Bequests are the most popular and simplest type of legacy giving. In their wills, donors will name what they want to give to your nonprofit, whether it’s a specific amount of funds, stocks, a piece of art, or even a percentage of the value of their estate. Keep in mind that while your nonprofit can encourage donors to create a will, you cannot participate in actually creating it.
When taking out a life insurance policy, donors can name a nonprofit as one of its beneficiaries. Donors who currently have life insurance policies they don’t need anymore can also participate in legacy giving by donating their policy’s accumulated value to your nonprofit.
Some of your donors may be interested in joining a tax-deferred retirement plan. They can use this as a method to participate in your legacy giving program by either naming your nonprofit a beneficiary or as a recipient of the percentage of the proceeds.
Charitable gift annuities.
Large nonprofits may set up charitable gift annuities for their donors. With this method, donors make a large gift during their lifetime, and in exchange, the nonprofit provides them a fixed income for the rest of their life. When the donor passes, the nonprofit will receive the remaining funds.
Retained Life Estates
Instead of making a monetary donation, donors can give nonprofits a piece of property they own, while still retaining the right to use it during their lifetime. After the donor passes, the nonprofit can choose to keep or sell the property.