What Is Planned Giving?

Planned giving refers to charitable donations arranged in advance, often as part of estate or financial planning. These gifts go into effect after your lifetime or over an extended period and can include assets like cash, real estate, life insurance or investments. The goal is to support a cause you care about while maximizing financial and tax benefits.

One common example is donating life insurance. You can name a qualified charity as the beneficiary of your policy or transfer ownership entirely. If the organization is tax-exempt, your gift may reduce estate taxes or qualify for an income tax deduction, depending on how it's structured. Planned giving ensures your values carry forward and can provide long-term support to the organizations you care about.

Planned giving offers several ways to make a long-term charitable impact while aligning with your financial and estate planning goals. These strategies can help you support causes you care about (either during your lifetime or after) and may also offer tax advantages. Below are the most common types of planned gifts and how they work.

Planned giving can be a powerful tool for reducing your tax burden during your lifetime and as part of your estate. Whether you're setting up a charitable trust, donating life insurance or contributing to a donor-advised fund, understanding the tax rules helps you get the most from your gift and save money on your taxes.

Planned gifts often involve large sums or complex assets, making them a target for fraud or misuse. Taking time to verify the charity and understand how your donation will be used helps protect both your gift and your legacy. The tips below can help you give confidently and securely.

Larger charitable gifts, especially those made through wills, trusts or life insurance, can attract fraud or misuse. To protect your legacy, verify the organization and understand how your donation will be handled. Being proactive can prevent your planned gift from ending up in the wrong hands.

Disasters often trigger a wave of charitable giving, and unfortunately, a surge in scams. Even well-meaning donations can be wasted if they’re poorly directed. Use the tips below to ensure your support actually reaches those in need.

Donating a vehicle as part of your planned giving strategy can be a meaningful way to support a cause and potentially reduce your tax burden. But to qualify as a charitable contribution under IRS rules, the donation needs to be structured properly. Here’s what you need to know before including a car in your estate or gifting it during your lifetime.

A car qualifies as a planned gift when it’s donated through your will, trust or during life as part of a structured giving plan. While vehicle donations can be made at any time, they’re most impactful (and potentially tax-deductible) when tied to long-term estate or financial planning.

Both working and non-working vehicles may qualify, but it’s important to confirm that the charity is registered as a 501(c)(3) and accepts vehicle donations. Always coordinate with the organization in advance to understand its process.

You may be eligible for a charitable deduction if your donation meets IRS criteria. To claim the fair market value of the vehicle, one of the following must apply:

• The charity uses the vehicle for its work (e.g., delivering food or transporting clients)
• The charity makes a material improvement to the vehicle (more than cosmetic repairs)
• The vehicle is sold or given at a steep discount to someone in need as part of the charity’s mission

There are a few ways to handle a vehicle gift, depending on your timing and goals:

If you're including the car in your will or estate plan, consult a financial advisor or an attorney to ensure it’s transferred properly and that the charity can accept it when the time comes.

We explained what planned giving is, how it works and how it can help you support the causes you care about while offering tax benefits. Whether you’re considering a bequest, a charitable trust or donating assets like life insurance or a vehicle, the right strategy depends on your financial goals and timeline.

To make the most of your planned gift, consult a financial advisor or estate planner. Always verify the charity's status before donating to ensure your contribution makes the intended impact and qualifies for the tax benefits you're counting on.

Planned giving can be a smart way to support the causes you care about while also managing your long-term financial goals. Below are answers to common questions people have when considering this type of charitable donation.

How MoneyGeek Collected and Analyzed Life Insurance Data

To support our guidance on planned giving strategies involving life insurance, MoneyGeek evaluated over 1,400 quotes from top national insurers. We focused on companies with strong financial stability, high customer satisfaction ratings, diverse policy options and user-friendly buying experiences — all factors that matter when choosing a policy for charitable giving or estate planning.

Our Scoring System

Each insurer was scored across five core categories: affordability, financial stability, customer satisfaction, product diversity and ease of purchase. These category scores were weighted and combined to calculate a final MoneyGeek score out of 100.

We adjusted our scoring weights depending on the policy type:

• For term life and cheap life insurance, affordability was heavily weighted.
• For whole life and no-exam policies, financial strength and product diversity were prioritized, as these policies are more common in planned giving.
• We excluded affordability from no-exam and whole life scores due to limited pricing data.

Data Sources and Profile Used

• Pricing data was collected using a standard customer profile: a 40-year-old male, nonsmoker, in excellent health.
• Quotes were further refined by modifying attributes such as age, gender, height, weight, and location to reflect different customer types.
• Company performance was evaluated using:
  • AM Best financial ratings
  • Complaint data from the NAIC  
  • Online experience and policy options
  • Product breadth and underwriting flexibility

This data helped us identify which insurers offer the best options for those exploring planned giving through life insurance — including policies that allow charitable beneficiary designations or ownership transfers.

• The Better Business Bureau's Wise Giving Alliance is a charity watchdog group that allows consumers to look up reports that show if a charity is accredited and verified as tax-exempt by the IRS.
• The Federal Trade Commission offers a list of signs that a charity might be a scam.
• The IRS website explains the differences between gift taxes and estate taxes.
• Charity Navigator's article on the tax benefits of giving provides information about what tax deductions you may be eligible for.
• The IRS exempt organizations search tool can help you determine whether a charity is recognized as a tax-exempt nonprofit.
• The Donate a Car organization helps you sell your vehicle and donate the proceeds to a charitable cause you believe in.
• Learn how bail funds can be a charitable option to help specific individuals who cannot afford bail.