Choosing the Gift That Fits

In my last post, I discussed the factors that complicate generosity beyond simple financial capacity to give. Every donor brings unique concerns, family dynamics, and goals to the table. Knowing their story makes it easier to help them give meaningfully.

But what does that look like in practice?

The best charitable plans are never one-size-fits-all. The same donor who cannot make a significant cash gift today may have appreciated assets, retirement funds, or estate planning opportunities that allow them to make a transformative impact. A good fundraiser should understand the tools available to help donors discover the approach that fits their circumstances.

Here are some of the most common gift strategies and the situations in which they can be most effective.

Easy Entry: Blended Gifts and QCDs

Many people assume a planned gift begins with a discussion about what happens after death. Often, though, the most successful gift plans begin with what a donor can do today.

Blended gifts combine current giving, ongoing financial commitments, and future estate gifts to accomplish a larger charitable goal. Before I introduce this concept to donors in the context of philanthropy, I begin with family.

When Sheryl and I were young, I spent twelve years pursuing five degrees. We had small children, and there were times when we weren’t sure how we were going to pay the next bill. Remembering those years has shaped the way we support our children and grandchildren today.

Rather than waiting until our death to pass along our resources, we help with needs as they arise, whether that is education, karate, dance, or other activities. The remainder of what we hope to provide will be accomplished through our estate.

This same philosophy can apply to charitable giving. Combining current gifts with estate plan contributions is an especially impactful way to fulfill long-term philanthropic goals.

Another easy entry point into planned giving is a qualified charitable distribution (QCD). For donors who are eligible, a QCD allows them to direct funds from an IRA to a charity, satisfying their required minimum distribution without recognizing the amount as taxable income.

Congress is considering expanding these opportunities to include 401(k) assets, which would create even more possibilities for charitable giving.

Sometimes the greatest opportunities for generosity are found not in cash but in the assets a donor already possesses.

The Best Gift May Not Be Cash

A donor with substantial wealth but non-liquid assets needs a different strategy than someone with significant disposable income. Sometimes the greatest opportunities for generosity are found not in cash but in the assets a donor already possesses.

For example, a donor planning to sell a business, stock, or another highly appreciated asset may choose to transfer a portion to charity before the sale. This can create a charitable deduction that helps offset capital gains while allowing the donor to fulfill their charitable objectives.

Retirement assets can also become powerful charitable tools. A testamentary charitable remainder trust can provide income to heirs for a period of years while ultimately supporting the donor’s charitable goals.

These strategies demonstrate a fundamental principle of gift planning: generosity is not limited to the dollars in one’s checking account.

Gifts That Provide Income

Sometimes the donor’s primary concern is not simply making a gift, but ensuring that they or their loved ones maintain financial security. In those cases, charitable planning can create both a charitable impact and a reliable income stream.

Charitable gift annuities and charitable remainder trusts can provide income to the donor and their heirs while also greatly benefiting charity.

I have seen these strategies transform lives.

One donor, Betty, was a single woman whose most valuable asset was her farm. She leased the land to her nephew, but the income it generated was not enough to provide her with financial security.

By placing half of her farm into a charitable gift annuity, she received a greater stream of income than she had from renting the property. She then sold the remaining half of the farm to her nephew, leaving her with cash, dependable income, and a charitable deduction that helped offset capital gains.

Another donor was a 76-year-old farmer who could no longer work because of severe arthritis. His 200-acre farm generated $44,000 annually through a lease with his neighbor.

By transferring half of the farm into a charitable remainder unitrust, he increased his annual income to $55,000. The trust sold the land to his neighbor, and the farmer sold the remaining acreage as well. In the end, he received $1 million in cash, increased annual income, and a charitable deduction.

The best charitable plans benefit both the donor and the organization they choose to support.

A Common Request: Bequests

Bequests are often the easiest planned gift for fundraisers to discuss. They can be structured as a specific dollar amount, a percentage of an estate, or the residual amount that remains after other obligations have been fulfilled.

For many donors, particularly those who are retired or have achieved financial stability, a bequest is an excellent way to leave a lasting charitable legacy. It allows donors to support the causes they care about while maintaining complete control of their assets during their lifetime.

However, because a bequest is fulfilled only after death, it should be considered as the final piece of a lifetime of generosity. Younger donors or those still establishing financial security may benefit more from conversations about current giving strategies before discussing a bequest. Those gifts allow donors to experience the impact of their generosity while continuing to deepen their relationship with the organization.

Like every other planned gift, a bequest is most effective when it fits the donor’s circumstances, family, and long-term goals.

There is no universal ‘perfect gift.’ The goal is to identify the combination of strategies that aligns with a donor’s family, finances, and values.

Be Patient, Never Push

The greatest mistake a fundraiser can make is rushing the process. The strongest planning prospects tend to be donors who have already made gifts. Reducing planned giving to a single conversation or transaction limits the potential for continued generosity. A relationship built over time deepens both the donor’s connection to the organization and the organization’s understanding of the donor’s circumstances, resulting in more thoughtful and impactful giving.

There is no universal “perfect gift.” The goal is to identify the combination of strategies that aligns with a donor’s family, finances, and values.

When fundraisers approach these conversations with patience, they open the door to forms of generosity that might never have surfaced in a more hurried process.

©2026, Eddie Thompson, Ed.D., FCEP
Founder and CEO, Thompson & Associates

“If we merely aim for the industry standard, then our goal is mediocrity. Emulating the average nonprofit, we are destined to live with all the problems the average nonprofit faces. So, we suggest you aim to be exceptional in your approach to fund development.”