Leave a legacy in your community through philanthropy

Tuesday, March 12, 2024 ~ Updated 2:46 PM

What if you could make an impact in your community not just now but for decades to come? What if you could be assured your values, your ideals, your unique story would be told to future generations? What if you could be confident that the good work of charities you have supported throughout your life would be ensured well into the future?

All of this is possible by creating a "legacy gift" by thoughtfully incorporating philanthropy into your financial and estate plans. Furthermore, doing so can be done without negatively impacting -- and often enhancing -- your family's financial plans. I recently sat down with three community leaders to find out more about the opportunities available by planning for the future.

According to the Merriam-Webster dictionary, a legacy is "a gift by will, especially of money or other personal property."

"As charities, we encourage donors to consider including a bequest in their will or trust for the nonprofit organizations they have supported throughout their lives," said Amy McDonald, executive director of the Cape Public Schools Foundation. "In years past, the Cape Public Schools Foundation has received several legacy gifts that established endowed scholarships for our students. As a result, many of our young people who might not have been able to do so have had the opportunity to further their education after high school. Designating a charitable bequest through an individual's will or trust is a simple and flexible way to provide tremendous future financial support to the charity."

In speaking with Elizabeth Shelton, executive director of the United Way of Southeast Missouri, I learned United Way has partnered with FreeWill to provide a valuable resource on their website.

"Anyone can use this tool free of charge to create a legally binding will and, if they choose, to include a charitable bequest. But including a nonprofit in your will is just one way to establish a legacy gift," Shelton explained. "For example, making a charity the beneficiary of a life insurance policy is also flexible and very easy to do. For younger donors, the monthly premium on a new policy can be an affordable way to leave a significant legacy gift, while older donors may wish to redesignate the beneficiary on an existing policy to their favorite charity. Naming a charity as beneficiary on a retirement plan is also a simple and impactful way of continuing to support causes you care about, which could benefit your estate by reducing income and estate taxes. Of course, we encourage everyone to consult their professional advisors when considering their financial and estate plans."

You may think these gifts have to be big to make a difference, which is far from the truth. I have been honored to serve as a member of the board for the Cape Area Community Foundation (CACF) and have seen what a difference donors can have by planning ahead for the future of the Southeast Missouri region. Legacy gifts both small and large make a tremendous difference, not only for our not-for-profit organizations and the communities they serve but also for the individual donors and their families. At the CACF, we spend time with donors now to establish criteria for the legacy gifts they wish to leave to charities so that the charities know how to utilize the funds in the future and the donors are confident their gifts will carry on their vision.

"What an amazing way to make a difference," McDonald added. "We hope everyone will consider making an impact in the years to come by establishing endowments for scholarships as well as programs and facilities that enhance our students' experience. And it is, in itself, an opportunity to educate others. Those who plan for the future through legacy gifts teach the generations that follow the value of community and philanthropic giving. We find younger family members often continue to give back in memory of those who have come before."

Shelton echoed the importance of giving back to our communities in Southeast Missouri.

"At United Way of Southeast Missouri, we like to say, 'Live here, give here,' which is particularly important when planning for the future. If you have given regularly through your employer's annual United Way campaign, or tithed to your church, or supported other local charities through annual gifts, leaving a legacy gift in your estate to these organizations is very meaningful. A legacy gift sustains the nonprofit and ensures the good work you care about will continue to strengthen our communities and make them better for future generations."

Gifts of all sizes make a huge impact, especially if everyone comes together to make a difference.

Judy Cantoni, east region director for the Community Foundation of the Ozarks (of which the CACF is an affiliate), shared data from a recent study clearly showing the incredible difference we could make if more individuals would establish a legacy gift.

"Our latest study in 2023, based on the assets held by residents in the region served by CACF alone (Cape, Scott and Bollinger counties), show the impact of everyone leaving just 5% to charity would result in more than $136 million to help our communities over the next 10 years. This would truly transform this region, not only in the next decade but well into the future."

Good philanthropic planning begins with reflection and creative thinking. Consider what you would like to accomplish with your gift and review your assets. Discuss your ideas with the charities you wish to support to make sure your plans accomplish your vision and help the charity fulfill its mission. Be sure to share your ideas with your family and seek the advice of trusted advisors. With careful planning, you can rest assured a legacy gift will tell your unique story and create financial and estate plans that will benefit you and all those you love.

Southeast Council on Philanthropy (SECOP) is a group of charitable organizations seeking to advance philanthropy through education of our communities throughout Southeast Missouri as well as training and networking for not-for-profit staff and volunteers. If you are interested in learning more about SECOP, you can visit secoponline.org and feel free to attend future meetings. Our next meeting will be held from 11:30 a.m. to 1 p.m. Thursday, April 18, at the Cape Girardeau Public Library.