Think Ahead Alexandria:
A Personal Reflection from Gene Steuerle
Why Alexandria Is Uniquely Positioned to Become An Even More Generous Community
The goal of Think Ahead Alexandria and September as Alexandria’s Legacy Month is to continually encourage legacy giving and provide long-term support for Alexandria charities. In discussing how we might promote the effort at ACT, we decided it would help to share real examples of how people planned real legacies, not just hypothetical ones. So when Tricia Ritchie, ACT’s Chief Development Officer, asked me to share what I learned, she was, in a way, asking me, however awkward, to practice what I preached.
My Journey
My giving journey began decades ago. I still remember an early struggle as a young child, when I finally decided to put the $5 I had earned that week into the poor box. Later, my economics training helped me recognize my opportunities, including those created by living in a generation roughly four times as wealthy as my grandparents’ generation. It also taught me that giving can be a habit, just like eating out or traveling.
By mid-career, my wife, Norma Lang Steuerle, and I began giving away a significant share of what had become an above-average income, a habit my second wife, Marge Scheflen, and I have continued. Doing this over many years is one way we’ve tried to create a legacy.
Later, the tragedy of Norma’s death brought unexpected compensation from you and other taxpayers. My daughters and I chose to give that money away. A bit over half helped seed what became ACT for Alexandria (ACT), and the remainder went to efforts supporting Afghan women, with whom we shared a special bond. I still try to support them today.
Over the years, I’ve found other ways to try to build a legacy. One was to establish donor-advised funds (DAFs) for children, nieces, nephews, and others, helping make giving a natural part of their lives. Others included building a DAF of my own, using special deductions for IRA withdrawals, working past retirement age to generate funds I don’t need, and, finally, leaving much of my estate to charitable causes. Note that some of these lifetime efforts simply increase the value of my gifts—e.g., in a 25% tax bracket, the government contributes 25 cents for every 75 cents ($1 minus a 25-cent tax reduction) I contribute.
That’s my story. Because I study charitable giving professionally and have benefited from good health and a decent income, I often see opportunities I’ve been given. I believe most of us, whatever our circumstances, want to leave a legacy of helping make the world a bit better. We do this mainly by serving our family and others, but each of us does it in our own unique way. Your story is not mine or that of any of the other people whose examples the charities of Alexandria will hopefully be able to provide over the years.
But that’s not the only reason I agreed to talk to you about this project. The rest has to do with Alexandria itself and the moment we’re in.
Why Alexandria, and Why Now
Studies on charitable giving make clear that when people think about their wealth, not just their income, they imagine much bigger possibilities for what they can achieve. Those who look to their wealth often give much larger gifts, sometimes a multiple of what they would otherwise give from their annual income over decades or even a lifetime. People primarily consider what to do with their wealth when they plan their estates. However, thinking about potential legacies much earlier in life creates other opportunities, such as lower taxes and simply updating one’s will—a task most of us, including me, often neglect.
Wealth Isn’t Just Money in the Bank
The same logic applies to lifetime giving once you count your time and earning ability as a form of wealth. People now retire for nearly two decades on average. Someone who works just one or two extra years and gives that income to charity can make a meaningful gift without changing their lifestyle. Giving, once started, tends to become a habit, even part of a person’s identity.
Money is an oddly sensitive subject, though. It’s hard for a nonprofit leader to ask someone to leave, for example, a substantial share of their home equity to charity. It’s far easier to ask for a modest annual gift that would have little effect on their lifestyle or wealth. Estate giving requires a gentler conversation.
The Power of a Citywide Effort
This is where Spring2ACTion (S2A) has shown us the power of a community-wide campaign. It’s easy to say “No” to a request from a single nonprofit. It’s much harder to opt out of an invitation to join a citywide effort, one where you get to choose the causes that speak to you.
Spring2ACTion also illustrates how charities can support one another. If this effort succeeds long term, it will be because nonprofits across Alexandria create a multiplier effect by spreading the word, often years before they see results. Annual attention to Think Ahead Alexandria is a quiet but continual invitation, often conveyed simply by charities telling their boards and donors that Alexandria’s Legacy Month is underway, advisers raising legacy gifts with clients, and neighbors mentioning it to neighbors.
Honestly, the best part of my work, and I’m guessing yours, with charities is the extraordinary people we meet along the way. Their generosity gives us real hope. I’m excited about what this effort can accomplish for Alexandria, a city I’ve fallen in love with.