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 the CICF Collaborative (which includes Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) can help structure provisions for your donor-advised fund to engage your family, tap the CICF Collaborative’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 an entity within the CICF Collaborative 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 the CICF Collaborative
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 within the CICF Collaborative 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 bt 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 the CICF Collaborative 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, the entities within the CICF Collaborative (Central Indiana Community Foundation, Hamilton County Community Foundation, the Indianapolis Foundation, and Women’s Fund of Central Indiana) act 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 CICF Collaborative
CICF Collaborative is a partnership of philanthropic organizations working together to strengthen communities across the region. Each entity within the CICF Collaborative (including the cornerstone entities, Central Indiana Community Foundation, Hamilton County Community Foundation, IMPACT Central Indiana, the Indianapolis Foundation, and Women’s Fund of Central Indiana) brings deep knowledge, strong relationships, and its own individual, focused mission. The CICF Collaborative unites the entities by providing shared services, allowing the entities to operate more efficiently and effectively. By leveraging what we each do best, we’re able to better serve our communities and create more lasting impact, together. Learn more »
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.