Planned giving, also known as legacy giving or legacy gift planning, involves significant contributions to a nonprofit organization, often driven by a donor’s desire to make a major gift that may be challenging to provide from their current income. Donors incorporate these gifts into their broader financial or estate plans, which can include life insurance, personal property, cash, real estate, retirement plans, and equity gifts. Regular donations and membership fees, however, are not considered part of planned giving.

Inheritance, typically given upon a person’s passing, are financial gift that may include stocks, bonds, jewelry, cash, or other personal assets. The instructions for these distributions are specified in legal documents, such as a will or estate plan.