Would you leave a $150 million estate to your hometown? David Gundlach did. Gundlach made his fortune through the sale of a highly profitable insurance company. He left no heirs and wanted to give his money away. Gundlach left his entire estate to the Elkhart County Community Foundation in Indiana. Not only was this an extraordinary gift in size, but it was very unusual for another reason. Gundlach did not leave any stipulations on the use of the proceeds; the Foundation can use the funds any way it desires. The WSJ profiled Mr. Gundlach and his significant gift last year.
Mr. Gundlach is not alone in leaving a significant gift to charity. Increasingly, we see clients without children of their own looking to leave a lasting legacy through charitable bequests. Rarely do clients leave all of their estate to one charity but rather most clients spread the distribution of their estate across a number of charities. Many clients like to include specific uses for their funds. We regularly see bequests made to educational institutions for scholarships for needy students. Pet charities are a common choice for clients who do not favor any particular educational or religious institutions. For those without a particular charitable objective, a community foundation can be a great choice.
The virtue of a community foundation is the close relationship with the foundation and the local community. Like Elkhart, Indiana, we too have a community foundation in northern Nevada; it is the Community Foundation of Western Nevada (“CFWN”). The CFWN has given over $65 million in grants to our local community since its establishment in 1998. The CFWN manages donor advised funds, scholarship funds, and nonprofit endowments. In addition, the CFWN offers educational workshops, provides hands-on giving experience to high school students, and promotes giving among charitable boards. All of these efforts and programs enhance our community and enrich many lives. If you have charitable desires, there are innumerable ways you can leave your assets to benefit others, even if your estate is more modest than Mr. Gundlach’s.