CHARITABLE GIVING
Understanding Planned Giving
Planned giving is the practice of contributing money or assets to charity during a client’ s lifetime or as part of their estate plan and doing so in a structured manner to achieve the most financially optimal results— for the client as well as the charity. Depending on a client’ s circumstances, planned gifts can include cash, appreciated securities, real estate, retirement assets, life insurance, and pretty much any other kind of asset. Some strategies can also deliver a lifetime of payments to the donor or to beneficiaries the donor names.
Many nonprofit organizations accept planned gifts, and some have dedicated planners in-house who help advisors and clients understand various gift structures and how they can maximize both charitable impact and tax efficiency. Philanthropic consultants also offer gift planning experts who can partner with advisors to support their clients.
Frequently Used Vehicles
Gift planning vehicles can range considerably in structure and can be tailored to meet a client’ s financial and philanthropic objectives. Here’ s an overview of the most common planned gifts:
A charitable bequest is the simplest form of planned giving. By including a charitable organization in a will or revocable trust, clients can create a meaningful legacy while maintaining complete control of their assets throughout their lifetime. Because these gifts are revocable, they also offer flexibility if circumstances change.
For clients who want to support charity without updating their estate documents, beneficiary designations can be equally effective. Retirement accounts, life insurance policies, and certain investment accounts allow clients to name charitable organizations as beneficiaries. In some situations, leaving tax-deferred retirement assets to charity while directing other assets to family members can create a particularly tax-efficient estate plan. Beneficiary designations also offer the same flexibility as charitable bequests.
For clients looking to balance charitable goals with their need for lifetime income, a charitable remainder trust allows them to contribute appreciated assets, receive an immediate tax deduction and an income stream for a specified period or for life, and to direct the remaining assets to charity.
Another option for clients seeking predictable income is the charitable gift annuity. In exchange for an irrevocable gift, a charitable organization agrees to make fixed payments for life to one or two annuitants named by the donor, such as the donor and the donor’ s spouse, with the remaining funds ultimately supporting the organization’ s mission. The donor earns an immediate tax deduction for their gift, and typically a portion of the payments are tax-free for many years.
Many nonprofit organizations accept planned gifts, and some have dedicated planners in-house who help advisors and clients understand various gift structures and how they can maximize both charitable impact and tax efficiency.
For clients with estates large enough to be concerned about federal estate taxes, the charitable lead trust offers a tax-efficient way to pass assets to heirs and provide a stream of payments to one or more charities the donor cares about.
Each of these vehicles serves a different purpose. The right solution depends not only on tax considerations, but also on a client’ s financial needs and goals, family dynamics, and charitable priorities.
Enhancing The Wealth Transfer Conversation
You can best weave planned giving into wealth transfer discussions with your clients by asking them thoughtful questions to understand their needs and intentions. For instance, you can ask them things like:
• Have you considered whether charitable giving should be part of your estate plan?
• Are there nonprofit organizations that have played an important role in your life?
• What values do you hope your children and grandchildren inherit?
• Have you considered creating income for yourself or your surviving spouse while also benefiting charity?
Once a client’ s objectives are clear, the appropriate planning strategies and gift structures often follow naturally. Advisors who are comfortable having these conversations will be better positioned to help clients align their financial plans with the long-term impact they hope to have.
Bear in mind, however, that you don’ t need to know all the answers. As the wealth transfer between generations accelerates, clients will increasingly expect their advisors to coordinate a team of people working in different disciplines, including estate planning attorneys, CPAs, nonprofit planned giving officers, and philanthropic specialists, all of whom bring valuable expertise to the table. Financial advisors don’ t need to replace those professionals or do all the work they do. Instead, they can best help clients by recognizing opportunities and assembling the right team to implement them.
This collaborative approach often leads to better outcomes because charitable planning rarely exists in isolation. Decisions about philanthropy intersect with retirement planning, estate planning, family governance, and tax strategy. When conversations on those topics happen together rather than separately, clients gain a more cohesive plan— and greater confidence that their financial decisions reflect both their personal values and long-term objectives.
Ultimately, that’ s what comprehensive wealth planning is all about.
BILL LASKIN is Vice President at PG Calc, the planned giving division of Foundation Source, the leader in philanthropic services and software for donors, nonprofits, advisors and financial institutions.
34 | FINANCIAL ADVISOR MAGAZINE | SEPTEMBER / OCTOBER 2026 WWW. FA-MAG. COM