Simple Planned Gift Definitions
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The following descriptions of planned gifts are clear, concise, and versatile. They use non-technical language and may be inserted into newsletter articles, websites or brochures to describe ways of giving.  Always engage the advice of your legal or financial advisor about the relevance of such information to your organization before publishing. 

Gifts of Cash – Gifts of cash are fully deductible up to 50% of your gross income in the year of the gift. Any excess can generally be carried forward and deducted over as many as five subsequent years. 

Gifts of Stock – A gift of appreciated stock generally offers two benefits:  you receive an income tax deduction for the full fair market value of the stock, and you avoid paying capital gains tax. 

Real Estate Gifts – Tax benefits for gifts of appreciated real estate are virtually identical to those for gifts of appreciated securities.  Real property such as personal residences, undeveloped land, or farms may be transferred by deed with no liability for income or estate taxes on the appreciation. 

Life Insurance – A tax-deductible gift of whole or universal life insurance can be made by naming (charity name) as owner and beneficiary.  You could purchase a new policy or donate a policy that you currently own but no longer need.  Check with your insurance agent for the details. 

IRAs and Pension Plans – Your estate can save both income taxes and estate taxes if you make (charity name) a death beneficiary of your individual retirement account, pension, 401(k) or other retirement savings plan. 

Charitable Gift Annuities – You can guarantee a fixed income for your life and or your spouse by simply transferring cash or appreciated securities to (charity name) in exchange for a charitable gift annuity.  The attractiveness of the gift annuity is in its two basic benefits:  1) an immediate and substantial income tax charitable deduction; and 2) favorably taxed annuity benefits. 

Charitable Remainder Trusts – You can fund a charitable remainder trust with cash or appreciated property and receive income from the assets for your lifetime, qualify for charitable deductions, and save capital gains and estate taxes.  After your lifetime and/or that of a loved one, the trust assets would be distributed outright to (charity name). 

Charitable Lead Trusts – Under this arrangement, you transfer assets to a trust which makes payments to us for a specified number of years, after which time the assets are transferred to your heirs.  The charitable lead trust allows you to pass assets on to your children and grandchildren with little or no estate and gift taxes.  It can make good sense for anyone in the top estate and gift tax brackets. 

Bequests – Name (charity name) in your will in any one of a number of simple ways.  An outright gift, either a designated dollar amount or percentage of your estate, could be specified.  (Charity name) also could be named as a remainder beneficiary to receive funds only after specific sums have been paid to individual beneficiaries.  It may be helpful to know that you can easily add us to your will through an amendment to your will called a codicil. 

To find out more about ways planned gifts make smart charitable gifts, call us.  We encourage you to check with your personal attorney or financial advisor to find the most suitable gift arrangements for you and your family.

copyright© Jean Craig Long