Planned giving refers to the process of donors committing to give planned gifts to nonprofit organizations. Planned gifts are charitable contributions that are part of a donor’s financial or estate plans and are typically given to nonprofits once the donor passes away.

Everyone should have an estate plan to support their future and protect what they love. A will (or revocable trust) is the best way to:

• Protect the people, pets, and communities you love
• Save your family stress and complications by giving exact instructions on how to handle your estate
• Start a legacy with Santa Barbara Humane to create compassionate communities and care for dogs and cats for generations to come

Planned gifts can come in a variety of forms, from simple bequests to complex trusts, all with different requirements and advantages depending on a donor’s circumstances. However, planned gifts most commonly fall within a few categories: outright gifts of cash or non-cash assets, gifts that pay income, and more complex gifts that protect a donor’s assets.

Within these broad categories, there are a few common ways to give:

Bequests
Bequests are a popular and fairly simple way to make a planned gift. These ‘outright’ gifts are charitable contributions left as a bequest in a legal will. They’re usually given as a specific amount, a remainder of a donor’s estate after other bequests have been paid, or a percentage of a donor’s total wealth.

Charitable Gift Annuities
A charitable gift annuity allows a donor to give a large amount of cash or securities in exchange for a fixed income payment for life. The nonprofit keeps any leftover funds as well as any income generated from investing those funds.

Charitable Remainder Trusts
There are a few types of charitable remainder trusts, but in each, the remaining funds go to the nonprofit after the trust is terminated. A charitable remainder annuity trust pays the donor a fixed amount based on a percentage of the initial assets used to fund it. A charitable remainder unitrust pays the donor a percentage of its principal and is revalued annually so that payments increase over time.

Charitable Lead Trusts
When a donor makes this type of gift, the charitable lead trust pays an ‘income’ to the nonprofit for a specified number of years or for the donor’s lifetime. And when that term is up, the assets are given back to the donor or their beneficiaries.

Other gift types that some organizations include in their planned giving programs are non-cash assets, such as stock or real estate, giving from IRAs (also known as Qualified Charitable Distributions or QCDs), and Pooled Income Funds.

Bequests are by far the most popular and easiest type of planned gift. Bequests are left in a donor’s trust, will, or estate plan, and are given to a nonprofit upon the donor’s passing. 

Bequests make up roughly 9% of all charitable giving, and the average bequest size is $50,424.

To make a charitable bequest, a donor has to allocate a portion of their estate to a nonprofit in their legal will. They are usually allocated in three ways:

• A specific amount of cash (e.g., $10,000);
• A percentage of the donor’s total estate (e.g., 10% of an estate of $1 million would be $100,000 to charity); or 
• The remaining value of the estate after all other bequests have been paid

 Bequests are a great option for everyone as they don’t cost a donor anything during their lifetime.

Donors can name a nonprofit as the beneficiary of their life insurance policies or unused retirement assets. These can include individual retirement accounts (IRAs), 401(k)s, 403(b)s, or pensions. Because these gifts are often larger than what a donor could give in their lifetime, they can significantly impact a nonprofit.

These types of planned gifts are a good option for donors who have paid-up policies or retirement accounts that they won’t use. If a donor has a large estate, gifting retirement accounts and life insurance policies can help their heirs avoid income and estate taxes.

Another way to show your love and support is to set up a memorial fund at Santa Barbara Humane for a beloved pet or family member. What a wonderful way to remember that pet or family member for generations to come!

1. Planned giving allows donors to leave a legacy.
   If you and your family have supported Santa Barbara Humane for years, making a bequest in your will is a powerful way to leave a lasting impact. And if you haven’t been able to make a large gift during your lifetime, you can establish your legacy by making a bequest in your will to support Santa Barbara Humane for years to come.
2. You can decide how your planned gifts are used.
   When leaving a bequest in a will to a charitable organization, donors can allocate how or where they want that money to be spent. Because wills are fairly easy to update, donors can also keep their bequests current by checking in with gift officers on where their donations will have the greatest impact.
3. Planned gifts can come with tax breaks.
   Depending on the type of planned gift a donor makes, there can be tax benefits for you and your family. Bequests can reduce federal estate taxes for heirs, and these deductions aren’t limited to cash — they can include assets like real estate, IRAs, and stock. Some other types of planned gifts, such as charitable remainder trusts, are granted tax-exempt status by the IRS. However, tax advantages to planned gifts can be a little complicated, so make sure to check with your tax advisor.
4. Donors can create a legacy for themselves and their families.
   Through planned gifts, donors can leave a legacy behind after they pass. That’s why planned giving programs are often called legacy programs or legacy societies. Whether leaving a bequest as a tribute to a family member or creating a legacy for themselves, donors benefit from planned gifts because they can make a lasting impact on a cause that’s important to them.

While major donors can create a big impact during their lifetimes and occasionally be recognized with naming opportunities, charitable bequests are one of the few ways that any donor can see similar recognition. To honor these gifts, nonprofits often offer perks like public acknowledgments or special events. We invite you to join our Santa Barbara Humane 1887 Legacy Circle.

Through planned gifts, donors can leave a legacy behind after they pass. That’s why planned giving programs are often called legacy programs or legacy societies. Whether leaving a bequest as a tribute to a family member or creating a legacy for themselves, donors benefit from planned gifts because they can make a lasting impact on a cause that’s important to them. 

While major donors can create a big impact during their lifetimes and occasionally be recognized with naming opportunities, charitable bequests are one of the few ways that any donor can see similar recognition. To honor these gifts, nonprofits often offer perks like public acknowledgments or special events. We invite you to join our Santa Barbara Humane 1887 Legacy Circle.

Please use the information below as you prepare your planned gift, and provide this information to your estate lawyer when setting up your will or trust:

Certain dollar amount: “I hereby give, devise and bequeath ($$ amount) to Santa Barbara Humane, a non-profit organization located at 5399 Overpass Road Santa Barbara CA 93111, tax ID number 95-1643377, for Santa Barbara Humane’s general use and purposes.”

Percentage of Estate: “I hereby give, devise and bequeath (Bequest Fraction of Residuary) to Santa Barbara Humane, a non-profit organization located at 5399 Overpass Road Santa Barbara CA 93111, tax ID number 95-1643377, for Santa Barbara Humane’s general use and purposes.”