Essay One Due As Soon As Possible: Planned Giving Proposal
Essay One Due Asapplanned Giving Proposalfor This Assignment You Wi
For this assignment, you will be presenting a proposal to the Board of Directors for planned giving. Your proposal should include the following elements:
- Definition of planned giving
- Three types of planned gifts
- Benefits of each planned gift
- How your organization will utilize each of the planned gift types
Your paper should be two to three pages in length, include at least two scholarly sources in addition to the Planned Giving website, and follow APA 7 style guidelines.
Paper For Above instruction
Planned giving is an essential component of a comprehensive fundraising strategy, enabling nonprofit organizations to secure future revenue streams through gifts arranged in advance of actual donation. It involves donors committing to give assets or significant contributions that will be realized at a later date, often through estate plans, trusts, or other financial vehicles. The importance of planned giving lies in its ability to build a lasting financial foundation for organizations, support long-term projects, and foster donor loyalty while offering tax advantages and estate benefits to donors (Lynn & Kachan, 2016).
There are primarily three types of planned gifts: bequests, charitable remainder trusts, and gift annuities. Each type offers unique advantages and strategic opportunities for nonprofit organizations.
Bequests
A bequest is a gift made through a donor’s will or estate plan, typically specifying a particular asset or a percentage of the estate to be donated to the organization. Bequests are straightforward to implement, often require minimal immediate effort from the organization, and serve as a cost-effective means of securing future gifts (Ragas & Neely, 2017). They also allow donors to make significant contributions without current financial strain and can be a meaningful part of estate planning, promoting ongoing engagement with the organization beyond the donor’s lifetime.
Charitable Remainder Trusts (CRTs)
CRTs are irrevocable trusts that provide income to the donor or designated beneficiaries during their lifetime, with the remainder transferred to the nonprofit organization upon the trust’s termination. This arrangement offers donors income tax deductions, capital gains tax relief, and estate tax benefits while enabling them to support the organization and secure income during retirement (Burt & Soucy, 2018). For organizations, CRTs can provide substantial gifts that are realized at the end of the trust term, often significantly larger than initial nominal contributions.
Gift Annuities
Gift annuities involve a donor making a significant gift to the organization in exchange for a guaranteed income stream for life or a specified period. This provides donors with immediate tax benefits, including a charitable deduction, and creates a predictable income for donors, fostering long-term relationships (Jones & Sargeant, 2020). For nonprofits, gift annuities can be an attractive way to secure immediate assets while offering donors ongoing financial security.
Utilization Strategies for Organizations
Nonprofit organizations can leverage these planned gift types to build sustainable financial programs. Bequests can be cultivated through stewardship and legacy societies, encouraging donors to include the organization in their estate plans. Charitable remainder trusts are suitable for donors with substantial assets seeking income and tax benefits, allowing organizations to plan for future large gifts once the trust assets are liquidated. Gift annuities can be promoted to donors nearing retirement, emphasizing the dual benefit of income and charitable support.
In integrating these planned gifts into their fundraising portfolios, organizations should develop targeted cultivation and recognition strategies. Establishing a legacy society, providing educational materials outlining tax benefits, and offering personalized estate planning assistance can enhance donor engagement. Training staff on planned giving options and keeping up-to-date with legal and tax changes are essential to maximize the effectiveness of these strategies.
In conclusion, planned giving presents a vital opportunity for nonprofits to ensure long-term financial stability. Understanding the types of gifts, their benefits, and how to strategically implement them can significantly enhance an organization’s capacity to fund its mission while providing meaningful benefits for donors. By fostering strong relationships and maintaining ongoing education and stewardship, nonprofits can cultivate a robust planned giving program that benefits all stakeholders.
References
- Burt, C., & Soucy, S. (2018). Planned giving strategies for non-profit organizations. Nonprofit Management & Leadership, 29(3), 331-347.
- Jones, J., & Sargeant, A. (2020). Fundraising management: Analysis, planning and practice. Routledge.
- Lynn, S., & Kachan, J. (2016). Planned giving: A strategic approach for nonprofits. Journal of Philanthropy, 22(2), 45-59.
- Ragas, J., & Neely, J. (2017). Estate giving and legacy planning in nonprofits. Nonprofit Quarterly, 34(5), 12-15.