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The 7 Myths of Planned Gifts
The following are some common myths about planned gifts that could prevent you from creating a vital legacy that has lasting importance.
A planned gift is the transfer of assets (such as, cash, real estate, securities, retirement benefits, annuity, or life insurance) to a designated nonprofit organization, such as Meher Mount, during your lifetime or as part of your estate plan.
AVATAR MEHER BABA on a tour of Meher Mount in 1956. Co-founder and lifetime caretaker is pointing out landmarks.
This forward-thinking approach to giving is “planned” because this is a future gift that you plan for now.
Thus, they are generally transferred through a will or other written document taking into consideration your needs, your heirs, and the tax consequences that can affect your heirs.
Myth #1: I Need to Be Wealthy
The odds are that your assets will not be fully spent at the time of your passing. Some remainder will be left.
What would you like to happen to your remaining assets? A charitable planned gift is an option for part or all of your estate.
A common perception is that philanthropists are individuals who have buildings named after them or have created museums or at least a wing of a museum. We sometimes think philanthropy is only the purview of very wealthy individuals, foundations and corporations.
In truth, philanthropists are everyday people like you who choose to support the charities they value.
Most people like you have the means to make a heartfelt donation through a planned gift. By using assets in your estate, you can give Meher Mount a gift in the future as part of your estate plan.
Myth #2: It’s Complicated
Transferring assets is a straightforward process and can provide tax benefits as well.
Everything that is new or addressed infrequently seems complicated because we are not familiar with the process. Think about cooking – the first time you cook from a recipe, the process seems more complicated than the second or seventh time you cook that dish.
The same is true with creating wills. There’s a process – or a recipe – to follow.
A professional can walk you through the process, help you make the best decisions for your estate, and give you peace of mind that your heirs and family will not be left with the burden of wondering what you wanted.
Myth #3: I must Use My Cash Now if I want to Make a Planned Gift
A planned gift does not require cash now.
Planned giving is a win-win approach that supports your favorite nonprofit organizations and benefits you now and/or in the future.
Most of us need our cash now. That’s why the gift is “planned.” Often our assets are not liquid. Or, using them has tax consequences. Or, we need them to continue to generate income to use now.
Thus, these assets are generally transferred through a will or other written document taking into consideration our needs and the tax consequences that can affect our heirs.
Myth #4: My Heirs Will Be Shortchanged
It’s possible to support both your family and heirs as well as leave something for your favorite charities.
A planned gift can work in together with your other family priorities. Planned giving is not an “all or nothing” option. Gifts can exist side-by-side with other beneficiaries and personal priorities.
Myth #5: I Can’t Support Other Meher Baba Organizations
A planned gift to Meher Mount does not necessarily mean you exclude all other Meher Baba organizations.
Meher Mount has received several planned gifts simultaneously with other Meher Baba organizations that were all designated in an individual’s will.
Myth #6: There’s Only One Way to Make a Gift
Be sure to consult with your accountant, financial or estate planner to discuss your options.
Planned giving is easy to do. You don’t have to be wealthy to do it. It can involve assets you might never think of. A life insurance policy. Real estate. Stocks. Business holdings. A checking or savings account. A 401(1)k or an IRA. An annuity. These are all assets that can be leveraged in planned gifts.
Planned giving can provide generous tax benefits. Depending upon the type of gift, short-term and/or long-term tax benefits may apply. Donors at a variety of income levels can benefit.
Myth #7: I Need to Wait for… Oh, There’s Plenty of Time
The truth is, the sooner you make these decisions and put them on record, the more secure and relieved you will feel.
What event needs to happen before you make a will and determine the distribution of assets? Nothing. In fact, you can do it right now.
With a planned gift, you can make a pledge now, do the planning now, and set it up now. If circumstances change, then you can change your plans.
Bonus Myth: My Gift Won’t Make Much of a Difference
Every gift counts. Every gift makes a difference.
Your gift will be prudently invested and used where it is needed most. With your planned gift, you help create a sustainable future for Meher Mount.
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