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Many of us are unaware
of our potential to be philanthropists. With effective estate planning,
valuable resources that would be lost to taxation will remain to serve
the future of our heirs and our local communities.
New research
commissioned by the Alliance of Illinois Community Foundations and the
Donors Forum projects an unprecedented transfer of wealth from the World
War II generation to the baby boomers and then from the baby boomers to
the next generation.
Over $5 billion is projected to change
hands by the year 2015 in Kane and Kendall Counties alone. If 5% of
that transfer is designated for charity, $250 million would be available
to serve the needs of local citizens.
Remembering Our Roots
With most estates in
the U.S., the vast majority of assets go to heirs and taxation. For
generations, people lived their entire lives close to their birthplace
and as wealth passed from one generation to the next, most stayed in the
same county.
This is no longer true
and once the wealth leaves a community, it may never return. The
Community Foundation of the Fox River Valley urges residents to consider
designating a portion of their estates to the Community Foundation for
the creation of endowment funds that will serve their communities in
perpetuity in the name of the contributing individual or family.
Create Your Own Legacy
These endowments can
be structured to serve those charitable organizations or purposes
designated by the donor. Or, the endowments can remain unrestricted,
enabling the Community Foundation to respond to the most urgent
community needs in the name of the donor.
Charitable endowments
are carefully invested to last forever and grow over time. The
principal is never spent. A portion of the earnings from the fund is
paid out in grants to address the most pressing community needs. Each
year, these endowments could generate millions of dollars for community
projects and priorities—forever.
If a donor wishes to
leave a portion of his or her estate directly to a local charity, the
Community Foundation will be pleased to serve as a resource to help
accomplish this objective. The Foundation maintains a current list of
non-profit organizations that serve the communities of the Fox River
Valley and would be happy to share its knowledge of the needs of those
organizations.
The anticipated
transfer of wealth is a golden opportunity to build named family funds
or provide for favorite charities that will invest millions of dollars
for the greater good of local citizens.
Informed Estate Planning
“Retirement accounts
and insurance policies are excellent vehicles for planned giving. Both
can be designated for charity without modifying an existing estate
plan,” said Sharon Stredde, president of the Community Foundation.
“IRAs and 401(k) plans
may be the best asset to earmark for estate giving since they can be
highly taxed when given to heirs, losing up to 70% of their value in
some cases.”
Through informed
estate planning, there is tremendous potential to increase the future
well-being of both our heirs and our communities.
The Community
Foundation of the Fox River Valley is a local nonprofit organization
providing donors with a simple, powerful and highly personal approach to
giving—so their gifts do good works within the community, forever.
For further
information, please contact
Sharon Stredde by e-mail or by calling (630)
896-7800. |
