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.

How Faith Foundation Northwest Helps

We serve as a planned giving resource for churches and ministries across Alaska, Idaho, Oregon, and Washington. Our team provides:

• Gift acceptance policies and board-ready templates
• Donor communication materials — sample letters, bulletin inserts, and giving Sunday resources
• Staff and board training workshops on planned giving conversations
• Endowment establishment and investment management
• Charitable trust structuring in partnership with estate planning professionals

Types of Planned Gifts

1. Bequests & Will Provisions

A bequest is the simplest and most common planned gift. By including your church or ministry in your will or living trust, you direct a specific dollar amount, percentage, or the remainder of your estate to the causes you care about most.

We provide sample bequest language that you can use as a starting point to work with your attorney to ensure the provision is properly structured for your specific situation. Bequests can be unrestricted or designated for a specific purpose such as an endowment fund.

2. Beneficiary Designations

Naming your ministry as a beneficiary of a retirement account (IRA, 401(k), 403(b)), life insurance policy, or investment account is often the most tax-efficient gift a donor can make. These assets are taxed heavily when passed to heirs but transfer tax-free to a charitable organization.

Updating a beneficiary designation typically requires only a simple form from the account custodian — no attorney needed.

3. Charitable Remainder Trusts (CRTs)

A charitable remainder trust allows a donor to contribute assets — often appreciated securities or real estate — into a trust that pays income to the donor (or another beneficiary) for life or a term of years. When the trust ends, the remaining assets pass to the designated ministry.

CRTs provide an immediate income tax deduction, avoid capital gains on contributed assets, and generate a stream of income. Faith Foundation Northwest partners with estate planning professionals to structure and administer these gifts.

4. Endowment Gifts

An endowment is a permanent fund whose principal is invested and preserved while the earnings provide annual income for ministry. Endowment gifts compound over time, creating a self-sustaining source of funding that can support your church or organization for generations.

Faith Foundation Northwest manages endowment funds for organizations of all sizes. We provide investment management, spending policy guidance, and annual reporting so your leadership team can focus on ministry.

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.