Charitable planning
Many people want their plan to support a school, a congregation, a hospital or a cause that has mattered to them. Charitable planning is about doing that thoughtfully, so that the gift fits your family's needs and the organization can actually use it.
What charitable planning addresses
Giving can be as simple as naming a charity in your will, or as involved as creating a trust that benefits both a family member and an organization. The right structure depends on what you want to accomplish.
Common approaches
- A specific gift or a share of the estate left to a charity in a will or trust
- Naming a charity as beneficiary of a retirement account or life insurance policy
- Gifts of property, such as securities or real estate, rather than cash
- Trusts that pay income to a person for a period, with the remainder going to charity
- Trusts that pay a charity first, with the remainder going to family
- Donor-advised funds or private foundations, for those with larger giving goals
What to consider
- Whether you want to give now, at death or both
- How a gift affects what is left for your family
- Whether the organization can accept the type of property you have in mind
- The tax treatment of the gift, which depends on your circumstances and on the law
- How to describe the gift so your intent is clear if the charity changes or closes
- Whether you want the gift used for a specific purpose
Tax coordination
Charitable gifts may carry income, gift or estate tax effects. Because that is where our practice is concentrated, we look at the whole picture together. We do not guarantee any deduction or tax result, and your accountant may need to be part of the conversation.
Involving your family
Charitable wishes can surprise heirs. Talking about your intentions in advance, and writing them clearly, reduces the chance of confusion or disappointment later.
How to prepare
- List the organizations and causes you want to support, with their full legal names
- Decide roughly how much, or what share, you want to give
- Identify which assets you would prefer to give, and which you want to keep for family
- Review existing beneficiary designations on retirement accounts and insurance
- Think about whether you want the gift to carry a particular purpose
Common questions
Do I need a trust to make a charitable gift?
No. Many gifts are made through a will or a beneficiary designation. Trusts are used when you want more structure.
Can I give to charity and still provide for my children?
Often, yes. Certain structures are designed to do both, though the details depend on your goals and property.
Will a gift reduce my taxes?
It may in some cases, but that depends on the type of gift and on current law. We can discuss what to expect without promising a result.
How should I identify a charity in my estate documents?
Use the organization's full legal name and confirm identifying details, such as its address and tax identification number. Similar names can create confusion. Checking with the charity can also help confirm how it prefers to receive planned gifts.
Can I require that my gift be used for a specific purpose?
You can discuss a restricted gift, but the organization must be able and willing to honor the restriction. Clear terms and a practical alternative can help if a program ends or the original purpose becomes impossible.
Can I donate investments or real estate instead of cash?
Often, but not every organization accepts every kind of property. Acceptance policies, valuation, tax treatment and transfer costs need review. Coordinate with the charity before committing an asset that may be difficult to manage or sell.
How does a donor-advised fund differ from a direct gift?
A direct gift goes to the organization you select. With a donor-advised fund, a sponsoring organization receives the contribution and generally retains legal control, while you may recommend grants. Fees, grant policies and tax consequences should be considered.
Can I name a charity as a retirement account or insurance beneficiary?
Often, yes, using the provider's beneficiary form. That designation should be coordinated with what you leave to family and with any will or trust. Confirm the charity's legal identity and the provider's requirements before submitting the form.
Can I change my charitable plan later?
A gift in a revocable will or trust can generally be revised while you have the legal ability to do so. A completed donation or an irrevocable arrangement may not be reversible. Understand which choices remain flexible before making a commitment.
What if the charity closes or merges before my gift is made?
Your documents can address successor organizations or an alternative recipient with a similar purpose. Without clear instructions, the outcome may depend on the document and applicable law. Discuss a backup that reflects why you wanted to make the gift.
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The first consultation is free. Call (208) 586-3266, email ajj@andrewjohnson.law, or use the contact page to request a consultation.
Contact the practiceThis page offers general information, not legal advice for your situation. Laws change and individual facts matter.
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