Benjamin Franklin wrote to a friend in 1789, “In this world, nothing is certain except death and taxes.” Ben was half right. Taxes are optional. At death, anyway. They are optional even for taxpayers with estates large enough to owe state or federal estate tax. They are also optional for taxpayers who have funds subject to income tax at their death, such as amounts remaining in their retirement accounts. The solution? Give the taxable assets to charity.

Planned giving professionals often spend time with the wealthiest of donors, those for whom the tax aspects of their giving is frequently a significant driver. For these conversations, the technical details and legal aspects of charitable gift vehicles, such as charitable remainder trusts, can be an essential element in the pursuit of an optimum gift.

However, it is important to consider what drives the majority of donors who make up the lion’s share of planned gifts. Charitable bequests continue to be a huge source of giving, even though they don’t afford tax benefits for most donors. According to Giving USA, testamentary gifts hover between 8% and 10% of total giving each year. Our clients regularly receive more than 90% of their planned giving revenue through charitable bequests, beneficiary designations, and other revocable forms. These ratios have not changed much in the past 40 years despite changes in various tax laws.

The democratization of charitable gift planning – ensuring the tools of charitable gift planning are accessible to all, not just a few – can take many forms, some familiar and some newer. Understanding and appreciating these concepts and trends is critical for today’s planned giving officer.