Share This Checklist

Checklist: Planned Giving Checklist

A well-structured planned giving strategy ensures your charitable intentions are clearly documented, legally sound, and aligned with your legacy goals. This step-by-step guide will help you create a giving plan that maximizes your impact while providing financial and tax benefits.

1. Define Your Charitable Vision

Before making any commitments, take time to clarify your charitable intentions and assess how planned giving fits into your overall financial picture.

Clarify what impact you want to make through your planned giving.

How to do this:

  • Identify which causes or charities matter most to you.
  • Decide whether you want your gift to be unrestricted or designated for a specific purpose.
  • Determine whether you want to give during your lifetime, through your estate, or both.

Why it matters:

  • Ensures your giving is meaningful and aligns with your values.
  • Helps charities plan for the best use of your donation.

Understand your financial standing to determine what you can give.

How to do this:

  • Take inventory of assets like cash, investments, retirement funds, and real estate.
  • Consider your current and future financial needs.
  • Identify potential tax benefits associated with different types of giving.

Why it matters:

  • Helps you structure a planned gift that supports your philanthropic goals while maintaining financial security.
  • Ensures tax efficiency in your giving strategy.

2. Choose and Structure Your Planned Gifts

There are multiple ways to structure a planned gift, each with unique benefits. Choosing the right method ensures your giving is effective and beneficial for both you and your chosen charity.

Select the best giving structure based on your financial situation and goals.

How to do this:

  • Consider bequests in your will for direct gifts of cash, property, or a percentage of your estate.
  • Explore charitable remainder or lead trusts if you want to provide for both your heirs and a charity.
  • Look into donor-advised funds (DAFs) for tax-efficient giving with flexibility in distributing funds.
  • Assign charities as beneficiaries of retirement accounts, life insurance, or investment funds.

Why it matters:

  • Ensures your gift is structured in a way that aligns with your long-term financial and estate plans.
  • Some options offer tax advantages and income benefits for you and your heirs.

Proper planning requires expertise to ensure your gifts are structured correctly.

How to do this:

  • Work with an estate planning attorney to update your will and trusts.
  • Consult a financial advisor to align planned giving with your broader wealth strategy.
  • Meet with a tax professional to understand deductions, estate tax benefits, and income considerations.

Why it matters:

  • Reduces legal and tax complications that could impact your estate.
  • Ensures compliance with laws governing charitable giving.

3. Document and Communicate Your Plan

Making sure your intentions are clearly documented helps ensure your planned gifts are carried out as intended.

Legally record your planned gifts to ensure they are honored.

How to do this:

  • Update your will and estate documents to reflect your charitable bequests.
  • Name charities as beneficiaries on retirement accounts or life insurance policies.
  • Ensure trusts and other giving mechanisms specify clear terms for fund distribution.

Why it matters:

  • Prevents confusion and legal disputes.
  • Ensures your charitable gifts are distributed according to your wishes.

Inform charities of your planned gift to ensure they can accept and manage it properly.

How to do this:

  • Contact the charity to confirm they can accept your type of donation.
  • Discuss any specific restrictions or designations for how the funds should be used.
  • Ask if the charity provides naming opportunities, impact reports, or donor recognition programs.

Why it matters:

  • Helps charities plan for your donation and ensures alignment with their mission.
  • Provides peace of mind that your legacy will be honored.

Securely store all estate and planned giving documents in a way that ensures accessibility when needed.

How to do this:

  • Keep originals in a fireproof safe or with your estate attorney.
  • Share copies with trusted individuals such as your executor, financial advisor, or attorney.
  • Maintain a digital backup in a secure cloud storage system.

Why it matters:

  • Ensures your executor or trustee can easily access key documents.
  • Prevents misplacement or loss of important information.

4. Maintain and Review Your Giving Strategy

Your financial situation and charitable priorities may change over time. Periodically reviewing your plan ensures it remains aligned with your intentions.

Your financial standing, family situation, and tax laws may change, requiring updates to your planned giving strategy.

How to do this:

  • Revisit your estate and charitable plans every few years or after major life events.
  • Ensure charities you support are still aligned with your values and financial goals.
  • Update legal documents and financial accounts if needed.

Why it matters:

  • Keeps your giving plan relevant and legally sound.
  • Prevents funds from going to charities that no longer exist or align with your mission.

Ensure your executor understands your charitable giving plan and has clear instructions to carry it out.

How to do this:

  • Provide your executor with a written summary of your planned gifts and their intended distribution.
  • Clearly outline how funds should be allocated and any donor recognition preferences.
  • Include contact information for charities and financial professionals involved in your plan.

Why it matters:

  • Helps prevent confusion or delays in executing your wishes.
  • Ensures your executor or trustee has everything they need to manage your gifts effectively.

Leave Your Heirs The Gift Of Organization With a CLEAR Kit

Did you know?

The average estate takes 570 hours to administer.

Related Content