At The Community Foundation of Frederick County, we’re honored to work with our donors and fund holders to achieve a wide range of charitable giving priorities often involving multiple charitable giving vehicles. It’s not uncommon, for example, for an individual’s or couple’s “portfolio” of philanthropy with the Community Foundation to look something like this:
- A designated fund to support the mission of a particular nonprofit over the long term, especially because when one spouse reaches the age of 70 ½, the designated fund can receive tax-savvy Qualified Charitable Distributions from IRAs.
- A beneficiary designation on an IRA to leave those assets to an unrestricted fund at the Community Foundation, avoiding both income tax and estate tax, so that the fund can support the Community Foundation’s mission in perpetuity.
- A donor advised fund to make it easy to donate appreciated stock and organize annual giving to favorite charities.
- Donations to other funds throughout the year that support important causes.
What’s more, many people don’t realize that a mix of charitable giving vehicles works well to achieve your charitable goals whether or not you have children. For example, if you have children, you can work with the Community Foundation to explore naming them as successor advisors on certain funds to carry on your philanthropic priorities beyond your lifetime. If you don’t have children, your fund can continue on with your wishes in place, or it can roll into a designated fund or unrestricted fund.
Changing demographics are becoming a catalyst for the Community Foundation’s increased role in many estate plans. For example, not having children is becoming more common, both among millennials and older people. According to a study conducted by the Pew Research Center, 20% of U.S. adults age 50 and older hadn’t had children. In addition, children of affluent parents tend to move away, which means that many parents embrace the notion that working with the Community Foundation can help children maintain ties to their childhood community even across generations.
Indeed, many couples who don’t have children and couples who do have children feel a strong sense of peace of mind knowing that the Community Foundation will be involved with their charitable legacy long after their lifetimes, whether through advising children and grandchildren or administering charitable bequests for maximum community impact. The Community Foundation always has its finger on the pulse of our region’s greatest needs and the nonprofits that are meeting those needs at any given point in time, whether right now or decades in the future.
We’d love to talk about your legacy. Please reach out to our Philanthropic Services team at 301-695-7660 or email giving@FrederickCountyGives.org to learn more about how we can help you leave a legacy across generations, whether or not you have children. We’re here to help!
The team at the Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This newsletter is provided for informational purposes only. It is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.