lifetime but that are typically fulfilled through their estate after death.
Legacy giving (often used interchangeably with planned giving) refers to charitable gifts that donors arrange as part of their overall estate and financial plans. These gifts are typically fulfilled after the donor's death through bequests, trusts, or beneficiary designations, though some planned gifts provide income during the donor's lifetime.
Why It Matters for Fundraising
Legacy gifts are among the largest donations nonprofits receive. The average bequest is significantly larger than the average annual gift — often tens or hundreds of thousands of dollars. Organizations that actively promote legacy giving build a pipeline of transformational future gifts. Studies show that 5-9% of donors will include a nonprofit in their estate plan if asked; fewer than 2% will do so unprompted.
Types of Legacy Gifts
Common legacy giving vehicles include bequests in wills, charitable remainder trusts, charitable lead trusts, life insurance beneficiary designations, retirement account beneficiary designations, and real estate gifts. Each has different tax implications and benefits for the donor.