As a major gift officer, your conversations with donors often extend beyond immediate giving.
Donors mention their estate plans, ask about tax-advantaged giving, or express interest in leaving a lasting legacy.
These moments represent significant opportunities—if you understand planned giving well enough to respond effectively.
This guide provides a foundational understanding of planned gifts so you can recognize opportunities, have informed conversations,
and connect donors with the right resources when deeper expertise is needed.
What Is Planned Giving (Video)
The term “planned” refers to the deliberate nature of these gifts. They require planning because they involve legal documents, tax considerations, and sometimes complex financial instruments. A donor doesn’t wake up one morning and make a charitable remainder trust on impulse—it takes time, professional advisors, and intentional decision-making.
For major gift officers, here’s the key distinction: major gifts come from a donor’s wealth, but planned gifts often come from a donor’s accumulated assets and estate. A donor who gives you $25,000 annually might have the capacity to leave $500,000 or more through their estate.
Understanding planned giving opens conversations about this deeper level of generosity.
You might think planned giving belongs to a separate department or a specialized officer. In some organizations, it does.
But the reality is that major gift officers are often the first people donors tell about their estate intentions.
You’ve built the relationship. You’ve earned the trust. When a donor says, “I’ve been thinking about including you in my will,”
they’re telling you—not someone they’ve never met.
Importance of Planned Giving (Video)
Studies consistently show that donors who make both current gifts and planned gift commitments give more during their lifetimes. The act of including an organization in their estate deepens their connection and often increases annual giving. As a major gift officer, facilitating this conversation isn’t just about future revenue—it can enhance your current fundraising results.
You don’t need to become a planned giving technician. You don’t need to calculate charitable remainder trust payouts or explain the tax code. You need to recognize when a donor is signaling interest, respond with enough knowledge to keep the conversation going, and know when to bring in additional expertise.
While dozens of planned giving vehicles exist, three types account for the vast majority of planned gifts.
Master these, and you’ll be equipped to handle most conversations that come your way.
A bequest is simply a gift made through a will or living trust. It’s the most common planned gift by far,
accounting for roughly 80% of all planned gift revenue at most organizations.
The donor includes language in their estate documents directing that a specific amount, percentage, or asset
go to your organization after their death.
Bequests are attractive to donors because they require no current sacrifice. The donor continues to use and control their assets
during their lifetime. They can change their mind at any time by updating their estate documents.
There’s no minimum amount, no complex paperwork beyond the will itself, and no immediate tax filing requirements.
When a donor mentions they’re updating their will, that’s your opening. A simple question—“Have you considered including us in your plans?”— can start a meaningful conversation. Many donors have never been asked. They assume the organization doesn’t need or want this type of gift.
Your invitation can unlock generosity they’ve been waiting to express.
Retirement accounts—IRAs, 401(k)s, 403(b)s—represent one of the largest asset classes for many Americans,
yet they’re often overlooked in charitable planning. A donor can name your organization as a beneficiary of their retirement account with a simple form from their account custodian. No attorney required. No changes to their will.
Video: Retirement Plans (Share with Donors)
A QCD allows donors age 70½ or older to give directly from their IRA to charity. The gift satisfies their Required Minimum Distribution without being reported as taxable income. This isn’t a planned gift—it’s a current gift. But QCD conversations often lead to legacy conversations. A donor already giving from their IRA may never have considered naming your organization as a beneficiary of what remains. You’re talking about the same account—the estate gift is a natural next step.
Here’s why this matters: retirement accounts are among the most tax-burdened assets a person can leave to heirs. When children inherit an IRA, they must withdraw the funds within ten years and pay income tax on every dollar. When a nonprofit inherits an IRA, there’s no tax at all—the full amount goes to the charitable mission. Donors can leave tax-efficient assets like appreciated stock to their heirs while directing their tax-heavy retirement accounts to charity.
Everyone wins.
The SECURE Act of 2019 made this even more relevant by eliminating the “stretch IRA” for most non-spouse beneficiaries. Donors who understood the old rules may not realize how the landscape has changed. If you can mention this shift in conversation—“Did you know the rules around inherited IRAs changed recently?”— you position yourself as a knowledgeable resource and open the door to further discussion.
Video: Charitable Gift Annuities (Share with Donors)
Gift annuities appeal to donors who want to give but also need income security. They’re particularly attractive in low-interest-rate environments because annuity rates often exceed what donors can earn from CDs or bonds. A 75-year-old donor, for example, might receive an annuity rate of 6% or higher—guaranteed for life—while also making a meaningful charitable gift.
Not every organization offers gift annuities—they require reserve funds and regulatory compliance. But if your organization does offer them, understanding the basics helps you identify candidates. Donors who express concern about outliving their money, who mention low CD rates, or who want to give but feel they can’t afford to are all potential gift annuity prospects.
Listen for phrases like:
Each of these statements is an invitation. The donor is testing the waters, seeing how you respond. A major gift officer who recognizes the signal and responds with genuine interest—not a sales pitch, but authentic curiosity—opens the door to deeper conversation.
When a donor signals interest in planned giving, your job isn’t to close a gift. It’s to keep the conversation going, gather information, and connect the donor with appropriate resources.
Start with appreciation. “Thank you for thinking of us in that way—it means a great deal.” Then ask open-ended questions:
Avoid technical details unless you’re certain of your information. It’s far better to say,
“I’d love to connect you with our planned giving team—they can walk through the specifics” than to provide incorrect tax or legal guidance. Your role is relationship, not technical execution.
Document everything. Note what the donor said, what type of gift they mentioned, and any timeline they indicated. Share this with your planned giving colleagues or supervisor. Even if a gift takes years to materialize, this information is invaluable.
This overview gives you enough knowledge to recognize opportunities and hold initial conversations. But planned giving is a deep field, and continued learning will make you more effective.
For comprehensive resources on planned giving—including calculators, marketing materials, donor education tools, and detailed explanations of every gift type—visit PlannedGiving.com. The site serves over 5,000 nonprofit clients and offers both free resources and professional tools to support your planned giving efforts.
Consider asking your organization about planned giving training opportunities. Many conferences include planned giving sessions, and webinars can quickly deepen your knowledge without requiring travel.
Planned gifts represent the largest gifts most donors will ever make. A donor who gives $5,000 annually might leave $500,000 in their estate. As a major gift officer, you’re uniquely positioned to surface these opportunities because you’ve built the relationships where these conversations happen naturally.
You don’t need to become a planned giving expert. You need to understand the basics, recognize the signals, respond with warmth and competence, and connect donors with deeper resources when appropriate.
Do this well, and you’ll unlock a dimension of generosity that transforms both your donors’ legacies and your organization’s future.
Ready to learn more? Explore the complete library of planned giving resources at PlannedGiving.com.
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