When approached with the right strategy, legacy giving can be a reliable revenue source and an additional way for our donors to show support.
- What is legacy giving?
- Why is legacy giving important?
- What are the types of legacy giving?
What is legacy giving?
Legacy giving refers to donations that supporters plan to give to NPF after their passing. Legacy giving is also commonly referred to as planned giving as donors often plan these gifts years before they are distributed to NPF.
For many donors, legacy giving will consist of monetary donations, but some donors will give real estate or choose to set up a charitable annuity or trust rather than make a direct donation. While the specifics of each gift and how it is distributed to NPF will vary.
Why is legacy giving important to the National Pancreas Foundation?
Legacy giving can benefit both NPF and donors. Donors who choose to participate in legacy giving can experience positives, such as:
- The ability to cement their legacy. Legacy giving ensures donors will be remembered for their generosity and commitment to NPF purpose long after their passing. This can be especially important to mid-level donors who lack the funds to make a major gift their lives but can make the impact they want through a legacy gift.
- Tax breaks. Many wealthy donors join a legacy giving program both out of their commitment to NPF and the numerous tax benefits that participating can bring their families.
- Control over their donation’s use. With legacy giving, donors can add stipulations in their wills for how their gift will be spent. This can help donors feel rest assured that their legacy will be preserved the way they would have wanted.
For NPF, why is legacy giving an important revenue source?
It is because it:
- Adds an additional revenue source for organizations to secure their fiscal stability.
- Builds an endowment to provide an ongoing source of income each year in perpetuity.
- Augments the other “asks” and deepens the connection with donors.
- Broadens NPF’s donor base to allow donors to make impactful gifts by providing a diverse way to give assets.
There are so many reasons to add legacy giving as an option for our donors. Why limit donations to current gifts of cash and securities?
Many donors don’t have the capacity to give major gifts on an annual basis, but they can make a major gift by using other types of assets, like art and life insurance policies, and more thoughtful planning through estate gifts and endowments. By promoting legacy gifts NPF is broadening our base of donors that can give to you in ways other than cash or securities.
What are the types of legacy giving?
Bequests. Bequests are the most popular and simplest type of legacy giving. In their wills, donors will name what they want to give to your non-profit, whether it’s a specific amount of funds, stocks, a piece of art, or even a percentage of the value of their estate.
Life insurance. When taking out a life insurance policy, donors can name a non-profit as one of its beneficiaries. Donors who currently have life insurance policies they don’t need anymore can also participate in legacy giving by donating their policy’s accumulated value to NPF.
IRAs. Some of your donors may be interested in joining a tax-deferred retirement plan. They can use this as a method to participate in NPF’s legacy giving program by either naming your non-profit a beneficiary or as a recipient of the percentage of the proceeds.
Charitable gift annuities. With this method, donors make a large gift during their lifetime, and in exchange, NPF provides them a fixed income for the rest of their life. When the donor passes, NPF will receive the remaining funds.
Retained life estates. Instead of making a monetary donation, donors can give NPF a piece of property they own, while still retaining the right to use it during their lifetime. After the donor passes, NPF can choose to keep or sell the property.
For additional information on Legacy Giving, please contact Adriana Cowdin: email@example.com