Legacy of Love: Rethinking Family & Philanthropy
At Greater Houston Community Foundation (Foundation), we believe that every individual has a unique story to tell, one that can inspire positive change in our community. We are honored to serve as your trusted philanthropic partner, helping you mold your unique vision of giving into a legacy that resonates across generations. No matter the dynamics of your family or relationships, your philanthropic journey can inspire positive change that resonates well beyond your lifetime.
The Evolving Family Landscape
By working with the Foundation, you can explore meaningful ways to involve your loved ones in your philanthropic legacy. For instance, if you have children, you might consider naming them as successor advisors on your donor advised fund, allowing them to carry on your philanthropic vision. Conversely, if you don’t have children or heirs, your donor advised fund can seamlessly transition to a designated fund, ensuring your values endure even after you’re gone.
Shifting demographics drives an enhanced role for community foundations in numerous estate plans. A Pew Research Center study revealed that 20% of U.S. adults aged 50 and older do not have children. Additionally, affluent parents often find that their children relocate, prompting many to recognize that partnering with a community foundation can help preserve familial connections to their childhood communities across generations.
Charitable Giving Solutions
When you partner with us, you’re not navigating the world of charitable giving alone. We can explore multiple charitable giving vehicles tailored specifically to your unique vision. Here are a few ways you can collaborate with us to achieve your goals:
Donor Advised Funds (DAF): DAFs enable you to donate appreciated stock, organize annual giving to favorite charities, and make strategic grants to address pressing community needs.
Designated Funds: Donors can support the mission of a particular charity over the long term, including through tax-savvy Qualified Charitable Distributions (QCD) from IRAs.
Beneficiary Designations: Donors can leave IRAs or other retirement accounts to the Foundation, avoiding income tax and estate tax.
Case Study: Elena and Ivan’s Legacy
Elena and Ivan, a devoted couple in their 60s, have always been passionate about education and the arts. They have been actively involved in their community, volunteering at local schools, museums, and art galleries. Despite not having children of their own, they want to leave a legacy that will benefit their community for generations.
Philanthropic Goals
Elena and Ivan want to make a significant impact on their community by supporting education and the arts. They have identified several favorite charities, including local schools and arts programs that align with their values and passions. They also have a special fondness for a beloved arts organization that has brought them joy and enrichment throughout the years.
To achieve their philanthropic goals, Elena and Ivan were referred to Greater Houston Community Foundation by their professional advisor. They established a donor advised fund to actively support their favorite charities and passions and established a designated fund to specifically support their favorite arts organization.
Tax Planning
To maximize the impact of their philanthropy, Elena and Ivan worked with experienced philanthropic advisors at the Foundation to understand the tax implications of their donations. By designating the Foundation as the beneficiary of their Individual Retirement Accounts (IRAs), they were able to avoid taxes on their retirement distributions and ensure that 100% of the funds went towards their philanthropic goals. The DAF can be made into an endowment through their estate plan allowing for a permanent giving vehicle for heirs to carry on the family legacy.
Key Takeaways
- Donor advised funds can be an effective way to achieve philanthropic goals while minimizing tax burdens.
- Designated funds can be created to support a specific organization.
- Tax planning can play a crucial role in maximizing the impact of philanthropy.
- Leaving a planned gift to a nonprofit organization can ensure that legacy goals are achieved.
The case study presented in this blog is a fictionalized account of real-world business scenarios, created for educational purposes only.
Your Philanthropic Partner Awaits
At Greater Houston Community Foundation, we’re committed to helping you create a legacy across generations. As your trusted philanthropic partner, we’re here to guide you through the process of establishing a donor advised fund, designated fund, or any other charitable giving vehicle that aligns with your values and empowers your charitable vision. Together, let’s make a meaningful difference in our community and create a legacy that inspires others.
Contact Kevin Pickett or Andrea Mayes to learn more about how we can help you turn your philanthropic dreams into reality.
More Helpful Articles by Greater Houston Community Foundation:
- 30 Years of Amplified Giving: Insights from the CEO
- Cash or Stock? A Strategic Guide to Charitable Giving
- Philanthropy for High-Net-Worth Individuals and Families
- The Growing Influence of Women in Philanthropy
- The Changing Landscape of Charitable Giving: Legislative Insights for 2025
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