One of the best ways to honor a loved one or even a family is to establish a legacy fund in their memory and honor.

The definition of legacy fund is a fund used to convey one’s values through a foresighted action to provide longterm financial support to a charitable organization or cause. In simple terms, it means giving back by helping charitable causes through a gift from one’s estate. The charitable cause could be advancing community betterment/quality of life, supporting education, helping the poor, improving parks or the environment, advancing recreation or a myriad of other ways that will impact people’s lives and make our community a better place to live.

Providing longterm support for a charitable organization, cause or our community in general is a wonderful way to highlight a loved one’s life. Often times a person or family has passed on and with it goes the memory of the impact that person or family had in their community. A legacy fund can sustain the family’s name and impact in the community for decades to come while providing meaningful financial support for important causes. What a wonderful way to honor a loved one or family.

Current examples of legacy funds are the Catherine Vincent Deardorf Charitable Foundation and the Ann Smeltzer Charitable trust. Both are making a major impact in our community. Yet, you don’t have to have great wealth to establish an impactful legacy fund. Legacy gifts are for everybody, not just the wealthy. They represent a meaningful way to reflect and express one’s values and strengthen the charitable causes they care about for the long term.

Legacy gifts often come from people’s assets, not their disposable income. They usually come in the way of a bequest from a will or from planned gifts such as charitable remainder trusts, life income arrangements, life insurance or real estate. Any individual, at any point in their life, can create a legacy gift. All these gifts represent a powerful and meaningful way for individuals to create a philanthropic legacy for their community and the organizations they care about.

Legacy gifts offer donors significant tax advantages. In some cases, it can offer a triple tax avoidance opportunity. First – your donation is tax deductible afforded to charitable giving by the IRS. Second- if you donate stock or personal property that has appreciated in value, you do not have to pay capital gains taxes. And three – if your gift is endowed, you are eligible for an additional 25 percent state tax credit through the Endow Iowa Tax Credit Program. Hypothetically, a donor in a 32 percent tax bracket donating $100,000 of appreciated stock could likely save over $60,000 in various taxes.

Most of us want to do good, and find a meaningful and important way to give back. Charities and charitable causes in our community truly touch our lives and enrich our community in a myriad of ways. The Fort Dodge Community Foundation and United Way offers charitably inclined citizens a number of ways to establish a legacy. Be it an endowed fund, a donor advised fund or a planned gift that will come from your estate, the Fort Dodge Community Foundation and United Way can show you how your legacy can make a real and long term impact in your community.

For more information on legacy giving or to learn more about how you can make an impact and benefit from the tax advantages offered through charitable giving, please contact our office. We are located at 24 N. Ninth St., Suite B, in Fort Dodge. Or give us a call at (515) 573-3171. Let us show you how you can establish your own legacy. It might be one of the most rewarding things you will ever do for your family and your community.

Randy Kuhlman is the chief executive officer of the Fort Dodge Community Foundation and United Way.