What are the common challenges and pitfalls of legacy giving and how to avoid them?

1 Plan ahead

One of the most important steps in legacy giving is to plan ahead and communicate your intentions clearly. This will help you avoid potential conflicts, misunderstandings, or legal complications that could arise after your death. For example, you should consult with your family, your lawyer, and your chosen charity to make sure they are aware of your wishes and how they will be carried out. You should also review your will and estate plan regularly to ensure they reflect your current situation and preferences.

2 Choose wisely

Another key factor in legacy giving is to choose wisely the charity or charities that you want to support. You should do some research and due diligence to make sure they are reputable, trustworthy, and aligned with your values and goals. You should also consider the type and amount of gift that you want to leave, and how it will be used by the charity. For example, you can specify whether you want your gift to be restricted or unrestricted, or whether you want it to be endowed or spent. You should also be aware of the tax implications and benefits of different types of gifts.

3 Be flexible

A third aspect of legacy giving is to be flexible and adaptable to changing circumstances. Legacy giving is a long-term commitment that may span decades or even generations. Therefore, you should be prepared for the possibility that your chosen charity may change its name, mission, or programs over time, or that it may merge with or split from another organization. You should also be open to the idea that your gift may be used differently than you originally intended, depending on the needs and priorities of the charity and the beneficiaries. You should trust the charity to use your gift wisely and effectively, and avoid imposing too many restrictions or conditions that could limit its impact.

4 Seek advice

A final tip for legacy giving is to seek advice and guidance from professionals and experts. Legacy giving can be a complex and nuanced process that involves legal, financial, and emotional aspects. Therefore, you should not hesitate to consult with your lawyer, accountant, financial planner, or other advisors who can help you navigate the various options and implications of legacy giving. You should also seek advice from the charity or charities that you want to support, and ask them about their legacy giving policies, procedures, and best practices. They can help you understand how your gift will be used and appreciated, and how you can stay connected and informed about their work.