Planned Giving Myth #6:
I am too young to bequeath anything to my favorite charitable organization.

Many people believe they should be older to make a planned gift to a charitable organization. They imagine they won’t accrue the money or assets they’ll need to make a planned gift until later in life. The truth is there are many ways for young people to leave a legacy through their favorite organizations with assets they currently hold. Bequests do not have to include large sums of money or assets.

For example, a retirement plan is a great legacy to give. Most people start a retirement plan when they enter the workforce full time (if you haven’t done so yet – get started!); this could be a 401K, IRA Roth, KEOGH, etc. By making a planned gift of all or part of your retirement plan, you make a revocable decision to name the charitable organization as the main, contingent or one of many beneficiaries of your retirement account. You are not locked in: if at any time your life circumstances change or your feelings about the charitable organization change, you can easily change the beneficiary of your account. And because your retirement account can be highly taxed if given to anyone except your spouse, your beneficiaries may not receive as much as you were hoping they would. But the charity you list as a beneficiary will receive 100 percent of your assets!

I have a donor who is in her late twenties and has named the Sisters of St. Joseph Ministries Foundation as a beneficiary of her retirement account. She has divided her beneficiary form into three parts, designating a percentage of her account between two charitable organizations and her parents. She knows that if something happened to her in the next few years, her beneficiaries would only receive a small amount of money, but her intent and passion for these organizations is very clear. She also knows that if her life or intentions change it is very easy to modify her planned giving intentions.

Life insurance policies are another easy planned gift for younger people to make. Many workplaces take out policies on their employees as part of their benefit package. Some people have also received policies from loved ones, knowing that they could be cashed out in the case of an emergency or could become very useful in the future. As with retirement accounts, life insurance policies are an easy way to make a revocable planned gift by changing your beneficiary. If you have just become an empty nester, it may be time to look back over your policy to see if it has met the needs it was created to meet. If so, perhaps it would be the best way for you to make a planned gift to your favorite organization.

Making planned gifts out of retirement accounts and life insurance policies is very simple – just ask your provider for the change of beneficiary form, which you will fill out and send back. These planned gifts are revocable, so you don’t worry if you change your mind. Just get another change of beneficiary form and write in what is in the best interest for you and your loved ones.

U.S. savings bonds, bank accounts and mutual funds can also easily be made into planned gifts by listing a charitable organization as the beneficiary. Savings bonds are another highly taxable asset in which your loved ones will most likely not receive as much as you might think and where the charitable organization would receive 100 percent of the asset.

Always remember that no matter what your age or income level, there is almost always a way for you to leave your legacy through your favorite charitable organization. You just have to decide which gift is the best fit for you to make. We always encourage you to speak with your financial advisor or lawyer to help you decide which gift is best for you. And remember, if you have the desire to make a planned gift to your favorite charity, there will always be a way for you to make it work.

If you have any questions or would like to talk with someone about the prospect of leaving the Sisters of St. Joseph of Carondelet Ministries Foundation in your estate plan, please contact Lisse Regehr, Planned Giving Officer, at 651.690.7092 or lregehr@csjstpaul.org.