Posted on August 23rd, 2024.

Supporting charities through planned giving is a powerful way to make a lasting impact in the world. By incorporating philanthropy into your financial planning, you can not only give back to causes that are important to you, but also receive significant benefits for yourself and your loved ones.

In this article, we will explore the biggest perks of supporting charities through planned giving, and how you can make a meaningful difference while also securing your financial future.

What is Planned Giving?

Planned Giving is about making a strategic decision to support your favorite charities in a way that aligns with your financial goals and values. Essentially, it’s a method for donors like yourself to continue contributing to charitable causes beyond your lifetime or at a future date. This approach to supporting charities can be tailored to fit within your estate plan, ensuring that your philanthropic intentions are honored even after you're gone. It usually involves financial planning tools like wills, trusts, and beneficiary designations on financial accounts or life insurance policies, all designed to distribute your assets in a way that benefits the chosen charities while also considering your family’s needs.

Planned giving options

There are several types of planned giving options to consider, each with its own benefits and mechanisms.

• A popular choice is the charitable bequest, where you designate a specific amount of money or a percentage of your estate to a charity in your will.
• Another option is setting up a charitable remainder trust (CRT), which allows you to receive an income stream during your lifetime, with the remainder going to the charity upon your passing.
• There's also the concept of donor-advised funds, which function like a charitable investment account that lets you contribute cash or other assets and then recommend grants over time to your favorite charities.
• Lastly, you might consider a gift of real estate or a charitable gift annuity, where you transfer property or other high-value assets to the charity while potentially receiving an income stream and other tax benefits.

Tax Perks of Planned Giving

Think of it as a win-win scenario. When you make these planned gifts, the IRS offers generous tax deductions that can significantly reduce your taxable income. Imagine you have a stock that has appreciated significantly over the years. If you sell it, you'd need to pay capital gains tax on the appreciation. Instead, by donating that stock directly to a charity, you avoid those capital gains taxes altogether and still get a charitable deduction for the fair market value of the stock. It's an effective strategy to maximize your giving potential without suffering a tax hit.

Moreover, there's another layer of tax benefit when you incorporate charitable donations into your estate plan. By earmarking a portion of your estate to charity, you may reduce the estate taxes your heirs would otherwise need to pay. For instance, let’s say your estate is valued at $10 million, and you decide to donate $2 million to your favorite charity through a bequest. The estate would only be taxed on the remaining $8 million, potentially creating a significant tax saving. This not only ensures your favorite causes continue to benefit from your generosity, but it also strategically preserves more of your estate for your loved ones.

Creating a Lasting Legacy

Creating a lasting legacy through planned giving is more than just a financial strategy; it's an emotionally enriching journey that brings profound personal fulfillment. Picture the joy and satisfaction you'd feel knowing that long after you’re gone, the causes you care deeply about continue to thrive because of your support. This forward-thinking philanthropy lets you be remembered not just by your family, but by the broader community that benefits from your generosity. It’s truly heartwarming to know that your contributions help address enduring needs and create opportunities for people in the future. Your legacy lives on every time a scholarship is awarded, a community initiative gets off the ground, or a hospital wing is dedicated in your name. It’s a path to immortality through the lasting impacts your gifts create.

Ensuring Financial Stability for Non-Profits

Ensuring the financial stability for non-profits is a crucial reason to consider planned giving. When you designate a portion of your estate or set up financial tools like trusts, you’re creating a predictable and long-term funding source for these organizations. Charities often rely on these bequests to plan for their future, secure in the knowledge that they can sustain their activities and services over time. For example, a small community health clinic might expand its services because of an endowment created by a planned gift, allowing it to see more patients and invest in better facilities. These funds aren’t just about keeping the lights on—they enable strategic growth, bringing lasting benefits to the communities they serve. When you contribute through planned giving, you essentially become a cornerstone of that charity’s financial future.

A Personalized Approach to Philanthropy

Now, let's delve into the heart of strategic philanthropy—having a A Personalized Approach to Philanthropy. Think about what truly matters to you. Whether it's advancing medical research, supporting education, arts, or conservation, Planned Giving allows you to channel your resources into the areas you're passionate about. You’re not just tossing coins into a well; you’re carefully crafting a plan that reflects your deepest values and aspirations. This approach ensures that your contributions align with the personal legacy you wish to leave. 

Final words

Planned giving integrates smoothly with your overall estate plan, ensuring that your philanthropic endeavors do not come at the expense of your loved ones' financial security. The harmony between supporting a cause and maintaining family stability is one of the most comforting aspects of planned giving.

Our services are designed to integrate seamlessly into your broader estate plan, providing a holistic approach to managing your assets and fulfilling your charitable objectives. You don’t have to navigate this journey alone—our advisors are here to help you craft a giving strategy that optimally balances your charitable intentions with the needs of your heirs. Explore our Services. We’re passionate about helping you leave a legacy that brings lasting change and supports your loved ones. Reach out to us at [email protected] or call at +1-877-658-2494 to schedule a conversation about how you can harness the power of planned giving to achieve your philanthropic dreams.