What is "Planned Giving"?

What Does “Planned Giving” Mean?

Planned Giving is the practice of designating a major gift to a charitable organization in life or as part of an Estate Plan. The gift could include cash, real estate, life insurance, equity, or personal property. Planned Giving is sometimes referred to as Legacy Giving. 

Planned Giving is often done as someone creates an Estate Plan, as there are certain investment or tax strategies that could be done to maximize the gift’s impact. If the gift is part of the Estate Plan it will typically be distributed after the donor has passed away. 

What Are the Benefits of Planned Giving?

There are numerous benefits associated with planned giving but perhaps the most obvious is the support it provides to charitable organizations. Many charities do not rely on planned gifts, as they can be hard to predict or ask for, but they almost always make a significant impact on operations. 

Not only does Planned Giving represent the opportunity to provide long term support to an organization, but it also gives donors a chance to establish a legacy. This philanthropic gesture can be a great way to leave a memory of life. Other benefits of Planned Giving include: 

• Planned Giving represents the opportunity to leave a major gift that may not have been possible in their lifetime due to financial constraints. 

• Charitable Gifts are often exempt from Estate Tax, meaning more of the gift would go directly to the organization. 

• Donors can avoid capital gains taxes when they transfer assets as part of a Planned Gift -- again maximizing the contribution to charity. 

How Does Planned Giving Work?

Planned Giving typically starts during the Estate Planning process, or when a donor realizes they want to make a significant contribution to a charitable organization. Most major gifts are organized with the help of an attorney or Estate Planning lawyer; this is because there are various legal and tax strategies available that can maximize the impact of the gift. 

The process of Planned Giving is commonly done as individuals make an Estate Plan, as this is the perfect time to set aside assets. The gift could be established in your Last Will and Testament or created as part of a Trust. An Estate Planning lawyer will be able to guide you through the best structure based on your goals and finances. 

Why Is Planned Giving Important?

Planned Giving is important because of the financial impact it can have on charitable organizations. As mentioned above, most charities do not count on receiving major gifts at any point in time. However, receiving one could result in years of financial support, the development of new programs, and the opportunity to expand overall reach. 

In comparison, Planned Giving results in significantly larger gifts than membership fees or other donations a charity might receive. Major Gifts also give the organization the opportunity to use funds however they want -- as there are no stipulations attached to these contributions. The long term support Planned Giving can provide is relatively unmatched by other streams of income. 

Types of Planned Giving 

There are a few different ways to make a major gift, each with the potential to significantly impact an organization. Here are the three main types of Planned Gifts to be aware of: 

Intro this section with a brief paragraph and then explain each type of planned gift (3 headers listed below) in 2-3 sentences. Try to give an example for each gift type (can be hypothetical).

1. Outright Gifts

Outright Gifts are one time contributions made directly to the charitable organization. Outright Gifts could include cash, personal property, securities, or stocks. For example, you could donate a piece of real estate to an organization. The charity could either use the property, or sell it and keep the proceeds. 

2. Gifts That Return Income

Gifts that return income refer to anything that continuously provides financial support to an organization. A Charitable Remainder Trust would be considered a gift that returns income, as the Trust would annually pay either a fixed percentage or set dollar amount to the organization of your choice. 

3. Gifts Payable Upon the Donor’s Death

Gifts payable upon the donor’s death are typically laid out within an Estate Plan, and will generally avoid estate tax. An example would be if you named NAM Endowment Fund as the beneficiary of your life insurance policy. 

How to Get Started with Planned Giving? 

Planned Giving can be a relatively straightforward process, especially if you leave the financial planning in the hands of a good attorney. If you are considering making a major gift, here are a few steps you can take to get started: 

1. Research organizations and causes that you care about or have worked with over time. You can request information on how they spend donations and what development projects they have planned for the future. Consider both local and national groups. 

2. Review your finances and long term goals as you start Estate Planning. A great time to start gift planning is when you create your Last Will and Testament. Review any assets or property you could potentially leave to a charity. 

3. Meet with an Estate Planning lawyer to discuss the best strategy for making your gift. This will involve identifying the right type of Planned Gift for your goals, and taking any extra steps to maximize its effectiveness. 

Planned Giving often represents the opportunity to make the largest contribution of your life to Northwest Assistance Ministries or NAM Endowment Fund. This practice can not only change the financial landscape of NAM but it is also a great way to preserve your legacy. Consider how Planned Giving can fit into your Estate Planning process today. Contact Les Cave, President & CEO at [email protected] or 281-885-4577.

We invite and encourage you to make a planned gift to NAM’s Endowment Fund and thereby become a member of the Endowment Fund’s distinguished Legacy Society.  The Endowment Fund’s Legacy Society honors all planned giving donors for their support of NAM’s mission and recognizes future gifts needed to ensure a continuing source of funds to meet tomorrow’s challenge of providing quality programs and services.  Joining the Legacy Society can be a visible means of demonstrating your support for NAM and NAM’s Endowment Fund while encouraging friends, peers, and colleagues to also make commitments to NAM’s long-term future in support of our neighbors in need. 

August is National Make A Will Month

August is National Make-A-Will Month. For many NAM supporters, this yearly reminder is just the motivation they need to finally sit down and create their last will and testament. And once they do, many find the process isn’t as long or tedious as they anticipated.

Financial and legal professionals all agree -all adults should have a will — it’s a powerful document that lets you distribute your property and protect your loved ones after you pass away. One-third of all American adults have a will, and that number is growing every day. Sadly, that still means that two-thirds of adults do not have a will.

With a will, you can plan ahead for those who are in your care — for example, you can name a legal guardian for your minor children and choose who should care for your pets.

The logistical benefits of having a will are important. But above all else, having a will creates peace of mind for you and the people you love. Creating a will helps prevent family conflict, eliminates confusion, and ensures your assets go to the people you most want to have them. It also gives your family guidance and reassurance that they can fulfill your wishes during what is likely a very difficult time for them.

Having a will in place helps you leave a legacy. There are many different ways you can use your will to benefit Northwest Assistance Ministries — you can give cash, stock, real estate property, and more. Leaving a gift for NAM or the NAM Endowment Fund in your will costs you nothing during your lifetime, but will ensure that you can make a positive impact on NAM's future for years to come.

We invite and encourage you to make a planned gift to NAM’s Endowment Fund and thereby become a member of the Endowment Fund’s distinguished Legacy Society.  The Endowment Fund’s Legacy Society honors all planned giving donors for their support of NAM’s mission and recognizes future gifts needed to ensure a continuing source of funds to meet tomorrow’s challenge of providing quality programs and services.  Joining the Legacy Society can be a visible means of demonstrating your support for NAM and NAM’s Endowment Fund while encouraging friends, peers, and colleagues to also make commitments to NAM’s long-term future in support of our neighbors in need. 

One of the ways donors can have a profound impact on the future of NAM is by making a gift to the NAM Endowment Fund.

The NAM Endowment Fund was created in 2000 to enhance the financial stability of NAM, and ensure that NAM will always be here to help Neighbors in Need.

The NAM Endowment Fund has grown to over $3.1 million dollars and with a record gift this year of over $193,000, the NEF has distributed annual gifts to NAM totaling more than $1.1 million dollars.

Primarily funded by planned gifts, the NEF has a goal of growing to more than $10 million dollars over the next 10-15 years. Planned gifts to the NAM Endowment Fund can be made through stocks, bonds, life insurance, IRAs and other retirement assets, real estate and more. Planned gifts do not affect current cash flow and may provide tax benefits for the donor. Contributions to the NAM Endowment Fund can also be made as one-time gifts or as part of a regular IRA distribution.

We hope that you will give thoughtful consideration to making a current or planned gift commitment to the NAM Endowment Fund. Donors who make thoughtful planned gifts to NAM or to the NAM Endowment Fund become members of NAM's Legacy Society.

If you are interested in making a contribution to the NAM Endowment Fund or a planned gift to NAM or to the NEF, please contact Les Cave at 281-885-4577 or [email protected].

We invite and encourage you to make a planned gift to NAM’s Endowment Fund and thereby become a member of the Endowment Fund’s distinguished Legacy Society.  The Endowment Fund’s Legacy Society honors all planned giving donors for their support of NAM’s mission and recognizes future gifts needed to ensure a continuing source of funds to meet tomorrow’s challenge of providing quality programs and services.  Joining the Legacy Society can be a visible means of demonstrating your support for NAM and NAM’s Endowment Fund while encouraging friends, peers, and colleagues to also make commitments to NAM’s long-term future in support of our neighbors in need. 

We thank you for your continued and generous support of NAM.  We could not meet the needs of our neighbors without the considerable and consistent financial commitments from you and other core donors.  The needs in NAM’s service area continue to grow year-after-year.  Recent catastrophic events such as winter storm Uri, hurricane Harvey, and the Covid-19 pandemic have had a devastating impact upon many in our community.  As committed donors you are crucially important to providing a financial foundation for NAM’s many services to our community.

As faithful supporters of NAM, we would like to provide you with information concerning two unique means of leaving a legacy of financial support for NAM in perpetuity.  These related commitments to NAM’s long-term financial foundation are NAM’s Legacy Society and NAM’s Endowment Fund. 

Legacy Society

The Legacy Society is comprised of donors that have made a commitment to include NAM and/or NAM’s Endowment Fund in their estate plans.  NEF’s Legacy Society is a fairly recent endeavor having only begun in 2017.  In just a few short years, this Society of committed NAM/NEF donors has grown to 68 members.  Through the commitments made by these generous donors, we can be assured that NAM will be helping our neighbors in need for years to come.

NAM Endowment Fund (NEF)

Since its modest inception in 2001, the NAM Endowment Fund has grown to over $3.3 million.  Since its first distribution of $2,000 to NAM in 2003, the Fund has distributed more than $1.1 million to NAM.  For the past several years the annual distribution to NAM has been on the order of $100,000.  The 2021 NEF distribution to NAM will be more than $190,000.

The original objective of the NEF was to increase the financial security of NAM and endeavor to cover NAM’s annual building maintenance costs through distributions.  The $100,000 annual distributions paid out in recent years has achieved that initial goal.  As the Endowment Fund grows and its annual distributions to NAM increase, thereby covering a greater share of NAM’s overhead expenses, a larger share of donors’ gifts go directly to funding NAM’s programs serving our neighbors in need.

Through continued donations, fundraisers, and investment returns the NEF has grown at a compound annual growth rate of over 20% since 2015, net of annual distributions to NAM over the period exceeding $574,000.  Based upon historical income, the NAM Endowment Fund balance is projected to grow to over $6 million by 2030 providing for increases in the annual distribution to NAM of more than $225,000 by 2030.

Through generous historical giving and projected future giving, the NAM Endowment Fund will continue its objective of providing increased financial security to NAM and a growing, sustainable source of funds to offset a significant portion of NAM’s operating expenses.

Contributions to NAM’s endowment fund can be made as one-time gifts, planned gifts (gifts made on a regular basis), and/or inclusion of NAM’s Endowment Fund in estate plans.

 Tax Efficient Giving Update

For those born July 1, 1949 or later, IRA Required Minimum Distributions (RMDs) have been delayed to age 72 (was 70_1/2).  However, those 70.5 years or older can still donate up to $100,000 to a qualified charity from their IRAs without increasing their taxable income.

For those who are required to take RMDs, such eligible direct donations from IRAs to qualified charities could also serve to reduce taxes associated with:

• Medicare premiums,
• the 3.8% investment surcharge,
• the 0.9% Medicare surcharge, and
• potentially income tax due on social security income

We hope that you will give thoughtful consideration to making a planned gift commitment to NAM’s Endowment Fund and becoming a member of NAM’s Legacy Society.  We thank you for your continued support of both NAM and the NAM Endowment Fund.  Without your support and commitment, we could not perform our mission of Neighbors Helping Neighbors.

If you are interested in making a planned gift to NAM or NAM’s Endowment Fund, please contact Les Cave at 281-885-4577 or [email protected].

As summer approaches we can guarantee two things. One, it will get hot and sticky around here. Two, NAM will continue to see a high number of families requesting assistance.

In 2023, NAM will celebrate 40 years of serving the Northwest Houston community. NAM has been here through floods and freezes, natural and economic disasters and now a pandemic.

It is only because of donors like you that NAM has been able to serve the community day in and day out for 40 years. 

During the tough times, the community has come to expect NAM to lead the way in serving our neighbors in need. Along with those expectations, the community has continuously stepped up to support NAM and our programs and services.

Just over 10 years ago, NAM leaders established the NAM Endowment Fund in order to assure that NAM programs and services will continue to be funded in the future no matter what the economy brings us.

Your continued generosity and support has helped NAM become a beacon of hope for our community. Have you ever thought what will happen to NAM upon your passing. Your donations will cease and NAM will need to replace those resources. Replacing a long time donor is not as easy as it sounds. It takes time to cultivate other donors to support NAM at the level you and your family do.

That is why we are asking you to carefully consider including NAM and the NAM Endowment Fund in your estate plans. By including a gift to NAM / NEF in your will or as a beneficiary of your life insurance or retirement account you help offset the loss of your annual support upon your passing.

As part of our continuing efforts to build up the value of the NAM Endowment Fund, we also ask that you consider making a gift to the NEF using the required minimum distribution from your retirement account. By making the gift distribution directly to NEF you avoid the taxes of receiving the funds and meet the RMD requirements that come with many retirement accounts. 

Even if you are not yet required to take a minimum distribution, a gift from your retirement account is a nice tax saving tool you can use to your advantage.

Please speak to your tax advisor or plan administrator to make the best decision for your specific situation.

For more information about the NAM Endowment Fund or any Planned Giving question, please contact Les Cave at 281-885-4577 or [email protected].

NAM Legacy Society Luncheon Honors Donors

Northwest Assistance Ministries' Legacy Society honored planned giving donors for their support of NAM's mission at the 2022 Legacy Society Luncheon on Wednesday, May 4th, at the famous Champions Golf Club.

NAM's Legacy Society recognizes donors that have committed future gifts needed to ensure a continuing source of funds to meet tomorrow's challenge of providing quality program's & services.

Bequest

A gift (typically cash; personal property; real estate; stocks; or bonds) left behind in a will for a group, individual, or organization.

2. Trust

A legal entity whereby an individual holds or invests property as its titular owner. This can be for one or more beneficiaries. Additionally, there are two types of charitable trusts; Charitable Remainder Trusts and Charitable Lead Trusts

3. Beneficiary

Naming the charity as a beneficiary of one's lifeations, donors contribute on a recurring basis, planned giving enables them to contribute gifts that they wouldn’t ordinarily be able to make. The gifts donated end up being larger and aren’t dependent on one’s regular income. That’s why most planned gifts contributed by donors take the form of life insurance, equity, or real estate holdings (among others). Thus, even if a donor consistently contributed small gifts, their planned gift can be of a much higher value. insurance policy or retirement account.

We would be honored to include you in our Legacy Society if you have:

• Provided for NAM or NAM Endowment Fund in your will or trust.
• Designated us as the beneficiary of a qualified retirement plan, life estate, savings bonds or stock, bank account, life insurance policy, IRA or real estate.

If you would like to join our Legacy Society, simply click here for help with your planned gift. or if you would like more information, please contact Les Cave at 281-885-4577 or [email protected].

The Giving Heart of Grace B.

It was Spring of 1997 when Grace B. made her first donation to Northwest Assistance Ministries. It was a simple gift of $25 dollars but it was going to a good organization that was helping a lot of people. In November of that same year, Grace once again made another $25 donation to NAM. She continued to give the same amount twice a year until her death in 2017.

Grace and her family moved to Houston in 1937. She worked at Peden Iron and Steel where she met her husband. Grace and her husband enjoyed traveling around the US. She felt good about her gifts to NAM. She liked that NAM was serving homebound seniors through the Meals on Wheels program and hoped her gifts helped some of her fellow seniors.

Grace and her husband did not have any children but continued to draw joy from the charities that they supported. They never considered themselves wealthy but lived a comfortable life in the Heights neighborhood. Along with the charitable giving, Grace and her husband were savers. They wanted to be prepared for any emergency and looked forward to a retirement busy with travels and blessing others as they had been blessed.

Grace’s husband preceded her in death but she continued her support for NAM until her passing in 1997. Her generosity has now outlived them both. Prior to her death, Grace worked with an attorney to arrange the settlement of her estate. She wanted dearly to make a sizable gift to NAM and a handful of other charities that were close to her heart. In late September, 2020, NAM received a sizable bequest gift of from Grace B.’s estate. It is one of the largest estate gifts received by NAM.

Grace’s gifts were heartfelt and over the years certainly made a difference. Her commitment to supporting her fellow seniors and the work of NAM even after her passing is a testimony to her generosity and love, and is such a blessing to clients of Northwest Assistance Ministries.

Many think that their donation doesn’t make much difference but take it from Grace; every gift helps. Please consider following Grace’s heart and include Northwest Assistance Ministries or the NAM Endowment Fund in your estate plans. You too can make quite an impact.

So, in closing, thank you Grace B. Thank you from all of us at NAM.

Forever our Friend Donna Asbill

Donna and Tom Asbill had never heard of NAM. But when their friends, Joe and Linda Fowler, invited them to one of the first Jeans & Jewels galas, they graciously accepted. They enjoyed the evening, and sometime later Donna saw an article in her neighborhood newsletter about NAM's need for volunteers. So she attended a volunteer orientation and signed up to deliver Meals on Wheels to homebound seniors.

That was more 15 years ago. In the years since, Donna has delivered hundreds of meals, driven dozens of seniors to medical appointments through NAM's Senior Wheels program, attended numerous events to benefit NAM, and offered generous, faithful financial support.

Tom passed away several years ago, but Donna continues to support the organization that meant so much to both of them. "Tom believed in NAM," she said. "When I went through NAM's volunteer orientation, I was blown away by all that NAM does. And once you meet the people that you're helping...well, it was an awakening."

To continue their support well into the future, Donna decided to make a planned gift by designating a portion of her IRA estimated at around $200,000 to NAM. "There's a need," says Donna. "I thought that was a good use of an IRA. And you know, we can't take it with us."

Donna enjoyed spending time with her children, grandchildren and parents. She was active at her church, Tallowood Baptist Church in the Memorial area, and continued to care for seniors at NAM through the Meals on Wheels program.

Giving, she says, was always a way of life for her and Tom. And she encourages others to do the same. "We give so people will be cared for. It's what God called us to do," say says. "Bottom line, I think God wants us to do it."

Donna was so special to NAM, she was honored at the 2018 Jeans & Jewels Luncheon, even making the event just days after being released from the hospital. She loved Jeans & Jewels and was a strong supporter of the events.

Donna Marie Asbill passed away on November 6, 2020. She is survived by her daughter Dawn Elizabeth and husband Michael Greiner and son William Todd Anderson and wife Monique, stepdaughter Autumn Asbill, son in law Dwayne Theis and nine grandchildren. The family asked that memorial gifts be made to Northwest Assistance Ministries.

As Donna’s estate goes through probate, NAM is listed as a beneficiary of her IRA account and thus avoids probate.