You Need Not Be Rich to Leave a Legacy

We all strive to be significant; to make a difference, to leave some type of legacy behind.  When it comes to charity or leaving money to organizations, many of us mistakenly believe that you must be very wealthy to do that. Not true. Here in Newport Beach we have an organization that can help you without all the hassles that come with it.

The Orange County Community Foundation was founded in 1989 and for 23 years has granted almost $180 million in grants. Some of that is money that was developed through their own efforts, but much of it was from benefactors that allowed the Foundation to act on their behalf. In 2010, $26 million was granted to nonprofits and deserving students and they rank among the top five percent among more than 750 U.S. community foundations.

As we see many nonprofits struggling, the question is, “Where do they go for money?” Foundations like these are part of the solution. They offer grants in Arts and Music, Environment, Disaster Relief, Education, and Health and Human Services. It may not be hard to believe, but Newport Beach is the Mecca of Foundations with over 600 licensed by the city. That includes some big names like Hoag Hospital, PIMCO and Pacific Life, but the OC Community Foundation beats most of them in terms of assets except for Hoag Hospital.

The misconception that many have as they face their estate needs is that it must to be substantial to make a difference. As I work with many nonprofits, some times even a gift of a few thousand dollars can make a difference. What makes Foundations like OCCF different is that the money you leave them can actually grow, even as it is being distributed.

An example they share is the Bila Legacy Fund, named after Frank and Ruth Bila who owned and operated the Kettle Restaurant in Anaheim for 20 years. They were involved in many local community organizations during their lifetimes and through their estate plan a fund was established at the Foundation to support the causes they cared about most.

It was started with $251,000, and has supported local hospitals, educational institutions and students pursuing a career in the restaurant/hotel management field. To date they have granted $107,000 and a still maintain a value of $294,000. Now that is smart money management and their legacy should last long beyond the valley of the dollars they left.

The lesson to be learned is that dying without a will or an estate plan is folly and in the complex world today can be easily avoided. If your estate is substantial, after your children and loved ones are provided for, think about helping others through the use of a Foundation. The value will last longer than the dollar amount itself and the ones you can help be significant.