Charitable Planning, Part 1: Outright Gifts and Gift Agreements

Legacy Planning, Once Removed

Clients often ask about ways to incorporate charitable giving into their planning, during life and upon death. Charitable giving can be an important part of the client’s legacy and can have tax advantages as well. There are a number of strategies, but the simplest option is as an outright gift. But outright gifts might be simple to a fault — once the funds are in the charity’s hands, the donor might not have any ability to question the use of the funds, including if the charity dissolves.

This episode explores the recent case of Derblom v. Archdiocese of Hartford that addressed a gift to a school that later closed.

If the donor is concerned about use and oversight of the gift after it is made, a gift agreement can be a helpful tool. This episode provides some thoughts on how to use a gift agreement to carry out the donor’s wishes.