Planned Gifts

Bequests

Donors may bequeath a fixed percentage of their estate, a specific amount in dollars, articles of property, or the remainder of an estate after other provision of the will have been satisfied.  Other types of bequests may involve the establishment of a trust or annuity that pays income to a survivor during a designated period of time.

Trusts

In a Charitable Remainder Trust the donor makes a gift in trust for the current benefit of an individual, sometimes the donor, with the remainder of the assets ultimately going to the charity.  The trust pays the beneficiary an income, either for life or a period of time.  Trusts often provide current income tax savings, capital gains tax savings, and frequently save estate taxes.  The donor receives payments based on a fixed percentage of the fair market value of the trust assets valued each year.

In a Charitable Remainder Annuity Trust the donor makes an irrevocable gift in trust and provides for the trustees to pay them a fixed dollar amount each year for their lifetime or a period of years.  At the time the trust is established, the donor determines the desired fixed dollar amount of payment and this amount cannot vary.  Charitable remainder annuity trusts enable donors who own appreciated low yield assets to make a gift and increase their return for their lifetime.

Insurance

Donors may make gifts of insurance policies to a charity or nonprofit organization and receive a charitable contribution deduction for the value of the policy.  The policy's value is a charitable contribution in the year of transfer, and the donor removes the proceeds from his estate for federal tax purposes.

Retirement

Retirement plans and Individual Retirement Accounts (IRAs) are subject to both income tax and estate taxes and may carry extremely high tax costs.  Donors may mitigate some of the tax burdens by naming a charitable organization as the beneficiary of the plan or IRA.

Other Planned Gifts

Charitable gift annuities, deferred annuities, gifts of cash, securities or personal property are other planned gift vehicles donors may wish to consider.  For additional information or referral to financial or legal professionals, contact Craig Fowler, Executive Director at 800-243-9482 ext.5201.