Planned Giving

Planned giving refers to charitable gifts that donors make as part of their broader financial and estate planning. These gifts are typically larger than annual donations and may be realized during the donor's lifetime or after death. Planned giving is also called legacy giving, estate giving, or gift planning. It is one of the most underutilized — and most valuable — fundraising channels for nonprofits.

Common Planned Giving Vehicles

• Bequests: A gift written into the donor's will or trust. The most common type of planned gift, accounting for roughly 80% of all planned gifts. The average charitable bequest exceeds $70,000.
• Beneficiary designations: Naming a nonprofit as beneficiary of a retirement account (IRA, 401k), life insurance policy, or bank account. Simple to set up and requires no change to the donor's will.
• Charitable remainder trust (CRT): The donor transfers assets into a trust, receives income from the trust during their lifetime, and the remainder goes to the nonprofit after death. Provides both income and a charitable deduction.
• Charitable gift annuity (CGA): The donor makes a gift to the nonprofit in exchange for a fixed annual payment for life. After the donor's death, the remaining funds support the organization.
• Donor-advised fund (DAF): While typically used for current giving, some donors use DAFs as part of their planned giving strategy — contributing appreciated assets for an immediate deduction and recommending grants over their lifetime.

Why It Matters for Fundraising

Planned gifts are often transformational:

• Average size is extraordinary. The average charitable bequest exceeds $70,000 — 10-100x larger than a typical annual gift. Even modest-income donors can leave significant planned gifts, because they are giving from accumulated wealth rather than annual income.
• The pipeline is massive. An estimated $70-90 trillion in wealth will transfer between generations over the next 25 years, and a significant portion will go to charity. Nonprofits with planned giving programs are positioned to capture this transfer.
• Most nonprofits are leaving money on the table. Despite the opportunity, fewer than 30% of nonprofits actively promote planned giving. Research shows that many loyal donors would include their favorite nonprofit in their estate plans if simply asked — but they are never asked.
• Planned giving donors are highly loyal. Once someone makes a planned giving commitment, their annual giving typically increases (not decreases). They feel deeply connected to the organization and often become advocates.

How to Start a Planned Giving Program

Identify your audience

Your best planned giving prospects are already in your database: donors who have given consistently for 5+ years, donors over 55, donors who give modestly but faithfully, and board members. You do not need to find new people — you need to ask existing supporters in a new way.

Create a legacy society

Name your planned giving program (e.g., "The Legacy Circle," "The Heritage Society") and invite committed donors to join. Public recognition — with the donor's permission — normalizes planned giving and encourages peers to participate.

Add planned giving to your website

A dedicated planned giving page on your website should explain options in plain language, share stories of donors who have made legacy commitments, and provide contact information for questions. Keep the language simple — most donors are not estate planning attorneys.

Integrate into stewardship

Planned giving conversations happen naturally during donor stewardship. When thanking a long-time donor for their 10th consecutive gift, a board member or development director can mention: "Have you ever considered including us in your estate plans? Many of our longtime supporters have, and it ensures your impact continues for generations."

Partner with advisors

Financial advisors, estate planning attorneys, and accountants are natural allies. Many of their clients ask about charitable giving strategies. Provide these professionals with information about your organization and the tax benefits of planned giving.

Track commitments

Even though planned gifts may not be realized for years or decades, tracking commitments gives your organization a pipeline of future revenue and helps you steward legacy donors appropriately. Many donors will share their intention without disclosing the amount — that is fine. The relationship matters more than the number.

Related Terms

• Legacy Giving
• Bequest
• Charitable Remainder Trust
• Endowment
• Donor-Advised Fund

GiveLink's donor CRM helps you identify planned giving prospects by surfacing long-term, loyal donors who match the profile of legacy givers. AI-powered insights flag donors who may be ready for a legacy conversation based on giving patterns and engagement history.