Legacy gifts are deeply meaningful acts of charity that benefit donors and the broader charitable sector alike. For over four decades, legacy giving has consistently accounted for nearly a tenth of all U.S. charitable contributions annually. Also, the majority of affluent U.S. adults express a desire to leave a portion of their estate to charity.

Legacy Giving by the Numbers

The Importance of Documenting Legacy Gifts

While over half of affluent Americans express an interest in legacy giving, many have yet to formalize their plans. A recent CAF America survey found that 25% of affluent adults say they want to give, but they have not formally documented that intention. Our research finds that billions in potential charitable funds could be left on the table if these plans are never documented.

Formal documentation plays a crucial role in international legacy giving among U.S. donors. While 20% overall plan to support global causes, this figure increases to 25% among those with formalized plans. In contrast, only 15% of those who intend to give but lack documentation plan to contribute internationally. Documenting plans not only secures the fulfillment of these gifts, but also enhances their overall impact. It makes sure the donor’s intent is clearly communicated and legally recognized, reducing the likelihood of disputes or misallocation. Additionally, formalized plans often encourage donors to give more generously and inspire confidence among charities, allowing them to plan for long-term initiatives and allocate resources more effectively.

Maximizing the Impact of Legacy Gifts

Legacy gifts – especially those directed internationally – offer donors the ability to make a larger impact compared to other forms of giving. These gifts are exponentially larger than typical annual gifts and can reduce the tax burden on the estate, allowing donors to provide more substantial support to both loved ones and charitable causes.

When that gift is made abroad to a local charitable group, more money ends up in the hands of those in need. In addition, the U.S. dollar goes further in many nations around the world than it can domestically due to favorable exchange rates and lower costs to serve in many countries, meaning the funds help more people or support a bigger endeavor than it would otherwise be able to.

By leaving a portion of their estate to international causes, donors can leave a larger and long-lasting legacy that transcends borders, creating a brighter future for communities in need around the world.