Many individuals and families spend a great deal of time setting up a charitable plan they feel good about. For example, they establish a donor-advised or other types of funds at IECF, update IRA beneficiary designations so that the fund receives the proceeds, and leave general instructions about the types of causes they want to support. Then life moves on, and the plan sits quietly in place—often for years—while the individual or family assumes everything will work exactly as intended.
The challenge is that charitable plans can outlive the paperwork. Over time, family structures change, attorneys and financial advisors retire, organizations merge or shift direction, and donors’ own priorities evolve. Even when your charitable intentions remain strong, the documents that express those intentions can become outdated without anyone noticing. This can create confusion later, especially for family members or advisors who are trying to carry out your wishes during a stressful time.
A simple way to avoid this is to treat charitable planning the way you treat other important parts of your financial life: review it periodically. That does not mean you need to overhaul your plan every year. It simply means taking a moment to confirm that what is written down still reflects what you want.
For example, if you have a donor-advised fund at IECF, it is a great idea to meet with our team once a year to review where things stand. We’ll go over key information such as:
–Confirming that successor advisor designations are current and that the people you named still understand and are willing to carry out your wishes
–Evaluating the idea of leaving a portion of your fund to support IECF’s mission following your death
–Confirming that your attorney has included the correct fund name and language in your will or trust
–If you have named your fund as a beneficiary of a retirement account or life insurance policy, confirming that the fund is correctly named and that your tax and financial advisors have copies for their records
–Considering ways to get more involved with charitable giving during your lifetime, such as by including children and grandchildren in decision-making
–Developing a brief statement of purpose to maintain in IECF’s permanent file that explains why you care about certain causes and what you hope their giving will accomplish over time
Please remember that it is our pleasure to meet with you for these check-ins! IECF is your home for charitable giving, and we are here for you.
Even a brief conversation once a year can give you peace of mind and strengthen the long-term impact of your giving.
Please reach out to our Charitable Giving Team anytime. Stay up to date on all the good work we’re doing through the power of philanthropy – sign up for our eNewsletter, Philanthropy Matters, today.
The team at the community foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.
