Introduction to Planned Giving

Think about what matters most to you. What are you passionate about and what do you want to continue supporting even after you are no longer around to see the impact of that support? This thought process is the beginning of planned giving.

What Is Planned Giving?

Planned giving is the process of arranging gifts to be given at a later date. These gifts can be in the form of cash, annuities, real estate, willed items, trusts, and other financial assets.

This is often a part of legacy planning, but gifts do not have to be given posthumously. With that said, gifts given through wills and trusts are the most common. One reason for this is that it allows donors to bequeath a larger amount than they would have been comfortably able to do while they were living.

While you can plan to distribute your assets to anyone or to any company, we will focus on planned giving to nonprofit organizations and the impact that your gift can have. For more information on legacy planning or other forms of planned giving, reach out to our certified financial planners.

donors discussing planned giving

Why Do Donors Plan Gifts?

Donors plan gifts for a variety of reasons, but the top ones are not expressly financial. Yes, there are tax advantages to giving to nonprofit organizations, but most donors give for reasons that have nothing to do with their tax forms.

One of the biggest reasons that donors give is because the cause is meaningful to them and they want to help the organization further its mission. By contributing to that organization in some manner, they gain the personal satisfaction of knowing that they are making a positive difference.

Additionally, donors get to determine how their funds or other assets are used. This can help direct the organization towards a future that the benefactor desires. In the process, that donor may also gain recognition and establish a legacy for themselves and their descendants.

Another reason not to be overlooked, donors may give because of their upbringing. Some religions require or encourage allocating a certain amount of assets to charitable causes. In other cases, the donor’s family or community–and not religion–has a significant impact on the propensity to give.

Impact of Planned Giving

Simply put, planned gifts are vital to a nonprofit’s success. As a category, these kinds of gifts are the biggest ones that nonprofits receive, and they can go a long way in ensuring the future success of the organization. When nonprofit managers are less focused on maintaining funding and covering long-term overhead costs, they are better able to pursue mission-related programs.

Getting Started

couple discussing their finances for planned giving

If you know you want planned giving to be part of your life, the first step is to think about what is most important to you. Once you have an idea of the people and organizations that you want to support, you can begin assessing what impact you want to have with your gift to them.

At this point, it may be a good idea to discuss your thoughts with a trusted financial advisor who can evaluate your current and expected future assets to help you craft a planned giving strategy. Only you can decide where your assets go and how much of them you want to gift, but an advisor can assist in detailing the options that you have and how your decisions will impact your overall financial situation. They can help you navigate charitable gift annuities, IRA distributions, and any other kind of planned giving options you have in mind.

Morris Financial Concepts can walk you through the entire planned giving process. To learn more about planned giving, legacy planning, wealth management, or other financial services, contact our team of financial advisors today.

**The opinions expressed herein are those of Morris Financial Concepts, Inc. (“MFC”) and are subject to change without notice. This material is for informational purposes only and should not be considered investment advice. MFC is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about MFC including our investment strategies, fees and objectives can be found in our ADV Part 2, which is available upon request. MFC-19-25.**