Succession planning: It’s not just for businesses

Written by Robin Elmerick, CICF Senior Director of Effective Philanthropy 

Many people think of succession planning as something only relevant to businesses or nonprofits. However, it’s equally important when considering the legacy you want to leave through philanthropy—including being intentional about what happens to your donor-advised fund after you’re gone. The team at CICF can help structure provisions for your donor-advised fund to engage your family, tap CICF’s expertise, or a combination of both so that your donor-advised fund can become a multi-generational legacy that reflects your values. 

Here are three considerations as you consider your “charitable succession plan”: 

Leave a legacy 

One of the most powerful ways to extend your impact is by leaving a portion of your estate to charity—such as by naming your donor-advised fund as a beneficiary of an IRA or other retirement account. This strategy delivers considerable tax advantages and enables your philanthropic dollars to be thoughtfully distributed in accordance with your values. Remember, IRAs left to CICF avoid not only the income tax that would hit your heirs, but also removes the assets from your taxable estate for estate tax purposes.  

Lean on CICF 

We are honored to serve as a trusted partner for many individuals and families. Our team can work with you and your advisors to enlist the expertise with CICF to make grants from your donor-advised fund according to your values and charitable intentions following your death. These can be one time gifts, or structured as reoccurring gifts by leveraging different vehicles such as a donor-designated fund. We can also work with you and your advisors to incorporate the ability for your children and grandchildren to serve as advisors to the donor-advised fund following your death, including taking advantage of our services to help your children and grandchildren learn how to be effective philanthropists.  

Capture your intentions  

The team at CICF is happy to work with you to document and formalize your charitable wishes. We’ll help you articulate your priorities and outline how you envision your fund making a difference across generations, whether that means supporting specific organizations, issue areas, urgent community needs, or a combination of priorities. By helping you capture your intentions in writing and then following your wishes, CICF acts as a steward to safeguard your philanthropic goals and help ensure that the causes you care about continue to receive support for years to come. 

We look forward to talking about succession planning for your donor-advised fund. We are honored to help you secure your charitable legacy and involve your loved ones in meaningful giving. Thank you for the opportunity. 

About the Author 

Robin Elmerick, senior director of effective philanthropy, has been with CICF since 2019. A certified Impact Philanthropy Advisor, she works closely with fundholders to help them define their philanthropic strategies and maximize their impact. With a background in nonprofit leadership and consulting, she is passionate about bridging the needs of the community with the missions of nonprofits and the passions of our fundholders, aligning all three to create meaningful change in Central Indiana and beyond.