Options for Giving

When to Give

You may create your fund now, establish it through your will, or construct it through a current or future trust arrangement.

You may give in honor of an anniversary, to memorialize a loved one, celebrate a special event, or support a cause. Tax deductions are earned at the time of your gift, while grants awarded from your fund can continue far into the future.

 


Your Goal Make a quick and easy gift Avoid taxes on capital gains Avoid double tax on IRA’s or other employee benefits Donate your personal residence or farm now, but continue to live there Make a gift with little cost to you Secure a fixed and often higher income or create a hedge against inflation Reduce gift and estate taxes on assets you pass to children or grandchildren

Your Gift Outright gift of cash Outright gift of securities or real estate Gift of retirement benefits Retained life estate Gift of life insurance Charitable remainder trust Charitable lead trust

Your Benefits Immediate income tax deduction and possible income Immediate charitable deduction and avoid capital gains Make gifts from highly taxed assets, leaving better assets for family Valuable charitable income tax deductions and lifetime use of the residence Current charitable income tax deduction and possible future deductions for premium payments Variable or fixed income for life and immediate charitable income tax deductions Charitable income tax deductions and family receives remainder of assets

How to Make the Gift Current gift, charitable gift annuity, or include in trust or will Current gift, charitable gift annuity, or include in trust or will Current gift or name charity as beneficiary Deed property to charity and retain life estate for yourself Change ownership of policy or beneficiary to policy Create trust now or as part of trust or Will that pays income to you or family and remainder to charity Create trust now or as part of trust or Will that pays income to charity and remainder to your family

Definitions used in Charitable Giving

  • Will – Your declaration of what you want done with your estate upon your death. It can include charitable planning but will need court approval to be effective.
  • Trust – A revocable trust is a contract between you and your trustee as to what you want done with your estate 1) upon your death and 2) if you’re alive and unable to manage your financial affairs. It can include charitable planning and no court approval is needed for your wishes to be effective.
  • Charitable Remainder Trust – This is an irrevocable trust that pays a percentage of the trust to you or designated individuals during the life of the trust and then the remainder to charity. You can create a Charitable Remainder Trust to be effective during your lifetime or upon your death.
  • Charitable Lead Trust – This is an irrevocable trust that pays a percentage of the trust to charity during the life of the trust and then the remainder to you or designated individuals. You can create a Charitable Lead Trust to be effective during your lifetime or upon your death.
  • Life Insurance – You may designate a charity as the beneficiary of an insurance policy of which you are the owner and the insured.
  • Retirement Benefits (IRA, etc.) – You can designate a charity as a beneficiary of your IRA or your 401K to receive the assets upon your death. While you are alive, and under certain circumstances, you may be able to gift your IRA assets to charity without paying any income taxes.
  • Charitable Gift Annuity – An arrangement whereby you give cash or other property to a charity in exchange for a commitment by the charity to pay you an annuity. Part of the transfer is considered a charitable contribution.

For a printable version of the chart, click here.