Why Pivoting to a Planned Gift in a Volatile Market Makes Sense

Created By: Lindsy Hannan
June 26, 2025

In times of economic uncertainty, many donors find themselves reevaluating how—and when—they give. A donor’s natural instinct might be to pull back from charitable giving to safeguard one’s financial position. However, for those committed to sustaining their philanthropic values, a shift toward planned giving can offer a smart and strategic solution. Planned gifts allow donors to maintain financial security while ensuring that they continue to make a meaningful impact on the organizations and causes they cherish.

Here are five reasons why planned gifts are especially relevant during market volatility:

1. Preserve Financial Security While Leaving a Legacy

During periods of market volatility, many individuals become understandably hesitant to part with liquid assets. The prospect of giving away cash or selling assets when values are depressed can feel daunting. Planned gifts—such as bequests in wills, beneficiary designations on retirement accounts or life insurance policies, and charitable remainder trusts—offer donors the ability to pledge future support without jeopardizing their current financial situation. This type of giving allows donors to remain financially secure today while setting the stage for a meaningful legacy that will benefit nonprofits for generations to come.

2. Avoid Selling Assets at a Loss

Volatile markets often mean that stocks, real estate, and other appreciated assets have temporarily lost value. Making an immediate gift may require liquidating these assets at an inopportune time, locking in losses and diminishing the value of the contribution. Planned giving provides a sound alternative: by deferring the transfer of assets to a future date, donors can give those investments time to potentially regain their value. This approach protects both the donor’s financial interests and maximizes the future impact for the charitable organization.

3. Enhance Tax Efficiency and Estate Planning

Planned giving strategies can offer significant tax benefits, making them an appealing option even in challenging financial climates. For example, designating a nonprofit as a beneficiary of a retirement account such as an IRA or 401(k) can eliminate potential income taxes that heirs would otherwise face. In many cases, these accounts are among the most heavily taxed assets in an estate, making them an efficient vehicle for charitable giving.

Older donors may also benefit from specific tools like Qualified Charitable Distributions (QCDs). Individuals who are 70½ or older can make direct, tax-free transfers from their IRAs to qualified charities, satisfying part or all of their Required Minimum Distributions (RMDs) without increasing their taxable income. For donors aged 73 and older who must take RMDs, this can be a particularly attractive way to support nonprofits while reducing overall tax liability.

4. Support Long-Term Mission Impact

Many donors feel a deep, personal connection to the missions of the organizations they support. Planned gifts allow them to express that commitment by providing resources that fund scholarships, endow programs, support staff positions, or enable capital improvements for years to come. For nonprofits, these commitments are invaluable, offering a level of financial stability that enables long-term planning and sustained program delivery.

During periods of financial uncertainty, the reassurance of future gifts allows nonprofits to weather short-term challenges with confidence, knowing that dedicated supporters have committed to their long-term success. Planned gifts can serve as a critical foundation for an organization’s future resilience and growth.

5. A Thoughtful Pivot, Not a Step Back

Choosing a planned gift over an immediate cash contribution isn’t a signal of diminished commitment. Instead, it reflects thoughtful, values-driven financial stewardship. By aligning charitable giving with personal financial and estate planning goals, donors demonstrate both generosity and strategic foresight. This approach allows them to stay actively engaged in philanthropy even as they prioritize personal financial health and navigate uncertain markets. It’s a pivot that strengthens both the donor’s position and the nonprofit’s future.

How to Open the Door to a Conversation about Planned Giving

For nonprofits, planned giving represents a vital opportunity to keep donors engaged and connected, especially when current financial circumstances may preclude significant immediate gifts. Initiating these conversations requires sensitivity, education, and an emphasis on the enduring impact of legacy giving.

Nonprofit leaders and development professionals should proactively offer flexible giving options, providing clear explanations of how planned gifts work and how they can support the organization’s mission for years to come. Emphasizing stories of donors who have made impactful planned gifts can also inspire others to consider similar commitments. Moreover, positioning planned giving as an act of leadership and foresight can resonate strongly with donors who wish to leave a lasting mark on causes they care about.

If your nonprofit hasn’t already prioritized planned giving, now is the ideal time to incorporate it into your development strategy. Market volatility may prompt donors to delay large outright gifts, but they also present an opportunity to introduce thoughtful, long-term giving solutions that align with donors’ financial realities and philanthropic aspirations.

At Orr Group, we help nonprofits build robust planned giving programs that foster enduring donor relationships and provide critical financial stability. Contact us to learn how you can identify planned giving opportunities within your donor base and develop a successful program that will serve your mission for generations to come. 

Lindsy Hannan is a Director at Orr Group. She brings over ten years of fundraising experience with a strong focus on corporate giving, donor relations, pipeline development, event fundraising, and board management.