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Download larger image - In his 30-year philanthropy career, Rick Eason has seen legacy gifts become an increasingly popular way for donors to make a lasting gift to their favorite charity or non-profit. © Brenda Ladd |
Naming a charity or non-profit in estate plans can transform their work and create a lasting legacy
By Rick Eason
Iconic names like Carnegie, Rockefeller and Hearst are readily identified as among America’s greatest philanthropists, dedicating much of their vast wealth to the betterment of society. Organizations they created and supported helped inspire development of today’s philanthropic leaders, men with names such as Walton, Gates and Dell, among other contemporary titans of industry.
While there is a long tradition in America of the very wealthy establishing or supporting large charitable foundations, the bulk of giving to nonprofits today is attributed to small individual donors. According to the Giving USA Foundation, of the more than $300 billion donated to charities in the U.S. in 2008, 75 percent was contributed from individuals.
What’s more, everyday Americans are discovering that, in addition to their regular gifts furthering many noble causes—from supporting the arts and feeding the hungry to safeguarding the environment and giving stray animals new homes, among others—their most significant support can happen beyond their lifetime through what is commonly known as a legacy gift. In other words, Americans are increasingly naming favorite charities in their wills.
Legacy gifts are not reserved for the very wealthy. In fact they are the most profound statement a person can make in support of a cause close to their heart. These gifts can and do help make certain that an organization’s mission continues to move forward well beyond the donor’s lifetime.
Often, legacy gifts can even transform a charity. Many nonprofits began thanks to single donors who led modest lives and dedicated a substantial amount of their wealth to a given charitable cause in their wills. Furthermore, legacy gifts provide nonprofit groups with much needed stability, since many of these gifts establish endowments—or investment funds—which ensure a permanent source of income to the charity.
It’s also important to note that a legacy gift is not necessarily something a person considers late in life. Younger people are increasingly including their favorite charities in their wills, too. During the more than 30 years I’ve worked in philanthropy, many of the initial conversations I’ve had with donors began with their interest in developing a legacy giving plan. These philanthropists often indicated that, by visualizing the possibility of a significant contribution beyond their lifetimes, their understanding of and commitment to a particular cause became more fulfilling through the years.
Legacy gifts are most often not in the form of cash donations. Throughout history, benefactors have contributed all manner of assets to their favorite charities – from real estate to securities and even intellectual property, such as patents and rights to a work of music or literature.
In short, there are many paths one can take in deciding and structuring a contribution that can significantly bolster a favorite charitable cause.
Any sizeable contribution is an important matter and, without question, a deeply personal choice. It is therefore essential, especially in the case of a legacy gift where one names a charity in her or his will, that the donor discuss the process with family members and a professional advisor, such as an accountant or attorney, to understand tax implications; to gain additional background information on different charities under consideration; and to ensure, once a beneficiary organization has been decided upon, that the donor’s wishes on how the gift will be used are observed.
Careful research, informed planning and personal involvement with a charitable organization early on can help an occasional donor develop a vision and a plan to make a significant difference on behalf of future generations who will benefit from that thoughtfulness and generosity.
Rick Eason is Director of Philanthropy for The Nature Conservancy of Texas. He previously headed fundraising for numerous Texas institutions of higher learning, including as Vice President of Development for The University of Texas at Austin.
To learn more about conservation work in Texas, visit nature.org/texas.
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