description Planned Giving Overview
Planned giving is a form of charitable philanthropy arranged in advance, often as part of a donor's estate or long-term financial planning. Common structures include bequests in wills, charitable remainder or lead trusts, charitable gift annuities, and transfers of certain assets. The arrangement can allow a nonprofit to receive support later while giving the donor a way to define the gift's timing and, depending on the structure and jurisdiction, its tax treatment. It is used for larger or legacy-focused commitments.
help Planned Giving FAQ
What is planned giving, and how is it different from making a one-time donation?
Planned giving is charitable philanthropy arranged in advance as part of estate or long-term financial planning. A one-time donation is usually made immediately, while a planned gift may take effect later through a will, trust, annuity, or asset transfer.
Can a bequest in a will count as planned giving?
Yes. A bequest is a gift written into a donor’s will and is one of the most common forms of planned giving. It generally takes effect as part of the donor’s estate after death.
What is the difference between a charitable remainder trust and a charitable lead trust?
A charitable remainder trust typically provides income to named beneficiaries first, with the remaining assets going to charity later. A charitable lead trust generally provides payments to charity first, with the remaining assets passing to other beneficiaries afterward.
Can charitable gift annuities be part of a planned giving strategy?
Yes. A charitable gift annuity transfers assets to a charity in exchange for scheduled payments under the annuity arrangement. The exact payment terms and tax treatment depend on the charity and the donor’s circumstances.
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