Arranging for resources to be given to charity can be part of your estate planning efforts, and this can be a very rewarding way to foster a lasting legacy.
To engage in philanthropy you must select a vehicle of charitable giving. There are those who opt for private family foundations, and we are all aware of famous ones such as the Rockefeller Foundation and the Ford Foundation.
Very large and well-funded private family foundations are going to be staffed, and there will be considerable overhead. This does not mean that these foundations do not accomplish their missions, but administering a large foundation is quite a significant undertaking.
It is however possible to create a foundation on a smaller scale, and many people go this route. There are various sources of support out there and one of them is the Association of Small Foundations.
There are other ways to give to charity as well, and a very popular choice is the donor advised fund. These funds facilitate efficient giving because you can advise the fund to make contributions to multiple charities that you want to support but you only make a single contribution into the fund.
There are tax advantages present when you make contributions into a donor advised fund including a charitable deduction for the year during which the donation was made even if no grants were endowed during that year.
If you are interested in exploring your options in more detail with regard to charitable giving we would be more than glad to assist you, and we offer free legacy planning consultations to people here in the greater Indianapolis area.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.