A planned gift to a charity is one that is legally provided during the donor’s lifetime. It often provides immediate benefits to the donor and deferred benefits to the charity. It usually involves financial, estate and tax planning.
The benefits of planned giving include the following:
- an income stream for yourself and loved ones;
- immediate tax savings from allowable charitable income tax deductions;
- conversion of low-yield assets to assets that produce greater income;
- avoidance of capital gain on contributions of appreciated long-term capital gain property;
- elimination of federal estate taxes on property transferred to the foundation at the time of your death, as well as reduction in probate costs; and
- potential to defer income until personal needs require additional revenue.
Examples of planned gifts are:
- a bequest in your will or trust;
- using assets such as cash, stocks, bonds, CDs, real estate, vehicles and jewelry;
- pension or IRA account;
- life insurance policy;
- memorial gifts;
- Charitable Gift Annuity;
- Charitable Remainder Trust; and
- Charitable Lead Trust.
For more information, please contact FARE at email@example.com or (800) 929-4040.