The financial markets seem to be moving in a good direction recently - maybe a good sign that the economists who anticipated something of a recovery beginning in the second quarter of 2009 were on the right track.
But, portfolios are still down significantly compared with a year ago - your portfolios and those of the colleges, charities, and churches you care about. While the need for philanthropic action is great, financial resources remain quite limited for many folks.
Is there something creative you can do right now to make a difference?
In fact, there is something very creative you can do now - that will have a big impact both now and later.
Say you have the desire to create an endowment - a legacy gift - that will last forever, perhaps to provide scholarships at your alma mater. Creating an endowment may be beyond your reach right now. In fact, it may not be something you can do until much later - perhaps not until your executor is administering the Will you leave to direct the distribution of your estate.
The truth is that a bequest is the only chance most folks have to make a large gift.
But, with a relatively small annual gift, you can give your alma mater (or other favorite charity) the equivalent of what it would receive as income from a scholarship endowment. That is, you can bring to life your ultimate bequest right now - and, you can do so with an annual gift you likely can afford to make.
Then, at the time of your death - when the bequest you put into your Will now finally is made available - the gifts you've been making each year will be covered by the income derived from the endowment funded by your bequest.
This little two-step is a creative way to start having an impact now AND ensuring that you will be making a difference for generations to come.
How much will it take to make this happen?
Let's say you want to create a scholarship of $2,000 every year for students at your alma mater. That would require an endowment of $50,000.
So, you could provide for a bequest of $50,000 in your Will to create an endowment. If you already have a Will, a simple Codicil can be used to add this gift to the terms of your Will. Then, you can plan to make annual gifts of $2,000 to support the awarding of the scholarship each year.
The added advantage of this plan: you'll likely get to meet the students who benefit from your generosity. If you just made the bequest and did nothing more than that, you'd never meet the students whose lives you touch.
There are great needs for people to do what they can to help. If you can make even small annual gifts and arrange for a large gift in your estate, you would be a philanthropic hero.
Got a question, just use a comment to let me know.
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