Beneficiary designations can be a great way for donors to leave a lasting legacy for organizations they love and support.
In the video below, we explore what beneficiary designations are, and how your donors can use this simple, life-planning tool to support your nonprofit.
What is a beneficiary designation?
A beneficiary designation names the person(s) you want to receive a specific asset upon your passing ― listing your spouse or children as beneficiaries on a life insurance policy, for example.
How Beneficiary Designations Can Work for Your Donors
Beneficiary designations are easy to set up and don’t require donors to change their will. They are also flexible options and can be changed at any time.
In addition to their loved ones, donors can also use beneficiary designation to support the causes they care about. For example, they can list a charity they have supported as a beneficiary of their IRA, bank accounts or life insurance policies.
Beneficiary designations are part of an overall estate planning process ― all a donor needs to do is contact their financial institution to request the appropriate forms. Donors can name one or multiple beneficiaries. For example, a donor can use some of their assets to make a legacy gift and use the rest of their assets to provide for family members or other loved ones.
For more information on beneficiary designations, watch our video above.
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