Estate Planning Options Your Donors Don’t Know About (But You Should)

As a nonprofit leader, you don’t need to be a financial expert to make a difference, but it helps to understand the strategies that can shape your donors’ legacies. 

This article outlines five key estate planning options every nonprofit should understand to help their donors make a lasting impact.

1. Revocable Living Trust

A Revocable Living Trust allows individuals to manage how their assets are distributed while avoiding probate. For donors, this means their legacy can be passed on quickly, privately, and with fewer legal hurdles.

• Charitable giving can be built into the trust as a long-term philanthropic strategy.

• It allows for flexibility and can be updated as life changes.

2. Charitable Bequests in a Will

One of the most common forms of planned giving, a bequest is a gift outlined in a donor's Last Will and Testament.

• It can be a fixed dollar amount, a percentage of the estate, or a specific asset.

• Bequests can be changed at any time, making them accessible to a wide range of donors.

3. Donor-Advised Funds (DAFs)

DAFs are growing in popularity and can be a powerful tool for legacy-minded donors.

• Donors contribute to a fund now and recommend grants to nonprofits over time.

• Contributions are often eligible for an immediate tax deduction, even if the funds are distributed later.

4. Qualified Charitable Distributions (QCDs)

For donors 70.5 or older with an IRA, QCDs allow for tax-efficient giving.

• A donor can transfer up to $100,000 directly to a qualified charity, tax-free.

• These gifts can also satisfy required minimum distributions (RMDs).

5. Beneficiary Designations

Many assets, like retirement accounts or life insurance policies, can be transferred outside of a Will or Trust using beneficiary designations.

• Donors can name your organization as a full or partial beneficiary.

• It’s often as easy as updating a form.

How to Start the Conversation

You don’t need to be an estate planner to spark a meaningful legacy conversation.

• Include estate planning in your donor newsletters or year-end giving campaigns.

• Offer resources or webinars that explain planned giving options.

• Partner with a trusted estate planning platform to guide your donors with confidence.

When your organization understands estate planning options, you can better support your donors in turning today’s generosity into tomorrow’s impact.

Looking for a planned giving solution for your organization? Look no further! Trust & Will is the leading digital estate planning solution in the U.S., and we make it a no-brainer for donors to leave gifts when they set up their estate plans. Click here to learn more about what Trust & Will can do for your organization. 

Claim Your Organization to make it easy for donors to leave gifts and unlock more bequests.

Trust & Will is an online service providing legal forms and information. We are not a law firm and we do not provide legal advice.