A well-organized and thoughtfully developed planned giving program creates a steady pipeline of charitable gifts—easing the pressure on annual campaigns, major gift campaigns, capital campaigns, and other fundraising efforts. Why, then, do so many nonprofits approach the idea of starting a planned giving program with hesitation?
While many nonprofits have well-established and highly effective planned giving programs, others avoid planned giving until they’re faced with an important donor who expresses an interest in establishing a charitable gift annuity or making another type of planned gift. Reacting to these types of immediate opportunities, however, often leads to hastily designed programs that fail to gain significant traction.
The donor would have received an immediate charitable deduction of $61,246 upon funding the trust, along with annual income payments totaling $159,212.46 through the end of 2020. Assuming that the trust matured at that point in time, the organization would then receive the remaining $363,750 (146% of the original gift and additional contribution). The donor benefits from both a tax deduction and income while the charity receives a sizable gift at a specific point in time.
Don’t wait until it’s too late
Planned giving is a long-term strategy which, if established thoughtfully and structured smartly, can yield tremendous benefits to your organization. If you already offer split interest arrangements, marketing diligence (regardless of market conditions) will be vital to growth and long-term sustainability. There are effective ways to tailor your message and emphasize different planned giving benefits based on the prevailing economic environment. If your organization has yet to implement a program, don’t wait! Be prepared for the conversation with potential donors who are interested in establishing split interest arrangements. Take steps today to secure your organization’s future through planned giving.
About Truist Foundations and Endowments Specialty Practice
Truist has more than a century of experience working with not-for-profit organizations. Fiduciary stewardship is the heart of our culture. We’re not just a provider, but an invested partner—sharing responsibility for prudent management of not-for-profit assets. Our client commitment, not-for-profit experience, and fiduciary culture are significant advantages for our clients and set us apart. The Foundations and Endowments Specialty Practice works exclusively with not-for- profit organizations. Our institutional teams include professionals with extensive not-for-profit expertise. These professionals are actively engaged in the not-for profit community and are able to share best practices that are meaningful to their clients. Team members offer guidance and advice tailored to the various subsets of the not-for-profit community, including trade associations and membership organizations. Our Practice delivers comprehensive investment advisory, administration, planned giving, custody, trust and fiduciary services to trade associations, educational institutions, foundations, endowments and other not-for profit clients across the country.