Today’s donors are planners. They research, ask questions, and more importantly, expect to have a true impact on the charitable organization or mission they support. A blended gift strategy allows donors to combine two or more gift types to maximize their philanthropic footprint.

The purpose of a blended gift strategy is to: 

  • enable donors to realize today’s charitable goals and provide for future legacy objectives;
  • protect their acquired wealth for themselves and their families;
  • potentially generate tax savings.

A blended gift strategy can help donors achieve their personal and philanthropic goals. Strategies for blended gifting can be simple or complex, depending on the donor’s goals. For example: A donor who establishes an annual gifting goal can use a deferred gift such as a charitable gift annuity (CGA) or charitable remainder trust (CRT) as a giving vehicle to generate income tax deductions and diversify their portfolio holdings while generating a new income stream. The remainder in the annuity or trust is dedicated to the charitable organization as a life insurance legacy gift.

The same donor can easily make a dramatic impact on their charity by donating an immediate gift such as cash or appreciated securities in addition to their annual planned gift and residuum. The initial donation establishes the primary contribution and the planned giving vehicle generates new disposable income to be used as additional current contributions or to make premium payments on the life insurance policy. The combination of the three gift plans makes major gifting attainable without placing undue stress on the donor. This strategy can be particularly effective with capital campaigns when everything is set as irrevocable. The path to major gifts becomes smoother and less difficult for a donor to contemplate, while irrevocable strategy eases the concern of completing the gift.