Thinking of Leaving Money to a Charity?

Many people plan to leave a portion or all of their assets to a favorite charity at their death. Unfortunately, if you plan to “gift” money from your estate, it will cost your estate one dollar for every dollar given to the charity. While gifting an asset directly is an option, wouldn’t leveraging the amount offered or discounting the gift cost be better? Fortunately, there is another option to ensure your charity receives the most benefit from your generosity.

Charitable giving is donating money, goods, time, or effort to support a charitable cause, usually in support of nonprofit organizations or communities in need. Here are some aspects and benefits associated with charitable giving:

  1. Altruism:
    • Charitable giving is often driven by a desire to help others and positively impact the community or the world.
  2. Tax Benefits:
    • Donations to qualified charitable organizations can often be deducted from one’s tax returns, providing a financial incentive for charitable giving.
  3. Community Engagement:
    • Through charitable giving, individuals can become more engaged and connected with their local communities or communities worldwide.
  4. Corporate Philanthropy:
    • Many corporations also participate in charitable giving to fulfill social responsibilities and improve their public image.
  5. Supporting Causes:
    • Charitable giving allows individuals and corporations to support causes they believe in and help effect change.
  6. Volunteering:
    • Besides financial donations, giving one’s time through volunteering is another form of charitable giving that can have a significant impact.
  7. Fundraising and Awareness:
    • Charitable organizations often hold fundraising events to raise money and awareness for their causes.
  8. Legacy Giving:
    • Some individuals choose to leave a legacy through charitable bequests in their wills.
  9. Matching Gifts:
    • Some employers offer matching gift programs that match their employees’ charitable donations.
  10. Social and Psychological Benefits:
    • Charitable giving can give the giver fulfillment, purpose, and happiness.

Rather than gift assets directly, you could purchase a life insurance policy, where you pay the premium and name the charity as the beneficiary. For example, suppose you want to leave $100,000 to the charity of your choice at your death. You could purchase an insurance policy today with these dollars if you qualify medically. Depending on your age, a $100,000 single premium today might generate 2 or 3 times that much in future death benefit to the charity.

Call us today to discuss your gifting strategy if you are considering leaving money to a charity.