Wealth Insights

Futureproof your nonprofit with a planned giving program

For many nonprofits, the annual development cycle can feel like a constant scramble to meet the budget and keep programs running through donor outreach. One way to secure better funding is a robust planned giving program.

“Nonprofits are really concerned about the sustainability of their mission—and a planned giving program is one of the best ways to support that goal,” says Steven Sommers, Philanthropic Solutions Area Manager.

What is planned giving?

Planned giving, sometimes referred to as deferred or legacy giving, involves making charitable donations through financial or estate planning. A structured planned giving program helps your nonprofit identify, engage, and build lasting relationships with donors who wish to contribute in this meaningful way.

Nonprofits that overlook planned giving are missing a big opportunity. Donors gave around $45.84 billion through bequests in 2024, representing 8 percent of total charitable giving in the U.S., according to the Giving USA 2025 report.¹ This type of planned giving is expected to keep growing as the Baby Boomer generation fuels the great wealth transfer.

A conduit for transformative gifts

Planned gifts—which include bequests, charitable gift annuities and charitable remainder trusts—are generally larger than annual donations. Donors typically make these gifts from their assets, such as retirement accounts or property, rather than cash. Some dedicate a percentage of assets or specify an amount to leave as a bequest. These substantial donations can be leveraged to create an endowment that supports the nonprofit’s work over the long term.

One benefit? Deeper donor relationships

Planned giving requires a specialized set of skills to cultivate, but the reward is that it fosters a deeper connection to your nonprofit’s mission. Russell James , Ph.D., a Texas Tech professor and philanthropy researcher, found that donors who added a charity to their will increased their annual giving by over $3,000 in the years that followed.²

“Planned giving programs really connect people to the mission or organization much more deeply than simply a mail solicitation,” Sommers says. “Someone might give you $1,000 one time, or once a year. But if they create a gift annuity , they create a sinew between the organization and the donor that lasts their entire lifetime, and that is extremely important to understand. And once people create one gift annuity , it's not uncommon for them to create multiple gift annuities if they're managed well.”

Overcoming hesitation in setting up a planned giving program

Many organizations hesitate to start a planned giving program because of the time and resources it demands. It can be intimidating to speak to a donor about a sensitive and sometimes complex topic that touches on a person’s mortality. Planned giving also requires a different type of expertise than some nonprofit fundraisers possess.

“If someone gives you even a small gift every single year once a year, there’s a possibility that you're in their will , ” Sommers says. “You need to have someone who understands the behavior of planned givers, which is different from major donors, and can identify high propensity planned giving donors from a donor database and put that information into practice through your outreach.”

Focus on the story, not the money

To make the most of your planned giving program, consider leveraging the power of storytelling. A donor’s bequest story, also called a living biography, can serve as inspiration for others. When a donor agrees to make a planned gift, ask if your organization can share their giving story publicly.

Sommers offers one of his favorite examples of planned giving: A librarian who worked her entire lifetime in a community library and saved a substantial amount. In a bequest in her will, she gave several million dollars to endow her community’s libraries. “They ended up naming a library after her,” Sommers says. “Planned giving can create beautiful legacies for people. She made that bequest because when she was a child, the library became a safe place for her, and she wanted to provide that for others.”

Choose your words carefully

Another best practice is to understand when words might cause a donor to hesitate and pivot to softer language. “Even the word legacy can be problematic,” Sommers says.

Some nonprofits use language that focuses on the positive outcome: “impact giving,” “lasting impact,” “longevity,” or “making a difference for the next generation.”

Financial stability and longevity

The ultimate goal of planned giving is to provide financial stability for your nonprofit so it’s not dependent on a single annual fundraising event. Building up an endowment funded through planned gifts can provide resources for long-term programs. By investing time, leveraging expertise, and centering your donors’ inspiring stories, you can transition your nonprofit from a year-to-year scramble to a position of sustained financial strength.

How to build your planned giving program

If your organization is ready to dedicate resources to cultivating a planned giving program, you’ll want to take the following steps.

Step 1: Conduct a readiness analysis

• Board support: Do board members fully understand and support this move?
• Donor base: Do you have a sufficiently engaged donor pool to warrant a dedicated program?
• Mission alignment: Is the program aligned with your organization’s goals?

Step 2: Establish your program components

Start by identifying the gifts you are willing to manage. Most programs start with bequests and the creation of a “legacy society” to honor those who have included the organization in their estate plans. For advanced strategies, consider offering charitable gift annuities and charitable remainder trusts.

Step 3: Formalize infrastructure and policies

A program cannot succeed without structure. You must develop and put in place:

• A gift acceptance policy: What assets will you accept?
• A conflict-of-interest policy: Transparency is essential.
• Investment policy statement: Clear rules for managing endowed funds.
• Outreach plan: How will you identify and engage potential legacy donors?

Step 4: Leverage external partners

For smaller organizations, a community foundation can help manage planned giving vehicles. For all organizations, working with an experienced financial partner is crucial for management of the investments and payment requirements associated with planned gifts such as charitable gift annuities. These partners provide the expertise needed to ensure the gift remains sustainable over time , and they can meet with prospective donors to facilitate the planned giving conversation.

How Regions can help you meet your fundraising challenges

Regions Philanthropic Solutions has helped nonprofit organizations successfully overcome their endowment, foundation, planned giving and investment management challenges. We offer:

• Specialized assistance with setting up and managing foundations and endowments.
• Practical knowledge about the best practices for nonprofit financial management and governance.
• Services and solutions for planned giving , including the administration of planned gifts.
• The support of a dedicated, experienced team to help manage the impact of different types of gifts (such as land, complex assets, private business interests).

Connect with our team to determine how Regions can help guide your organization’s investment needs.

Sources:
¹Giving USA. “Giving USA: The Annual Report on Philanthropy,” June 2025.
²Russell James. “Golden Nuggets from Ivory Towers: Recent Powerful Research Impacting Gift Planning.”