Although Valentine’s Day has ended, spreading loads of love has not. Helping the less-fortunate through charitable organizations is a gift that keeps on giving! And, since most of us have causes we believe in, it’s good to be armed with the information you’ll need to know about giving to faith-based, community-based and the many non-profit organizations throughout the country. What you might not know is that making a contribution beyond your lifetime is possible, through estate planning.
Making charitable contributions to your church or local charity can be achieved through the planning of your estate. Through estate planning, you can spread love throughout your neighborhood in the form of a charitable giving; you can also keep the love going after you’re gone! This is possible through establishing a trust or creating a donor-advised fund as you sit with an attorney in planning your estate. Here’s what you should know about giving through estate planning:
Giving Through a Trust
Through a trust, you (as the “grantor”) arrange to entrust assets to another person or organization (the “trustee/s”) who would manage your giving to help others (the “beneficiaries”). You’ll want to contact our office to determine what type of trust is best suitable for you, but creating a trust is a win-win for all parties involved. Benefits include the protection of your assets. In some cases, creating a trust can protect your giving from risk of a loss should anything happen to you, such as a lawsuit. When planning your estate, talk to us to determine the best ways to give to the charities that you choose.
Giving Through a Private FoundationCreating a private foundation is one way to contribute to your local church or community organization beyond your lifetime. Click To Tweet
This is a step made in estate planning that allows you control over your charitable spending and could continue your interest in creating a legacy for your family. By setting up a private foundation through estate planning, your generosity goes beyond writing a check. You’ll have an opportunity to create fundraisers and get your family and friends involved. You can also determine what programs (if applicable) and services are deserving of these efforts. Through a private foundation, you can prepare others to continue your legacy in order to keep on helping your community for years to come, after your passing.
We can show you how your tax-deductible giving can be used to create your own Donor Advised Fund (DAF). Through a DAF you can make a grant to the charity of your choice now and in the years to come. The causes you care about will see the benefits of your support after you’ve passed, but there are benefits for you as well:
- You can consolidate everything you’d want to give from one place, the DAF.
- There are typically no mandatory distributions required.
- More money from the DAF goes to worthy causes because they are tax-free.
Contact our office to learn more about establishing a DAF during the estate planning process.
Know exactly how much of your donation is going to charity
You’ll want to know for sure where your financial contribution is going — be it a worthy cause or an after-work night on the town! Statistics show that legitimate organizations spend a minimum of 75 percent of what is given on helpful programs and services that support the country, and in some cases, your own neighborhood. Of course, portions of funding will be allocated towards administrative costs in order to keep the good work going. Visit
CharityNavigator.org to discover how your charity of choice is spending what you’re giving. Another good idea is to only give to trust-worthy entities, such as major organizations like the United Way (where funds are allocated towards other organizations), your neighbor’s church, or charities in which your employer has partnered.
Charitable giving through estate planning provides you the chance to show love for the causes you care about the most. Not only can your donations improve the welfare of individuals and families living in your community, but through a DAF or a trust, charitable giving can become an ongoing gift to build a family legacy after you’ve passed away. Have you considered how much of an impact you could make by giving during and after your life? Through proper, well thought out estate planning, that impact can continue for generations.
At TGQ Law, we are more than happy to assist you as you navigate your future and choose the best solutions for your philanthropic needs. Contact us today!