Donor Benefits to Giving a Planned Gift

In 7 Benefits to Starting a Planned Giving Program, we learned how planned gifts can benefit an organization. However, when approaching individuals for a planned gift, it is important to understand and then explain to a potential donor how a planned gift can benefit him or her as well as the organization. Planned gifts can come in many different forms and they each have their own nuances, but below are a few key donor benefits to giving a planned gift.

  1. The donor has the satisfaction of giving a legacy of philanthropic support by giving a planned gift to an organization close to his or her heart. Planned gifts are not always realized immediately; therefore, the gift can help ensure the future health of the organization.

  2. Often times it is not possible for a donor to give an organization a large outright gift. Planned gifts offer the donor the opportunity to support their charitable organization in a meaningful way without giving a large outright gift.

  3. Planned gifts offer substantial tax savings to donors especially on appreciated properties and securities. A planned gift can reduce income tax and avoid capital gains tax. 

  4. Probate is an expensive and arduous process; giving a planned gift allows part of the estate to avoid the probate process

  5. Depending on the type of planned gift, there can be other benefits such as: planning for the financial needs of a spouse or loved one, providing inheritances for your heirs at a reduced tax cost, diversifying investment portfolio, receiving income from residence, etc.

There are planned giving options for every donor. Check back in the following weeks for blog posts describing the various types of planned gifts (retirement plans, revocable trusts, gift annuities, charitable trusts, securities, and real estate) and the benefits of these planned gifts to the donor and the organization.

Fundraising Tips, Planned Giving

Caitlin Bristow

Caitlin Bristow is a Senior Consultant at Campbell & Company. A leader of our Higher Education practice and alumni engagement work, she partners with nonprofits across sectors to help them build philanthropic support and deepen donor relationships.