Fundraising Principles and Practice, 3rd Edition

CHAPTER SIXTEENPLANNED GIVING

Matt Beem and Adrian Sargeant

Objectives

By the end of this chapter, you should be able to:

1. Define planned giving.
2. Describe the operation of a range of planned giving vehicles.
3. Describe donor motivation for offering planned gifts.
4. Explain how nonprofits currently solicit planned gifts.
5. Describe the role of stewardship and recognition in facilitating planned gifts.
6. Describe the role of the board in soliciting planned gifts.

Introduction

Planned giving is a form of philanthropy given a variety of different names. Also known as deferred giving or charitable gift planning, the phrase “planned giving” describes a form of philanthropy that is generally distinguished by the following characteristics:

• A planned gift is created now for the future benefit of a nonprofit organization.
• A planned gift's future benefit could occur later in a donor's life, at a donor's death, or at some point after a donor's death.
• A planned gift's future benefit could be a one-time distribution, the regular payment of a specific amount, or the regular payment of a variable amount.
• Some planned gift commitments are revocable while others are not. Donors are permitted to change the specific nonprofit organizations that benefit from revocable and some irrevocable planned giving devices.
• The donor may receive tax benefits as a result of their gift provision.

In the US, the ...