April is National Financial Literacy Month, which promotes financial education and empowerment. As Americans finish and file their taxes, it’s a good time for them to review their overall financial picture, reassess goals and strategies, and adjust or fine-tune plans for the future.
As a planned giving professional, this presents a great opportunity to educate donors on how they can effectively integrate planned giving into their estate, tax, and retirement plans—a discussion that often begins with estate planning.
Estate Planning by the Numbers
According to the Giving USA 2024 report, around 8% of all charitable gifts are made up of bequests (a total of $42.68 billion in 2023). Yet, too many Americans have not created an estate plan, making this an underutilized gift option. Consider that:
• A Caring.com 2025 Wills Survey found that the number of Americans with estate plan documents has decreased since 2022 despite the fact that 50% of Americans said that estate planning is somewhat or very important to them.
• The same study found that only 24% of survey respondents have a will, 13% reported setting up a living trust, and 4% have other estate planning documents.
By opening up conversations around estate planning, you’re not only helping your supporters take real steps toward securing their future—you’re advancing your organization’s mission. However, keep in mind that even those who understand the value of estate planning may need your help to overcome the following common misconceptions:
1. Estate planning is only for the wealthy.
The same Caring.com survey found that over 30% of respondents have not made estate plans because they don’t think they have enough assets to leave anyone. The reality, though, is that everyone should take the time to ensure thoughtful future distribution. Even those without dependents have a vested interest in knowing that their assets will eventually go to special individuals and/or meaningful charitable organizations. Without an estate plan, an individual’s assets are distributed according to the state intestacy laws, which not only creates additional costs and delays but likely will not align with an individual’s desires. In some cases, it even results in all assets reverting to the state—a scenario no one wants.
2. Estate planning is only for the older generation.
Since life is inevitably unpredictable, all adults should engage in estate planning to safeguard dependents, outline health care wishes, and indicate their desired asset distribution. Including philanthropy in those estate plans may be especially appealing to younger generations, who tend to be exceedingly charitably minded and often have significant resources. A 2019 survey determined that there are over 600,000 millennial millionaires, and by 2030, millennials will have five times the wealth they now have. And 84% of millennials actively give to charity.
3. Estate planning can’t provide for family needs and charitable giving.
Some people worry that including a charitable gift in their estate plans will diminish any resources allocated for family. Working with a professional, an individual can ensure that loved ones are provided for while also supporting meaningful charities. To create inheritances and a charitable legacy, individuals can structure a gift as a percentage of their estate, meaning no matter whether their assets go up or down, loved ones and the charity still get the same portion of the estate. Others might consider making a residual gift to charity, giving away only what is left after all other debts, fees, and specific distributions have been paid out.
4. Estate planning is a one-time process.
Estate planning is a dynamic process. Individuals cannot “set it and forget it.” They must conduct regular reviews and update plans as necessary—especially after substantial life changes (divorce, death of loved ones, birth of children or grandchildren) or in response to changes in legislation or tax laws. People should also review any gifts in their estate plan to make sure they still reflect their wishes and make sense within their full financial situation and with consideration to any changes in tax law.
Take the time to talk to donors about any obstacles to creating estate plans that include your organization. Debunking misconceptions about estate planning and charitable giving will benefit donors, their loved ones, and your mission.
