Many individuals and families spend a great deal of time setting up a charitable plan they feel good about. For example, they establish a field of interest, designated, donor advised, or other type of fund at The Community Foundation of Frederick County, update IRA beneficiary designations so that the fund receives the proceeds, and leave general instructions about the types of causes they want to support. Then life moves on, and the plan sits quietly in place—often for years—while the individual or family assumes everything will work exactly as intended.
The challenge is that charitable plans can outlive the paperwork. Over time, family structures change, attorneys and financial advisors retire, organizations merge or shift direction, and donors’ own priorities evolve. Even when your charitable intentions remain strong, the documents that express those intentions can become outdated without anyone noticing. This can create confusion later, especially for family members or advisors who are trying to carry out your wishes during a stressful time.
A simple way to avoid this is to treat charitable planning the way you treat other important parts of your financial life: review it periodically. That does not mean you need to overhaul your plan every year. It simply means taking a moment to confirm that what is written down still reflects what you want.
For example, if you have a designated fund at the Community Foundation that will be funded through your estate provisions, it is a great idea to meet with our team once a year to review where things stand. We’ll go over key information such as:
- Confirming that designations are current and that the nonprofits you named continue to be in line with your intentions. Additionally, confirming that that successor designations are in place should these nonprofits cease to exist for any reason.
- Evaluating the idea of leaving a portion of your fund to support the Community Foundation’s mission.
- Confirming that your attorney has included the correct fund name and language in your will or trust.
- If you have named your fund as a beneficiary of a retirement account or life insurance policy, confirming that the fund is correctly named and that your tax and financial advisors have copies for their records.
- Developing a brief statement of purpose to maintain in the Community Foundation’s permanent file that explains why you care about certain causes and what you hope your giving will accomplish over time
Please remember that it is our pleasure to meet with you for these check-ins! The Community Foundation is your home for charitable giving, and we are here for you.
Even a brief conversation once a year can give you peace of mind and strengthen the long-term impact of your giving. Connect with us at Giving@FrederickCountyGives.org or 301-695-7660.
The team at the Community Foundation is honored to serve as a resource and sounding board as you build your charitable plans and pursue your philanthropic objectives for making a difference in the community. This information is not intended as legal, accounting, or financial planning advice. Please consult your tax or legal advisor to learn how this information might apply to your own situation.