The Association of Fundraising Professionals defines planned giving in the following way:
a systematic effort to identify and cultivate a person for the purpose of generating a major gift that is structured and that integrates sound personal, financial, and estate-planning concepts with the prospect’s plans for lifetime or testamentary giving. A planned gift has tax implications and is often transmitted through a legal instrument, such as a will or a trust.
In a nutshell, planned giving is the solicitation of major gifts for a nonprofit, often contributed by an individual donor through a will, bequest, or trust.
It is vital for nonprofit organizations to diversify their sources of revenue, especially during difficult economic times, and planned giving can play an important part in a nonprofit’s overall fundraising plan. Major gifts often make up the top 10-20% of gifts received by an organization and may account for as much as 70-80% of its overall fundraising revenue, according to Kent Dove, et al. Thus, planned giving can play an important part in diversifying your nonprofit’s sources of income and ensuring its long-term financial health.
What constitutes a “major gift” will vary from one organization to another – a large nonprofit may consider a major gift to be a donation of $100,000 or more, while a small start-up may consider $1,000 and up to be a major gift. They do not have to be made with cash or as outright gifts. The gift can be structured over a period of time or can be deferred, and it can involve a variety of assets, including stock, securities, and property as well as cash.
To learn more about this topic, selected resources below may also be helpful.
Thank you for rating!
You have already rated this page, you can only rate it once!Your Rating: Average Rating (0 votes cast):
Search the Knowledge Base
Questions by Category
- Funding Resources
- Funding Research
- Nonprofit Management
- Individual Grantseekers
- Resources for Non-U.S. Grantseekers
- Preguntas y respuestas en español