Planned giving is a powerful way to support the causes you care about and create a lasting legacy. Yet, many misconceptions about how it works and who can participate discourage people from exploring it. Let’s debunk the top 10 myths about planned giving and uncover the truth.
Myth 1: Planned Giving Is Only for the Wealthy
The Truth: Anyone can make a planned gift. Whether it’s a bequest in your will, naming a charity as a retirement account beneficiary, or donating a small life insurance policy, planned giving is accessible to people of all financial backgrounds.
Myth 2: Planned Giving Is Complicated
The Truth: While it may sound complex, planned giving often involves straightforward steps, like adding a charitable organization to your will or trust. Many charities offer guidance to make the process even easier.
Myth 3: You Must Donate Large Sums of Money
The Truth: Planned giving isn’t about the size of your gift—it’s about the impact. Even small gifts, like leaving 5% of your estate to a charity, can make a big difference.
Myth 4: Planned Giving Only Benefits the Charity
The Truth: Planned giving can also benefit you and your heirs. It may reduce estate taxes, provide income tax deductions, and help avoid capital gains taxes on appreciated assets.
Myth 5: I Can’t Change My Mind Once I Make a Planned Gift
The Truth: Most planned gifts, such as those made through a revocable trust or a will, can be changed at any time during your lifetime.
Myth 6: Planned Giving Means I Can’t Leave Anything to My Family
The Truth: You can leave a planned gift to a charity while still providing for your loved ones. Many people allocate a percentage of their estate to both family and charitable organizations.
Myth 7: Planned Giving Requires an Attorney or Financial Advisor
The Truth: While professional advice can be helpful, many planned gifts can be set up without extensive legal or financial expertise. Some are as simple as updating a beneficiary form.
Myth 8: Only Older People Should Consider Planned Giving
The Truth: Planned giving isn’t just for retirees. Young professionals and middle-aged individuals can start planning now to maximize their impact and flexibility.
Myth 9: Charities Will Pressure Me to Give More
The Truth: Reputable charities focus on your goals and interests, not pressuring you. Many organizations are grateful for any level of support and will respect your wishes.
Myth 10: Planned Giving Is Too Time-Consuming
The Truth: While it’s important to think carefully about your legacy, many planned giving options take just minutes to set up, such as naming a charity as a beneficiary on a retirement or insurance account.
Why Busting These Myths Matters
Planned giving isn’t just for the wealthy, complicated, or inaccessible. By understanding the truth behind these myths, you can take meaningful steps to support the causes you care about while also benefiting your estate plan. From small gifts to structured trusts, there’s an option for everyone.
Ready to Explore Planned Giving?
Learn more at our Planned Giving Hub.
If you have feedback, questions, or ideas for future articles or Information Hubs, please contact us. Your insights help us create valuable content.
