The Giving Pledge
A legacy of impactful giving
So, what do two billionaires talk about when they get together? Well, two famed and early ones discussed how and when to donate their money over milkshakes in a diner booth in Omaha.
Those two gents would be Warren Buffett and Bill Gates, who decided to give away at least half of their wealth either during their lifetimes or through their estate plans. Thus was born the Giving Pledge (givingpledge.org), founded in 2010. Fifteen years later, more than 250 of the world’s wealthiest philanthropists from 30 countries have joined together in this promise by making their public commitment.
How do they do it? By crafting and submitting a letter stating that at least 50% of their wealth will be donated during their lifetime or through their estate plan.
Illinoisans who have made the pledge include Joe and Rika Mansueto (among the earliest pledgers), Penny Pritzker, Jack and Renate Schuler, Glen Tullman, and Richard and Elizabeth Uihlein, as well as the former Illinoisan, Ken Griffin.
Not a billionaire, you say? Well, you could still pledge to give at least half of your wealth to the charitable causes that matter most to you. Heck, most of us long-time development officers would be pleased if you committed any percentage of your assets to charity.
The average percentage of taxable estates that goes to charity typically ranges from 5% to 10%. Bequeathing even 10% of your estate may not be a game-changer for your heirs, but it is most certainly a game-changer for the not-for-profit beneficiaries.
Where do you start planning? Well, how about over a glass of wine with your spouse? Then, you may want to engage your heirs in the conversation. To further your thinking, you could reach out to the charitable organizations you support to discuss your intentions and ask your questions.
Lastly, you should speak with your estate planning attorney, CPA, trust officer, and financial planner to lay out the mechanics. If you don’t have relationships with any of these professional advisors, you can contact:
My bias aside, you could also contact your local community foundation to get some referrals to these advisors. The community foundation staff can also help you talk through your charitable objectives.
In any event, it’s worth considering how you can continue to impact the causes that matter to you beyond your lifetime giving. By the way, I’m practicing what I preach; my wife and I have carved out a percentage of our estate to accomplish our charitable goals!
