Many generous individuals want to make the biggest impact they can on the world around them, even after they are gone. Legacy giving provides a final opportunity for you to empower your favorite charities and support the causes that are closest to your heart. No matter what your preference, charities can use all the help they can get.
But where should you turn to ensure that your gift has the greatest impact?
Small, local charities are often overlooked when it comes to charitable donations, but they deserve a second consideration. Here are some reasons why keeping your money local and investing in the smallest charities in your area could have the biggest, most tangible impact for you.
What is Legacy Giving?
You can make a more significant impact upon your passing by contributing a portion of your estate to philanthropic causes. Legacy giving is simply the term for creating a plan to make this gift after your death as part of a more comprehensive estate plan.
There is more than one way to go about setting up legacy giving, such as through charitable remainder trusts or donor-advised funds.
Working with a financial and legal advisor can help you decide which vehicle will provide the most benefit for you and the charity of your choice, but where should you donate the money?
Many philanthropists think of giving to big nationwide or global charities because they seem to make a splash, but small local charities may make an even bigger impact right in the community where you live, work, and play.
Local Charities Often Get Overlooked
These local charities are often overlooked by individuals creating estate plans. One reason for this is that they typically operate with smaller teams. Each person may wear several hats, and there is one noticeable omission from many teams: a dedicated planned giving staff.
As a result, they may not have a system in place to encourage donors. The marketing and outreach staff may be limited in what they can provide for the charity, making it harder to promote their work and attract donors like you. It might require more research to find these hidden gems that are doing work around you, but they appreciate every donation.
Why Consider a Small, Local Charity?
If you are on the fence about whether giving to a small organization is what you want to do, here are four clear reasons why many people may make the leap.
Greater Impact for Smaller Gifts
For smaller charities, even a small gift can prove to be revolutionary for their programs. Giving to a larger organization may be like adding a drop to the bucket. For example, $10,000 to your alma mater or a national nonprofit may be just another day, but it could secure operations for a year for your smaller, local charities.
Focused Funds for Programming
The truth is that no charity is capable of giving away all of the donations they receive. Even the most efficient ones will have some overhead, but smaller charities are used to operating as lean as possible. They tend to have fewer expenses because they anticipate a smaller annual budget.
This means that you can give to them confidently, knowing that your gift will go more toward the mission statement of the charity. The operating costs it does fund are essential, but a great portion of the gift will likely go to the cause itself.
No matter where you donate, be sure to research the charity on sites likeGive.org andGuidestar. This can answer any questions you may have about their reputation, whether they meet the BBB standards, and if they are an IRS-qualified nonprofit. Reputable charities will always publish their figures in their annual reports as well.
Tangible Results
Do you want to know exactly what your community can hope to gain from your gift? You will be able to see the impact directly on people and places in your area. For example, if you donate to help a local beach cleanup, you can later visit that beach and enjoy its pristine sands.
There is nothing more rewarding than knowing that you have contributed to the well-being of people who live and work around you. Instead of theorizing about what your money did, you will have a clearer idea.
Allow Local Communities to Flourish
Not only will you be able to see what your funds accomplish, but donating to a small charity often means that you keep your money local. The local community benefits from your gift, and it allows you to address challenges that are unique to your area.
What would you improve for the next generation if given the opportunity? This is often the first place you should look for small, local charitable giving opportunities.
Get Help for Charitable Giving at Magellan
Donating cash to the charity of your choice might not be the most strategic move. If you intend to incorporate legacy giving into your estate planning, Magellan can help you weigh all of your options, from charitable remainder trusts to donor-advised funds and more.
As your one-stop shop for estate planning, we offer comprehensive estate, legal, financial, and tax planning services you need under one roof.
Reach out to us today to learn more about how we can help you make a lasting impact on the charities that are near and dear to your heart!
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.
This material provided by Kevin Meaders was written by Axle Eight, a non-affiliate of Magellan Planning Group and Cetera Advisor Networks LLC.