Do You Have a Plan for Giving? Here are 5 Tips That May Help

Planned giving is a powerful way to make a lasting impact on causes that matter to you, while also providing financial benefits to you and your loved ones. Whether you’re looking to support your favorite charity, contribute to your community, or leave a legacy, planned giving offers a flexible, impactful way to make a difference long after your lifetime. Here are five tips to consider as you begin exploring ways to give.

1. Understand the Different Types of Gifts

Giving can take many forms, each offering unique benefits. Some of the most common types:

Cash: Usually in the form of checks, ACH’s, or wire transfers.

Stocks and Other Securities: Transferring securities, i.e. stocks, bonds, etc., is a great way to avoid capital gains taxes and benefit the charity with the full value of the security.

Asset Based Gifts:  Donating non-cash assets like highly appreciated real estate or business interests can provide tremendous tax advantages, and coupled with other instruments an income can be derived as well.

Bequests: Gifts made through your will or trust that allocate a specific amount or percentage of your estate to a cause.

Charitable Gift Annuities: A contract that provides you with regular income during your lifetime in exchange for a gift, with the remaining balance going to charity.

Charitable Remainder Trusts: A trust that provides income to you or others for a set period, with the remaining funds going to a designated charity.

Retirement Account Beneficiary Designations: Naming a charity as a full or partial beneficiary of your retirement accounts.

Life Insurance Gifts: Donating a life insurance policy to a charity, or making the charity a full or partial beneficiary of the policy proceeds is an simple way to give. 

Each option offers distinct advantages, depending on your financial goals and philanthropic vision. Understanding the benefits of each can help you make an informed decision.

2. Consult with a Financial or Estate Planning Professional

Planning for the future requires expertise, and it’s wise to involve professionals who can help you navigate the complexities of planned giving. A financial planner, estate attorney, or tax advisor can guide you in choosing the right gift option, ensuring that your contribution is aligned with your overall financial and estate planning goals. 

3. Align Your Gift with Your Values and Interests

Planned giving provides you with an opportunity to make lasting impact, prioritizing what resonates with you personally. Whether you’re passionate about education, health, ministry, or other causes, choose a charity or initiative that aligns with your values. Think about the legacy you want to leave and how your gift can contribute to the mission of the organization you’re supporting.

4. Start Small and Build Over Time

Planned giving doesn’t have to be a one-time, large contribution. It can evolve over time as your financial situation changes and as you gain a deeper understanding of how best to allocate your resources. Consider starting with a small commitment or a beneficiary designation and increase it as your financial situation allows.

You may also choose to integrate a planned gift into a broader giving strategy, allowing you to continue making annual donations while gradually increasing your commitment through a planned gift. This flexible approach ensures that your giving aligns with both your short-term capacity and long-term goals.

5. Communicate Your Intentions

Once you’ve decided on the type and amount of your planned gift, communicate your intentions with the organization you’re supporting. This not only helps the non-profit or charity plan for the future, but it also gives you an opportunity to discuss how you’d like your gift to be recognized or utilized.

Some organizations may offer recognition programs for planned givers, but even if you prefer to remain anonymous, it’s still valuable for them to know your intentions. This helps ensure your gift is properly administered and that your legacy is honored in the way you envision.

Ready to Make a Lasting Impact?

Planned giving is a meaningful way to leave a legacy and ensure that your values and vision for the future live on. If you’re ready to explore how you can set up a planned gift that aligns with your goals, we’d love to help. At Northwestern, we are here to support you every step of the way. Reach out to our team today at [email protected] to learn more about the many ways you can make a lasting impact.