The fundraising landscape is constantly changing and planned giving is no exception. To gain insights into the trends shaping planned giving right now, we spoke with Kylie Johnson, Director of Planned Giving at Baystate Health Foundation who shared three top trends for fall 2024 and advice on how your organization can leverage them today!
1. Bequests
A bequest is a transfer of personal property or assets given by will or trust upon death and they continue to be a strong option for giving this fall.When making these decisions, donors want to understand their options and how charitable planning can benefit themselves, their loved ones, and their charities of choice.
Our Recommendations
While bequests are popular and remain a key avenue for planned giving, becoming an educational resource could help increase trust, as well as your philanthropic endeavors. Sharing sample language for a will or trust in publications or even creating a one-page overview that could be shared during visits is an easy way to build awareness.
2. Qualified Charitable Distributions.
A qualified charitable distribution (QCD) is typically a taxable withdrawal from an IRA that can be directly donated to a qualified charity. This allows donors to make larger gifts without incurring income tax. According to Johnson, these continue to be important in planned giving, as is encouraging donors to consider giving from their IRA assets, which can lead to multi-year pledges and naming a charity as a beneficiary.
Our Recommendations
Train frontline fundraising staff to understand and be able to speak to a qualified charitable distribution from an IRA. This way, you can collectively find ways to promote the opportunity among longer-living donors.
3. Charitable Gift Annuities.
Charitable Gift Annuities (CGA) provide a donor with a tax deduction and a lifetime income stream in exchange for transferring assets to a charity. Right now rates for CGAs are at an all-time high. There are many kinds of CGAs, and it’s important to have conversations with donors about their options.
Our Recommendations
Organizations making the most of these high rates with CGAs and are launching multi-pronged marketing efforts around the topic. You can also take advantage of the many kinds of CGAs that can be offered to donors – flexible, deferred, outright, funded with an IRA, funded with stock and testamentary. This flexibility allows donors to choose the CGA that best aligns with their financial goals and charitable intentions.
By understanding and leveraging current trends, nonprofits can significantly enhance their fundraising efforts. Development Guild is committed to partnering with nonprofits to navigate these complexities and maximize the potential of planned giving.
Let’s work together to build a thriving legacy for your mission.