Are you planning for your legacy? A planned legacy gift is one that you make as part of your financial and estate planning. The gift might be made during your lifetime, or it might be made as part of your will; either way it takes a little planning ahead. A legacy gift often consists of cash, but it can also be a gift of assets such as insurance, property, or stocks. And, in addition to supporting an organization you care about, planned legacy giving can have significant tax advantages for you and your heirs and is a nice way to have your memory live on.
For non-profits in the U.S., planned giving contributes 9% of overall revenue —roughly $40 billion annually. Planned giving also provides non-profits with a long-term, sustainable revenue stream.
Who can make a Planned Legacy Gift?
Anyone can make a lasting gift as part of their will, their financial plan, or their estate plan. In fact, many legacy gifts are made by people who want to support a cause they believe in but cannot afford to make substantial gifts during their lifetime.
What can be included in a planned legacy gift?
- Bequests of cash or property. This can be a specific dollar amount, a percentage of your estate, an asset such as property, or what’s left in your estate after the other beneficiaries have received their inheritance.
- Appreciated assets. This includes stocks, bonds, or even artwork. Depending on your situation, there can be significant tax benefits like avoiding capital gains taxes or receiving a tax deduction for the full value of the gift
- IRA distribution. Once you reach the age of 70-1/2 years, you can contribute up to $100,000 per year directly from your IRA to a qualified charity. These charitable contributions count as required minimum distributions (RMDs), which can decrease your income and lower your tax liability – a significant financial benefit.
- Life insurance and/or unused retirement assets. Gifts from paid-up life insurance or retirement accounts assets that you will not use may be larger than what you are able to donate during your lifetime.
- A charitable gift annuity is a contract between a donor and a charity with the following terms: As a donor, you make a sizable gift to charity using cash, securities or possibly other assets. In return, you become eligible to take a partial tax deduction for your donation, plus you receive a fixed stream of income from the charity for the rest of your life.
The best way to get started with planned legacy giving is to contact our estate or financial consultant to see what makes the most sense for you.
At Community Action Marin, a planned legacy gift is a wonderful way to contribute to a stronger Marin, well into the future. Email us with questions at [email protected] or to schedule a conversation, please contact Jenna Ervice, Director of Development at [email protected].