Paper home on a table with coins, glasses and a calculator
Published Date, 2022

Planning Ahead, Today: Why Your Millennial And Gen Z Donors Need An Estate Plan

Created By: Natalie Brown and Piper Hardin, CFRE
August 9, 2022

“A day late and a dollar short.” This idiom has held meaning for nearly 100 years, typically in the sense that an opportunity has been missed either by literal tardiness or lack of effort. We cannot think of a more apropos saying than this when we talk about the importance of early estate planning. In fact, it is recommended that people begin building an estate plan as soon as they have acquired assets of their own, which can happen as early as 18 years of age. Generations are becoming environmentally, civically, and socially mindful at increasingly younger ages, so it would make sense that their long-term planning should, as well. These conscious-minded young adults will want to ensure that their assets fund the causes they care about and end up in the hands of their loved ones in the event they pass away.

The Millennial (born between 1981 – 1996) and Gen Z (born between 1997 – 2012) generations are accumulating wealth. The oldest Millennials are now well into adulthood in their early forties. While they might not be accumulating property in the same way as earlier generations, they are still creating sizable estates. There are many reasons why your younger generation of donors should consider estate planning – the biggest reason being empowerment over their life, their assets, and their legacy.

According to a recent study highlighted in ThinkAdvisor, three-fourths of Millennial respondents have completed a will-based estate plan. 71% of these Millennials had a net worth of $500k or less, proving that estate plans aren’t just for the wealthy. If you have Millennial and Gen Z donors or board members, do you know if your nonprofit has been included in their estate plan? If not, you may want to work the topic of estate planning into your cultivation strategy.

Planning ahead: the financial benefits.

According to CNBC, 3 out of 4 Millennials and Gen Z-ers donated to charity during the first year of the COVID-19 pandemic. Given that Millennials and Gen Z make up over half the U.S. population, that’s a lot of giving. For two generations that are extremely mission-driven, promoting estate planning is a great way to engage your younger donors long-term and empower them to take control of their giving. It’s important to remember that a planned gift can be any size – no amount is too small, and certainly, no amount too large. We encourage nonprofits to have these conversations with their younger donors in addition to their older donors. Younger donors are thinking about the causes they care about and the legacy they want to leave and capitalizing on that will be beneficial to both parties.

Planning ahead: How to get started today.

Many of the Millennial respondents in the study we referenced earlier were motivated to make an estate plan by having a child, losing a loved one, or buying a home. Nearly a quarter of Millennials cited the COVID-19 pandemic as the primary reason for starting an estate plan. However, individuals do not have to wait for a monumental life event to make an estate plan. It also doesn’t have to be a dull and dreaded experience – it can be thought-provoking, comforting, and in some cases, even fun. In fact, one of our colleagues recently held an “Estate Planning Party” where they hired an attorney for the evening, served wine and charcuterie, and had their friends over to go through facilitated estate planning exercises.

To establish an estate plan, nonprofits will want to encourage their donors to take into consideration trusts, a will, assigning power of attorney, and obtaining an advance medical directive. While this might seem like a daunting list, the first – and biggest – step is figuring out what is most important to your donors, in life and in death.

In the event your donors need help getting started, here are several prompts you can encourage them to start thinking about:

  • What causes are most important to you?
  • Are there any specific places that you would want to donate to (i.e., the animal shelter where you adopted your childhood dog, your summer camp, your alma mater)?
  • Think of your physical possessions – would you want any of them to go to specific friends, family, or charities?
  • If you were incapacitated, what would you want your family and doctors to know about your health and your health wishes?
  • If you have children, who would you want to take care of them in your absence?
  • What do you want your social impact and legacy to be?
  • Who will be permitted to manage your digital assets (PayPal, Cryptocurrency, Venmo, etc.)?
  • Who do you want to take care of your pet?

If there’s one thing we learn as we age, it’s that life is completely unexpected – so why not plan for every scenario? Planning for the future gives control over finances, health, and legacy. Estate planning is not just for the wealthy or elderly. If you have not already, we encourage you to speak with your Millennial and Gen Z donors about the benefits of early estate planning to ensure that the causes and people they care about are protected.

Related Resources

Planned Gifts: A Blueprint For Nonprofit Fundraising Success

Published Date 2025
Planned Gifts: A Blueprint For Nonprofit Fundraising Success

Created By: Steve Orr Updated May 7, 2025 Planned giving is a fundraising opportunity worth trillions that nonprofit teams can—and should—leverage. The Great Wealth Transfer (the mass transfer of $124 trillion from baby boomers to younger generations through 2048) represents more than a financial shift; it’s a critical opportunity for nonprofit organizations to harness the power of planned giving. In fact, experts expect $18 trillion to be donated directly to nonprofits.  By integrating planned giving into their fundraising strategies, organizations can take advantage of this massive opportunity, ensuring long-term sustainability and transformative impact.  In the current philanthropic climate, the question is not whether to incorporate planned giving but how to do so effectively. In this guide, we’ll define how planned giving works and explore essential best practices so your organization can cultivate a thoughtful, strategic, and lucrative planned giving approach. What is planned giving? Types of Planned Gifts Preparing Your Team for Planned Giving More Best Practices for Collecting Planned Gifts What is planned giving? Planned giving is when donors set money or assets aside to be donated to charitable causes in the future, either after a set amount of time or after they pass away. The Benefits of Integrating Planned Giving into Your Fundraising Program Unlike fundraising strategies that prioritize immediate returns, planned giving plays a critical role in building long-term sustainability. These future-focused gifts can unlock powerful, lasting benefits for nonprofits, including: Long-term financial stability. Planned giving creates a reliable, future-focused revenue stream that helps nonprofits weather uncertainty and plan confidently for what’s ahead. Increased donor engagement. Making a legacy commitment is a deeply personal and thoughtful act. It can strengthen a donor’s connection to your mission and increase their sense of loyalty as they shape the impact they’ll leave behind. Identify new prospects. Planned giving can attract donors with non-liquid assets, opening up a new pool of prospects. It also creates opportunities to deepen relationships with current and future supporters. Some gift types offer tax advantages, like capital gains exemptions, making participation more appealing for donors and beneficial for your organization. Support for large projects or endowments. Like capital campaigns, planned gifts are often larger than everyday contributions (studies show that a planned gift is 200 to 300 times the size of a donor’s largest annual gift), making them ideal for supporting large projects.  Stewardship opportunities past the donor’s lifetime. Even once a donor passes away, a planned giving commitment allows your nonprofit to convey the donor’s impact to their loved ones, and you could potentially earn new supporters in the process. Planned giving is a powerful way for donors to help advance your mission for years to come. To harness the transformative potential of planned gifts, your organization must educate your donors about leveraging this opportunity and support them through the process (more on that later). Types of Planned Gifts While planned giving is far more nuanced in practice, below are some common  types of planned gifts you might receive: Type of Planned GiftDescriptionDonor BenefitsTimelineExampleBequestsGift made through the donor’s will or trust after their passing.Estate tax deduction, more control over assets during life Deferred (after donor’s passing)Donor specifies 10% of their estate will be donated after their passingGifts of life insuranceGift made when a donor’s life insurance policy is paid out.Premium payments are tax-deductible.Deferred Donor names a nonprofit as a beneficiary that receives 10% of the policy payout upon their passingRetained life estatesDonor transfers property to a nonprofit but retains the right to live there until their passing.Charitable donation benefits while still retaining a residenceDeferred While the donor is still alive, they add the nonprofit to the deed so the nonprofit gets ownership rights when they pass. Charitable gift annuities (CGA)Donor contributes to a nonprofit in exchange for a fixed income payment for life.Donors can reduce income taxes and avoid capital gains taxes.Lifetime of the donorDonor contributes $60,000 for an annuity of $500 per year for the rest of their lifeCharitable remainder trusts (CRT)Donor contributes appreciated assets in a trust in exchange for a fixed income payment based on the original contribution’s value, and the nonprofit gets the remainder.Donors can reduce income taxes and avoid capital gains taxes.Lifetime of the donor or other specified termDonor donates $60,000 to a CRT with an annual income payment of $3,000 (5%) per year. The nonprofit keeps the leftover money from the trust upon the donor’s passing.Charitable lead trust (CLT)Opposite of a CRT; donor funds a trust that provides income to a charity for a set period. After said period, the remaining assets go back to the donor’s heirs.Potential estate tax savings on top of tax-deductible donationIncome to charity for a set period during the donor’s lifetime Donor contributes $60,000 to a CLT, which provides the nonprofit with $3,000 (5%) per year for 10 years. After 10 years, the remaining amount in the trust goes back to the donor’s heirs. Gifts of securitiesDonor contributes appreciated assets (like stocks or bonds) to a nonprofit.Donor avoids capital gains taxes and receives a charitable tax deductionImmediate transfer and the nonprofit sells the assetsDonor contributes $60,000 in appreciated stock to a nonprofit, avoiding paying taxes on the appreciated revenue.Pooled income fundsDonors contribute to a communal fund, receiving income based on the value of the original gift for life. Donor receives income for life, a charitable tax deduction, and can be part of a greater impact.Lifetime of the donorDonor contributes $10,000 to a pooled fund worth $200,000. They receive 5% of the total income paid out. Preparing Your Team for Planned Giving Planned giving is a complex strategic endeavor, representing a donor’s lifetime of financial planning and charitable intent. Therefore, a proactive and structured approach is crucial to meet donors where they are and anticipate future impacts. Yet even with the best intentions, many organizations struggle to fully prepare for the intricacies of planned giving. Success requires more than a plan on paper—it demands organizational alignment, internal readiness, and a shared commitment to integrating planned giving into daily practices. The following steps can help you lay the groundwork for a sustainable and successful program.: 1. Collaborate with the Executive Team To fully align your strategy across teams, your leadership team must be heavily involved with the process from day one. This includes your Chief Development Officer, Chief Operational Officer, Chief Financial Officer, and investment committee. These leaders ensure that the strategies you develop are sustainable, compliant with financial regulations, and properly positioned with your organization’s long-term goals. Moreover, their financial and operational expertise is essential for crafting gift acceptance policies, managing gifts, safeguarding organizational interests, and ensuring ethical stewardship of donor intent. Further, effective executive collaboration allows for clear communication of financial needs to donors, fosters a culture of collaboration, ensures successful service and program delivery, and establishes metrics and processes to set realistic goals and maintain accountability.  To collaborate effectively with the executive team, you’ll need to: Set regular meetings with them to provide updates on your program and review new opportunities in the planned giving space. Establish messaging guidelines to instruct executives on how to discuss and promote planned giving opportunities with donors. Create a clear action plan so executives understand their role in your planned giving process. Regardless of your nonprofit’s scope or available resources, the end goal of this step should be to secure buy-in from the most important decision-makers on your team. Provide a clear value proposition and answer any questions to steer your team in the right direction. 2. Build Your Planned Giving Program Framework Now that you’ve involved your executives in your planned giving strategy, it's time to define the fine print of your planned giving program. To be truly prepared for planned giving success, ensure your framework outlines the following elements: Program structure. Defining your program’s structure helps get it up and running by determining resource allocation, project goals, types of planned gifts you’ll focus on collecting, donor engagement strategies, and responsibilities of key team members.   Policies for planned gift acceptance. Decide which types of gifts you’ll accept, how the gifts are valued, and which restrictions or conditions are attached. Ensure these policies align with ethical standards and your nonprofit’s mission.  Necessary management infrastructure. Analyze your current capacity and resources to understand if you’ll need additional support (such as more staff members or a new team structure) to manage the program. Strategic partners. To facilitate your planned giving program, your nonprofit might work with financial advisors, planned giving experts, general fundraising consultants, attorneys, and more. Start building a network of partners to help your efforts go off without a hitch.  “When considering premium financed life insurance structures, it’s crucial for organizations to fully understand the complexities and opportunities these vehicles offer. Our legal expertise ensures nonprofits are well-prepared to navigate these sophisticated planned giving strategies.”Alex Burgess, VP & Principal, The Burgess Group As you develop these fundamental policies, collect input from executives across the team to gain various perspectives and keep everyone in the loop.  3. Educate the Whole Team Every department plays a pivotal role in your planned giving program’s success. With executive collaboration in place, the next step is to deepen your entire organization’s understanding of planned giving.  Educating your entire team about planned giving requires a unique approach. Streamline your efforts by: Starting small. Even if your nonprofit has the resources to invest in a large program immediately, remember that you must build the groundwork first. Once you receive executive buy-in, begin by training your development and finance team members before providing nonprofit-wide training to refine your program.  Encourage interdepartmental collaboration. Once you’ve trained those with the most prominent role in the planned giving program, involve the entire team in your program rollout. Develop department-specific training resources so everyone understands their unique responsibilities and is equipped to identify planned giving opportunities when they encounter them. Integrate planned giving into daily operations. Now that everyone is prepared to contribute toplanned giving success, you can ramp up your efforts and dedicate more time to planned giving strategies in your daily activities. Include planned giving messages in your communications with mid-level and major donors, and report on progress in your organization-wide meetings.  Your team will undoubtedly have questions when implementing such a transformative giving initiative. Give them plenty of time to adjust, get the information they need, and become comfortable with your planned giving strategy.  More Best Practices for Collecting Planned Gifts Your planned giving approach will depend on your nonprofit’s unique goals and strengths, but all organizations should keep these best practices in mind:  Handle planned giving delicately. By its nature, planned giving can be a sensitive topic, and your team must handle it with care. When approaching prospects about deferred planned giving options, keep the focus on securing a legacy. Initiate these conversations strategically, timing-wise; pay attention to donors’ personal lives and giving behavior to avoid coming across as insensitive, pushy, or out of touch. Cross-promote planned giving with other fundraising strategies. Asking for planned gifts on their own can be challenging, but the conversation can start more organically when introduced alongside other asks. For instance, you might pitch planned giving opportunities as part of your capital campaign appeals, positioning them as a component of a long-term, proactive fundraising approach.  Keep donors in the loop about future activities. Showing impact is critical for building donor trust, but it can be challenging for planned gift supporters to visualize their future impact. Keep them informed about future initiatives so they understand how you’ll use their donations. If you don’t know the exact programs or initiatives yet, speak about how you envision expanding your mission.  Offer and maintain educational materials. If your supporters are aware of planned giving, they might have preconceived notions that can reduce their likelihood of donating. Create donor-facing materials that explain how planned giving works, the types of planned gifts you collect, and the benefits of participating. In addition to pamphlets and a page on your website, offer planned giving informational sessions where your senior leaders can walk interested donors through the process. As you roll out your planned giving program, watch how donors react and adjust your outreach approach. Also, collect their feedback to iterate on your efforts and align with their needs and preferences. Wrapping Up If you’re eager to get started with planned giving but need additional support, look no further than Orr Group. Orr Group applies a business mindset to provide sustainable, revenue-driving solutions for our nonprofit partners. Get in touch to learn more about our planned giving services, from strategy development to management and administration. Steve Orr is the Co-Founder and Managing Partner of Orr Group. Steve draws from his investment banking and finance background to bring a problem-solving approach, a focus on metrics, and an outcomes-driven perspective to the nonprofit sector.