FAQ: Planned Giving Terminology
- For these definitions and more, visit the AFP online Fundraising Dictionary.
How does one differentiate between the terms 'planned giving,' 'deferred giving' and 'major giving'?
These terms refer to the thinking processes a donor goes through when deciding how to make a significant gift. Each term is defined below.
Planned giving: Gift planning. A systematic effort to identify and cultivate a person, for the purpose of generating a major gift, that is structured and that integrates sound personal, financial, and estate-planning concepts with the prospect's plans for lifetime or testamentary giving. A planned gift has tax implications and is often transmitted through a legal instrument, such as a will or trust.
Deferred giving: The process or act of arranging a deferred gift. A deferred gift is a gift that is committed to a charitable organization but is not available for use until some future time, usually the death of the donor.
Major giving: A significant donation to a nonprofit organization. The amount required to qualify as a major gift is determined by the organization.
Source: NSFRE Fund-Raising Dictionary. AFP/Wiley Fund Development Series. John Wiley and Sons: New York, 1996.