There are many ways to give; creating a philanthropic legacy is easier than you might think. Different types of structures will suit different situations. Equity Trustees can help establish a vehicle that is right for you.
When choosing how to structure your philanthropic giving, it’s important to ask yourself some key questions.
- How much do you intend to give?
- Who will be the beneficiaries?
- How involved do you want to be in day-to-day operations of your trust?
- Are you seeking a tax deduction?
- Would you like to commence philanthropy during your life or after your death?
Structured giving can have significantly more power than giving a single, lump-sum donation to charity.
For example, a once-off $1 million donation to a hospital may pay for a new wing to be built. However, $1 million dollars invested in a philanthropic trust or foundation will grow over time. With regular payments made from the Trust’s income, the hospital will likely receive millions of dollars over many years. The hospital will be able to use the funds for what it requires, at the time, year-after-year.
If you have a particular charity you would like to support, you can choose to establish a non-discretionary trust or foundation. This means that you direct the Trustee to distribute a specific amount or percentage to a particular recipient(s) each year.
If you would prefer to support a particular charitable cause, you can establish a discretionary trust or foundation. The Trustee will have the discretion to decide year-on-year which projects and/or organisations should receive grants to further the cause.
By giving through your lifetime, you can be involved and see your philanthropic giving in action.
Not everyone feels they are in a position to give during their lifetime and may prefer to create a perpetual legacy that will start after their death.
Equity Trustees can assist with either giving during your lifetime or establishing a Charitable Trust through your Will.
Leaving a bequest or gift to charity in your Will can be a great way to continue your legacy and passion for philanthropy.
A charitable bequest is appropriate if you want to:
- make an outright gift from your estate
- support a specific charity or charitable purpose
- leave a lasting and powerful legacy.
Our team of Estate Planning Lawyers has the experience and expertise to ensure your wealth is distributed according to your wishes and in the most tax-effective way.
Working closely with our Philanthropic Services Team, they can set up the bequest as part of your Will – to ensure your gift achieves effective and sustainable philanthropic results for the organisations or charitable purposes you have chosen to support.