What Is Planned Giving?

There are many ways to support the causes we care about — volunteering, forwarding newsletters to friends and family, attending local fundraisers. But what about leaving a more lasting impact?

For millions of people, planned giving offers the opportunity to honor loved ones and support future generations beyond our lifetimes. Additionally, nonprofits like Boys & Girls Clubs of America rely on the ongoing generosity of donors to grow our operations, reach and impact.

Read more to find out if planned giving is right for you!

What is Planned Giving?

Planned giving, or charitable giving financial planning, is any gift made as part of a donor’s overall financial or estate planning. These gifts can be made during a donor’s lifetime or upon their passing. They can be as simple as a bequest in a will or as complex as a charitable gift annuity.

There are many options for planned giving, but a few of the most common are:

• Bequests: A bequest is a gift made through a will or a revocable trust, which takes effect after the donor has passed. It’s a popular option due its simplicity to set up, and it costs nothing during the donor’s life.
• IRA Charitable Rollover: If you are 70½ or older, you can use your IRA to fulfill your charitable goals, avoid paying income taxes and still meet your Required Minimum Distribution.
• Charitable Gift Annuity: This planning tool allows you to transfer an asset to charity and in return, you become eligible for tax deductions and the charity agrees to make payments to you for life, providing you with a fixed income stream.
• Donor advised funds: With a donor advised fund, you can make charitable gift recommendations during your lifetime and distribute gifts to numerous charities. When you pass away, your children can carry on your legacy of giving.
• Beneficiary Designation: You can designate a nonprofit as the beneficiary of your bank account, life insurance policy, IRA, 401(k), 403(b) or other pension account. With a beneficiary designation, you maintain control of your assets during your lifetime and can potentially avoid heavy taxes.

When you decide to include Boys & Girls Clubs of America as part of your estate planning, you are eligible to join the Heritage Club: a prestigious donor recognition society honoring those who have shared their intent to include our mission in their planned giving. Boys & Girls Clubs of America’s planned giving representatives can help you decide what giving model works best for you. You can also work with an estate planning attorney to craft a more structured approach that maximizes benefits for you, your family and the cause you care about.

Benefits of Planned Giving

Planned giving is a way to make larger gifts to charitable organizations than may not be feasible through regular income. You also enjoy tax benefits and even income from planned giving models you choose like a charitable gift annuity.

For example, when you transfer appreciated property through a Charitable Remainder Trust, you can avoid paying capital gains tax, enjoy regular income for life or a term of years, and receive the benefit of tax savings from a charitable deduction. Moreover, if your estate plans include your children or grandchildren, a Charitable Lead Trust can allow your loved ones to avoid substantial gift or estate taxes.

Boys & Girls Clubs of America’s estate planning guide can help you prepare for an informed and meaningful conversation with your estate planning attorney so you can feel confident that your wishes will be fulfilled and your legacy will last. You can also contact any of our planned giving representatives at Boys & Girls Clubs of America to discuss the Heritage Club and including our organization in your planned giving.

Why give to Boys & Girls Clubs of America?

A gift to Boys & Girls Clubs of America has the potential to influence millions of young people’s well-being far into the future.

In fact, every dollar invested in Boys & Girls Clubs returns $10.32 in economic benefits to individuals and society.

A planned gift or a legacy gift is also a beautiful way to pass your story on to the next generation.

For Jonathan A.’s parents, a legacy gift was their way to honor their son, a former Boys & Girls Club member. Sadly, Jon lost his life as a young adult. Jon had attended his local Club since elementary school and found much happiness there. As a teen, he dedicated over 700 hours of volunteer service to his Club and was honored as the Club’s Youth Volunteer of the Year and with two White House Youth Service Awards.

“It’s reassuring to know that future generations of parents can leave the care of their children in such a nurturing environment and wholesome culture,” said Justine, Jonathan’s mother. “We are happy to help Boys & Girls Clubs continue providing that assurance to other parents.”

Overall, planned giving allows you to leave a lasting legacy with many models to choose from. Giving to Boys & Girls Clubs of America also empowers generations of youth with caring mentors, life-shaping programs and safe afterschool environments.

Whether you choose a planned gift or a legacy gift, join us in paying forward our 160-year-old mission to enable all young people to be great today and become productive, caring, responsible citizens tomorrow.

Please note that this article is informational and educational in nature and is not offering professional tax, legal or accounting advice.

For specific advice about the effect of any planning concept on your tax or financial situation or with your estate, please consult a qualified professional advisor.

Investing in Great Futures for Kids & Teens

There are several ways to factor Boys & Girls Clubs of America into your charitable giving financial planning. Discover ways to support our organization and maximize your impact on youth and communities at BGCA’s planned giving site.