What does planned giving typically involve?

Enhance your skills for the CAE Exam with flashcards and multiple choice questions. Each question includes hints and explanations to help you succeed. Prepare effectively for your exam!

Planned giving typically involves gifts that are arranged in the present but are intended to be received by the organization at a future date, often as part of an individual’s estate plan. This can include bequests, charitable gift annuities, and trust arrangements. Such donations usually come from an individual's assets rather than immediate cash transfers, making them a more strategic way to plan for long-term philanthropic impact.

This form of giving is distinct because it allows donors to make larger contributions than they might be able to provide in cash during their lifetime, as it involves their current assets or estate. It also presents an opportunity for nonprofits to build relationships with donors by sharing the benefits of planned giving methods.

In contrast, other options focus on immediate contributions, corporate donations, or just marketing strategies, which do not align specifically with the framework of planned giving. Therefore, the emphasis on current assets or estate contributions is what sets this option apart, making it the correct answer.

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