Many people in California donate to charities. Donating money or assets to charities helps these organizations continue their missions. Whether you donate to charities helping people, animals or other causes, it’s understandable to wonder how these donations continue after you pass away.
The power of planned giving
Planned giving is an estate planning method that lets someone support charitable causes upon their death. Properly planned giving can also provide higher income tax deductions and fewer estate-related taxes.
What to donate
If you’re like most people, you likely picture cash donations for charities. However, many charities accept non-cash assets. These assets can include stocks, cryptocurrency, retirement-related accounts and real estate. Assets named but not yet granted to charities may also increase in value after you pass away, maximizing the power of your charitable contributions.
Balancing charitable organizations and beneficiaries
Another advantage of planned giving is splitting charitable contributions with money left to beneficiaries. Planned giving lets you ensure your loved ones and favorite charities receive what you leave behind. You’ll also avoid unintentionally leaving out a beneficiary or charity due to a lack of planning.
Staying in close contact with charities
It’s also wise to contact a charity about your planned giving wishes. Speaking with a charity’s employee also lets you learn what is and isn’t allowed as donations. You’d hate to go through all the steps needed to name charities as beneficiaries or recipients of sold companies, finding out they can’t accept your gifts.
While considering planned giving, ensure you name someone reliable to carry out your final wishes. Choosing a trustworthy executor helps ensure beneficiaries and organizations you love are provided for in the way you want them to be.
