Legacy, stewardship, and planned giving: Clarifying key terms
A message from the CICF Collaborative, including Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana
Jargon is everywhere, and an especially bothersome culprit is the vocabulary related to planned giving. When telling your story and making your ask, it is important to clarify what you mean when you’re throwing around certain terms while appealing to potential donors.
Here are a few examples:
“Planned giving” simply refers to a gift that does not happen immediately. Gifts of cash or publicly-traded stock are typically considered “current” gifts because they are transferred and used right away. In contrast, a gift of real estate, a charitable remainder trust, a bequest in a will, or a beneficiary designation on a retirement account is generally considered a planned gift. These gifts are structured in advance and are realized months or years in the future. For many donors, planned giving offers a meaningful way to align long-term financial planning with the causes they care about most, creating impact that extends beyond today while remaining flexible and intentional.
“Legacy giving” is often used interchangeably with “planned giving,” but technically it refers specifically to gifts that take effect only upon a donor’s death. This most commonly includes bequests in a will or trust and beneficiary designations on retirement accounts, life insurance policies, or other financial assets. Legacy gifts allow donors, in retrospect, to tell a powerful story about what mattered to them. They are deeply personal, not just financial decisions, but reflections of values, priorities, and hopes for the future.
“Stewardship,” which is a term you might use internally, refers to the ongoing process of engaging donors in long-term, meaningful relationships. Stewardship is the thoughtful, consistent way to stay connected with donors, sharing impact, expressing gratitude, listening well, and ensuring that generosity is honored and put to work responsibly. At its core, stewardship reflects our commitment to walking alongside supporters for the long term, not just at the moment a gift is made.
You may be thinking, But what if I don’t have a relationship with the donor? How can I go beyond “transactional” if the donor prefers not to engage with us, or does their giving through a DAF? Ensuring that your initial gratitude goes beyond a simple receipt-style acknowledgement is the first step. Make it personal, make it meaningful. Share updates with the DAF sponsor (i.e. the CICF Collaborative entity) to pass along to the donor. Try taking a short video on your phone, thanking the donor personally and showing your work in action. Personal, meaningful stewardship can still occur when a donor feels at arm’s length.
Finally, it is important to remember that both current and planned gifts can be directed to your endowment. An endowment fund allows a donor’s gift, whether made today or realized in the future, to provide support for your mission for generations. (Sometimes donors use “endowment” when they really mean a planned gift or a legacy gift to support your organization in its next chapter.)
Keep these definitions in mind as you build donor communications, prepare board presentations, and cultivate long-term relationships. Clear language builds confidence and confidence strengthens generosity.
If your organization has questions about planned giving, or has a donor interested in supporting your organization via a vehicle you are less familiar with like a charitable remainder trust or a beneficiary designation on a retirement account – we can help! One of the many values of being a fundholder with us is our ability and willingness to walk alongside you in instances such as these. Reach out to us at any point.
About the CICF Collaborative
CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unites the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more »