Planned giving is the quiet engine behind some of the most significant gifts nonprofits receive—yet it’s often misunderstood or overlooked. In fact, planned gifts account for over 30% of all charitable giving in the United States, with the average bequest being 40 times larger than a typical annual gift. Unlike annual giving or one-time contributions, planned gifts are designed with long-term impact in mind. They allow donors to align their personal financial goals with their philanthropic values—often unlocking larger, smarter gifts than they thought possible.
Need help with the terminology? See our Planned Giving Glossary.
Many assume planned giving (also called legacy giving or gift planning) is only for the ultra-wealthy, or that it requires giving up assets immediately. In reality, these charitable planning strategies are accessible to people at many income levels, and most don’t require any outlay of cash today. Planned giving can involve estate plans, tax-smart assets, or income-generating tools. Some gifts provide lifetime income to the donor while offering significant tax advantages. Others pass wealth to heirs in a more strategic way. And some cost donors nothing today at all.
While this concept has grown more common in recent years, it’s not new. In fact, the earliest online planned giving platforms emerged in the late 1990s. The team behind this educational site launched the first nonprofit-focused planned giving websites in 1998—securing the domains PlannedGiving.com and MajorGifts.com before the sector fully understood the value of digital philanthropy. This section builds on that foundation to offer clear, unbiased education—free from promotion, rooted in experience.
In the following sections, you’ll discover 14 different planned giving strategies—from simple beneficiary designations to sophisticated charitable trusts—and learn which approaches best align with your financial situation and philanthropic goals.
Want to learn more about these gift types? Dive in deeper here including videos.
Glossary: Don’t recognize a term? Definitions live here.
A gift made through a will or living trust. Simple, flexible, and revocable.
Donate stocks or mutual funds you’ve held long-term and avoid capital gains tax while receiving a full market-value deduction.
Name a nonprofit as the beneficiary of your life insurance policy. A large impact at little or no cost today.
Donate appreciated real property—either outright or as part of a structured gift.
Give tangible assets like artwork, antiques, or collectibles. Often tax-deductible at appraised value.
Name a charity as beneficiary of your IRA, 401(k), or other retirement account—often one of the most tax-efficient gifts.
If you’re 70½ or older, you can donate directly from your IRA—up to $105,000 per year—without increasing taxable income.
In exchange for a gift, the donor receives fixed payments for life. Simple, secure, and popular among retirees.
Provides variable annual payments based on a percentage of the trust’s value—flexible and inflation-resistant.
Pays fixed annual payments to the donor or beneficiary for life or a set term. Stable, predictable income.
Donors pool gifts into a common fund and receive quarterly income. The remainder supports the charity after their lifetime.
Pays income to a nonprofit for a set number of years, then transfers the remaining assets to heirs—reducing gift or estate taxes.
Donor gifts real property but retains the right to live in it for life. Estate and income tax benefits apply.
Sell property to a charity at less than market value and receive both cash and a charitable deduction.
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This educational content is maintained by the team that first brought planned giving online in 1998.
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