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Planned Gifts: A Plan for All

By Mike Gricius, CPA, Senior Manager at Blue & Co.

Planned gifts are a tool that can help not-for-profits plan ahead and secure the future for the years to come. For that matter, planned gifts should be something that all not-for-profits consider and take interest in.

These are often called legacy giving. Donors can create a lasting impact on organizations by leaving money or assets with a not-for-profit. This helps the organization carry out its mission in the future, both during the donor’s lifetime and even after they have passed away.

There are many benefits to donors who decide to make a planned gift, such as receiving income during their lifetime or passing it onto family members or even giving to an ongoing cause that they passionately believe in.

Examples of planned giving that donors can consider:

  • Bequests – Establishing a trust or a will allows assets to be transferred to a charitable organization upon the death of the donor for present and future benefit.
  • Charitable gift annuities – The donor gives a donation to a charitable organization in which the charitable organization accepts and agrees to pay a specified, fixed-dollar amount to a named beneficiary for a specified time period or until death of the beneficiary.
  • Charitable trusts – Assets are transferred by a donor to create a trust for the purpose of paying a specified annual amount to named beneficiaries for an established number of years or the life of the named beneficiaries. At the end of established period or years, the remaining assets will transfer to a different beneficiary or eventually to the charitable organization to further their mission.

As a not-for-profit, consider the planned gift options above to help your organization to continue to strive for the future. Start developing those donor relations today . . . who knows what legacy gifts may come!

Contact your Blue & Co. Advisor if you have any questions.

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