Planned Giving

A provision made in a donor’s will through which an organization receives cash and/or other assets at the time of the donor’s death.

A legal contract between the donor and the organization through which the donor exchanges cash, stocks, or other assets for an agreed-upon income for life.

IRA, 401K—the IRA Rollover provision of the Pension Protection Act of 2006 allows a donor who has reached a defined age to exclude any IRA funds withdrawn and transferred to a charity from his or her income when filing a tax return for that year. The provision is applicable only to direct gifts of cash to charitable organizations (capped at $100,000 annually) from donors age 70½ or older. The charitable sector is working to get it made permanent and to extend it to a broader range of giving opportunities.

Used by donors to transfer assets to a trust, which then goes to the charitable organization after the death of the last beneficiary. The donor retains a fixed or variable income for life.

An agreement established by donors transferring a deed or real property to an organization while reserving for themselves and/or someone else the right to live on or use the property for life. Charitable deductions for life estate contracts are limited to properties that are either personal residences or farms.

Established by a donor transferring assets to a trust that provides income to a nonprofit organization for a period of years. At the end of that period, the trust assets revert either to the donor (grantor) or to someone else the donor designates (non-grantor).

A common trust to which many donors make contributions and retain for themselves a pro-rata share of the fund’s earnings each year. As each beneficiary dies, the value of the fund attributable to that death is severed and paid to the organization. It is similar to a mutual fund.

A contract between an individual and an insurance company providing a payment to the individual’s estate or to named beneficiaries (such as a spouse, children, or grandchildren) at the individual’s death. Charities are also frequently named as beneficiary. By making a charity both the beneficiary and owner of the policy, a donor can make an immediate gift that will provide immediate or future funds for a charity or charities.