How Nonprofits Can Inspire Bigger, Tax-Advantaged Gifts

One of the most underutilized strategies in nonprofit fundraising is helping donors give in ways that are both deeply impactful and financially smart. Too often, year-end appeals and campaign messaging focus on “make a gift today” without showing donors that they have multiple avenues to give—many of which can reduce their tax burden, provide income during their lifetime, or leave a meaningful legacy.

If you’re leading development or running a nonprofit, it’s time to think beyond the donation button. By offering tax-advantaged giving methods, you unlock larger gifts, deepen trust, and position your organization as a true partner in your donor’s financial and philanthropic life.

Here are a few powerful tools every Executive Director and Development Director should be ready to explain to donors:

1. Qualified Charitable Distributions (QCDs)

For donors age 70½ and older, a QCD lets them transfer funds directly from their IRA to your nonprofit. This satisfies required minimum distributions without increasing taxable income, a win-win for donors who want to maximize impact while minimizing taxes.

2. Gifts of Stock

Donating appreciated securities helps donors avoid capital gains taxes while receiving a charitable deduction for the full market value. It’s often far more efficient than writing a check, and it can result in a significantly larger net gift.

3. Donor-Advised Funds (DAFs)

Donors with DAFs are already signaling their intention to give. Encouraging them to recommend a grant to your organization allows them to support you strategically while benefiting from the upfront deduction they’ve already taken.

4. Charitable Remainder Trusts (CRTs)

CRTs let donors provide income for themselves or loved ones now, with the remainder going to your organization later. For donors thinking about lifetime impact and legacy, this is a sophisticated option worth highlighting.

5. Charitable Gift Annuities

These offer donors fixed income for life while also supporting your mission. Many nonprofits shy away from gift annuities, but they can be an incredible way to bring stability to both donors and organizations.

6. Bequests and Estate Gifts

Legacy giving doesn’t have to be complicated. Simply reminding donors that they can include your nonprofit in their will or trust ensures your mission carries forward well beyond their lifetime.

How to Put This Into Practice

Here’s the mistake many nonprofits make: they bury these options on a “ways to give” webpage and never actively communicate them. Instead, make them part of your year-end appeal, your board conversations, and even your one-on-one donor meetings.

• Train your development team (and board members) to understand these vehicles.
• Create simple, plain-language talking points and handouts.
• Don’t be afraid to remind donors multiple times. Many have advisors who will encourage these methods once they know they’re possible.

When you invite donors to think in tax-smart ways, you’re not just raising money, you’re helping them steward their resources wisely while ensuring your nonprofit’s long-term sustainability.

And that’s leadership.

Executive Directors: Make this the year you move beyond “click to donate.”
Development Directors: Equip yourself with language that unlocks transformational gifts.

The organizations that thrive are those who guide their donors to give more creatively, strategically, and joyfully.