To learn more about any of the following gift plans, consult with a charity representative or a professional advisor.
These assets can be given outright, or can be used to fund a life-income gift.
Gifts of Cash
This simplest gift maximizes your immediate charitable deduction and delivers immediate benefits to your favorite charity.
The IRS still allows you one of its most significant tax breaks for securities that have grown in value.
Gifts of Real Estate
You can make a substantial gift to your favorite charity through a transfer of residential, commercial, or undeveloped real estate.
Gifts of Business Interests
You can give an interest in a closely-held or family business to charity.
Gifts of Partnership Interests
An interest in a real estate or oil-and-gas partnership could produce more benefit for charity than it’s giving you.
Gifts of Artwork and Collectibles
You can enliven and beautify the facilities of your favorite charity and also secure an income tax deduction.
This most fundamental planned gift through a will delivers critically important support to charities every year.
Gifts of Retirement Plans
Your retirement plan can deliver more benefit to your favorite charity than to your heirs.
Gifts of Life Insurance
A paid-up policy can be transferred to charity during lifetime or left as a death benefit.
GIFTS IN PARTNERSHIP WITH YOUR FAVORITE CHARITY
Pooled Income Funds
Some charities offer a life-income gift that works like a charitable mutual fund. You can contribute cash or securities, receive an income tax deduction plus avoid capital gains tax on the transfer, secure lifetime income, and deliver significant support to your charity.
Charitable Gift Annuities
The simplest life-income gift also delivers guaranteed annual payments and significant tax benefits for you. In return for your gift, your favorite charity pays you an annuity. You receive an income tax deduction, avoid upfront capital gains tax on your gift transfer, and pay no income tax on part of the payments to you over your life expectancy.
Deferred Gift Annuities
This is a life-income gift designed to build younger donors’ retirement earnings. Deferring the start of your annuity until retirement or later gives you an income tax deduction now and an additional source of income when you need it later.
Charitable Remainder Unitrusts
This powerful life-income gift is a creative planning tool for donors. The unitrust pays you a fixed percentage of the annual value of the trust, and reinvests any excess income. You have flexibility in determining who will manage the unitrust, the length of the income payout as well as the number of income beneficiaries, and which assets will be placed into the trust. The remaining value of the trust is distributed to one or more charities as specified in the trust.
Charitable Remainder Annuity Trusts
You can combine flexible management of your gift with a predictable fixed-income payout. The annuity trust is individually managed, and can pay fixed income for life or a term of years to multiple beneficiaries. The remaining value of the trust is distributed to one or more charities as specified in the trust.
Charitable Lead Trusts
This is a gift plan that reduces the cost of transferring assets to your heirs – while delivering immediate benefits to your favorite charity. The lead trust holds appreciating assets for a term while it pays income to your favorite charity then it passes the principal to your survivors. A lead trust freezes the taxable value of appreciating assets, then delivers a further reduction through the present value of its income payments to charity.
Retained Life Estates
You can give your house or farm to your favorite charity, receive an income tax deduction, and continue to use the property for your lifetime, under an agreement worked out between you and the charity that will ultimately own the property.
Charitable Bargain Sales
This part-gift/part-sale transaction gives you a charitable deduction plus cash to purchase other property or pay an entry fee to a retirement community.
Donor Advised Fund
Some charities offer a gift plan that combines and simplifies the administration of all your charitable giving. You can set up a gift fund that makes grants to multiple charities without the legal and tax complexities of a private foundation or the expenses of a commercial gift fund.
The information contained on this page should not be construed as legal advice. Tax laws and IRS requirements are subject to change. Please consult your legal or tax advisor/planner for specific advice on your situation.
- May 11, 2018
Probate with Hon. Kathleen A. Forsyth