In the world of charitable giving, legacy or planned giving offers an incredibly meaningful way for donors to make an enduring impact. By including a charity in your will, you have the opportunity to leave a legacy that reflects your values, helps create lasting change, and provides critical support for future generations. Legacy giving is not only a powerful philanthropic tool but also an accessible way to make a profound difference that will resonate long after your lifetime.
What Is Legacy Giving?
Legacy giving, also known as planned giving, is a philanthropic act in which an individual designates a portion of their estate to a charitable organization through their will or estate plan. These gifts can take various forms, including bequests, gifts of securities, real estate, or even a percentage of an estate’s residual assets. Legacy gifts allow donors to make substantial contributions, sometimes much larger than what they might be able to give during their lifetime.
Benefits for the Donor
1. A Lasting Impact
Legacy giving provides the unique satisfaction of knowing that your values will continue to make a positive impact. It enables you to align your life’s work with the causes you care deeply about, creating a legacy that will support the charity’s mission far into the future.
2. Potential Tax Benefits
In many cases, legacy gifts offer tax benefits, potentially reducing the estate taxes for heirs. By including a charitable bequest in your will, you can support a cause while potentially easing the tax burden on your loved ones. Consulting with a financial advisor or estate planner can help you maximize these benefits.
3. Flexibility and Control
Legacy gifts can be arranged to fit the specific preferences and financial situation of the donor. You can designate a specific amount, a percentage, or even a contingent gift, where the charity only receives the gift if primary beneficiaries predecease the donor. This allows individuals to prioritize their family’s needs while making a meaningful future gift to charity.
Benefits for the Charity
1. Sustainable Funding for Future Initiatives
Legacy gifts create a vital funding stream that enables charities to plan for the future with confidence. Unlike traditional donations, legacy gifts are often larger, providing significant resources that can support endowments, expand programs, or address long-term needs.
2. Encouraging Donor-Led Mission Alignment
Legacy gifts are more than financial contributions; they reflect the deeply held values of donors. Charities benefit from knowing that their missions resonate with the community and can leverage legacy gifts to strengthen donor relationships, creating a support base of loyal and mission-aligned contributors.
3. Capacity Building and Growth
Legacy giving allows charities to invest in growth, development, and capacity-building initiatives that may be difficult to fund otherwise. This ensures the charity can continue to adapt, grow, and expand its outreach over time, enhancing its impact in the community.
Making Legacy Giving Part of Your Estate Plan
Planned giving doesn’t have to be complicated. Here are some steps to consider if you’re interested in including a charitable bequest in your will:
1. Reflect on Your Values and Goals
Begin by considering what causes or missions are most important to you. Your legacy gift should reflect what you hold dear, ensuring that your contribution has personal meaning and impact.
2. Consult with Professionals
An estate planner or financial advisor can help you structure your gift in a way that best suits your circumstances. Many charities also have planned giving officers who can discuss different giving options and answer questions.
3. Inform the Charity (If Comfortable)
While not required, informing the charity of your intended legacy gift allows them to recognize your contribution and discuss how your gift might be used. Some charities have legacy societies to honor such donors, which also serves to inspire others.
Conclusion
Legacy giving is a beautiful testament to the values, passions, and compassion that define us. Through a planned gift in your will, you can provide enduring support to the causes that matter most, ensuring that your legacy leaves a positive mark on the world. Not only does this form of giving provide personal and potential tax benefits, but it also grants charities the means to build a sustainable future. Planned giving empowers both donors and organizations to work together toward a better tomorrow—one that’s rooted in the values and generosity of today.
Erin Meisner, MFA-P
Erin.Meisner@dfsin.ca
613-979-1437
