Planned Giving Tips

In 1928, an anonymous donor, interested in the public welfare, made a half-million-pound bequest to the British government to help “clear the national debt.” Unfortunately, he was very specific. The government would only receive the funds once the entire national debt was cleared. Sadly, but not surprisingly, that hasn’t happened. The original £500,000 bequest is worth over £40,000,000 (almost $54 million in USD currency) today. The current debt is in the trillions, so the money is stuck in limbo, likely in perpetuity.

Let’s consider another case closer to home, in New Hampshire. In 1928, a woman left $1,000 to provide ice to low-income residents in her community. It was a sound and sensible thing to do at the time; residents needed ice to refrigerate food. But, as the years passed, the purpose became impractical. Finally, in 1984, the trustees asked a court to use the money to help needy residents with electric bills instead. The court agreed.

Lessons learned: Make your intentions clear, but don’t let stipulations hinder your intent or render it impossible to fulfill.

While your current annual giving probably supports specific programs and initiatives, structure your Legacy Gift so that it aligns with your values and vision for the future but responds to an ever-changing world.  For example, your Legacy Gift “to support food security across Cape Cod” gives the beneficiary flexibility to use your gift toward food pantries, community gardens, community dinners, weekend meal programs for children, etc.  If your bequest is designated to “health and human services,” it could support even more programs and initiatives, including food security.

Also, while you can make a Legacy Gift directly to a specific nonprofit organization, keep in mind that the nonprofit sector is continually changing. New organizations emerge; existing ones may change, merge, or even close.

Fortunately, when you work with the Foundation, you have a partner fully vested in maintaining the integrity of your gift with a singular advantage. With Variance Power, we can realign bequests to respond to changing times without seeking court approval.  For instance, if you have made a Legacy Gift to a specific nonprofit organization through your fund and it closes, we can redirect the gift to another nonprofit with a similar mission.

Our responsibility as a steward is to ensure your gift is funding strong, impactful organizations that align with your original intent.