Essay One Due ASAP: Planned Giving Proposal For This Assignm

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: a definition of planned giving, three types of planned gifts, benefits of each planned gift, and how your organization will utilize each gift type. The paper must be two to three pages long, include at least two scholarly sources in addition to the Planned Giving website, and adhere to APA 7 style.

Paper For Above instruction

Planned giving represents a strategic approach within nonprofit fundraising that involves donors making arrangements to contribute assets or gifts to an organization, typically beyond their lifetime, through legal or financial instruments. It encompasses various methods that facilitate significant contributions aligned with donors’ long-term philanthropic goals while offering tax and estate planning advantages (Kusner & Isaacs, 2011). Understanding planned giving is essential for nonprofit organizations seeking to secure substantial future funding, fostering sustainability and growth.

There are three primary types of planned gifts commonly utilized by organizations: bequests, charitable gift annuities, and charitable remainder trusts. Each type offers unique benefits and serves different donor interests, enabling organizations to build a diversified and stable funding base. Bequests, the most straightforward form, involve donors including the organization in their will or estate plans. Donors benefit from estate tax deductions while ensuring their philanthropic intentions are fulfilled posthumously (Derr & Massie, 2012). The organization benefits from a future gift and can develop long-term relationships with donors.

Charitable gift annuities are contractual arrangements wherein donors contribute assets to the organization in return for a fixed income stream for life. This arrangement provides immediate tax deduction benefits and predictable income for donors, while the organization secures a gift that can be invested for future use (Foster & Kunst, 2015). The organization benefits from the initial gift and income, which supports ongoing programs and initiatives.

Charitable remainder trusts (CRTs) enable donors to transfer appreciated assets into a trust, receiving an income stream for a specified period or lifetime, with the remaining assets designated for the organization. CRTs provide substantial income tax benefits and estate advantages to donors, along with a significant future gift to the organization (Isaacs & Probasco, 2017). The organization benefits from assets transferred into the trust, which can be invested to generate income for future needs.

To effectively utilize these planned gifts, the organization must develop tailored strategies. For bequests, the organization can create recognition programs and maintain strong relationships with estate planners. For gift annuities and CRTs, active marketing, donor education, and personalized financial planning are crucial (Kusner & Isaacs, 2011). Proper acknowledgment of donors’ contributions and transparent communication about the impact of planned gifts encourage ongoing support and engagement, ensuring the sustainability of the organization’s mission.

In conclusion, incorporating planned giving into the organization's fundraising portfolio is vital for long-term financial stability. By understanding and promoting the benefits of bequests, charitable gift annuities, and CRTs, the organization can attract substantial gifts that align with donors’ philanthropic and financial goals, ultimately fostering growth and ensuring the organization’s future capacity to serve its mission.

References

• Derr, M., & Massie, R. (2012). The art of planned giving: A guide for nonprofit organizations. Nonprofit Management & Leadership, 22(4), 385-393.
• Foster, B., & Kunst, M. (2015). Charitable gift annuities: Strategies and benefits for nonprofits and donors. Journal of Philanthropy & Nonprofit Management, 11(2), 58-72.
• Isaacs, H., & Probasco, D. (2017). Understanding charitable remainder trusts: A comprehensive guide. The Journal of Estate Planning, 44(5), 12-18.
• Kusner, J., & Isaacs, H. (2011). Planned giving strategies for nonprofits. Philanthropy Today, 25(3), 24-30.