Cash and cash equivalents

Cash is one of the most familiar and flexible ways donors choose to give—and it is often where legacy giving begins.

During-Lifetime Gifts

Donors can make immediate gifts through:

  • Checks

  • Credit cards

  • Online donation platforms

  • Digital payment systems

They may also give cash equivalents, such as:

  • Certificates of deposit (CDs)

  • Money market funds

  • Treasury bills

These lifetime gifts often lay the foundation for deeper philanthropic engagement. Many donors who begin with cash gifts later choose to make legacy commitments as well.

After-Lifetime Gifts

A simple but powerful option is for donors to name a nonprofit as the Transfer-on-Death (TOD) or Payable-on-Death (POD) beneficiary of a bank account or certificate of deposit.

Upon the donor’s death, the remaining balance transfers directly to the organization outside of probate.

Example

A long-time supporter donates $10,000 to the annual fund. Later, after learning more about legacy giving, the donor names the nonprofit as the transfer-on-death beneficiary of a bank account so that the remaining balance will support the organization’s mission after their lifetime.

Pro Tip

TOD and POD designations are easy to establish and easy to change. They typically require only a form from the donor’s financial institution and do not require rewriting a will.

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