Welcome to the Great Wealth Transfer! This much-cited era, happening right now, is reportedly the time when trillions of dollars will pass from one generation to the next over the coming decades in various forms, ranging from cash and stock to real estate and business interests.
Understandably, most conversations and commentary about this transfer focus on the assets themselves. Who will inherit the family business? What will happen to the investment portfolio? How should the estate plan be structured? Naturally, those are important questions! But many families are beginning to ask something deeper: “What values do we want to pass along, too?”
For many people, philanthropy is one of those values. If you’re among them, here’s food for thought:
- A charitable legacy isn’t only about the gifts that are made after you’re gone. It’s also about helping your children and grandchildren understand why giving has been important throughout your life.
- According to the latest Giving USA report, charitable bequests totaled more than $62 billion in 2025, increasing nearly 20% over the previous year. Bequests were the fastest-growing source of charitable giving, underscoring how important estate gifts have become to non-profit organizations and the communities they serve.
- A charitable bequest can be surprisingly simple. You might leave a specific dollar amount or a percentage of your estate to your donor-advised fund, or designate an already-existing charitable fund at the community foundation, to continue supporting the organizations and community priorities that matter most to you. For example, by naming your children or other loved ones as successor advisors of your donor-advised fund, you’re inviting them to continue the family’s tradition of generosity by recommending grants to the organizations and causes they believe will make a difference. This opportunity is itself a meaningful inheritance!
- For individuals and couples with especially large estates, charitable planning also may reduce the federal estate tax ultimately borne by the estate, helping preserve more of the remaining assets for heirs. This consideration applies to relatively few families because the federal estate tax exemption is $15 million per individual in 2026, but when it does apply, it really matters because gifts and bequests to qualified charities generally are deductible in determining the taxable estate. Your attorney, CPA, and financial advisor can help determine whether estate tax planning is relevant to your particular circumstances.
- Even when estate taxes are not a concern, a charitable bequest can still become one of the most meaningful gifts you make. You may, of course, provide for family members while also supporting the causes and organizations that have mattered throughout your life.
Estate plans are designed to transfer wealth. A charitable legacy has the power to transfer something even more lasting. The community foundation would be honored to work with you and your estate planning advisors to arrange charitable bequests, establish a donor-advised or other charitable fund, and build a legacy your family can continue long into the future.
The Winona Community Foundation offers a range of charitable options and funds for individuals, families, businesses, and nonprofits to accomplish their philanthropic goals. As your trusted partner, resource, and steward for community philanthropy, the Winona Community Foundation is committed to helping every individual give back in a way that is both meaningful to them and the causes they care about. Contact us to learn more.
