Why Wills Aren’t Just For Wealthy: Demystifying Planned Giving For Everyone
It's a common misconception that planned giving, and particularly the creation of wills, is a realm exclusively for the wealthy. Often, when people hear the phrase "estate planning," they instantly picture mansions, large stock portfolios, and complex financial structures. This notion, however, couldn't be further from the truth.
What is Planned Giving?
Planned giving, also known as legacy giving, is the act of making a commitment to donate a significant gift to a charity or non-profit, typically through your estate plan. This could be in the form of bequests in a will, charitable trusts, gifts of life insurance, retirement assets, or property. It's a meaningful and impactful way to ensure your donors’ values and dedication to your mission continue beyond their lifetimes.
Everyone Has Something to Give
The reality is, everyone, regardless of their financial status, can participate in planned giving. Regardless of the size of your estate, a planned gift can make a significant impact on your mission or an organization you care about. Planned giving isn't just about the amount you give; it's about planning to give what you can.
A planned gift, no matter how small or large, can contribute to the ongoing efforts and sustainability of your mission.
Why Wills Matter
Do you have a will? Even if you haven’t actually made a will yourself, the United States government has made one for you. What they do with your estate though might not be according to your wishes. A will is an essential document that dictates the distribution of assets and can include specific gifts to nonprofits and charities. While it might not be fun to think about, creating a will is an important process ensuring that your wishes are carried out and your loved ones are taken care of.
Offering the ability for your donors to leave charitable bequests in their wills offers those with an affinity for your mission a unique opportunity for them to create a legacy of generosity and compassion. Even a modest bequest can have a profound impact on an organization's ability to serve its mission.
The Impact of Planned Gifts
While every planned gift might not seem substantial when compared to large endowments or high-profile donations, remember that these gifts do matter. Planned gift generosity can fund programs, support services, enable research, and inspire others to give. In many cases, a planned gift can have a lasting impact that far outlives a one-time donation. The importance of planned gifts will only increase over the next few decades as trillions of dollars from the baby boomer generation change hands.
Seeking Professional Advice
While planned giving may seem daunting, it's essential to remember that there are experts who can help. Professional advisors can assist you in understanding estate giving, determining what kind of gift is appropriate, and ensuring your donors’ wishes are legally documented.
One of the best things you can do for your nonprofit’s planned giving program is to simply educate people that you have one. It also isn't just for the wealthy - it's a tool that every person can use to extend their impact and values beyond their lifetime. And with professional advice, it can be a simple and gratifying process that gives both peace of mind and the satisfaction of making a difference.
Need assistance setting up your planned giving program? We can help! PRIDE Philanthropy has worked to build up the planned giving programs at countless nonprofits. Reach out to us and we would love to discuss how to drive more money to your nonprofit.
