With baby boomers finally reaching an age where writing a will does not seem crazy, nonprofits need to increase their capacity for attracting planned gifts. Different from major gifts, planned gifts are contributed once a donor passes away.
During the 2011 Association For Healthcare Philanthropy (AHP) in Boston, Mass., Jeffrey Lea, executive director of the Middle Tennessee Medical Center, outlined the basics of planned giving during his session “Cues & Clues for Planned Giving: The Fundamentals.”
- Bequests – This type of giving ranges from “specific” to “contingent.” Specific bequests allow the donor to designate an asset transferred to the charity. General bequests bequeath a gift without a specific source. Percentage bequests allow donors to give a percentage of their estate. And a contingent bequest takes effect only if other conditions fail.
- Life Insurance Gifts — These are characterized as a gift of a paid-up policy, gift of a policy with outstanding premiums, gift of a new policy or beneficiary designation.
- Life Income Agreements — These come into play as revocable planned giving instruments. Included in this type of planned gift are bequests, revocable trusts, testamentary trusts and beneficiary designations.
What programs are you using for Long Term Gifts?