What would you do with an unexpected inheritance?
Aug 06, 2019
Saving to give means investing charitable assets so that you can give more over time. The following scenario is a common one--it shows the power and simplicity of the save to give philosophy.
When her father, Art, passed away, Virginia was surprised to receive a modest inheritance—she hadn’t known him to be much of a saver. Virginia was grateful, but she didn’t feel she needed the money. She remembered that Art, a veteran himself, had always expressed a desire to help other veterans.
But something stopped her from giving the money to charity immediately. If her father had passed on the money to his children, maybe she should follow his example.
Already an advisor of a Vanguard Charitable donor-advised fund (DAF), Virginia realized that the giving tool offered the perfect solution: A DAF would allow her to use the $50,000 in a way that would honor Art and his service. And it would also allow her to pass this legacy on to future generations.
She opened a second account with us so that she could undertake a new giving project with the inheritance. Next, she created a succession plan so that her children would become advisors of the account in the future. Finally, she made a plan to grant out 5% of its assets to veterans’ charities each year.
5% of account balance
Dollars granted over 20 years:
Total charitable impact: $98,188.53
After 20 years, she had granted out nearly $50,000, but still maintained nearly $50,000 in the DAF.1 Her grants went to charities that help veterans return to school, navigate their benefits with the VA, and even attend major concerts and sporting events.
She was pleased to be able to pay forward the inheritance her father had left her. And she was thrilled that her children would have the chance to do the same.
Maintenance fee may be applied
Accounts having a balance below $25,000 may be subject to an annual maintenance fee of $250.
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