What is Planned Giving?

Simply put, Planned Giving strategies represent a way for a donor to leave money or assets to a nonprofit at his/her death; or a way for the donor to invest money now so that they can receive an income stream now from those investments and then bequeath the remainder of these assets to a nonprofit at his/her death.

Some Planned Giving Methods:

Bequest:  A gift to charity at death. It is the simplest type of planned gift to make and implement.

Gift Annuity:  An agreement where a donor makes a gift of cash or property and the charity agrees to make fixed payments to the donor for life.

Charitable Remainder Trust (CRT):  The CRT receives cash or property from a donor then makes lifetime or a term of year’s payments to the donor and then distributes the remainder to the charity.

Charitable Lead Trust (CLT):  The CLT receives cash or property from a donor and makes payments to charity for a specific period. At the end of the period, it distributes the trust property to a specified beneficiary, usually family.

Life Estate Reserved:  The Charity accepts a gift of property – either a personal residence or farm – and the donor retains the right to use the property for her or his lifetime.

Pooled Income Fund:  The charity receives a gift of cash or stock, invests it with similar gifts from other donors and then distributes a proportionate share of earnings to the donor.

Bargain Sale:  The charity purchases property for less than the fair market value or accepts a gift of mortgaged property.

Benefits of Planned Giving

  • Creates an opportunity for charitable giving in circumstances that may not otherwise allow a donor to make a gift to charity
  • Offers the donor the opportunity to reduce income taxes, estate taxes, and capital gains taxes
  • Can provide the donor with a steady stream of income
  • Provides a level of fiscal security to the charity and helps in long-range financial planning

You can review additional Planned Giving information and benefits by clicking on these links:


Planned Giving Information 2012

Neuberger Berman- Choosing The Right Charity