The Nonprofit FAQ

What kinds of gifts would be most useful for new organizations?

Probably the newly established nonprofit will need support as soon as possible, so outright gifts of cash or listed securities would be the primary solicitation. Next would come the Charitable Lead Annuity Trust or Charitable Lead Unitrust since the nonprofit receives an immediate income interest. Thereafter, it may make sense to concentrate on Charitable Remainder Annuity Trusts or Charitable Remainder Unitrusts. Even though the nonprofit must wait for a gift under these arrangements, they are always irrevocable, and so are locked-in to final charitable distribution. Lastly, concentrate on gifts by will or trust to take effect at the donor's death. These gifts not only can take a very long time to vest, but are always revocable until donor's death without notice to the nonprofit. It is therefore far from certain that time or money spent on this type of solicitation will ever result in benefit to the nonprofit, even if initially written into a will or trust. Solicit these gifts last.