Planned giving is defined as a way to support a nonprofit organization and
enable donors to make larger gifts in the future than they could afford with
their present income. “It’s just like it sounds,” says Brian Harrison, director of
planned giving at the Scott & White Healthcare Foundation. “It is a way for you to
allocate funds to donate at a future date that is most often many years away. The
timing of when these gifts are received is purposefully planned so that you can
support organizations like Baylor Scott & White while also making it easier
to achieve your own financial goals and reduce your tax burden.”
Types of Planned Giving
There are several ways to make a planned gift. When choosing the option that is right for you,
it is important to consider your current financial status and financial goals.
Bequest
The most common way that people make planned gifts is
a bequest—that is, including a provision in a will or other
estate plan for a future gift. “It’s an important way for
donors to help provide for our community long into the
future,” says Mr. Harrison.
Many donors who have been touched by a positive
experience with Baylor Scott & White have chosen to share
their good fortune by leaving a bequest to the healthcare
system. It is easy to do and ensures that your good intentions
are honored after your lifetime. Bequests offer donors the
satisfaction of making a difference in the community, while
still maintaining control and use of their assets during their
lifetime. Bequests may also be altered if circumstances
change over time, and may be exempt from federal estate
taxes.
There are several ways to include a nonprofit organization
as a beneficiary in your will. A residuary bequest means that
whatever remains from your estate after your loved ones are
provided for can be designated as a gift to the organization
of your choice. A percentage bequest simply designates a
percentage of your estate to be given to the organization.
Similarly, a general, or fixed-dollar, bequest designates a
specific dollar amount to be given to the nonprofit.
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A generous charitable gift
A retired pastor and his wife, who wish to remain
anonymous, love children, but never had any of
their own. With no heirs, they wondered where
they might leave their legacy. “They contacted
our office to tell us about their interest in doing
something with their estate,” says Mr. Harrison.
“We invited them on a tour of McLane Children’s
Hospital, and that made all the difference.”
While on the tour the couple had an opportunity
to see how children would benefit from their gift.
They observed the day-to-day operations of the
hospital, met administrators and department
leaders, and visited the neonatal intensive care
unit. They even sampled a meal at the hospital
café. “They got to see, feel, touch, and hear all
about what goes on at the children’s hospital, and
they were amazed at what a happy and cheery
environment it is for helping children get healthy.
It really solidified their plans to make a bequest,”
says Mr. Harrison.