Full disclosure, WHRY did not solicit this article: I initiated it. My presence as one of four members—so far—of the WHRY Legacy Society qualifies me to address this topic. My planned gift is in memory of my mother, Hilda, whose congestive heart failure I learned of seven days before she died. Symptoms were missed for months, if not years.
My view of planned giving is different from how charities and financial advisors often characterize it. The general assumption is that planned giving applies only to those with plenty of discretionary resources when, in fact, it’s a great tool for anyone with a commitment to help a cause.
"It's a great tool for anyone with a commitment to help a cause."
Daphne Foreman
Traditional appeals for planned giving focus almost exclusively on high-net-worth individuals—those for whom tax liability planning is essential. Strategic use of charitable gift annuities, charitable remainder trusts, and appreciated securities can help to manage capital gains taxes, ensure income keeps pace with inflation, and reduce estate tax liability. Yet, while these are important benefits, this sole perspective misses the passion behind the gift: the desire to benefit future generations.
My perspective is that planned giving can apply to all of us. So long as you are not insolvent, you have an estate. Which means you can plan a legacy.
Consider what you include in your will. Who or what are the beneficiaries of your life insurance policies or qualified retirement plan balances? My legacy gift to WHRY derives from permanent life insurance I sold to myself while working as a financial advisor, plus coverage my employer provides beyond what I “need.”
Appealing to any donor, including the midrange or smaller donor, isn’t about reducing taxes. It’s about love and wanting to change the world, which brings us back to my mom. Hilda’s income taxes were audited twice: both times because my parents’ charitable contributions seemed out of proportion to their income. Now that’s a philanthropist!
Smaller and midsized gifts can be powerful—especially when they’re planned. Won’t you join me?