Box toys and shoes for children in need, collect canned goods and give them to charity each year. But what if you could leave a permanent legacy that will help your cause?
One of the best ways you can act as a philanthropist is to leave money to charity in your will. Many charities depend on legacy income to fund their programs. Some receive up to 40% of their income through bequests.
There are many options for leaving a bequest to the charity of your choice. You can leave a portion or all of your retirement plan (IRA, 401k), life insurance plan, stock portfolio, estate, or other assets to charity.
A charity can also be asked to give your money to a specific cause. For example, you could leave money to Running Strong for American Indian Youthwww.indianyouth.orgThe ), a non-profit organization that assists American Indians in meeting their immediate survival needs and creating programs that promote self sufficiency and self-esteem, asks that donors support Running Strong’s youth programs or community garden program.
If you don’t specify the purpose of your money, the charity will likely add it to their endowment. This allows them to use the money for any cause they choose.
Legacy programs are offered by many charities to assist potential donors. Americans Helping Americans (www.helpingamericans.org), a nonprofit that helps improve the lives of impoverished people living in Appalachia, created its Americans Helping Americans Legacy Society to recognize those who wish to include the charity in their will.
Over 80 percent of Americans donate to charities. However, only 8 percent of Americans included legacies in wills according to an Indiana University Center on Philanthropy survey. This is a significant drop considering 2009’s difficult economy.
Many Americans are concerned that leaving a charitable bequest may disadvantage their heirs. A legacy can help reduce the estate taxes the other beneficiaries of your will will need to pay. Donations to Running Strong and Americans Helping Americans can be exempted from both federal estate taxes as well as inheritance taxes.
Visit www.amazon.com for more information www.indianyouth.orgOr www.helpingamericans.org.
