These accessible planned giving options work well for donors at many income levels—from teachers to entrepreneurs, retirees to young parents. They’re easy to implement, usually require no upfront financial outlay, and can often be completed by updating existing documents.
Below, you’ll find summaries of each gift type, typical donor profiles, and short educational videos to help you explore.
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Below, you’ll find summaries of each gift type, typical donor profiles, and short educational videos to help you explore.
A charitable bequest—the most popular planned gift—is made through a will or living trust. It is one of the most straightforward and flexible ways to support a nonprofit while retaining complete control of assets during life. Bequests may specify a fixed dollar amount, a percentage of the estate, or the remaining balance after other distributions are made.
Bequests are revocable and can be modified at any time. They require no immediate financial outlay and are often implemented through a simple update to an existing will or trust, typically without the need for complex legal changes. The full value of the gift is deductible for estate tax purposes, with no income tax implications during the donor’s lifetime.
Bequests often average $35,000–$75,000—and can be up to 200 times larger than a donor’s largest annual gift.
Donating appreciated stocks, bonds, or mutual funds held for more than one year provides one of the most tax-efficient ways to support a nonprofit. Donors avoid capital gains taxes entirely while claiming a charitable deduction for the full fair market value—often increasing their giving power by 20% or more compared to cash gifts..
This strategy is particularly powerful for assets with significant appreciation. By transferring securities directly to the charity rather than selling first, donors bypass capital gains taxes that can reach 23.8% federally plus state taxes. The charity receives the full value, the donor gets the full deduction, and the tax savings can be redirected to additional charitable giving.
Gifts of appreciated securities commonly range from $10,000 to over $100,000, with many donors making annual gifts to maximize tax benefits each year.
How Gifts of Appreciated Assets Work (1-minute explainer)
Investors, business owners, and professionals with appreciated stock holdings—especially those facing large capital gains or concentrated positions in single stocks. Perfect for donors who want to maintain cash liquidity while making significant gifts, and those looking to rebalance portfolios tax-efficiently through charitable giving.
Donors can make a significant future gift by naming a nonprofit as the beneficiary or owner of a life insurance policy. This leveraged giving strategy often enables donors to leave a much larger legacy than they could afford to give during their lifetime, transforming modest premium payments into major philanthropic impact.
Life insurance multiplies giving power through three flexible options: transferring ownership of an existing policy, purchasing a new policy with the nonprofit as owner and beneficiary, or simply naming the organization as a beneficiary on a current policy. When the nonprofit owns the policy, premium payments become tax-deductible charitable gifts. For paid-up policies transferred to charity, donors receive an immediate deduction for the cash surrender value.
Life insurance gifts commonly range from $25,000 to $500,000 or more, with costs varying significantly based on the donor’s age, health, and type of policy selected. Even modest annual premiums can create substantial future gifts.
How Gifts of Appreciated Assets Work (1-minute explainer)
Real estate is among the most valuable—and most underutilized—assets for charitable giving. Donors can contribute residential, commercial, or undeveloped properties outright or through strategic vehicles like retained life estates or charitable remainder trusts. These gifts eliminate capital gains taxes, provide substantial charitable deductions, and relieve donors of the burdens of ownership, maintenance, and sale.
Donating appreciated real estate held for more than one year allows donors to deduct the full fair market value while avoiding capital gains taxes that can reach 20–30%. A retained life estate enables donors to remain in their home or vacation property for life while securing an immediate tax deduction. Real estate can also fund a charitable remainder trust, converting an illiquid asset into lifetime income.
Real estate gifts typically range from $100,000 to several million dollars and may include rental units, commercial buildings, vacation homes, or undeveloped land. Most nonprofits work with third-party experts to evaluate environmental risk, marketability, and carrying costs before accepting a property.
How Gifts of Appreciated Assets Work (1-minute explainer)
Valuable personal property—artwork, jewelry, rare books, classic cars, wine collections, and other tangible assets—can be transformed into meaningful charitable gifts. When donated items align with a nonprofit’s mission (like art to a museum or instruments to a music school), donors may claim a deduction for the full appraised value. These gifts also eliminate capital gains taxes and avoid the burdens of private sales, storage, and insurance costs.
For appreciated personal property held longer than one year and used directly in the nonprofit’s mission, the donor may deduct the fair market value. This “related use” provision makes certain gifts especially powerful. If the gift is not related to the organization’s exempt purpose, the deduction is limited to the donor’s cost basis. Donors also avoid auction house commissions (often 20–40%), insurance premiums, and the challenge of selling highly specialized assets. A qualified appraisal is required for gifts over $5,000.
Personal property donations range from $5,000 vintage instruments to multi-million-dollar art collections. Common contributions include paintings, antiques, manuscripts, classic automobiles, coin or wine collections, and professional equipment. Most nonprofits evaluate the gift based on usability, related purpose, and marketability. If sold within three years, the nonprofit may be required to file IRS Form 8282.
How Gifts of Appreciated Assets Work (1-minute explainer)
Tax-deferred retirement accounts—IRAs, 401(k)s, and 403(b)s—are often the least efficient assets to leave to heirs, with up to 60% lost to combined income and estate taxes. Naming a nonprofit as the beneficiary eliminates those taxes entirely, allowing 100% of the value to support charitable causes. This simple designation often doubles the impact compared to leaving the same asset to family.
Heirs pay ordinary income tax on inherited retirement accounts—potentially triggering higher tax brackets or reducing eligibility for tax credits. Nonprofits, by contrast, pay zero tax. A $100,000 IRA may yield just $60,000 to heirs after taxes, but delivers the full value to charity. Donors update the beneficiary form directly with the plan administrator—no legal fees or estate revisions required. The strategy also pairs well with leaving more tax-efficient assets (like Roth IRAs, real estate, or stock) to family members.
Retirement plan gifts range from $10,000 to over $1 million. Many donors designate a percentage—often 5% to 25%—to charity while preserving the rest for family. Donors over age 70½ can also test this approach during life using Qualified Charitable Distributions (QCDs), which allow tax-free IRA gifts of up to $105,000 per year directly to nonprofits.
How Gifts of Appreciated Assets Work (1-minute explainer)
Donors with large IRAs or 401(k)s seeking to avoid tax erosion; those with financially secure heirs; child-free individuals; and anyone who wants a high-impact legacy gift requiring only a simple beneficiary update. Particularly powerful for donors who value efficiency and want every dollar to reach its intended purpose—rather than the IRS.
Donors age 70½ or older can make tax-free transfers directly from their IRA to charity through a Qualified Charitable Distribution (QCD). These gifts count toward required minimum distributions (RMDs), allowing donors to satisfy their withdrawal obligations without increasing their taxable income—making QCDs one of the most efficient ways to give in retirement.
Unlike charitable deductions that require itemizing, QCDs reduce adjusted gross income (AGI) dollar-for-dollar. This direct reduction helps donors avoid Medicare premium surcharges (IRMAA), lower taxes on Social Security benefits, and remain in lower tax brackets. The gift must go directly from the IRA custodian to the charity—ensuring the donor never takes the distribution as income.
QCDs typically range from $5,000 to $50,000 annually. Many donors establish recurring QCDs to support charities year after year—fulfilling pledges, maintaining lifetime giving habits, and sometimes even increasing their gifts due to the tax advantages.
How Gifts of Appreciated Assets Work (1-minute explainer)
IRA owners 70½+ who don’t need their full RMD for living expenses; retirees who take the standard deduction and no longer benefit from itemizing; those seeking to avoid Medicare premium increases or minimize Social Security taxes; and anyone who wants a simple, high-impact giving method with no receipts or deductions to manage.
A charitable gift annuity (CGA) turns a philanthropic contribution into guaranteed lifetime income. In exchange for a gift of cash or appreciated assets, the nonprofit provides fixed payments for life—often exceeding returns from CDs or bonds. This irrevocable arrangement offers immediate tax advantages, income security that’s unaffected by market swings, and the long-term satisfaction of supporting a cause while preserving financial stability.
CGAs address multiple financial needs in one strategy. Donors receive an immediate income tax deduction (often 25–45% of the gift), plus dependable payments—partially tax-free for a number of years. Rates increase with age and follow guidance from the American Council on Gift Annuities (ACGA): for example, a 75-year-old may receive 6.6%, while an 85-year-old could secure 8.6% or more. When funded with appreciated securities, donors bypass capital gains on the donated portion and spread the rest over their life expectancy. Payments are backed by the nonprofit’s general assets, offering a level of security not always available through commercial annuities.
Most CGAs range from $10,000 to $250,000+, with many donors creating multiple annuities to diversify income streams and support different initiatives. The size of the charitable deduction and remainder gift depends on the donor’s age, current discount rates, and annuity terms. Personalized illustrations are typically available upon request.
How Gifts of Appreciated Assets Work (1-minute explainer)
Retirees seeking higher fixed income than traditional investments offer; individuals with appreciated stock aiming to avoid large tax hits; donors without heirs looking to combine financial stability with charitable impact; cautious investors seeking predictable returns; and anyone who wants to “give and receive” through a secure, tax-wise legacy strategy. Especially attractive for individuals age 70 and older, when annuity rates become most favorable.
A pooled income fund (PIF) combines charitable giving with lifetime income by allowing donors to contribute to a professionally managed investment pool alongside others. Donors receive quarterly income payments based on their share of the fund’s earnings, while the remainder ultimately benefits the nonprofit. This lesser-known vehicle offers the advantages of a charitable remainder trust—without the setup costs or high minimums.
PIFs function like charitable mutual funds: donors receive units proportional to their contribution and earn a prorated share of the fund’s net income. Gifts of appreciated securities avoid capital gains tax entirely, and the fund can diversify tax-free. Donors receive an immediate deduction for the present value of the remainder gift (often 30–50% of the contribution). With minimums as low as $5,000 and no legal setup fees, PIFs offer broad access to planned giving strategies traditionally reserved for higher-net-worth donors.
Most gifts range from $5,000 to $50,000, though some donors contribute significantly more. Annual income varies with market performance—typically 3% to 6%—and adjusts yearly. Many donors appreciate the potential for rising income over time, unlike fixed annuity rates. Upon termination of the income interest, charities often receive 40%–70% of the original gift amount, depending on longevity and fund growth.
How Gifts of Appreciated Assets Work (1-minute explainer)
Middle-income donors seeking both charitable impact and income; individuals with appreciated stock looking to diversify tax-efficiently; beneficiaries in their 50s or 60s who prefer growth potential to fixed payments; and donors seeking a hands-off, professionally managed giving solution. While less common today than in previous decades, PIFs remain valuable where available—especially when managed by experienced institutions.
A charitable remainder unitrust (CRUT) transforms highly appreciated assets into lifetime income, immediate tax benefits, and lasting charitable impact. Donors contribute assets—often $100,000 or more—into an irrevocable trust that pays them a fixed percentage of its annually recalculated value. The trust sells assets tax-free, reinvests the full proceeds, and ultimately distributes the remainder to one or more designated nonprofits. CRUTs are ideal for diversifying concentrated holdings while avoiding capital gains taxes.
CRUTs solve the “trapped asset” problem. Many donors hold appreciated stock or property they hesitate to sell due to steep capital gains taxes. A CRUT sells these assets within the trust, avoiding those taxes entirely. Donors receive annual income (typically 5–8% of the trust’s value) that adjusts with market performance—for example, if the trust grows from $1 million to $1.2 million, a 5% payout rises from $50,000 to $60,000. Donors also receive a significant income tax deduction (often 30–60% of the gift value), which can be carried forward for up to five additional years.
Most CRUTs begin at $100,000 or more and are funded with appreciated stock, real estate, or closely held business interests. Many are established during retirement or after a major liquidity event. The final amount passing to charity depends on the payout rate, performance, and lifespan of the trust—often representing a substantial legacy even after years of income payments.
How Gifts of Appreciated Assets Work (1-minute explainer)
Business owners preparing to sell their companies; investors or entrepreneurs with highly appreciated assets facing 30–40% combined capital gains taxes; real estate owners seeking liquidity without tax erosion; charitably inclined individuals who need income but want to leave a legacy; and donors comfortable with variable income tied to investment performance. Best suited for those who understand that higher payout rates reduce the final charitable remainder.
A charitable remainder annuity trust (CRAT) provides fixed, guaranteed income for life or a term of up to 20 years while supporting a meaningful charitable cause. Donors contribute assets—usually $100,000 or more—into an irrevocable trust that pays a set dollar amount annually, unaffected by market conditions. When the trust term ends, the remaining assets pass to one or more designated nonprofits, creating a lasting legacy.
Unlike a charitable remainder unitrust (CRUT), which fluctuates with market value, a CRAT provides steady, predictable payments—making it ideal for donors who prioritize stability. Donors receive an immediate income tax deduction based on the present value of the charitable remainder (typically 20%–50% of the gift), and capital gains tax is bypassed on appreciated assets transferred to the trust. However, additional contributions are not allowed, and the annual payment amount remains fixed for the life of the trust. CRATs must pass the IRS’s “10% remainder rule” and “5% probability test,” ensuring a meaningful portion remains for charity.
CRATs are commonly funded with appreciated stock, real estate, or cash in amounts ranging from $100,000 to $500,000. Annual payments must equal at least 5% of the initial trust value (not exceeding 50%), with many donors selecting a rate between 5% and 7%. For example, a 75-year-old contributing $200,000 might receive $10,000 annually for life (5%) and a charitable deduction exceeding $80,000, depending on current IRS discount rates. Due to their fixed nature and inflation risk, CRATs have declined in popularity compared to CRUTs but remain relevant for donors needing payment certainty.
How Gifts of Appreciated Assets Work (1-minute explainer)
Risk-averse donors seeking reliable income unaffected by market changes; older individuals (typically age 70+) with a preference for simplicity and budget predictability; donors holding appreciated assets who want to avoid capital gains tax; and those seeking a set-it-and-forget-it giving strategy. CRATs are particularly suited for donors without heirs or those who have already addressed family inheritance through other means. Not ideal for younger donors or those concerned about inflation erosion over time.
A charitable lead trust (CLT) provides income to one or more charities for a set term of years, after which the remaining assets pass to family members or other beneficiaries. This “charity first, family second” approach can significantly reduce—or even eliminate—gift and estate taxes on wealth transfers to heirs. CLTs are particularly powerful in favorable interest rate environments, allowing families to pass more wealth to the next generation while supporting charitable causes.
CLTs leverage the tax code’s charitable deduction rules to reduce the taxable value of wealth transferred to heirs. When a CLT is funded, the donor receives a gift tax deduction based on the present value of the charitable income stream. This can dramatically lower—sometimes to zero—the taxable value of the remainder interest passed to beneficiaries. The trust makes annual payments to charity—either a fixed dollar amount (CLAT) or a fixed percentage of the trust’s value (CLUT). Any growth above the IRS’s assumed rate benefits the heirs and escapes gift or estate taxation.
Lead trusts are typically funded with $1 million or more in appreciating assets such as marketable securities, real estate, or closely held business interests. Common structures include 5–7% annual charitable payments over 10–20 years. For example, a $5 million CLT paying 6% annually for 15 years might pass $3–4 million to heirs with little or no gift tax. The ultimate benefit depends on IRS rates (Section 7520), investment performance, and the specific terms of the trust.
High-net-worth families facing estate tax exposure; business owners transferring company stock to the next generation; individuals with highly appreciated, income-generating assets; donors seeking to support charity while preserving family wealth; and those who want to take advantage of current interest rate dynamics. CLTs require careful legal and financial planning and are best suited for estates exceeding the estate tax exemption and donors with dual philanthropic and generational wealth goals.
How Gifts of Appreciated Assets Work (1-minute explainer)
Risk-averse donors seeking reliable income unaffected by market changes; older individuals (typically age 70+) with a preference for simplicity and budget predictability; donors holding appreciated assets who want to avoid capital gains tax; and those seeking a set-it-and-forget-it giving strategy. CRATs are particularly suited for donors without heirs or those who have already addressed family inheritance through other means. Not ideal for younger donors or those concerned about inflation erosion over time.
A retained life estate allows a donor to deed a primary residence or vacation home to a nonprofit while retaining the right to live in or use the property for life. This irrevocable gift provides an immediate income tax deduction and removes the property from the donor’s taxable estate—all while allowing the donor to continue living in their home.
When donors create a retained life estate, they receive an immediate charitable deduction based on the present value of the charity’s remainder interest, calculated using IRS actuarial tables and current interest rates. The donor remains responsible for property taxes, insurance, and maintenance, maintaining their role as occupant. Upon the donor’s death (or if they choose to surrender the life estate early), the charity receives full ownership of the property, bypassing probate. This strategy transforms an illiquid asset into both current tax benefits and future charitable impact.
Retained life estate gifts commonly involve properties valued from $250,000 to several million dollars. The charitable deduction typically ranges from 30% to 60% of the property’s fair market value, depending on the donor’s age and prevailing interest rates. For example, a 75-year-old donor with a $500,000 home might receive a deduction of $200,000 or more. The property is also removed from the taxable estate, potentially saving significant estate taxes.
How Gifts of Appreciated Assets Work (1-minute explainer)
Homeowners who want to support charity while maintaining their living situation; donors without heirs or whose children are financially secure; owners of vacation homes or secondary properties they still enjoy; and individuals seeking to simplify their estate while maximizing tax benefits. This strategy works particularly well for donors age 70 or older who want to make a transformative gift without disrupting their daily lives.
A bargain sale occurs when a donor sells property to a nonprofit for less than its fair market value, creating both a sale and a charitable gift in one transaction. The donor receives cash for the sale portion and claims a charitable deduction for the difference between the sale price and fair market value. This strategy provides immediate liquidity while generating tax benefits and supporting a charitable mission.
In a bargain sale, the donor must allocate their cost basis between the sale and gift portions proportionally. For example, if property worth $100,000 (with a $40,000 basis) is sold for $60,000, the donor allocates 60% of the basis ($24,000) to the sale portion. This results in $36,000 of capital gain on the sale and a $40,000 charitable deduction. The prorated basis allocation often produces better tax results than an outright sale followed by a cash gift. Nonprofits benefit by acquiring property at below-market prices for their use or resale.
Bargain sales work best with appreciated property valued at $250,000 or more, particularly real estate, closely held stock, or valuable collections. Consider a $1 million property (basis $200,000) sold to a charity for $600,000: the donor receives $600,000 cash, recognizes $480,000 in capital gains, and claims a $400,000 charitable deduction. A qualified appraisal and Form 8283 are required for the gift portion exceeding $5,000. The nonprofit must evaluate whether the property fits its mission and can handle associated costs.
How Gifts of Appreciated Assets Work (1-minute explainer)
Owners of highly appreciated property who need partial liquidity; donors balancing charitable intent with financial needs; individuals facing large capital gains who want to reduce tax exposure; and charities with the capacity to hold or quickly resell property. This strategy particularly suits donors who would otherwise sell property and donate proceeds, as the bargain sale often yields superior tax outcomes through basis allocation.
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