Why to consider legacy giving

There are many reasons for you to consider designating a worthy non-profit as a beneficiary in your Tax Plan, Will or Estate Plan. Whether those reasons are personal or financial, Legacy Giving is a win for you AND the non-profits you support. 

During your lifetime, you can support the causes you care about by donating cash, securities, and even IRA Required Minimum Distributions (RMD). You can receive tax benefits from such donations; just be sure to work with your tax advisor to ensure you handle the gift properly. In most cases, your IRA custodian must distribute your RMD directly to the non-profit in order for you to gain the tax benefit. Some donations qualify for additional tax benefits, such as donations to SERVE’s Food pantry, which qualify for food pantry tax credits, and sometimes Neighborhood Assistance Program tax credits.  Check with your non-profit of choice to confirm they are able to receive the kind of donation you wish to give (securities, RMDs) or to see if tax credits are available. 

I’ve seen Legacy Gifts make a huge impact. Whether your dollars pay off a mortgage or provide funds for food, you’ll feel good knowing you’re making a difference. When I designated SERVE, Inc. as my beneficiary, I felt immense satisfaction in knowing I’m doing my small part to help SERVE continue its good work, even after I’m gone. 

Once you’ve made the decision to make a Legacy Gift, I urge you to be thoughtful about which non-profits you choose to designate as beneficiaries. Examine their history and timeline; do they have a proven track record? Do they have good governance, such as a stable Board of Directors, clean audits, and grant compliance? Is their mission one that is critical to the community, and have they adapted over the years? Is their reputation sound? SERVE has a track record spanning over 50 years of service to Callaway County, and I fully expect SERVE and their mission to be active and viable for many more years. 

You can earmark your gift for a specific purpose, like facility improvements, retirement of debt, program delivery, or administration. You may also direct your gift to the general fund, which would help the organization in any way needed. Use caution when earmarking gifts- some may go unused if the earmark is too specific or doesn’t allow flexibility, should the programs change with time. I chose to direct my Legacy Gift to the general fund, because I trust the future board members of SERVE to put the funds to best use. 

The bottom line is this- no gift is too small to make a difference, and the time to act is NOW. Think about it, consult your advisors, and put your decision into action. You won’t regret it!