Planned Giving - Frequently Asked Questions
The preparation of wills and trusts needs an attorney's professional training. These examples are shown as a public service to provide information of a general nature only. For your specific circumstances, professional legal and tax advice should always be sought.
For more information, please contact our Development Department at 805-964-8857 extension 3
What is Planned Giving?
Planned giving is the process of donating planned gifts. A planned gift is a contribution that is arranged in the present and allocated at a future date.
Commonly donated through a will or trust, planned gifts are most often granted once the donor has passed away. Always consult with your financial advisor or attorney for further details and clarifications.
What is a Planned Gift Program?
A planned gift program is a means of donors leaving behind a legacy to carry on their commitment to support CommUnify’s mission. Planned gift programs also serve to help support you, the donor, throughout the process of enacting a planned gift. Along with major gifts, planned gifts are the biggest donations a nonprofit receives. They can both greatly aid our organization and help to continue our loyal donor’s legacy.
Although the agency will not immediately receive planned gifts as we would major gifts, their scope and scale make them extremely worthwhile to our agency.
Planned giving represents a large, often untapped, proportion of donor gifts.
What are the benefits of Planned Gifts for Donors?
Sizable tax break
From a fiscal perspective, the tax breaks are an enormous advantage to making a planned giving arrangement. The specifics will vary according to a range of factors, so we will evaluate the possibilities on a case-by-case basis.
Control how funds are used
Donors can give to a certain campaign or to the annual fund, but rarely do they have the chance to detail exactly how their money should be spent within the organization. Planned gifts put complete power in the donor’s hands.
Many donors want to give major gifts in their lifetimes but do not have the financial flexibility to do so. Planned giving allows donors to give those large gifts after they have passed away, when life expenses will not interfere.
Planned gifts are arranged by the development staff and the donors themselves. They are set up in advance, often in coordination with the creation of a will.
While a family might donate the money in a memorial fund to their loved one’s favorite charity, memorial funds come from friends and family whereas planned gifts come from a decision made by the donor. Although donations from memorial funds are certainly welcome and can have a big impact, organizations can’t put plans and programs in place to acquire them the same way they can with planned gifts.
Memorial funds are almost always created after someone has passed away.
A memorial fund might be seeded by a one-time fundraiser or it could be a continual fund that is donated to regularly. In many cases, memorial funds are set up to help the family of the person who has passed away cover the costs of a funeral or daily expenses. In some cases though, the fund is established to make a charitable donation in honor of the person who has passed away, in which case the memorial fund would share some similar traits with a planned gift.
A Codicil is a document used to make minor changes to an existing will. This document is used when the person who created the will, known as the Testator, does not want to create an entirely new will to make minor changes, such as adding, deleting, or changing an existing provision.
"I give to CommUnify, 5638 Hollister Avenue, Suite 230, Goleta, CA 93117, Federal Tax Identification #95-3680171, ___________________Dollars ($___________)."
"I give to CommUnify, 5638 Hollister Avenue, Suite 230, Goleta, CA 93117, Federal Tax Identification #95-3680171, [insert here a description of the particular property]."
"I give to CommUnify, 5638 Hollister Avenue, Suite 230, Goleta, CA 93117, Federal Tax Identification #95-3680171, [all] [a portion] of the rest of my estate."
"If [name/s of primary beneficiary/ies] do/es not survive me, or shall die within ninety (90) days from the date of my death, or as a result of a common disaster, then I give to CommUnify, 5638 Hollister Avenue, Suite 230, Goleta, CA 93117, Federal Tax Identification #95-3680171, [insert here the exact dollar amount, description of property, or percentage of residual estate]."
A residual estate gift comes to us after your estate expenses and other gifts are paid.
"I give and devise to CommUnify, 5638 Hollister Avenue, Suite 230, Goleta, CA 93117, Federal Tax Identification #95-3680171, all [or state a percentage] of the rest, residue and remainder of my estate, both real and personal, to be used to support its Healthy Senior Meals Program."