Giving To Charity Efficiently
When you sit down to evaluate your legacy, you may need to do some serious soul-searching. In the
field of estate planning, you generally stick to the pragmatic financial realities, but when you are
preparing to “meet your maker” as it were, a lot of things may enter your mind.
Many individuals who think things through will decide that they would like to make charitable giving a
part of their legacies. If you want to do this you are going to have to include a vehicle of charitable
giving within your estate plan.
We’ve all heard of charitable family foundations such as the Ford Foundation and the Bill & Melinda
Gates Foundation. These foundations are costly to create and expensive to operate on an ongoing basis
so they are really not a good choice for most Americans.
A cost-effective alternative that has become very popular is the donor advised fund. Because the fund
already has the infrastructure in place, the costs to the donor are relatively minimal.
The way that it works is you make a single donation into the fund, but as the donor you can make
recommendations regarding how these resources are distributed. So you can assist multiple different
charities while enjoying a streamlined accounting flow.
There are also tax benefits to be gained by the donor. You get a charitable deduction right away even if
grants are not immediately endowed and the appreciated securities that you donate are not subject to
capital gains taxation.
If you are interested in adding a charitable giving component to your estate plan, the wise course of
action would be to sit down and discuss your philanthropic intentions with a licensed and experienced
Estate Planning lawyer.
Experienced estate planning attorneys Mobile AL of the Ryan Hicks Cumpton & Cumpton LLP offers
estate planning and business planning resources to residents of Mobile AL. To learn more about these
free resources, please visit http://www.epattorneys.com today.