Planned Giving for Nonprofits: How to Prepare for the Great Wealth Transfer

Charitable bequests are rising, especially from estates under $1 million. Here are four practical steps nonprofits can take now to identify legacy-giving prospects, encourage bequests, and prepare for donor-advised fund giving.

According to the 2026 Giving USA Report on Philanthropy, charitable bequests increased by nearly 20% in current dollars over 2024. Moreover, the data show that bequests from estates under $1 million grew faster than any other tier. 

This rise may be linked to The Great Wealth Transfer, a predicted $124 trillion shift of wealth from Baby Boomers to younger generations over the next twenty years. Most of this transfer involves non-cash assets, such as appreciated assets or donor-advised funds. For nonprofits, this underscores the need to build internal infrastructure for planned giving and donor-advised funds now.

The fastest-growing tier isn't the billionaires featured on any Top 50 Philanthropy lists, but the overlooked millionaires who are likely your most loyal donors, volunteers, or board members. They may not have much cash to give from their everyday income, but they may have assets they can pass on later through a will, estate plan, or retirement beneficiary designation.

So how does your organization position itself to take advantage of the transformational potential of legacy giving?

Here are a few tips to help you collect data and assess the potential of a planned giving strategy:

1. Review your board members, volunteers, and donors to identify potential planned giving prospects. Key data points to help uncover those donors include donor loyalty (giving or volunteering over time), the number of gifts they have given over a lifetime, the recency of their gift, their age, and their volunteer activity to indicate their affinity for the mission. 

2. Encourage donors to consider your organization in their wills or trusts by adding this bequest language to your website’s “ways to give” page and other fundraising materials.

3. If you receive a legacy gift, highlight it in your donor communications and online. 

4. Be sure to include your organization’s Tax ID number on all materials and on your website, which is equally important for DAF donors. 

Planned giving requires a long-term commitment and strategy; however, you can get started today by reviewing the data and discussing it with your team and board on how your organization can be prepared for this movement. 

What other tips or ideas has your organization started given this transfer is in motion? Send me an email at connie@lewinphilanthropy.com.