Benefits of planned giving

Planned giving allows nonprofits to secure future funding while enabling donors to create lasting impacts. These gifts are arranged today and fulfilled later, often through wills or trusts. This structure supports long-term missions while helping donors plan meaningful legacies.

Planned giving strengthens long-term nonprofit funding while giving donors tax advantages, flexible gift options, and a lasting legacy.

Understanding the benefits of planned giving helps nonprofits design stronger programs and communicate more effectively with donors. When fundraising strategies align with donor priorities, planned gifts become easier to secure and more meaningful for everyone involved.

Benefits of planned gifts for your nonprofit organization

Planned giving helps your nonprofit secure predictable future funding and support long-term planning. Day-to-day operations often push future planning aside, which leads to missed opportunities. A planned giving program turns long-term intent into reliable future support.

Planned giving involves personal legacy decisions tied to a donor’s passing. Even while planning for future funding, nonprofits must keep donor intent and family considerations at the center of every conversation.

Improves long-term financial planning

Planned giving improves long-term financial planning by giving nonprofits a clearer view of future support. Without knowing which donors are likely to leave planned gifts, leadership must plan with limited visibility into future funding. 

Finding the right planned giving prospects is difficult without clear data. Specialized donor prospect research software identifies supporters with high planned giving potential using giving history and financial indicators. This helps your team prioritize outreach and build a realistic pipeline of future funding. 

Identifying prospects is only the first step. When teams aren’t aligned, donor questions go unanswered, and planned giving conversations stall. Supporters may receive mixed messages or delayed follow-up. This weakens confidence and slows estate planning decisions. 

Without a shared system, donor history becomes scattered across departments. A fundraising CRM centralizes legacy conversations, contact history, and next steps, so teams follow up on time and planned giving commitments stay on track.

Allows for a wider donor reach

Planned giving expands your donor base by allowing supporters to give regardless of their current wealth. Explaining planned giving vs major gifts helps donors understand how they can contribute without making a large cash gift today.

With an estimated $12 trillion expected to be donated through the Great Wealth Transfer, planned giving offers major long-term funding potential. Many planned gifts come from mid-level or long-term supporters, meaning your organization will secure transformational contributions from a broader donor pool. 

By establishing a planned giving program, your organization will:

• Identify and engage a wider range of donors ready to make planned gifts
• Secure planned gifts by targeting high-potential supporters
• Maximize the long-term impact of gifts received over time

Leads to increased major gift donations

Planned giving increases both the number and size of major gifts by removing barriers to large contributions. Gifts structured through planned giving often become some of the largest contributions an organization receives, far exceeding typical annual giving amounts.

Because planned giving allows supporters to give over time or through assets other than cash, it delivers higher returns on investment than many other fundraising methods. Expanding donor participation through planned giving strengthens major gift strategies and supports long-term growth.

To strengthen both your planned giving and major giving strategies, see our major gifts guide for practical fundraising tactics.

Benefits of planned giving for donors

Planned giving benefits donors by providing flexible ways to support causes while gaining financial and personal benefits. Donors are able to give through various types of planned giving options. These include appreciated securities, life insurance, real estate, personal property, retirement plans, and IRA rollovers.

These options allow donors to choose assets that align with their financial and family goals while making a meaningful impact. If your nonprofit is developing or formalizing a program, see how to start a planned giving program to structure gift options and donor pathways effectively. 

Tax benefits donors receive from planned giving

Planned giving offers donors significant tax benefits, including income, estate, and capital gains tax benefits. Donors who contribute appreciated assets such as stocks, crypto, or real estate avoid capital gains taxes while also receiving income tax deductions.

Donors over age 70½ can use Qualified Charitable Distributions from IRAs to make tax-free charitable gifts while satisfying Required Minimum Distribution rules. These options let donors support nonprofits while protecting their family and financial priorities. 

Tax rules vary by gift type and financial situation. Having a designated planned giving expert on your team or outsourcing a financial advisor helps donors structure gifts correctly and avoid costly mistakes.

Donor control over planned gifts

Planned giving is a legal contract that gives donors control over how and where their charitable gift is used. Donors are able to direct funds to specific programs, beneficiaries, or long-term initiatives through wills, trusts, and other planned giving options. 

Some planned gifts are flexible and can be updated over time. This allows donors to adjust their plans as family or financial circumstances change, ensuring that their charitable giving aligns with evolving priorities. Control over a planned gift also gives donors confidence and peace of mind that their contributions will support causes they care about most.

Planned giving as legacy giving

Planned giving is often called legacy giving because it allows donors to make a lasting impact beyond their lifetime. A planned gift reflects long-term commitment and personal values by supporting causes a donor cares about most, such as education, healthcare, animal welfare, and community services.

Legacy giving creates enduring support for organizations and beneficiaries for generations. Through planned giving, donors secure both their personal legacy while ensuring their charitable contributions have a sustained, meaningful impact. It also provides donors with a sense of fulfillment, knowing their life’s work continues to make a difference even after they’re gone.

The lasting benefits of planned giving

Planned giving provides significant benefits for nonprofits and their supporters. Nonprofits gain a reliable funding pipeline, increased major gifts, and a wider donor base, helping ensure long-term financial stability.

Donors benefit from flexible giving options, tax advantages, and the ability to leave a lasting charitable legacy. By understanding planned giving strategies, organizations and supporters can work together to maximize impact and support causes for generations to come.

Paige Magarrey

Paige Magarrey is Kindsight's Director of Corporate Marketing. She's committed to sharing authoritative thought leadership that helps nonprofits and fundraisers level up their skills.

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