After nearly two decades working at East Texas Communities Foundation, I have recently come to a simple epiphany, an “aha” moment, regarding helping people establish their charitable legacy. As Smokey Bear has proclaimed since 1947, “Only you can prevent forest fires”, I have come to the same conclusion: only you can create your charitable legacy. There simply is no one else on the planet capable of taking the steps necessary to create your charitable legacy. Nobody else. Only you.
When I talk about establishing a charitable legacy, I’m talking about putting a plan in place to support your favorite charities after you are gone. I know it’s not fun to think about death, and what to do with all of your stuff; and that is one of the main reasons people don’t create plans. But think about it this way, if you want to spread joy, kindness, beauty, hope and opportunity to others after you are gone, you have to take action while you are living. You must take the initiative to create a plan. No one else can do it for you.
For many years, our staff has encouraged local charities to incorporate planned giving into their fundraising strategy. We talk incessantly about the transfer of wealth that is taking place across America and here in our communities. I have made presentations to estate planning groups, Rotary clubs, chambers of commerce, nonprofit boards and teams of professional advisors across the region. We have spoken so frequently and consistently about the transfer of wealth that when the words “transfer of wealth” are spoken in a room, people will turn and look at me and smile like I invented the phrase. It is gratifying that people sometimes recognize our efforts to raise awareness about the transfer of wealth, which we did not invent, but it is sad to observe that so few people and organizations actually take action to direct that transfer of wealth to permanent endowments for vital local charities.
My revelation is…it is really not up to your favorite nonprofit development officer or your professional advisor to initiate your charitable legacy plan…it is up to you. Some nonprofit organizations are actively working with their donors to create legacy plans, but honestly, most nonprofits are fighting the daily battle for scarce resources. Very few organizations are able to devote professional staff to helping you set up future gifts that won’t help them meet their current annual budget. Professional advisors also face some of the same challenges. Advisors are working diligently to help their clients plan their investments, retirement, taxes, medical care, long-term care, and basic testamentary documents…so charitable giving can easily get squeezed out of the discussion. That’s why creating a charitable legacy truly comes back to you.
Take heart, though, you don’t have to do the work alone. To put a great legacy plan together, all you have to do is express your interest in getting it started. Nonprofit executives and staff at your favorite charities would be eager to help you consider some long-term giving options; they just may be too focused on the here-and-now to bring up the topic. Similarly, our region is teeming with expert advisors, CPAs, estate planning attorneys, investment advisors and trust officers who would be happy to talk about your legacy charitable plans, but they may be so focused on helping you run your business, plan for your retirement, and address critical estate planning issues that they may not initiate a discussion about your charitable legacy. Additionally, our staff at the East Texas Communities Foundation focuses exclusively on charitable giving, so we have frequent conversations with donors about how to maximize lifetime and legacy charitable giving. We would welcome the opportunity to hear your charitable interests and work with you to put a plan in place to help you meet your charitable objectives. We also work closely with local nonprofit organizations and professional advisors, so we can collaborate with them along the way to make sure your charitable objectives are incorporated into your current and future plans.
There are many ways to leave a charitable legacy and it all begins with knowing your interests. If you would like to leave a permanent endowment to support a favorite charity, consider leaving an estate gift that will perpetuate your current annual support. Use the 20:1 giving principle and leave an endowment gift that is twenty times the size of your annual gift. That may be a sizable gift when compared to your annual income, but it can be a very modest gift from your estate. Another legacy planning idea is to support multiple charities with one estate gift. You can leave a gift from your estate to an organization like ETCF, which would invest the funds and distribute income annually to a list of your favorite charities. As part of the process, we will establish a contingency plan to accommodate your changing charitable interests and unexpected changes with your charitable beneficiaries. Supporting student scholarships or pressing needs in your community are also great possibilities when you take the initiative to begin your legacy planning. Despite the best intentions of local nonprofit organizations and professional advisors, only you can truly create your charitable legacy. Perhaps initiating a charitable legacy conversation with a local nonprofit development officer, a trusted advisor or a member of our staff is your next best opportunity to give well.
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