Major Gifts and Planned Giving Flashcards

What is a 'planned gift'?

Answer: A charitable contribution arranged in advance through legal or financial vehicles, often fulfilled through the donor's estate

Planned gifts (or legacy gifts) are charitable contributions arranged through estate plans, trusts, annuities, or other financial vehicles, often realized after the donor's lifetime.

Which of the following is the most common type of planned gift in the United States?

Answer: Bequest through a will or living trust

Bequests — gifts made through a will or revocable living trust — are the most common form of planned giving in the US, making up the majority of legacy gift revenue.

A 'charitable remainder trust' (CRT) benefits the donor by:

Answer: Giving the donor (or named beneficiaries) income for life or a term of years, with the remainder passing to charity

A CRT provides the donor or named beneficiaries with an income stream for life or a specified term, after which the trust's remaining assets pass to the designated charity.

What is a 'bequest society' in planned giving?

Answer: A recognition program for donors who have notified the organization of their intention to include the charity in their estate plan

A bequest society (or legacy society) acknowledges and recognizes donors who have made or expressed intention to make a planned gift, helping to cultivate and retain these long-term relationships.

Which of the following is a key indicator that a donor may be a strong planned giving prospect?

Answer: The donor is an older, loyal annual fund donor with no children and a long history of supporting the organization

Older donors with sustained giving histories, especially those without children or other significant heirs, are statistically stronger planned giving prospects due to fewer competing asset claims.

What is a 'gift annuity'?

Answer: A contract where a donor transfers assets to a charity in exchange for fixed income payments for life, with the remainder benefiting the charity

A charitable gift annuity is a contract between the donor and the charity: the donor transfers assets, the charity pays a fixed annuity income for life, and upon the donor's death the remaining assets benefit the charity.