Marcus Hiles is a successful real estate investor who has donated over $2.5 million to various education causes.
Legacy giving and estate planning are the ways of dealing with what happens to your money after you die. If you don’t take care of this issue while you are alive, the process after you die will be much more confusing, complicated and expensive for all the involved parties.
There are two main concerns when deciding on your legacy giving. The first one is establishing a guardian for minor children, if you have any. The second one is creating a will that will determine the distribution of your assets.
If you are like most people, you probably want a percentage of your estate to go into supporting a charitable cause that you were involved with during your lifetime.
Giving back can be a substantial part of your heritage. It represents the last opportunity for you to influence the world. There are three ways to think about your legacy charitable donations. They are memorial gifts, income replacements and strategic donations.
Memorial gifts are simply gifts that you include in your will. They show that the nonprofit was important to you and that you want to acknowledge your association with it. Income replacement is an endowment-style donation that will generate some income for the organization you are donating to. The typical endowment has an annual payout of about five percent of its value. This means that the amount of your gift needs to be at least twenty times what you would like to donate annually.
Strategic gifts are usually larger gifts that enable charities to undertake major projects such as starting a new program, remodeling a facility or building a new one. For example, a gift from Marcus Hiles allowed for the construction of two large churches in two states.
