Planned giving has a reputation for being complex. It isn’t. It is simply planning to give at some point in the future.
The fun part of planned giving is knowing your lifetime’s work will provide an impact for future generations. So what does a planned gift look like?
It can be as simple as putting the Foundation in your will or trust. One of the advantages of planned giving is that we can discuss how you would like your gift to be used and document it so that your intentions are clear and followed. Often we receive gifts that don’t have any directives. While appreciated, it would have been nice to know what that donor wanted their gift to do (and have the ability to thank them).
Discussing your intentions ahead of time also allows you and the Foundation to review your plans periodically. You can plan to gift your entire estate to the Foundation or a portion can be donated to the Foundation with the understanding that the Foundation will distribute designated allocations to additional organizations you have selected.
Planned gifts can be a better avenue for future giving than a trust because you don’t pay the Foundation to update your plan like you would a trust. And unlike a trust, we actively manage your plan. If a selected non-profit named in your plan dissolves, we will revisit your plan. If you decide you want to add another non-profit, change allocation amounts, or remove an intended recipient – we can do that. There is never a fee to make changes to your plan. And while we hope one day the plan is put into play, we also understand the life takes many turns. It is just a plan – not a contract.
Here is some simple language to insert into your will or trust:
“I, give, devise and bequeath to the Allegan County Community Foundation [dollar amount or percentage of the estate or description of property] for its unrestricted use and purpose.” Or in the case of a gift made to a fund administered by the Foundation…”I, give, devise and bequeath to the Allegan County Community Foundation [dollar amount or percentage of the estate or description of property] for the XYZ Fund administered by the Allegan County Community Foundation.”
A bequest is a smart way to make a gift given the economic times – one larger than you might have thought possible. By designating a specific sum or a percentage of your estate for the Allegan County community through the Allegan County Community Foundation, you can make a major difference, even if you can’t commit any assets today.
Below are some types of charitable bequests that might fit your needs.
To save unnecessary legal fees, include the following language when donating through a will or trust: “…as per the directives on file at the Allegan County Community Foundation”. This allows for review and revisions throughout the years without having to revise your trust. Just be sure to communicate with the Foundation as your charitable goals change.
Unrestricted bequest: This is a gift for general purposes, to be used at the discretion of our governing board. A gift like this—without conditions attached—is frequently the most useful, as it allows the Foundation to determine how the funds are allocated to best serve the community.
Residuary bequest: This is a gift of all the “rest, residue and remainder” of your estate after all other bequests, debts and taxes have been paid. This type of bequest may also be unrestricted.
Restricted bequest: This type of gift allows you to specify how the funds are to be used. It’s best, however, to consult the Allegan County Community Foundation when you make your will to be certain your intent can be fulfilled and that your gift is allocated appropriately.
Call today, let’s talk about your plans to give after you’ve gone.
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