A blended gift combines a current gift with a future commitment — typically an outright donation today paired with a bequest, beneficiary designation, or life-income arrangement. The donor gives something now and commits to something later, usually in a tax-efficient structure that benefits everyone.
This isn’t a formal legal category. It’s a planning concept, and it’s how sophisticated donors actually think about their philanthropy.
Most nonprofits treat current giving and future giving as separate conversations, handled by separate people, measured by separate metrics. Donors don’t think this way. A donor who cares deeply about your mission doesn’t wake up deciding between “annual fund” and “estate gift.” They want to help — now and later — and they’re waiting for someone to show them how.
Blended gifts resolve the tension donors feel between wanting to make an impact today and worrying about giving too much away. Instead of forcing a choice, you offer a path: meaningful support right now, plus a legacy commitment that costs nothing today.
That’s not a sales technique. It’s how thoughtful philanthropy actually works.
The most straightforward blended gift pairs a current donation — cash, appreciated securities, or real estate — with a bequest in the donor’s will. A donor gives $50,000 in stock today and includes your organization for $250,000 in their estate. Current impact plus future legacy.
Other combinations work just as well. A donor might pair a cash gift with a beneficiary designation on an IRA or life insurance policy. Or they might fund a charitable gift annuity that provides income for life, then add a smaller current gift to support immediate programs. Some donors combine a gift of real estate with a retained life estate and a bequest — living in their home for life while making a substantial commitment to your future.
The specific vehicles matter less than the underlying principle: the donor doesn’t have to choose between now and later.
Donors rarely walk in asking for a “blended gift.” They say things like:
The blend emerges when you stop treating this as two separate asks and start treating it as one planning conversation. You begin with what feels comfortable today. You acknowledge their limits — most people don’t want to overextend. Then you open the door: “Would it be helpful to think about a future gift that costs nothing today?”
Then you stop talking.
If you’re speaking more than 20% of the conversation, you’re talking too much.
This is where bequests, charitable remainder trusts, and beneficiary designations naturally enter the conversation. Not because you pushed them, but because the donor was already thinking about legacy. You just gave them permission.
A donor who makes a blended gift stops being a transaction and becomes a partner. They’ve committed twice — once with their checkbook and once with their estate. That’s not a donor you’ll lose to the next compelling appeal. That’s someone who has decided they belong to your mission.
Blended gifts are retention machines. They outperform one-off asks not because the dollar amounts are larger (though they usually are), but because the psychology shifts. The donor self-identifies as someone invested in your long-term success.
This is why the most effective major gift officers don’t treat planned giving as someone else’s job. They understand that most major gifts should eventually become blended gifts, and most planned gifts start as blended gifts. The planned giving conversation isn’t separate from the major gift conversation — it’s the natural next chapter.
The most common mistake is leading with technical structures. Donors don’t want a lecture on charitable remainder unitrusts. They want to know how to do something meaningful without jeopardizing their family’s security.
The second mistake is treating the planned gift as an afterthought — something you mention after the “real” gift is secured. To the donor, it’s all one decision. When you treat half of it as secondary, you signal that you don’t actually understand what they’re trying to accomplish.
The third mistake is organizational: separating major gifts and planned giving into silos that don’t communicate. If your major gift officer doesn’t know what a gift annuity is, and your planned giving officer never talks to living donors, you’re leaving blended gifts on the table. Use these free planned giving resources your organization should use and integrate with your major gift strategy, not compete with it.
The fourth mistake is incentive misalignment. If your major gift officer is measured only on current-year dollars, they have no reason to mention bequests. If your planned giving officer manages only expectancies, they never build relationships with living donors. Blended gifts require shared credit and shared metrics — or they won’t happen.
Blended gifts are especially effective with loyal annual donors who’ve given consistently but never at major gift levels, with donors over 55 who are starting to think about legacy, and with anyone who says, “I wish I could do more.” That phrase is an invitation. Most fundraisers hear it as an apology.
The organizations that understand blended gifts stop chasing individual transactions and start building donor portfolios — current revenue, future commitments, and deepening relationships that compound over time.
Blended gifts are ideally suited for endowment initiatives. A donor pledges $500,000 over five years to establish an endowed fellowship, then adds a $2 million bequest to complete an endowed chair. The current gift gets the fund started; the estate gift fulfills the vision. Both components serve the same purpose, separated only by time.
They also work well for cumulative giving societies. A board member who can’t write a $1 million check today can combine a $200,000 multiyear pledge with an $800,000 bequest to reach that threshold — and be recognized alongside peers with deeper pockets.
There's more wealth in the U.S. than there has ever been, and people are looking at their giving in terms of being an investment, not just a gift. They're thinking in terms of a long-term relationship that leaves a legacy.
Where blended gifts get complicated: capital campaigns for buildings. If you need $50 million for construction, a $10 million bequest from a 65-year-old doesn’t help you break ground. The money isn’t available when you need it. Before launching a capital campaign, have your CFO and board agree on whether and how blended gifts will count — and be honest with donors about the distinction between current impact and future commitments.
For the technical details on planned giving vehicles — bequests, gift annuities, charitable trusts, and beneficiary designations — see our resources at PlannedGiving.com. For a quick introduction, start with What Is a Planned Gift?
The following examples illustrate how blended gifts come together. Actual tax benefits depend on individual circumstances, asset type, and current tax law — but these scenarios show the logic and structure that make blended gifts so effective.
Margaret, 68, has given $2,500 annually for twelve years. She owns appreciated stock worth $75,000 that she purchased decades ago for $15,000. She cares deeply about the mission but has never considered herself a “major donor.”
Her blended gift: She transfers $25,000 in stock to the organization today — avoiding capital gains on that portion and potentially qualifying for a charitable deduction. She also adds a $150,000 bequest to her will, which costs her nothing now and can be changed if circumstances require.
The outcome: A $30,000 lifetime donor becomes a $175,000+ total commitment. More importantly, Margaret now sees herself as a stakeholder in the organization’s future — not just a supporter of its present.
For stock gift details, see Gifts of Appreciated Securities (Donating Stock to Charity) at PlannedGiving.com.
Richard and Susan, both 71, have capacity for a significant gift. They’ve been cultivated for two years. When asked for $100,000, they express enthusiasm — but hesitation. “We want to help, but we’re not sure we can commit that much right now.”
Their blended gift: They make a $40,000 gift today in cash. They also fund a $60,000 charitable gift annuity, which provides them approximately $2,500–$3,000 annually for life, depending on rates and structure. And they include the organization as a beneficiary of a $200,000 IRA — a simple form change that costs nothing today, can reduce their taxable estate, and avoids leaving those IRA dollars to heirs who may owe income tax on them.
The outcome: Instead of a declined $100,000 ask, the organization secures $100,000 in current commitments (cash plus gift annuity) and $200,000 in future value. Richard and Susan feel smart, not stretched — and they receive income from part of their gift.
Run CGA scenarios with the Gift Annuity Calculator at PlannedGiving.com.
David, 58, joined the board three years ago. He gives $10,000 annually and has participated in two capital campaigns. He wants to demonstrate leadership but is years from retirement and uncomfortable locking up significant assets.
His blended gift: He increases his annual gift to $15,000 and commits to that level for five years — $75,000 total. He also signs a non-binding statement of intent for a $500,000 bequest, to be fulfilled through a percentage of his estate. The bequest can be adjusted, and nothing changes about his current liquidity.
The outcome: David’s documented commitment totals $575,000. He can speak to other board members and prospects with credibility. And he’s modeled exactly the behavior the organization wants major donors to consider.
For bequest documentation, see The Charitable Bequest Planner (free download) at PlannedGiving.com.
Patricia, 74, is a retired teacher on a fixed income. She has a paid-off home worth approximately $400,000 and savings of $150,000. She’s given modestly for years and has told you repeatedly that she wishes she could do more.
Her blended gift: She funds a $50,000 charitable gift annuity, which provides her fixed payments for life — often at rates higher than CDs or bonds. She also arranges a retained life estate on her home: she continues living there for life, may receive a partial tax deduction now, and the property transfers to the organization at her passing.
The outcome: Patricia improves her income, stays in her home, and makes the largest gift of her life — possibly $450,000 in total value. She transforms from “I wish I could” to “I did.”
Learn about retained life estates and income options at How Planned Gifts Work (with videos) on PlannedGiving.com. See also Frequenly Asked Questions.
Different donors need different entry points. Here’s how to think about blended gifts based on where the donor is today.
They’ve given faithfully for years — maybe $500, maybe $5,000 — but they’ve never been asked for more. They’re loyal but invisible to your major gift radar.
The opportunity: A bequest commitment paired with a modest increase in their annual gift. The bequest is the real unlock — it signals they’ve mentally included your organization in their estate, which changes how they relate to you. The annual gift increase, even small, creates a current touchpoint and reinforces their decision.
Start with: “Some of our most dedicated supporters have found a way to continue their annual gift and leave a lasting legacy through their estate. Would that be something worth exploring?”
“Not now” rarely means never. It usually means the donor can’t visualize a comfortable path forward. Blended gifts give them that path.
The opportunity: A reduced current gift plus a planned gift that addresses the gap. If you asked for $100,000 and they’re hesitating, $40,000 now plus a $75,000 bequest often feels easier — even though the total commitment is higher. The psychology of spreading it across time reduces the perceived risk.
Start with: “What if we found a way to make an impact today and complete the gift in a way that doesn’t affect your current plans?”
This donor has stock, real estate, or an IRA that’s grown substantially. Selling triggers taxes. Holding feels unproductive. They’re waiting for a better option.
The opportunity: A gift of appreciated assets now — avoiding capital gains and potentially generating a deduction — paired with a beneficiary designation or bequest for additional assets. This is often where the largest blended gifts originate, because the donor suddenly sees a path that benefits them and the organization simultaneously.
Start with: “Have you considered how gifts of stock or other assets might work differently — and more favorably — than cash?”
Board members often give generously by their own standards but modestly by organizational needs. They need a way to demonstrate leadership without overextending.
The opportunity: A multiyear pledge at an elevated level, combined with a documented estate commitment. The estate portion is often the larger number, but the current pledge shows skin in the game. Together, they position the board member to ask others to do the same.
Start with: “When you’re asking others to consider legacy gifts, it helps to be able to say you’ve done it yourself. Is that something you’ve thought about?”
The asset a donor uses shapes the structure of the blend. Here’s how the most common assets work in blended gift strategies.
Cash is simple and immediate — but it’s also the hardest for donors to part with. Blended gifts reduce the cash burden by pairing a current cash gift with a deferred commitment that costs nothing today.
Common blend: A cash gift now plus a bequest or beneficiary designation. The donor satisfies the immediate ask with a manageable amount, then completes the commitment through their estate.
Stock held more than one year is often the most tax-efficient asset to give. Donors avoid capital gains on the appreciation and may deduct the full fair market value.
Common blend: A stock gift now — providing current impact and tax benefits — plus a bequest or IRA designation for future giving. Donors with concentrated stock positions often welcome this approach because it diversifies their holdings while supporting the organization.
See Gifts of Stock on PlannedGiving.com for transfer instructions and benefits.
Retirement accounts are among the most heavily taxed assets to leave to heirs — often losing a significant portion — sometimes 30–40% — to income and estate taxes. Leaving these assets to charity can reduce the taxable estate and avoids burdening heirs with income tax on inherited retirement funds.
Common blend: A current gift of cash or stock, plus a beneficiary designation naming the organization for a percentage of the IRA. Donors often designate 10-25% of their retirement account while leaving the remainder to family — a compromise that satisfies both goals.
Learn more at IRA Charitable Gifts on PlannedGiving.com.
Real estate gifts can be complex but extraordinarily valuable. Donors holding appreciated property — especially property they no longer use — can avoid capital gains while making a substantial impact.
Common blend: A gift of real estate or a retained life estate (donor continues living in the property), paired with a bequest or charitable gift annuity funded by other assets. These structures allow donors to give their largest asset without disrupting their lifestyle.
Donors sometimes hold paid-up life insurance policies they no longer need — often because the original beneficiaries are now financially secure or deceased.
Common blend: Transfer ownership of the policy to the organization (potentially generating a current deduction), plus a current gift to demonstrate ongoing commitment. The policy’s death benefit becomes a future gift; the current gift keeps the relationship active.
Blended gifts emerge from conversations, not presentations. Here’s language that opens doors without triggering resistance.
“Some of our supporters have found ways to make a gift today and also include us in their long-term plans — without overextending. Would it be helpful to explore what that might look like for you?”
This frames the blend as something others have done successfully — social proof — while offering exploration, not commitment.
“I completely understand. What if we looked at a way to spread your impact over time? You could do something meaningful today, and then complete the gift in a way that doesn’t affect your current finances at all.”
This validates their concern, then pivots to the deferred component as a solution rather than an additional ask.
“Many donors find that a gift in their will lets them make a bigger impact than they ever could during their lifetime — and it costs nothing today. Have you ever thought about including us in your estate plans?”
The phrase “costs nothing today” removes the immediate financial objection. The question is soft — “have you ever thought about” — rather than assumptive.
“There are ways to make a gift and actually receive income from it for the rest of your life. A charitable gift annuity works something like that. Would you like to see how the numbers might look for you?”
Lead with the benefit (income), name the vehicle casually, then offer to show — not tell — the details.
“When you’re asking donors to consider legacy gifts, it helps to be able to say you’ve made one yourself. Is that something you’ve put in place?”
Direct, peer-to-peer, and focused on their effectiveness as an asker — not on the organization’s need.
“So just to summarize — you’re comfortable with $25,000 this year, and you’ll update your will to include us for a future gift. That’s a tremendous commitment. Thank you.”
Restate the blend simply. Don’t oversell it. Express genuine gratitude and stop talking.
Sometimes the blend works in reverse — the donor has already committed a future gift, and you’re inviting them to add a current component.
“Mrs. Smith, you’ve included us in your will and we’re so grateful. You haven’t yet told us how you’d like those funds used when they arrive. Could we document your intentions so we can make sure we fulfill your wishes?”
This opens the door to a deeper conversation about purpose — which often leads to current giving to see that purpose realized now.
“Mr. Jones, you’ve already told us your estate will fund an endowed scholarship in your wife’s memory. Many donors in your position also make an annual gift to fund a current scholarship — so they can meet the student and share why your university mattered to you both. Would that interest you?”
The planned gift is the anchor. The current gift lets them experience the impact while they’re alive.
“Dr. Weiss, you’ve been incredibly generous — we’re an irrevocable beneficiary of your charitable remainder trust. You’ve mentioned how important the new wing is to you. Would you consider a proposal that combines your trust’s future value with a current pledge to put your name on that wing?”
For donors with significant deferred commitments, naming opportunities can bridge the gap between future intent and current recognition.
Scenarios adapted from Stuart Sullivan, Chief Development Officer, Shriners Hospitals for Children.
Blended gifts fall apart when major gifts and planned giving operate as separate departments with separate goals, separate metrics, and separate donor lists. The donor doesn’t experience your org chart — they experience one relationship. Your structure should reflect that.
In most organizations, the major gift officer is measured on dollars in the door this fiscal year. The planned giving officer — if there is one — is measured on expectancies that won’t mature for decades. These incentives work against each other.
The major gift officer has no reason to mention bequests (it doesn’t help their numbers). The planned giving officer rarely talks to living donors (their portfolio is full of expectancies, not relationships). The result: blended gifts don’t happen because no one owns them.
Blended gifts need to be counted, tracked, and credited in a way that rewards collaboration.
Credit both sides. When a donor makes a $50,000 current gift and a $200,000 bequest commitment, the major gift officer should receive credit for the $50,000 and the planned giving program should receive credit for the $200,000. If your CRM can’t handle dual credit, change your CRM — or change your reporting.
Train everyone. Every frontline fundraiser should understand the basics of planned giving — not the tax code, but the concepts. What’s a bequest? What’s a beneficiary designation? What’s a gift annuity? If your major gift officers can’t explain these in plain English, your blended gift pipeline is broken.
Share portfolios. Planned giving prospects often emerge from major gift conversations. Major gift capacity is often revealed in estate discussions. These lists should overlap, and both officers should have visibility.
Create a blended gift metric. Track blended gifts as their own category. How many donors made both a current and deferred commitment this year? What’s the total combined value? This metric tells you whether your teams are actually collaborating.
Most small and midsize organizations don’t have dedicated planned giving staff — and that’s fine. Blended gifts can still happen if your major gift officers know the basics and have access to planned giving resources that handle the technical details.
The key is making sure someone owns the conversation. If no one is trained to ask about estate plans, no one will.
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For technical resources on planned giving vehicles — bequests, charitable gift annuities, charitable remainder trusts, beneficiary designations, and more — visit PlannedGiving.com. And for a quick introduction to the fundamentals, start with What Is a Planned Gift?
The examples and scenarios on this page are illustrative. Actual tax benefits depend on individual circumstances, asset type, holding period, and current tax law. Donors should consult qualified legal and financial advisors before making charitable gifts.
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