A Planned Gift in 3 Easy Steps

by | Sep 17, 2020 | Planned Giving

Your donors love how you transform lives, turn students into high achievers, and help the hungry and homeless. But they may be reluctant to make a gift in their will or estate plan, or they may not think they’re wealthy enough to make a planned gift. Did you know your donor can make a planned gift in 3 easy steps?

Planned gifts are for everyone! You don’t have to be wealthy to make a planned gift. What is a planned gift anyway? It’s simply a gift that you make using something besides cash. It could be a gift of stocks, a gift of real estate, or a gift of assets you leave after your death.

Types of planned gifts

There are many types of planned gifts, but we’ll look at some that are the easiest and quickest to implement.

Donors can easily and quickly make a planned gift by making a nonprofit a beneficiary of their:

  1. IRA and retirement plans
  2. Life insurance policies
  3. Commercial annuities

3 easy steps to make a planned gift

It only takes 3 simple steps for your donor to make your nonprofit the beneficiary of their plan or policy. Your donor can:

  1. Contact their retirement plan administrator, bank, an insurance company, or other financial institution and ask for a change of beneficiary form.
  2. Decide what percentage (1 to 100) they would like to leave your nonprofit, and name your organization using your full legal name and Federal Tax ID number, along with the percentage they choose, on the beneficiary form.
  3. Return the completed form to their plan administrator, bank, insurance company, or financial institution.

That’s it

A gift like this is the easiest way to provide opportunities for future students and people you serve, and it helps your donor make a planned gift without writing a check. This kind of gift also offers flexibility. Your donor can change their beneficiary designation at any time in the future if their wishes change, or they can cancel it altogether.

Keep your basic info handy

Your donor will need your full legal name, address, and Federal Tax ID number, so make sure that’s easily accessible and on your website. You can also keep this information in a Word document that’s easy to email or post on your website. Of course, before they make a planned gift the donor should speak to their attorney, accountant, or other tax professional.

Help your donors make a planned gift by establishing a robust planned giving program.