Planned giving can have a major impact on how an organization like Matthew’s Hope is able to plan for its future and sustain itself in the long run. This is also an excellent way for people to create a legacy and help others no matter what their resources are now.
Planned giving is the term that nonprofit organizations like Matthew’s Hope use to refer to the process of donors committing to a gift to the charity as part of their estate plan. While there are a few different ways to give via planned giving, bequests are by far the most popular and easy type of planned gift. Bequests are gifts that are left in a donor’s trust, will, or estate plan, and given to a nonprofit upon the donor passing away.
Planned giving can have a major impact on how an organization like Matthew’s Hope is able to plan for its future and sustain itself in the long run. This is also an excellent way for people to create a legacy and help others no matter what their resources are now.
Because planned gifts do not impact everyday cash flow, these types of gifts are accessible to everyone — from those whose incomes rarely permit them to give to major, loyal donors.
Contributions in estate planning can be a game changer to Matthew’s Hope and its mission but they help the person donating also in a few ways.
First, these gifts help the donor leave a legacy. Making a bequest in a will is a powerful way to leave a lasting impact that supporting a favorite organization for years to come. Donors can allocate how or where they want that money to be spent. Because wills are fairly easy to update, donors can also keep their bequests up to date, checking in with Matthew’s Hope personnel on where their donations will make the most impact. A donor can decide he or she wants part of the gift to go to Matthew’s Hope’s housing, medical clinic, preschool or any combination of the services it provides. Contributions can also just go to the organization in general to use as it thinks best.
Planned gifts can come in a variety of forms from simple bequests to complex trusts — all with different requirements and advantages depending on a donor’s circumstances. There are a few common ways to give with the first being bequests which are a popular and fairly simple way to make a planned gift. These ‘outright’ gifts are charitable contributions left as a bequest in a legal will. They are usually given as a specific amount, a remainder of a donor’s estate after other bequests have been paid, or a percentage of a donor’s total wealth.
If the donor has investments he or she can use a charitable gift annuity which allows a donor to give a large amount of cash or securities in exchange for a fixed income payment for life. The nonprofit keeps any leftover funds as well as any income it makes from investing those funds.
There are also a couple types of charitable trusts, but in each, the remaining funds go to the nonprofit after the trust is terminated. A charitable remainder annuity trust pays the donor a fixed amount based on a percentage of the initial assets used to fund the trust. A charitable remainder unitrust pays the donor a percentage of its principal and is revalued annually, so that payments increase over time. There are also charitable lead trusts which pay an ‘income’ to the nonprofit for a specified number of years or for the donor’s lifetime. When that term is up, the assets are given back to the donor or their beneficiaries.
Other gift types are non-cash assets, such as stock or real estate, giving from IRAs (also known as Qualified Charitable Distributions), and Pooled Income Funds. In summary almost any asset can be left to the charity to sell or use as it sees fit.
So, as you can see there are many ways to give to Matthew’s Hope either while you are alive through trusts and investments or after you pass through gifts in your will or your trust. If giving a gift to help your legacy carry on through helping others is something that excites you, it is not difficult to begin. If you first want to talk to the people who are executing the mission of Matthew’s Hope each day to see how your gift can best help, you can speak to Pastor Scott Billue or Nancy Deskins.
After deciding exactly how you want to help Matthew’s Hope, it is time to get assistance from the professionals on your team. If you have investments and may want some of them or their proceeds to go to Matthew’s Hope, you should consult your financial advisor. Your accountant can also help guide you on how to reduce the taxes you or your heirs must pay by using charitable gifts. Finally, if you have a will or even if you do not, an estate planning attorney can help you add a gift to Matthew’s Hope in your will or trust. If you do not have any estate planning documents, giving a gift to help the guests of Matthew’s Hope is a great reason to start one.