A Guide to Planned Giving: Leave Behind a Better Future for Your Family and Your Community
What is Planned Giving?
Planned giving may also be called legacy giving or charitable estate planning. Regardless of the name, this philanthropic strategy is employed by donors who wish to contribute a charitable gift to an organization beyond one’s lifetime. It often continues a donor’s, couple’s or family’s contributions that were made during lifetime but on a larger scale and with added tax benefits.
An estate plan is one of the most valuable ways to protect your loved ones after your lifetime. But did you know that incorporating charitable giving into your plan could have even greater benefits for you, your beneficiaries and the community? If you want to leave behind a legacy that improves life in the Pittsburgh community and provides financial benefits for your loved ones, it’s important to strategically plan. Our experienced team at The Pittsburgh Foundation and The Community Foundation of Westmoreland County is here to help you have the greatest possible impact on the causes that mean the most to you.
Doug DeNardo, a valued partner of the Foundation and co-chair of the Estates and Trusts group at Tucker Arensberg says, “a lot of people start creating a will to protect their family for the future. When we first begin planning, charity isn’t their top priority, but figuring out your charitable giving plan early can have incredible tax benefits for your loved ones.”
Why should you include a philanthropic advisor on your team?
Think of us as an essential member of your estate planning team alongside your attorneys and other financial advisors. Once you decide to create a charitable giving plan, The Pittsburgh Foundation and The Community Foundation of Westmoreland County ensure your intentions are handled thoughtfully and strategically, and your gift has the greatest impact possible. Our team evaluates trends in local needs and the outcomes of philanthropic organizations to ensure your gifts create meaningful and long-lasting impacts on neighbors in our community.
For example: maybe you're passionate about increasing access to education and after school programs but unsure which nonprofit organizations to support. We can match organizations with your intentions, so you know that your gift is being put to the best possible use, year after year. Even if you know exactly which organization you want to include in your will, we will ensure that your gift is delivered sustainably and in alignment with their operational needs.
What is the process like working with the Foundation?
The Pittsburgh Foundation and The Community Foundation of Westmoreland County offer a personalized approach to planned giving. We start with a conversation to understand your goals and develop a vision together to maximize the impact of your gift. We will work with you to create a Memorandum of Understanding (MOU) to capture where you want your assets directed and the legacy you want to leave in the community. In most cases, the MOU is revocable and can be easily changed or updated throughout your lifetime with no cost. There are a variety of common planned giving strategies that offer different opportunities for different individuals. Here are some of the most common methods and their benefits to you:
Bequests from your will, trust or estate plan
You can include The Pittsburgh Foundation and/or The Community Foundation of Westmoreland County in your will or trust by leaving a specific dollar amount, a percentage of your estate, or the remainder after other gifts to create a new fund or contribute to an existing one. A bequest costs nothing during your lifetime and your gift can be updated at any time.
Retirement Funds
Leaving a retirement plan to your loved ones can result in significant income and estate taxes, with rates as high as 70%. Instead, you can name The Pittsburgh Foundation and/or The Community Foundation of Westmoreland County as a beneficiary for all or part of your IRA or 401(k). That way, your gift passes to us tax-free to create new fund or contribute to an existing one. Depending on your circumstances, it might benefit your loved ones to leave these heavily taxed retirement funds to the Foundation and set aside more favorably taxed assets for your family.
Life Insurance Policies
Donating life insurance to the The Pittsburgh Foundation and/or The Community Foundation of Westmoreland County provides leverage, making it possible to gift a significant amount at a relatively small cost while still claiming a tax deduction. The Foundation will maintain the policy during your lifetime and then become the beneficiary.
Charitable Gift Annuities
By making a gift to The Pittsburgh Foundation and/or The Community Foundation of Westmoreland County, you or your beneficiaries can receive guaranteed fixed payments for life. Your donation also qualifies for a tax deduction. At the end of your lifetime, the remaining annuity amount will be directed to your fund to create a legacy of change.
Charitable Remainder Trusts
This designed trust provides you or another beneficiary with a fixed income payment stream and a tax deduction upon making a gift to The Pittsburgh Foundation and/or The Community Foundation of Westmoreland County. You can decide between payments made for the duration of the beneficiary’s lifetime, or for a set term of up to 20 years. You choose whether the trust assets pass back to you, someone else, or are distributed to charitable organizations when the fixed term is complete.
Charitable Lead Trusts
This type of trust prioritizes charitable giving by first distributing assets to The Pittsburgh Foundation and/or The Community Foundation of Westmoreland County for a set term that you decide. After that time, the remaining assets are passed on to your other beneficiaries. This method can sometimes allow your heirs to receive more than they might have received through a direct bequest.
How can I get started on my charitable giving plan?
Gifting options are available for everyone, regardless of means, and some methods don’t require giving even $1 during your lifetime. Whether you’re just starting to talk to your professional advisors or you’d like to refine an existing plan, our Development and Donor Services team members are ready to join the conversation at any stage. Contact our staff to ask questions, get additional information about the different giving methods and start creating your MOU.
Learn more about planned giving on our Will Week page
Create your legacy through planned giving.
For more information, contact The Pittsburgh Foundation’s Development and Donor Services team.
development [at] pghfdn.org (Email Us)
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