Perhaps you already know you would like to make a gift to charity in your estate plan but you aren’t quite sure how to go about doing it. How do you pick charities to give to? How do you determine what assets and what giving vehicles to utilize?
Come along on our “Journey of Creating a Legacy Gift!” Through these six steps and a little help from your professional advisors and the Foundation, you will come out the other side with a well-thought-out planned charitable gift.
Motivations
What motivates you to give (faith, tradition, social consciousness, impact, etc.)?
What do you care about the most?
What are the core values or principles that drive your decisions?
Write a paragraph or two about your motivations. These insights will help guide
your thinking along the rest of your journey.
Key Areas of Interest
What areas of work are you interested in supporting (e.g. religion, education, climate, healthcare)? Is there a geographic area where you want to focus your gifts? What organizations have had a significant impact on your life? Are there organizations that you already give to that you would like to support with a larger gift to after your lifetime? Do you want to give the next generation the flexibility to give to areas that aren’t top of mind for you?
Make a list of all the organizations/causes that interest you. You can narrow the list after you determine your objectives and how much money you will have to give in the next few steps.
The Foundation’s Role in your Journey
The Foundation can provide you with information about organizations in many different fields of work. We also help connect like-minded donors so they can learn from each other and combine their efforts to increase their impact.
Objectives
What do you hope your legacy gift will achieve for you and the institutions?
- Tax benefits for your estate
- Name recognition for you/your family
- Permanent support of an institution or program after your lifetime
- Family involvement in philanthropy after your lifetime
- Endow your annual gift
Decide on the objectives for your gift(s). You may have different objectives for different organizations.
The Foundation’s Role in your Journey
We have worked with many families to hone their philanthropic goals and objectives. Our experience can help you envision outcomes that you may not have considered.
How/What to Give
Bequest from your will/trust (percentage or dollar value)- Retirement Assets (remainder of a 401(k) or IRA)
- Insurance Policy (remainder of a life insurance policy)
- Financial Accounts (“payable on death” beneficiary of a cash account or “transfer on death” from a brokerage account)
Bequest from your will/trust (percentage or dollar value)Decide which assets you will leave to charity. This will help you determine how many organizations you will include in your legacy plan.
The Foundation’s Role in your Journey
We can provide you with ideas of the types of gifts people have used for legacy gifts. Ultimately, you should consult your tax, financial and other advisors to determine what makes sense for your situation.
Distributing the Gift
Bequest or designation directly to the organization
The entirety of the gift will immediately go to charity
Testamentary Donor Advised Fund (DAF)
Open a DAF for your children/grandchildren to continue the tradition of giving in your family
Endowment or Custom Fund
Create an endowment or custom fund with a longer granting horizon so that your gift will support the institutions you care about continuously for years to come
Assess the options for distributing your gift with your motivations and objectives in mind. Some vehicles can achieve multiple objectives.
The Foundation’s Role in your Journey
We are full of ideas and creative ways to align your gift with your objectives. We will help you utilize existing vehicles or create a custom fund to meet your needs. Learn more about our Family Charitable Legacy Plan to see how we can make executing your legacy gift simple.
Plan of Action
Conversation
As you review these questions, discuss them with your spouse, children, advisors and other trusted sources.
Research
Find out what is possible for you and find the best solutions for executing your plan.
Construction
Work with trusted advisors to construct a plan that reflects your values and goals.
The Foundation’s Role in your Journey
The Catholic Community Foundation specializes in assisting families as they define their philanthropic goals. We are the perfect partner for creating a plan and talking through ideas and possibilities. We can help you through every step of your plan.
Want help along your journey?
We are here as a resource for you along your journey to creating your charitable legacy plan. Please reach out to discuss ideas and ask questions.