Planned Giving, Helping Orphans Through Estate Planning
Planned giving offers you many opportunities to fulfill your philanthropic goals while providing lifetime benefits to you and your family. You can extend the influence of your life beyond your generosity through a planned gift. You can also experience the joy of giving while minimizing the personal cost of a major gift through charitable tax benefits.
What is Planned Giving?
Planned giving, for the donor, is the integration of sound personal, financial and estate planning concepts with the individual donor’s plans for lifetime or testamentary giving.
What are Planned Gifts?
Planned gifts (or deferred gifts) are gifts to charitable organizations from individual donors through bequests, charitable remainder trust, gift annuities and life insurance policies.
Tangible or Physical Benefits of Planned Giving
- Avoids capital-gain taxes on contributions of appreciated, long term property with respect to certain planned giving vehicles.
- Provides income tax savings through the charitable deduction for the value of the gift.
- Retains income rights for your lifetime and/or those of other beneficiaries.
- Creates the possibility of increased spendable income.
- Eliminates federal estate tax on the value of the interest in property passing to the charity upon the donor’s death and reduces estate settlement costs.
Intangible or Spiritual Benefits of Planned Giving
- Provides the satisfaction of knowing your gifts will be preserved. The capital goes forward into the future, while the income meets the needs of today.
- Allows an opportunity to channel your resources to help perpetuate the charitable organizations that have had meaning in your life.
- Allows you to take pride in helping the organization remain strong and financially independent.
- Satisfies your desire to help the organization to be able to offer new programs to meet emerging needs.
- Satisfies the wish to continue your annual support of the charitable organization in perpetuity and thus ensure that it will be strong and active to serve future generations.
- Allows you make your largest “gift” to a favorite charity rather than the federal government.
How to Make a Charitable Gift
The donation you make now will be used immediately to send more orphans to school. You can see the beneficial results of your immediate gift without delay and you may also maximize your income tax savings. A current gift can come in various ways. For example:
- Cash– you can write a check or charge a donation on a credit card through the Academy’s account with PayPal.
- Securities or real estate– you can give appreciated assets you have held longer than a year.
- Tangible personal property– you can donate property you have held longer than one year that is related to our exempt function.
- Bargain sale– you can sell us appreciated securities or real estate, held for more than one year, below market value.
- Charitable lead trust– fund a trust that provides payments to us for a term of years, then pays the remainder to family members or beneficiaries of your choice.
Deferred gift is a planned contribution that you arrange now but that will not benefit us until later – perhaps after your lifetime. Your unique personal circumstances may dictate this strategy, especially if you contemplate a sizable contribution. Deferred gifts can be arranged in many different ways. For example:
- Bequest– through your will, you can give the Nadine Griffey Academy money, property or share of estate revenue.
- Living or testamentary trust– create a trust that will pay income to you or a relative for life, and then part or all of the remainder to us.
- Life Insurance– name us the primary or contingent beneficiary or transfer a policy to us now.
- Qualified retirement plan– name us as primary contingent beneficiary as part of all of your qualified plan or IRA.
- Life estate agreement– deed your personal residence or farm to us but retain life use.
Caution: All planned charitable giving should be done only with the help and advice or your estate planning attorney.