On a recent visit with a client our discussion turned to the joys of the end of the year. Families will gather, successes will be celebrated, and joys will be shared. We also took some time to talk about how the client wanted to make a mark on some cherished nonprofits in the community. We talked about making a mark in terms of what I call a “forever impact”. It is a type of legacy contribution that benefits a nonprofit for years to come.
Just like my client, you might be thinking of ways you can make a difference for the nonprofits in your community. A gift on an annual basis or a gift to a capital campaign are great examples of generosity. Once your intention turn towards your “forever impact” on a nonprofit a variety of opportunities emerge.
Here are a few quick tips on sharing your legacy with a nonprofit:
- How do I choose a nonprofit when making legacy gift? This is a good and common question. Generally, if you are leaving part of your estate to a nonprofit, you should know them well. It is important to have good relationships with the executive staff and the board of directors. To help narrow the field of potential nonprofit organizations, you can ask questions like: What nonprofits have most impacted me? What nonprofits have most impacted my family? What is a cause in our community that I care deeply about and which nonprofit is addressing that cause?
- Is the nonprofit ready for a legacy gift? Managing a portion of the proceeds from your estate is a big responsibility for any nonprofit. To make sure your desired “forever impact” is fulfilled, you need to make sure the nonprofit has the ability to be an effective steward. You should look at their Form 990 (their annual report to the IRS), their annual community report, and ask if they have an endowment committee or gift acceptance policy. This homework can be valuable in your gift decision process.
- What gift vehicle is right for you? Based on your tax situation, family relationships, and a variety of other factors, there are several methods of making a “forever impact” that you might consider. Most legacy gifts are given as a bequest. This is probably the simplest strategy. However, you might benefit from a charitable gift annuity which provides some current tax benefit to you and an income stream while you are still alive. You might also consider a charitable remainder trust which offers some income flexibility and a measure of control on how the gift is used.
The end of the year is a great time to consider your charitable giving options. As you gather with those you love to give thanks and celebrate, you also have the opportunity to plan your legacy.
If you would like some guidance on the journey, we are here to help. With over a century of experience in charitable planning, our team is available to offer advice and counsel to you and your family.
Our Promise to You
Managing money is more than simply trading stocks and bonds. It's planning of life's milestones, in your life and in the lives of those you care about most. At Old National Wealth Management, we invest the time to understand your goals and the discipline to manage your assets accordingly.
Copyright © 2020 Old National Wealth Management - The material contained in this report may not be copied, reproduced, republished, posted, transmitted or otherwise distributed without prior written permission.
Investment instruments utilized by Old National Wealth Management are not FDIC insured, are not deposits or other obligations of Old National Wealth Management, Old National Bank, its parent company or affiliates, and involve investment risk including the possible loss of principal invested.
Investment and securities information presented herein is unique to Old National Wealth Management's approach to investment management. All information and opinions have been obtained from sources believed to be reliable and current at the time of publication, but are not guaranteed and do not claim to be a complete statement of all material factors. Examples or other representations made herein are for illustrative purposes and are not intended to be specific legal, tax, or investment advice and do not represent a solicitation.
Investments and strategies that may be presented may not be suitable for all investors. Old National Wealth Management Client Advisors and Portfolio Managers will work with interested parties to execute plans developed in consultation with their attorney or tax advisor.
The comments, views and opinions expressed herein are those of the author and Old National Wealth Management. From time-to-time, Old National Bancorp affiliates may issue reports or have opinions that are inconsistent with, and reach different conclusions from, this report. Old National Bancorp and its affiliates do not accept any liability for any direct, indirect or consequential damages or losses arising from any use of this report or its contents.