Planned Giving: The Complete Guide for Nonprofits

Planned giving is any gift a donor arranges now that your organization receives later, most often through a will or a beneficiary designation. It's also called legacy giving. Planned gifts are often the largest gifts a donor ever makes, and they often come from people you'd never guess.

Serving Orphans Worldwide once received a substantial estate gift from a man who had never given to us before. We had no idea he'd included us in his will. Afterward, the law firm handling his estate told us how it happened: he had watched a documentary about the orphan crisis, searched Google for an organization working on it, found SOW and read through our website before deciding to leave the gift. He never called us. He never entered our donor file. He simply trusted what he found.

That story says a lot about planned giving. This guide covers what it is, the main types of planned gifts, who your best prospects are and how to start a program, even on a small budget.

This guide is general information, not legal or tax advice. Donors should talk with their own attorney or financial advisor, and your organization should involve qualified counsel before offering complex gifts.

Why planned giving matters

Bequests are a major source of charitable giving in the United States. According to Giving USA, Americans gave $62.19 billion through bequests in 2025, about 10 percent of all charitable giving.

For a nonprofit, planned gifts can strengthen reserves, fund an endowment or make a major project possible. And because they don't cost the donor anything today, they let people of ordinary means make an extraordinary gift.

Types of planned gifts

• Bequests. A gift in a will or living trust: a specific amount, a percentage of the estate or what's left after other gifts. This is the simplest and most common planned gift.
• Beneficiary designations. Donors can name your organization as a beneficiary of a retirement account, life insurance policy or bank account, usually with a simple form and no attorney. Here's why beneficiary designations are the easiest planned gift.
• Charitable gift annuities. A donor gives cash or stock and receives fixed payments for life, with the remainder going to the charity. Gift annuities are regulated by states, so many smaller nonprofits partner with a community foundation or another organization to offer them.
• Charitable remainder trusts. A trust pays the donor (or others) income for life or a set term, then the remainder goes to one or more charities. These are usually set up by the donor's attorney.
• Qualified charitable distributions (QCDs). Donors who are 70½ or older can give directly from an IRA to a charity without counting the distribution as taxable income, up to $111,000 per person in 2026. Gifts to donor-advised funds don't qualify.
• Gifts of stock and other assets. Appreciated stock, real estate or other property, given now or through an estate.
• Gifts from donor-advised funds. Not a planned gift in the strict sense, but often part of the same conversation. Here's how to make it easy for donors to give from a DAF.

You don't need to offer all of these. Most small and mid-sized nonprofits start with bequests and beneficiary designations, and that's enough.

Who are your best prospects?

Your best planned giving prospects are usually not your wealthiest donors. They're your most loyal ones. Look for:

• Donors who have given for many years, especially consecutive years, even at modest levels
• Monthly donors with long giving histories
• Volunteers, former board members and longtime friends of the organization
• Older donors, especially those in their 60s and beyond
• Donors who have no direct heirs
• Anyone who has already told you they've included you in their plans

Here are five ways to identify planned giving prospects and ten questions to gauge a donor's interest.

Most planned gifts are a surprise

Many donors never tell you. I know of a large nonprofit with a dedicated team of planned giving experts that, as I understand it, knows in advance about only around a quarter of the estate gifts it eventually receives. That's one organization's experience, not a benchmark, but it matches what many fundraisers see. Many donors simply don't want to discuss their estate plans, and that's their choice.

That has two implications. First, your website and printed materials matter, because a donor may research you quietly, as SOW's estate donor did. Second, keep inviting legacy gifts to your whole loyal donor base, not just the people you know about. Here's why some donors keep their planned gifts private.

How to start a planned giving program

You can start with very little budget:

1. Get your board's support and agree on what kinds of gifts you'll accept. A gift acceptance policy answers questions before they come up.
2. Add a legacy giving page to your website with your legal name, address and tax ID, plus sample bequest language donors can give their attorney.
3. Mention legacy giving regularly: in your newsletter, at the bottom of your thank-you letters and as a checkbox on your reply device ("I've included you in my will" or "Send me information about leaving a gift in my will").
4. Start a legacy society to thank and recognize donors who tell you about their plans.
5. Follow up personally with anyone who responds.

Sample bequest language often looks something like this: "I give to [your organization's legal name], [city and state], federal tax ID [number], [a specific amount, a percentage of my estate or the remainder of my estate] for its general purposes." Have your own counsel review the exact wording you publish.

What to put on your legacy giving page

A simple page is enough to start:

• A short story of why someone chose to leave a legacy (with permission)
• Your full legal name, address and federal tax ID
• Sample bequest language
• The simplest options: a gift in a will, a beneficiary designation, a gift from an IRA
• An easy way to tell you they've included you, such as a short form
• A name, phone number and email for questions
• A note encouraging donors to talk with their own advisor

A sample legacy giving calendar

Planned giving for small nonprofits

You don't need a planned giving officer to receive planned gifts. If you're a small shop, focus on three things: a clear legacy page, a regular mention in what you already send and personal thanks for every donor who tells you about their plans. That alone puts you ahead of many organizations. Add complex gifts like gift annuities or trusts only when donors ask, and refer the technical questions to their advisors or to a community foundation.

Market planned giving the right way

Planned giving marketing works best when it's steady and gentle. Share stories of legacy donors (with permission), explain the simplest ways to give and invite people to let you know.

Email can work well. Here's how to write a planned giving email. But segment carefully: I've seen a planned giving email intended for one audience go out to an entire donor database, including younger donors it was never meant for.

Have the conversation

Many fundraisers avoid talking about planned giving because it means talking about death. Donors usually find it easier than you expect, especially when you start with their story: why they give, what they hope will continue and what they want to be remembered for.

• How to improve your planned giving conversations
• Ten ways to engage planned giving prospects
• Eight common misconceptions about planned giving
• Traits of successful planned giving fundraisers

Work with donors' advisors, not around them. Many planned gifts are completed with the help of an attorney, accountant or financial planner, so make it easy for them to find your information.

Thank and steward legacy donors

When a donor tells you they've included you, thank them as warmly as you would for a major gift. Invite them into your legacy society, keep them close to the work and send them updates. They're still donors, and many keep giving during their lifetime. A donor who feels appreciated is also less likely to change their plans later.

Measure the program

Planned giving takes years to pay off, so track the activity that builds it:

• Number of known legacy commitments, and new ones each year
• Legacy society members
• Responses to legacy giving offers and requests for information
• Conversations about planned giving
• Realized gifts each year

For what's changing in the field, see the planned giving trends every fundraiser should know. Planned giving grows out of loyal relationships with your donors, so the guide to major donor fundraising and the guide to mid-level giving are good next reads.

Legacy donors come from donors who were thanked well for years. If you want a complete system for that, The Gratitude System walks you through it.