Transform Your Legacy: How thoughtful philanthropy can shape the future of the region

Southeast Council on Philanthropy (SECOP) was established in 1998 by a group of not-for-profit leaders in the Southeast Missouri region to provide training and networking for nonprofit staff and volunteers. SECOP also seeks to advance philanthropy in our communities by sharing the importance of our not-for-profits and your charitable support.

Throughout your life, you have likely come to care deeply for the good work of certain charitable organizations. Think about how these organizations make a difference in your life and how you can make an impact through your gifts of time, talents, and treasure. As you plan for today and tomorrow, careful consideration of your financial and estate plans can include providing vital support to these charities in addition to ensuring you have enough to provide for you and your family’s well-being.

Today, your annual support is critical to charitable organizations, and a gift by cash or check or credit card is usually the first method that comes to mind. These gifts are the most common and tremendously beneficial to support the good works of our not-for-profits. But there are other ways you might find beneficial in your financial planning that could offer an opportunity to make a larger impact at the charity than you ever thought possible.

For example, you may hold non-cash assets such as stock and real estate. Although these highly appreciated assets may be good to hold onto, selling them can result in a significant capital gains tax. If you are interested in making a charitable gift, however, donating these long-term appreciated assets provides an income tax deduction and avoids capital gain taxes. Another possibility is that if you are over 70-1/2, a charitable rollover from your IRA (also called a qualified charitable distribution or QCD) can provide a contribution to a charity, which does not count as income, results in no income taxes paid, and meets your required minimum distribution (RMD).

In addition to providing much-needed support now, many opportunities are available to assure you that the good work of charities you have supported throughout your life will continue well into the future. This is possible by creating a “legacy gift” by thoughtfully incorporating philanthropy into your estate plans.

A legacy is “a gift by will, especially of money or other personal property.” Consider including a bequest in your will or trust for the not-for-profit organizations you have supported throughout your lives. Designating a charitable bequest through your will or trust is a simple and flexible way to provide tremendous future financial support to the charity.

But including a not-for-profit in your will is just one way to establish a legacy gift. Making a charity the beneficiary of a life insurance policy is also flexible and very easy to do. You may find that the monthly premium on a new policy can be an affordable way to leave a significant legacy gift or you may wish to redesignate the beneficiary on an existing policy to your favorite charity. Alternatively, 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 you to consult your professional advisors when considering your financial and estate plans.

You may think these gifts have to be big to make a difference, which is far from the truth. 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 you and your family. It is important that you work with the charities you wish to support now to establish criteria for the legacy gifts you wish to leave so that the charities know how to utilize the funds in the future, and you are confident your gifts will carry on your vision.

Your continued support today is critically important, and leaving a legacy gift in your estate to these organizations is meaningful for many reasons. A legacy gift sustains the not-for-profit and ensures the good work you care about will continue to strengthen our communities and make them better for future generations. In addition, those who plan for the future through legacy gifts teach the generations that follow the value of community and philanthropic giving.

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.

More than allocating your assets, leaving a legacy through a philanthropic gift involves deciding how to pass on what is truly important to you — your values, your ideals, your special story. With thoughtful reflection and careful planning, you can rest assured that a legacy gift will tell your unique story and create financial and estate plans that will benefit you and all those you love.

Each year 25-30 charitable organizations throughout Southeast Missouri actively promote charitable giving to make a difference in our communities. If you are interested in being a part of SECOP, please visit secoponline.org or follow SECOP Southeast Council on Philanthropy on Facebook.