Planned giving offers a way to support the causes you care about both now and in the future.
Despite its many benefits, planned giving is often misunderstood. Some people believe it’s only for wealthy individuals, too complicated to set up, or that it requires choosing charity over family. In reality, planned giving is a flexible and accessible option for people at all stages of life. Below is an explanation of what planned giving is, along with clarification of the most common myths about how it works.
What Is Planned Giving?
Planned giving refers to charitable gifts that take a little more planning than writing a check or donating online. These gifts can be made now but are usually arranged to take effect in the future (through a will or estate plan), and may also include assets such as stocks, retirement accounts, life insurance, or real estate.
“I have to choose between my family and charity.”
This is one of the most common concerns, and it’s not true. Planned giving allows you to take care of your loved ones first, while also including a charitable gift if and when you are able. Many people choose to give a small percentage of their estate or name a charity as a partial beneficiary—there is no one‑size‑fits‑all approach.
Example language: I give, devise, and bequeath ten percent (10%) to the Winona Community Foundation, a nonprofit organization located at 111 Riverfront Suite 2E, Winona, MN, 55987, Federal Tax ID #36-3500853, for the Winona Community Foundation’s general use and purposes.
“Planned giving is only for wealthy people.”
Planned giving is for anyone who wants to make a lasting impact, regardless of the size of their estate. Gifts of all sizes can make a meaningful difference to the causes you care about.
“It sounds complicated.”
Planned giving can be surprisingly simple. Some of the most common gifts, such as adding the Community Foundation to a will or beneficiary designation on a life insurance policy, often take just a short conversation with an attorney, financial advisor or can even be self-updated through online portals offered by the companies that hold your accounts. The Community Foundation can also provide sample language and guidance to make the process easier.
“I’ll lose control over my gift.”
Planned giving using a Community Foundation actually allows for more control, not less. Donors can outline how their gift should be used, name specific causes, allow for flexibility as community needs change, or give future generations a role in directing grants.
“Planned giving doesn’t offer me any tax benefits.”
In many cases, planned gifts are excluded from a donor’s taxable estate, which may provide estate tax benefits. Also, there are tax-wise ways to give certain assets to charities over others, such as gifting an IRA (individual retirement account). Donors are encouraged to consult with professional advisors about their individual situation.
“Why should I leave a legacy with a Community Foundation instead of directly to a nonprofit?”
First, we hope to inspire more generosity through planned giving whether that be with us or because of us! If you have a favorite charity and you want to give directly to them, we encourage that! A gift using the Community Foundation does provide a few unique benefits.
One: you can name the Winona Community Foundation as the beneficiary in your estate, and then meet with the Foundation to develop a Giving Plan (free of charge). If you have a change of heart on your chosen charities, you can update the giving plan with the Foundation at no cost, rather than spending the money to update your will officially with an attorney’s office.
Two: if you leave something to a nonprofit that no longer exists, the monies will be reallocated to your estate. If you leave it the Community Foundation, we would research whether that nonprofit merged or if there is another or new nonprofit doing the same work that still meets donor intent.
Three: there are a plethora of set up options available at the Foundation that staff are open to discussing (confidentially, of course)!
A Legacy That Grows with the Community
A planned gift to charity is a personal statement about the future you want to help build. Whether your passion is education, the arts, health, the environment, or addressing emerging community needs, planned giving ensures your values continue to shape Winona for years to come.
For those considering how they want to be remembered, planned giving is an excellent tool. Your generosity can live on, doing good, in the places that you love most.
For more information or to begin a conversation about legacy giving, contact the Winona Community Foundation to explore the options that best fit your goals.
