Legacy gifts are an amazing way for an organization to build future financial sustainability that allows them to focus on their mission and vision. That’s why Catholic Charities Fort Worth established our Endowment in 2011. Our goal was to build an endowment fund through cash and legacy gifts that would result in a consistent funding stream for our organization.
How exactly are endowment funds built? To help paint a clearer picture, below are several misconceptions and myths around endowment and legacy gifts.
MYTH
An endowment is one large pot of money.
Reality
An organization’s endowment is a collection of many gifts set up through charitable contributions of donors. These gifts help organizations fulfill their mission and provide future financial sustainability.
MYTH
An estate has to be large to make an impact.
Reality
Most of us don’t consider ourselves wealthy enough to have an estate plan but we do have other assets, such as cars, savings, retirement and life insurance accounts from which we can donate a small percentage to our favorite charity. A legacy gift of any size makes a lasting impact and a tremendous difference.
MYTH
I’ve supported my favorite nonprofit for many years but planned gifts and endowment gifts are for the wealthy.
Reality
Anyone, regardless of income level, can make a planned gift. With planning and intentionality, you can continue that legacy of giving after you are gone.
MYTH
I can’t support both my family and my favorite charity through my estate plan.
Reality
Most legacy gifts are only a percentage of one’s entire estate. A financial advisor may help you develop a plan that provides for your family, supports your favorite charity, and offers a tax benefit.
MYTH
If there is no will, there is no planned gift.
Reality
Legacy gifts can be a portion of retirement funds, life insurance, and many other planned giving vehicles that are not necessarily a part of someone’s will.
If you would like to learn more about how to support CCFW Endowment through a cash or legacy gift, please contact Laura Sotelo at lsotelo@ccdofw.org or at 817.289.2780.