Passing Along More Than Wealth
Written by Robin Elmerick, CICF Senior Director of Effective Philanthropy
The Great Wealth Transfer is already underway, with trillions of dollars expected to pass from one generation to the next over the coming decades through cash, investments, real estate, business interests, and other assets.
Much of the conversation focuses on the mechanics. Who will inherit the family business? What will happen to the investment portfolio? How should the estate plan be structured?
Those are important questions. But families are also asking something deeper:
What values do we want to pass along?
For many families, generosity is one of those values. A charitable legacy is not limited to the gifts made after your lifetime. It can also include the conversations, traditions, and shared experiences that help children and grandchildren understand why giving matters to you.
Begin the conversation now
You do not have to wait for an estate-planning milestone to involve the next generation in philanthropy.
You might invite family members to help identify causes to support, research nonprofit organizations, or participate in grantmaking decisions. Sharing why you care about a particular organization or community need can be just as meaningful as discussing how much to give.
These experiences allow younger generations to develop their own philanthropic interests while learning about the values that have guided your family’s giving.
Want help? Our team of philanthropic advisors loves to help fundholders think through opportunities to engage successor generations in their philanthropy. Whether that’s leading successors (of any age) through a guided exercise or helping you think through ways to thoughtfully incorporate them into your giving strategy – we’re here and happy to support you.
Include charitable giving in your estate plan
August’s recognition as Make-A-Will Month also offers a timely reminder to review whether your estate plan reflects your charitable intentions.
A charitable bequest can be relatively simple. You might leave a specific amount, a percentage of your estate, or certain assets to an existing charitable fund. You may also establish a fund through your estate to support particular organizations, causes, or community needs for years to come.
As a donor-advised fund holder, you may have already named children or other loved ones as successor advisors, giving them the opportunity to continue recommending grants and carrying forward your family’s tradition of generosity. You can also designate a specific dollar amount or percentage of your fund to support organizations, causes, or community needs that are meaningful to you. This charitable allocation can be made in addition to your successor plan—with the designated amount distributed first and the remaining balance continuing with your successors—or it can provide a way to carry out your charitable wishes if you have not named successors.
If it has been a while since you established your succession plan, our team is happy to connect with you to review your current designations and help ensure they still reflect your family, your philanthropic priorities, and your wishes for the future.
For families whose estates may be subject to federal estate tax, charitable planning can also have important tax implications. Your attorney, CPA, and financial advisor can help determine whether those considerations apply to you.
Even when estate taxes are not a concern, a charitable bequest can still be one of the most meaningful provisions in an estate plan. You can provide for the people you love while also supporting the organizations and causes that have shaped your life.
Estate plans transfer assets. A thoughtful charitable legacy can also transfer generosity, responsibility, and a sense of connection to community.
Our team would be honored to work alongside you and your advisors to explore charitable bequests, donor-advised funds, and other strategies that can help your family continue making a difference for generations.
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 across all entities of the CICF Collaborative 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.
