If you are interested in using part of your estate to support a non-profit, you will need to plan your estate carefully. With the right planning, you can leave a legacy with a charitable organization to promote good acts for years to come.
What is the best way to give?
A legal professional can help plan your gift to be a sustainable and dependable source of income for a non-profit organization. These gifts can even be tax-deductible for your estate if planned correctly. The following are gift options for your estate:
- Bequests: A public memorialization (can be anonymous), can help reduce potential estate taxes.
- IRA asset allocation: An investment portfolio technique that aims to balance risk and reward over time.
- Charitable Gift Annuity: A gift that is tax-deductible and then pays the donor during their lifetime. The remainder is donated to the charity.
- Charitable remainder trust: Tax-exempt, irrevocable trust that pays beneficiaries for a set amount of time and the remainder is donated to the same non-profit.
- Charitable lead trust: Similar to remainder trusts, but the remainder is returned to beneficiaries.
- Pooled income funds: Capital contribution to a fund set up by a non-profit.
Sometimes, you can specify how you would like these gifts to be used. You can even include language that allows your heirs the flexibility to adjust the conditions of the gift in the future. Your choice can be individual to your estate and assist the organization for years to come.
What are the benefits of giving to a non-profit?
Other than the moral benefits of donation, there can be marked benefits for your estate. Donating to a non-profit entitles your estate to certain tax benefits that straightforward gifts to individuals do not. They can also do the following:
- Allows non-profits additional fundraising options
- A chance for memorialization
- Contribute directly to a cause near to your heart
- Community recognition for the organization and the donor
If you want to set up a legacy using your property or capital, there are many charitable causes that can dependably direct your donation for years to come. You can involve your beneficiaries in the donation process, or you can donate directly with careful planning.