Planned Giving Guide

What Is Planned Giving?

Planned giving is any charitable gift that is arranged during a donor's lifetime but typically realized at a later date — often as part of an estate plan. These gifts include bequests in wills, beneficiary designations on retirement accounts or life insurance policies, charitable remainder trusts, and endowment contributions.

Unlike annual giving, planned gifts tend to be significantly larger and represent a donor's deepest values and commitments. For most ministries, planned gifts are the single largest source of transformational funding they will ever receive.

Why It Matters

• Largest gifts — The most significant donations most ministries will ever receive come through estate plans — not annual giving campaigns.
• Tax-efficient — Planned gifts bypass capital gains, reduce estate taxes, and can provide income to donors during their lifetime.
• Donor-driven — Most planned giving donors don't need to be sold — they need to be invited. A simple conversation often unlocks gifts already in motion.
• Generational impact — Endowment gifts compound permanently, providing annual income that sustains ministry across generations.

Types of Planned Gifts

Bequests and Will Provisions

How it works. A bequest is a provision in your will or living trust naming a church, ministry, or other charity to receive part of your estate. You can leave a set dollar amount, a percentage of your estate, or whatever remains after your other gifts are honored.

Who it fits. Almost anyone. A bequest costs nothing during your lifetime and can be changed at any time, which is why it is the most common way donors make a first planned gift.

What it does. What you leave to charity is not counted in your taxable estate. You keep full use and control of the money for as long as you live.

How to start. Decide whether the gift is for general use or for a specific purpose, such as an endowment fund that pays out every year. Use the bequest language builder further down this page to draft the wording, then take it to your attorney to add to your will.

Want to go deeper? Three short videos cover what happens without a will, the four kinds of bequest, and how to word a restriction. They are in Planned Giving: Ways to Give, a twenty five minute course. Signing in is free.

Beneficiary Designations

How it works. You name a ministry as the beneficiary of a retirement account, life insurance policy, or investment account. The account passes to the charity directly when you die, outside your will.

Who it fits. Anyone holding a retirement account such as an IRA, 401(k), or 403(b). For most donors this is the single most effective asset to give.

What it does. Retirement savings are taxed when a person inherits them, so income tax comes out before your heirs see the money. Left to a ministry, the same account arrives whole, because a charity does not owe that tax. Giving the retirement account to charity and leaving other assets to your family often leaves more for everyone.

How to start. Ask your account custodian or insurance company for a change of beneficiary form. It usually takes a few minutes and does not require an attorney. You will need the organization's full legal name and tax ID number.

Want to go deeper? Two short videos explain which inherited assets are taxed and which are not, which is the whole reason a retirement account is the best thing to leave to ministry. They are in Planned Giving: Ways to Give. Signing in is free.

Gifts of Stock, Bonds, and Other Securities

How it works. Instead of selling an investment and donating the cash, you give the shares themselves. Your broker transfers them electronically to Faith Foundation Northwest, we sell them, and the proceeds go to the ministry you name.

Who it fits. Anyone holding stock, bonds, mutual funds, or ETFs worth more now than when they were bought, and held longer than a year.

What it does. Selling an appreciated investment triggers capital gains tax on the growth. Giving the shares directly does not, so the full value reaches ministry instead of part of it going to tax. You may also claim a charitable deduction for the value of the shares on the day they transfer.

How to start. This is the one planned gift you can set in motion today. Our stock gift page walks through the process, and the online form emails transfer instructions to you and your broker. Most transfers settle in three to five business days.

Want to go deeper? A three minute video walks through giving appreciated shares directly rather than selling them first. It is in Planned Giving: Ways to Give. Signing in is free.

Giving From Your IRA During Your Lifetime

How it works. Once you reach the qualifying age, you can have your IRA custodian send money straight from your account to a charity. The gift never passes through your hands, and it is not reported as income to you.

Who it fits. Donors old enough to qualify, especially those who must take a withdrawal each year whether they need the money or not. It also suits donors who take the standard deduction, because the benefit does not depend on itemizing.

What it does. A withdrawal you take yourself is added to your taxable income, even if you donate it afterward. A gift sent directly from the IRA is not, and it can count toward the withdrawal you are required to take that year.

How to start. Ask your IRA custodian for a qualified charitable distribution. The money has to go directly from the custodian to the charity to qualify. There is a minimum age and an annual limit, both set by the IRS and both subject to change, so confirm the current figures with your advisor or call us.

Want to go deeper? A three minute video explains how a gift sent straight from your IRA is treated differently from a withdrawal you take yourself. It is in Planned Giving: Ways to Give. Signing in is free.

Charitable Remainder Trusts

How it works. You place assets into a trust. The trust pays income to you, or to someone you choose, for life or for a set number of years. Whatever remains at the end goes to the ministry you named.

Who it fits. Donors holding appreciated assets such as securities or real estate who want to support ministry but still need income from those assets.

What it does. You receive a charitable income tax deduction in the year you fund the trust, and the assets can be sold inside the trust without triggering capital gains tax on the transfer. An asset you could not easily spend becomes a stream of income now and a gift later.

How to start. A charitable remainder trust is a legal document and needs an attorney to draft it. Faith Foundation Northwest works alongside estate planning professionals to structure and administer these gifts. Talk to us early, before any asset is sold.

Endowment Gifts

How it works. An endowment is a permanent fund. The original gift is invested and preserved, and only the earnings are spent, so the fund keeps giving every year without running out.

Who it fits. Donors who want a gift to last indefinitely rather than be spent once. An endowment can be funded by any of the other vehicles on this page, including a bequest, a beneficiary designation, or a transfer of securities.

What it does. Your gift keeps its name and its purpose permanently, and it produces income for ministry every year. The tax treatment is whatever applies to the vehicle you use to fund it.

How to start. Faith Foundation Northwest manages endowment funds for organizations of all sizes, including investment management, spending policy guidance, and annual reporting. To direct a gift to an endowment, name it in your bequest language or on your beneficiary form.

Benefits & Getting Started

Tax Benefits for Donors

• Bypass capital gains — Donating appreciated assets directly avoids capital gains tax entirely — maximizing the value of your gift.
• Estate tax reduction — Charitable bequests and trust gifts reduce the taxable value of your estate.
• Income tax deduction — Many planned gifts qualify for an immediate charitable income tax deduction in the year the gift is made.
• Income for life — Charitable remainder trusts and gift annuities can provide a stream of income to the donor during their lifetime.

This guide is general information, not legal or tax advice. Every situation is different. Faith Foundation Northwest does not provide legal or tax advice, and we encourage you to talk with your own attorney, tax advisor, or financial advisor before making a planned gift. We are glad to work alongside them.