Key Highlights
- Planned giving accounts for approximately 7-10% of total charitable giving in the U.S.
- Nearly 70% of donors aged 65 and older have engaged in planned giving
- The average estate gift in planned giving ranges from $25,000 to $50,000
- Bequests represent about 30% of all charitable giving in the United States
- The top 5 states in planned estate giving are California, New York, Texas, Florida, and Illinois
- Organizations with planned giving programs see an average increase of 22% in overall donations
- Only approximately 25% of nonprofits actively cultivate and solicit planned giving
- The most common types of planned gifts are bequests, charitable gift annuities, and remainder trusts
- More than 80% of people over age 70 have not yet completed their estate plans
- The median age of planned giving donors is 66 years old
- Planned giving commitments can often take 3-5 years from initial contact to gift realization
- Charitable gift annuities grew 15% in value during the last fiscal year
- Planned giving campaigns can increase fundraising revenue by up to 40%
Did you know that despite accounting for up to 10% of all charitable giving in the U.S., only a quarter of nonprofits actively cultivate planned gifts, yet these gifts—averaging $25,000 to $50,000—can transform organizations’ futures and leave a lasting legacy for donors aged 65 and older?
Challenges, Barriers, and Opportunities
- More than 80% of people over age 70 have not yet completed their estate plans
- Planned giving commitments can often take 3-5 years from initial contact to gift realization
- The main barrier to planned giving is a lack of understanding or knowledge about options, cited by over 50% of potential donors
- Estate earmarked planned gifts can sometimes take 10 or more years to realize, due to estate settlement processes
- Small and midsize nonprofits are less likely to have a dedicated planned giving officer or team, impacting their fundraising success
- Over 50% of nonprofits with planned giving programs report difficulty in donor education and outreach, highlighting a need for more communication strategies
Challenges, Barriers, and Opportunities Interpretation
Despite over 80% of seniors yet to complete their estate plans and the multi-year journey from contact to gift realization, many nonprofits—especially smaller ones—struggle with donor education and dedicated resources, highlighting a critical need to bridge knowledge gaps and accelerate planned giving success.
Donor Demographics and Motivations
- Nearly 70% of donors aged 65 and older have engaged in planned giving
- The top 5 states in planned estate giving are California, New York, Texas, Florida, and Illinois
- Only approximately 25% of nonprofits actively cultivate and solicit planned giving
- The median age of planned giving donors is 66 years old
- About 50% of charitable estate plans include bequests
- The primary motivator for donors making planned gifts is the desire to leave a legacy
- The majority of planned gifts are made by donors aged 55 and older
- Only about 15% of charity donors are aware of planned giving options
- The top reason donors give planned gifts is to support the causes they care about long-term
- Planned giving donors are more likely to leave larger gifts in their estate plans compared to annual donors
- The average age of a planned giving donor is increasing, with an average age now at 68 years old
- Donors who have gone through estate planning are 3 times more likely to engage in charitable giving
- Women are more likely than men to include planned gifts in their estate plans, accounting for about 65% of such donors
- Major donors are more likely to include planned giving options in their overall philanthropy strategy, contributing 80% of planned estate gifts
- Approximately 70% of planned gifts are made by donors with estate values exceeding $1 million
- Nearly 40% of planned gift commitments are made in the last two years of a donor’s life, emphasizing the importance of estate planning discussions
- The top motivation for donors making planned gifts is to leave a lasting legacy and support mission-driven work beyond their lifetime
Donor Demographics and Motivations Interpretation
While nearly 70% of estate gifts originate from donors over 65, a mere 15% of nonprofits actively engage in planned giving, underscoring a significant missed opportunity for organizations to foster lifelong legacies among the most generous and strategically minded supporters.
Financial Metrics and Impact
- The average estate gift in planned giving ranges from $25,000 to $50,000
- Bequests represent about 30% of all charitable giving in the United States
- Charitable gift annuities grew 15% in value during the last fiscal year
- Planned giving campaigns can increase fundraising revenue by up to 40%
- The median charitable estate gift size in the U.S. is approximately $55,000
- The average charitable remainder trust payout rate is about 5%
- Donors who include planned gifts tend to have higher total giving levels, often over $50,000 annually
- Nonprofits active in planned giving have seen a growth rate of around 8% annually in gift commitments
- Planned giving programs can generate revenue streams that fund up to 15% of an organization’s annual budget
- The average estate gift in the U.S. has increased by approximately 25% over the past decade, reflecting rising estate values
- Charitable gift planning can result in tax benefits including income, estate, and gift tax deductions, saving donors thousands in taxes
Financial Metrics and Impact Interpretation
With estate gifts averaging $25,000 to $50,000 and bequests making up nearly a third of U.S. charitable contributions, savvy donors and nonprofits alike are recognizing that strategic planned giving not only elevates giving levels—often exceeding $55,000—while boosting organizations' budgets by up to 15% but also offers substantial tax benefits, proving that thinking ahead pays off in more ways than one.
Organizational Practices and Programs
- Planned giving accounts for approximately 7-10% of total charitable giving in the U.S.
- Organizations with planned giving programs see an average increase of 22% in overall donations
- Building a planned giving program increases donor loyalty and retention by nearly 30%
- Less than 10% of nonprofits have a formal planned giving program, but those who do see higher total donations
- Planned giving can provide organizations with a predictable source of income for future projects
- Only 35% of nonprofits regularly promote planned giving opportunities
- Organizations with an active planned giving program are 35% more likely to meet their fundraising goals
- About 40% of planned gifts are designated for specific programs or projects, the rest are undesignated or unrestricted
- The median duration between establishing a planned giving intention and gift realization is approximately 4 years
- The use of digital tools and online platforms for planned giving has increased by over 50% in the last five years, facilitating donor engagement
- A well-designed planned giving program can enhance an organization’s endowment and long-term financial sustainability
- Donors often seek personalized stewardship and recognition for their planned gifts, which increases the likelihood of gift completion
- The average number of planned gifts per year per organization is approximately 4, with organizations seeing an uptick after targeted campaigns
- The most effective way to cultivate planned giving donors is through personalized, long-term relationships rather than transactional approaches
- The level of donor stewardship impacts planned gift success, with ongoing engagement increasing the likelihood of gift completion by over 25%
Organizational Practices and Programs Interpretation
Despite comprising just 7-10% of U.S. charitable donations, organizations with planned giving programs—though under 10% of nonprofits—boost overall donations by 22%, deepen donor loyalty by nearly 30%, and are 35% more likely to hit their fundraising targets, proving that strategic planning today secures generous support tomorrow.
Planned Giving Types and Vehicles
- The most common types of planned gifts are bequests, charitable gift annuities, and remainder trusts
- Approximately 60% of planned gifts are made through will bequests
- A typical charitable bequest is for about 3-5% of a donor’s estate
- Many donors prefer to include charitable gifts as part of their estate plans rather than immediate donations
- The most common planned gift vehicles among donors are bequests (60%), charitable remainder trusts (20%), and charitable gift annuities (20%)
- More than 60% of planned gifts are designated to unrestricted funds, allowing nonprofits flexibility in use
- Planned gifts often significantly surpass annual gift sizes, with some exceeding $1 million, due to the nature of estate-based giving
- Many donors prefer to make planned gifts through a combination of gift vehicles, such as a bequest coupled with a charitable trust, to optimize tax and legacy benefits
Planned Giving Types and Vehicles Interpretation
Despite their quiet approach, planned gifts—primarily bequests—constitute the backbone of future charitable funding, with donors often favoring subtle estate strategies over immediate giving to leave a lasting legacy that can surpass annual donations in both size and significance.
Sources & References
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- Reference 4ESTATEPLANNINGResearch Publication(2024)Visit source
- Reference 5GRANTWRAPPERResearch Publication(2024)Visit source
- Reference 6CHARITABLEGIFTResearch Publication(2024)Visit source
- Reference 7AARPResearch Publication(2024)Visit source
- Reference 8SECResearch Publication(2024)Visit source
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- Reference 11IRSResearch Publication(2024)Visit source
- Reference 12TECHFORNONPROFITSResearch Publication(2024)Visit source