Three weeks left in the long, long year that’s been 2020. You probably have enthusiastic supporters and longtime donors who want to further your mission and make a positive impact on the clients you serve. However, they may want to give something other than cash. There are many types of noncash charitable gifts your donors should consider:
- Make a bequest or provision in their will or estate plan to give your nonprofit a specific amount or a percentage of their estate (1%-100%). If they already have a will, they can instruct their attorney to add a codicil with the details of their gift to you.
- Designate your nonprofit as the beneficiary of a life insurance policy they no longer need or they can establish a new policy to benefit you.
- Select your nonprofit to be the beneficiary of their IRA or retirement plan. This can normally be done by filling out a short form.
- Designate your nonprofit to receive a charitable rollover or required minimum distribution from their IRA.
- Donate appreciated stocks or mutual funds directly to your nonprofit without incurring capital gains taxes. A simple phone call to their broker will initiate this process. It will take a few days to process, so they need to do this prior to December 31st.
- Give a gift from their donor-advised fund (DAF) to your nonprofit or name your organization as the ultimate beneficiary of the remainder of their fund. Their donor-advised fund can be a memorial to living or deceased family members or friends.
Keep your important information accessible
Your donor will need your full legal name, address, and Federal Tax ID number. Make sure that’s easily accessible and on your website. Of course, before making any gift they should speak to their attorney or tax professional to find the best gift for their lifestyle and situation.
It’s all about the donor
You may feel pressure to reach your fundraising goals before December 31st, but take the long view. Stay donor-centered. What’s the best type of charitable gift for your donor? What giving tool will help them achieve what they wish to achieve with their giving? Do they have considerations or limitations that you might not be aware of? Do your best to help your donors meet their personal giving goals and they’ll help you meet yours.