What is Charitable Gift Planning?

Charitable gift planning – or planned giving – involves the donation of assets to a charitable organization at the time of, or in anticipation, of death.

The simplest and by far the most common form of planned gift is a charitable bequest through the donor’s will or trust.

Other planned gifts are more complex. Most involve the payment of income to the donor(s) or another person designated by the donor for that person’s lifetime or for a fixed number of years. These sorts of life-income gifts include charitable gift annuities and charitable remainder trusts.

Another form of planned gift – the charitable lead trust – pays an annual amount to charity for a certain number of years before the remaining principal is passed back to the donor’s family.

Planned gifts are often made with publicly-traded or privately-held securities or real estate.

The NH & VT Council of Charitable Gift Planners helps nonprofit staff members and professional advisors gain familiarity with these vehicles so they can help structure and facilitate gifts in a way that benefits the community and the donors alike. The potential for giving through planned gifts is considerable. According to Giving USA, giving by bequest totaled an estimated $46.01 billion in 2021. Meanwhile, an enormous percentage of wealth in America is held in the form of securities, family businesses, and real estate. By learning more about gift planning and the donation of more complex assets, development staff and professional advisors can better serve their donors, clients, and the charitable community alike.