PLAN LEGACY GIVING
Understanding Legacy Giving
Legacy giving is the commitment to donate a significant gift to White Heart beyond one’s lifetime. It often serves as a continuation of the contributions an individual or couple has made throughout their life but on a larger scale. Unlike annual donations, legacy gifts are designated for the future and are typically incorporated into financial or estate plans. These gifts are usually arranged through a will or trust and take effect after the donor’s passing. Professional advisors, attorneys, and White Heart often assist in coordinating legacy giving. Importantly, legacy giving is not restricted by current financial status. Because legacy gifts can come from a variety of assets—such as life insurance policies, retirement funds, stocks, or real estate—they are often significantly larger than regular lifetime donations. These assets may not have been available for charitable giving during a donor’s lifetime, making legacy giving an opportunity for a lasting and meaningful impact. Even those who have consistently given smaller contributions can leave a legacy of substantial value.
Why Is Legacy Giving
Important?
"Not only does legacy giving represent the opportunity to provide long-term support to an organization, but it also gives donors a chance to establish a legacy," explained an article in Trust & Will.
Other key benefits include:
• Legacy giving allows donors to leave a significant gift that may not have been possible during their lifetime due to financial commitments.
• Charitable gifts are often exempt from estate taxes, ensuring more of the donation directly benefits White Heart.
• Donors can avoid capital gains taxes when transferring assets as part of a legacy gift, maximizing the overall charitable contribution to White Heart. Perhaps the greatest benefit of all is that legacy giving preserves a donor’s values and impact for future generations. Many donors begin considering legacy giving as they approach retirement, though some start planning as early as their 40s. Because these gifts typically align with personal values and beliefs, they offer a meaningful way to support a cause or nonprofit close to the donor’s heart—creating a lasting and powerful legacy.
Common Types of Legacy Gifts Stewarded by White Heart Foundation
White Heart Foundation offers various legacy giving options to help donors make a lasting impact. Some of the most common types include:
Donor-Advised Fund (DAF)
DAF allows donors to give now, later, or both. A succession plan can involve family members, ensuring philanthropic goals continue across generations. DAFs are among the most popular charitable giving options at White Heart Foundation.
Charitable Remainder Trust:
This qualified trust provides income to beneficiaries for a set period. Once all income payments are completed, the remaining assets are distributed to designated charities. Benefits include bypassing capital gains tax, increasing income, and receiving a charitable income tax deduction
Life Insurance
Donating a life insurance policy allows donors to make a substantial legacy gift while benefiting from tax advantages during their lifetime. By covering a relatively small annual premium, donors can provide a much larger gift to White Heart Foundation than might otherwise be possible.
Bequest by Will or Living Trust:
Naming White Heart Foundation in your will or living trust enables you to support causes you care about while maintaining full control over your assets during your lifetime. This type of gift—known as a charitable bequest—can be a specific dollar amount, a percentage of your estate, or the remainder after other distributions. Additionally, it provides a full charitable deduction on estate taxes.
Charitable Lead Trust:
A Charitable Lead Trust allows donors to fund a trust with selected assets. The trust provides a fixed annual payout to White Heart Foundation for a set term, after which the remaining assets are passed on to the donor’s beneficiaries
IRA, 401(k), or Other Retirement Assets:
Naming White Heart Foundation as the beneficiary of a retirement account is a tax-efficient and simple way to support its mission. Charities are exempt from income and estate taxes on these distributions, allowing the full value of the gift to benefit the organization
Charitable Gift Annuity:
A Charitable Gift Annuity is an agreement between a donor and a charity where cash or property is transferred in exchange for a partial tax deduction and a guaranteed lifetime stream of annual income.
Charitable Endowment:
A Charitable Endowment allows donors to leave money or property in an endowment fund, ensuring the principal remains intact while the charity uses the generated income according to the donor’s wishes
Custom Estate Planning for Businesses, Investments, or Special Needs Beneficiaries
For those with a family business, significant real estate holdings, or complex estates, a customized estate plan can align with their specific financial and philanthropic goals. Additionally, a special needs trust can be created to provide for a child with special needs while preserving their eligibility for benefits.
Legacy giving for the White Heart Foundation is handled by EDM Capital. Please contact Eric at Eric@EDM-Capital.com or Ryan@WhiteHeart.org to discuss the possibilities of a life-changing gift.