Eileen Heisman: Hi! I am Eileen Heisman, President and CEO of National Philanthropic Trust. Today I am going to discuss how a Donor-Advised Fund can help you leave a legacy.
One of the primary reasons philanthropists look to Donor-Advised Funds is to continue or preserve their legacy of giving. Sometimes life events force a change in your giving strategy, events such as selling real estate or a business, receiving an inheritance, getting a divorce or a new marriage might change your financial goals. As a result it may change your ability to give or not. By using a Donor-Advised Fund you can create a reserve for your charitable gifts regardless of economic cycles and personal financial circumstances. You can also incorporate your Donor-Advised Fund into your estate plans. Many donors leave gifts at their death, such as bequests, paid life insurance policies and other assets that can fund charitable gifts in the future. Donor-Advised Funds work in conjunction with a host of other giving vehicles, including charitable remainder trust, charitable lead trust, and private foundations. Many individuals and families who have foundations also have Donor-Advised Funds to help them achieve their giving goals. Some donors eventually decide that the maintenance and administrative ease is worth converting their private foundation into a Donor-Advised Fund.
Just as you would make most major financial decisions with your loved ones, many philanthropists make charitable giving a true family event. Family members can serve as advisors and successors to a Donor-Advised Fund. There are also a number of different ways to craft succession plans. Some donors allow each loved one to recommend grants to causes in organizations that are important to them instead of trying to unify everyone's personal interests. Many people hope that their lives make a difference in the world. Donor-Advised Funds offer one way to make a positive impact, both during your lifetime and beyond. Choosing the right charitable giving vehicle is critical in preserving your legacy.