The Bread and Butter of Planned Giving
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In today’s world, charitable giving has become an essential part of financial and estate planning. Understanding the various methods and tools available for planned giving can help individuals create a lasting legacy and support the causes they care about. Let’s delve into the basics of planned giving, highlighting some of the most common and effective approaches.
An Introduction to Planned Giving
Planned giving, also known as gift planning, involves charitable contributions that can be cash and/or non-cash assets such as stocks, land, insurance policies, and retirement accounts. These gifts can be immediate or delayed, sometimes not coming to fruition until the donor has passed away. It’s important to note, though, that planned giving is not just for the elderly; it can be part of anyone’s financial and estate planning at any stage of life.
The Bread and Butter of Planned Giving
The most common and straightforward form of planned giving is a bequest. This involves including a charitable gift in one’s will or revocable trust. Bequests can be specific amounts, percentages of the residuary estate, or specific assets. Bequests are fully revocable, allowing donors to change their minds at any time.
Another popular vehicle for planned giving is through a retirement fund. If you are 70½ or older, an IRA Rollover Fund offers you a way to lower the income and taxes from your IRA. A gift of up to $108,000 from your IRA to an IRA Rollover Fund can be recognized as a qualified charitable distribution (QCD)and will count towards your required minimum distribution. Additionally, a QCD allows individuals over the age of 73 to direct their required minimum distributions (RMDs) from their IRAs to charities, providing a tax benefit.
Learn More: The First You Talk Podcast Navigating Generosity Series
In response to the growing demand for deeper conversations around charitable giving and working with advisors, we are excited to launch this new series. Navigating Generosity is designed for professional advisors and anyone who wants to be better informed when discussing charitable giving with their advisors. Our hosts include Chartered Advisors in Philanthropy® and other professionals in this field, including wealth and financial advisors. In the inaugural episode, we delve into the “Bread and Butter of Planned Giving.” Our goal is to provide valuable insights and practical advice for those involved in or interested in approaching charitable giving in a strategic, impactful way. Give the first episode a listen [here].
The Takeaway
Planned giving is a powerful tool for creating a lasting legacy. It allows individuals to support causes they care about, regardless of wealth. Discussing charitable goals with advisors and exploring the best ways to incorporate planned giving into financial plans can ensure that one’s legacy aligns with their values and principles.
A community foundation is uniquely positioned as a partner for professional advisors who want to offer their clients more and for individuals interested in finding financially beneficial solutions that also drive positive social change.
If you’re interested in learning more about how Central Florida Foundation can help you, you can read more about working with us for both advisors and individuals, or simply reach out below and start the conversation with one of our Chartered Advisors in Philanthropy®.
Wherever you are in your own journey of generosity, we’re glad you’re here!
Questions? Let’s talk!
Central Florida Foundation’s Vice President of Philanthropic Strategies and Partnerships is here to support your philanthropic journey. Email Nicole at ndonelson@cffound.org, give her a call at 321-966-2588, or simply fill out the form below.
Nicole Donelson, CAP®
About Central Florida Foundation
As our region’s community foundation, Central Florida Foundation serves as a launchpad for high-impact philanthropy. Championing the collective power of head, heart and dollar, we coordinate the commitment and investment of philanthropists, nonprofits, and community partners to target today’s most critical challenges and those on the horizon to truly transform our community. The Foundation also offers expert giving advice, a personalized approach to managing charitable funds, and the capacity to convene collaboration across sectors. Learn more here.
Tags: advisor, bequest, charitable fund, IRA, navigating generosity, planned giving, podcast