Planned Giving and Legacy Planning
The Lowdown: Often, when we think about being charitable with our finances, not a lot of thought is put into the “how” … it’s usually just about the “how much”. I’d like to spend a bit of time this month talking about the “how” and why not all donations are the same.
Planed Giving is the term used to describe the idea of developing a strategy of charitable gifts while one is still alive. You will often see this used during stewardship campaigns in religious communities, capital fundraising campaigns in an organization where there is a plan to raise funds for a specific goal. What makes Planned Giving unique is the tax-deductibility of these charitable donations when given to a qualifying charity in that calendar year.
Legacy Planning is the term used to describe this same idea of strategic charitable giving, just after one has died. You will often see this used in organizations where longevity is important such as a cultural organization or university. What makes Legacy Planning unique is the lack of immediate tax-deductibility since no money is being donated now, it’s just the promise of that donation after one’s death to ensure your wealth is managed in a way that reflects your beliefs.
Fun Fact: All legacy planning is considered planned giving, but not all planned giving is legacy planning.
In Short: If you are looking for a current year tax deduction and have surplus funds not required to support your lifestyle…Planned Giving may be of interest to you. If you are looking to support an organization after your death, and current year tax deductions are not your primary concern, Legacy Planning may be of interest to you.
Kimberly Enders CFP® CPFA
CERTIFIED FINANCIAL PLANNER®
Enders Wealth Management
37800 Van Dyke Ave, Suite 125
Sterling Heights MI 48312
www.enderswm.com
#kimenderscfp
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