How Can Planned Giving Support Financial Goals and Tax-Efficient Giving?

Planned giving is not only about future charitable impact. It can also help donors align philanthropy with financial planning, estate strategies, and tax-efficient giving.

Through the Community Foundation of Herkimer and Oneida Counties, donors can structure charitable plans designed to support both personal financial priorities and long-term community needs.

Below are answers to frequently asked questions about the financial side of planned giving.

How can donors include the Community Foundation in their estate plans?

Donors can incorporate the Community Foundation into their estate plans in a variety of meaningful and flexible ways, allowing them to extend their charitable impact far into the future.

One of the most common approaches is to name a charitable fund at the Community Foundation as a beneficiary of retirement accounts, life insurance policies, wills, or trusts. These options can often be arranged with thoughtful planning and may provide both charitable impact and potential tax advantages.

Some donors also choose to establish a charitable fund during their lifetime, giving them the opportunity to be actively involved in their philanthropy. They can then grow that impact by including additional support for the fund through their estate plans, ensuring it continues to serve the community in perpetuity.

In all cases, the Community Foundation works closely with donors—as well as their financial advisors and attorneys—to clearly document charitable intentions. This careful planning ensures that future generations understand how the funds should operate and what priorities they are meant to support, helping to preserve each donor’s vision over time.

“We encourage folks to let us know they’ve made those plans so we can help make sure things are set up in the right way,” says Kristen Smith, Fund and Stewardship Strategist at the Community Foundation.

How do planned gifts help reduce tax burden while fulfilling philanthropic goals?

Depending on the donor’s financial situation, planned gifts may provide charitable tax deductions and reduce exposure to estate taxes.

Many donors choose to give assets that are particularly tax-efficient, such as appreciated securities or retirement accounts. By contributing these types of assets to a charitable fund, donors may avoid certain capital gains taxes while maximizing the overall impact of their gift. This approach allows them to give more to the community than they might through traditional cash donations.

For individuals and families with larger estates, planned gifts can also play an important role in long-term financial and estate planning. Thoughtfully structured charitable contributions may help reduce the overall tax burden on heirs while ensuring that a portion of those assets continues to support meaningful causes in the community.

“Planned giving really allows donors to think strategically about how they use their assets,” says Nick Grimmer, Chief Development Officer at the Community Foundation. “They can reduce their tax burden while also making a meaningful, lasting investment in the causes and communities they care about.”

Why should donors work with professional advisors and the Community Foundation when creating a planned gift?

Financial advisors, estate attorneys, and tax professionals help donors create charitable plans that align with broader financial and family goals.

These advisors play a critical role in structuring gifts in ways that are both legally sound and tax-efficient, assisting with everything from drafting wills and trusts to identifying the best assets to give.

At the same time, the Community Foundation partners with both donors and their advisors to bring those plans to life. While advisors help design the structure, the Community Foundation provides guidance on charitable options, helps clarify the donor’s philanthropic goals, and ensures those wishes are carefully documented and carried out over time. This collaboration creates a seamless approach—linking financial planning with meaningful community impact.

“A strong plan brings everyone together around your goals,” says Grimmer. “With the right documentation, advisors and the Community Foundation can carry out your wishes exactly as you intended.”

Learn more at foundationhoc.org. 

Article originally published in the Daily Sentinel on June 22, 2026.