Importance of Planned Giving

In the simplest of terms, Planned Giving is the process of making a charitable donation that’s included in the donor’s financial or estate plan.

Through Planned Giving, also referred to as Legacy Giving, anyone can make a lasting contribution to the foundation of their choice. The impact is colossal and proceeds to give even after the donor passes away.

If you’re passionate about a charitable organization, it’s possible to make it a part of your Estate Plan. Better yet, there are countless tax and legal benefits that come with this incredible practice. The gift could include any of the following:

• Money • Life insurance • Personal property • Equity • Real estate

In most cases, Planned Giving is done as someone formulates an Estate Plan. This is because of the financial strategies that can enhance the gift’s overall impact.

Estate Plans

Contrary to popular belief, Estate Plans aren’t reserved solely for retirees – anyone can set up their Estate Plan regardless of their financial standing.

Proper estate planning can positively impact families even with modest assets. That said, poor estate planning can prove to be more detrimental due to the loss of time and funds.

Planning your estate will help you locate and organize your financial records, insurance policies, and titles. In addition, your family will be able to find your information and documents after you pass away.

Planned Gifts

There are a few ways to make a major gift, all of which of are capable positively impacting your chosen organization. They include:

• Gifts that return income • Outright gifts • Gifts payable upon the donor’s passing

Gifts that return income continuously provide financial support to an organization. Either the Trust would pay a fixed percentage or set dollar amount to the organization every year. Outright gifts are contributions made directly to the organization.

They could include stocks, cash, personal property, or securities. Gifts payable upon the donor’s passing are often included in an Estate Plan. With this option, you could name a charitable organization as the beneficiary of your life insurance policy.

Tax and Financial Benefits

Planned Giving is a remarkable offers a slew of benefits for both parties. Donors can contribute property, like real estate or securities, and receive a deduction for the asset’s full market value.

In addition, they don’t have to pay a capital gains tax on the transfer. Donors who establish a life-income gift will receive a 100% tax deduction and the fair market value of the assets they contributed, minus the value of the income interest retained.

Gifts that are payable to the charitable organization upon the donor’s passing will not generate a lifetime income tax deduction for the donor, however, they are exempt from estate tax.

Make a Lasting Contribution

In addition to major gifts, Planned Gifts are the largest donations a nonprofit can receive. Planned Gifts can greatly aid your organization of choice and continue your legacy.

It’s an opportunity to provide long-term support for a nonprofit you’re passionate about. Planned Gifts is powerful enough to change lives, including your own.