Leave a Legacy

Planned giving can continue promoting the causes you care about

By Deborah Jeanne Sergeant

If you would like to see your hard-earned resources continue your legacy of charitable contributions, planned giving can help you reach your goals.

Essentially, planned giving involves setting up the proper financial instruments to ensure that your money continues to support worthwhile causes long after you’re gone.

Max McGinnis

“Establishing estate plans is crucial for ensuring that your loved ones and chosen charities are provided for in a manner that aligns with your wishes,” said Max McGinnis, associate vice president for advancement at Nazareth College. “A well-thought-out estate plan offers clarity on the distribution of your wealth, minimizing potential disputes among beneficiaries. By specifying beneficiaries and outlining the distribution of assets, you provide financial security to your family and support causes you are passionate about. Estate planning also allows for the efficient transfer of assets, potentially reducing tax liabilities and ensuring that your legacy positively impacts both your family and charitable organizations for years to come.”

McGinnis encourages people engaging in estate planning to start sooner rather than later, as it’s easier to amend these documents later as your wishes or circumstances change instead of starting from scratch at that point, when health issues can make it more challenging.

“Make sure your beneficiary designations on IRA accounts and life insurance policies do not unknowingly conflict with what is written in your will,” McGinnis said. “The former will supersede the latter if they
are different.”

Although a will can certainly represent an important part of your final charitable planning, McGinnis encourages considering a charitable trust, as these can offer greater control regarding the management and timing of asset distribution.

In addition to the financial instruments themselves, McGinnis said that selecting the executor of your estate is vital to successful planning.

“Make sure that he or she is willing to take on this responsibility,” McGinnis said. “Pass it on. The Rochester area has benefited immensely from those that have given to the community through their estate planning. Take joy in continuing this legacy.”

One of the easiest and most effective ways to benefit local charities for decades to come is through earmarking funds for organizations like Rochester Area Community Foundation.

For more than 50 years, Rochester Area Community Foundation has provided options for creating customized legacy gifts.

“We are committed to fostering a culture where every donor’s legacy is honored and cherished,” said Andrew Muldoon, the nonprofit’s vice president of philanthropic engagement. “The Community Foundation prides itself on a strategic approach to managing and growing the gifts we receive from donors, ensuring that their generosity has a profound impact on our community now and in the future.”

He added that partnering with the Community Foundation both helps donors fulfill their charitable goals and helps improve their communities.

“We see every gift as a vital thread in the fabric of our shared future, regardless of its size,” he said. “Together, we can create a legacy of generosity that will resonate for generations to come.”

These organizations can help gifts last longer as they invest funds and disburse them for many years after the gift has been given, unlike a one-time donation.

Jeff Feldman

“If you want to make a large donation in one year and be able to disperse your donations in future years, that’s a good way to go,” said Jeff Feldman, Ph.D. and certified financial planner with Rochester Financial Services in Pittsford. He also recommended using a qualified charitable distribution “if you’re over 70.5 and you have required distribution from an IRA account, a qualified charitable distribution QCD is a good way to go. In the 2017 Tax Act, a lot of itemized distributions went away. Previously, you were able to deduct when you itemize. Now that you can’t do that, you have to figure out a way to give with a tax advantage.”

That’s where the QCD can help get that required distribution tax-free.

Another strategy for those who itemize is to pool donations in one tax year. Feldman said that single people getting more than the standard deduction is likely easier if the charitable donations are lumped into one year. But for married people, it might be more difficult because of the $10,000 cap.

“There’s also ways to pool these donor advisory funds that can help you put in a one -time lump sum and get the deduction in one year and spread out the donations in future years,” Feldman said.

He encourages anyone planning their legacy giving to fully vet and investigate the recipient, as some charities use a large percentage of donations to cover administrative costs rather than towards the cause.