Planned giving is an incredible opportunity to make a meaningful impact on the causes you care about – not just today, but for generations to come. It allows you to create a lasting legacy while potentially receiving tax benefits when you donate.
This insightful guide explores the world of Planned Giving with United Way:
- Discover the different ways to give: We’ll explore the variety of planned giving options, from bequests and charitable trusts to life insurance designations and IRA distributions.
- Unlock tax advantages: Learn how planned giving strategies can maximize your charitable impact while minimizing your tax burden.
- See the difference it makes: Be inspired by real-life stories of individuals who have used planned giving to support United Way’s mission.
- Get started with ease: United Way is proud to offer a FREE tool called FreeWill to help you create a personalized will or other estate planning documents online.
Understanding Planned Giving
What is Planned Giving?
Planned giving is a thoughtful way to support the causes you care about while making the most of your financial resources. It’s about creating a legacy that extends beyond your lifetime. Whether it’s through a bequest in your will, establishing a charitable trust, or designating a portion of your retirement assets, planned giving offers flexibility and potential tax benefits.
Importance of Planned Giving
Planned giving is a powerful partnership between you and United Way. For you, it’s an opportunity to create a lasting legacy, enjoy potential tax benefits, and feel good about supporting causes that matter. For nonprofits, planned gifts provide a stable and predictable source of future funding, ensuring long-term sustainability and allowing for strategic planning and growth.
Types of Planned Gifts
- Bequests: Gifts made through a donor’s will or trust, specifying an amount or percentage of the estate to be given to the nonprofit.
- Charitable Gift Annuities: Agreements where donors transfer assets to a nonprofit in exchange for fixed annuity payments for life.
- Pooled Income Funds: Donors contribute to a common fund and receive income distributions. The remaining value of the donor’s share is given to the nonprofit upon their passing.
- Retained Life Estates: Donors transfer ownership of property to a nonprofit but retain the right to live in or use the property for their lifetime.
Key Components of Planned Giving
Bequest Intention
A bequest intention is simply a way to share your desire to include United Way in your future plans. It’s a formal statement outlining the amount or portion of your estate you wish to donate to our cause. By letting us know your intentions, you help us plan for the future and ensure your generosity makes the greatest impact.
Plus, we’ll have the opportunity to thank you for your incredible commitment and build a lasting relationship based on mutual trust and appreciation.
Bequest expectancy
Bequest expectancy is our careful estimate of future gifts from donors who have included United Way in their estate plans. We look at past giving trends, our current donor base, and any known bequest intentions to make this prediction.
Understanding what to expect helps us plan for the future, ensuring your support has the greatest impact. It’s also a key part of our financial planning, helping us make smart decisions to keep our programs strong and sustainable.
Planned Gift Notification
Letting us know about your planned gift is a wonderful way to share your generosity and help us plan for the future. It’s simple: just let us know the type of gift, its estimated value, and any special wishes you have.
By notifying nonprofits of their planned gifts, donors enable organizations to acknowledge their generosity, express gratitude, and involve them in legacy societies or recognition programs. By keeping us informed, you help us honor your wishes and build a stronger relationship together.
Legacy Giving vs Planned Giving
Essentially, legacy giving is the heart of your philanthropic journey, while planned giving is the strategy that makes it happen.
Legacy giving is all about creating a lasting impact. It’s about leaving a positive mark on the world that extends beyond your lifetime. This powerful approach to philanthropy ensures your values and passions live on through the causes you care about.
Planned giving is a strategic approach to charitable giving. It involves thoughtfully incorporating philanthropy into your financial plan. With a variety of options and potential tax benefits, planned giving allows you to make a significant difference while achieving your personal financial goals.
What are the Benefits of Planned Giving?
Planned giving is a powerful way to make a lasting impact while potentially maximizing your financial resources. It’s mutually beneficial for both donors and nonprofit organizations:
Benefits for Donors
- Tax Benefits: Potential reductions in income, estate, and capital gains taxes.
- Financial Planning: Align charitable giving with financial and estate planning goals.
- Legacy Creation: Ensure a lasting impact on causes that are important to the donor.
Benefits for Nonprofits
- Stable Funding: Predictable future income to support long-term initiatives.
- Donor Relationships: Strengthen bonds with donors and engage them more deeply in the organization’s mission.
- Financial Stability: Enhanced ability to plan and allocate resources for sustainable growth.
How to Get Started in Planned Giving
Embarking on the path of planned giving is a rewarding experience. Here’s a simple guide to help you get started:
- Reflect on Your Values: Consider the causes that resonate with you and the impact you want to create.
- Explore Your Options: Learn about the different types of planned gifts and how they align with your financial goals.
- Seek Expert Advice: Consult with financial, legal, and tax professionals to understand the benefits and implications.
- Choose Your Beneficiaries: Select the organizations that inspire you and whose missions align with your values.
- Create Your Legacy: Work with your advisors to incorporate your planned gift into your estate or financial plan.
- Share Your Vision: Let us know about your generous intentions so we can express our gratitude and honor your wishes.
Ready to start your legacy journey? Learn more on how planned giving can make a lasting difference today.
Planned Giving FAQs
What types of assets can I use for planned giving?
Planned gifts can be made with cash, investments, real estate, personal property or even life insurance policies. We can help you explore the best fit for your situation.
What are the tax benefits of planned giving?
Planned giving can offer significant tax advantages, such as income tax deductions, estate tax reductions, and avoidance of capital gains taxes on appreciated assets.
How does planned giving impact my heirs?
Rest assured, you can structure your planned gift to benefit both your favorite charities and your heirs. It’s about finding the right balance for your family and your philanthropic goals.
How do I choose the right planned giving option?
The best planned giving option depends on your financial goals, the assets you wish to donate, and the needs of the nonprofit. Consulting with financial advisors and the nonprofit’s planned giving team can help you make an informed decision.
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