Generally speaking, planned gifts represent gift options that can be designed to meet your personal philanthropic and financial goals. Some planned gifts, such as a gift in your will, require no current outlay of funds at all. And other planned gifts, including the charitable gift annuity, make it possible to support our work, enjoy a tax deduction if you itemize, and receive a lifetime income at the same time.
A planned gift can be a rewarding way to make a difference in others’ lives. Please contact us if we can provide more information or help you in any way.
P.S. We invite attorneys, CPAs, financial planners, and other professional advisors to click the “Professional Advisors” link to use our Advisor Reference Tool (ART) program. It provides more detailed information about planned giving concepts and techniques.
Making a Difference
Planning for Change: Estate Reduction through Charitable Giving
The estate tax exemption doubled under the Tax Cuts and Jobs Act (TCJA) of 2017. With annual increases for inflation, it is now $12.92 million. However, this provision is scheduled to “sunset” at the end of 2025—if Congress doesn’t act, the exemption amount will drop into the $6-7 million range. If your estate is over $6 million (or may reach that level by 2026), now is the time to start considering and implementing strategies to minimize the tax impact and leave more for your heirs.
No matter your financial situation, charitable giving can be an important part of your estate plan, even if you are not impacted by this potential change. We are always available to assist with your planning.
If you want to leave a philanthropic legacy, you can arrange a gift that supports our mission, removes assets from your estate (thereby potentially reducing the amount of estate tax you owe), and possibly provides personal benefits now and other tax benefits as well. Consider the following options:
A charitable gift annuity (CGA). In exchange for your gift, we agree to make fixed payments to you and/or someone else (two people maximum) for life—payments based on the amount of the gift, the age of the person(s) receiving the payments, the number of annuitants, and whether the start of payments is immediate or deferred. Part of the gift qualifies for an immediate charitable income tax deduction if you itemize, and the annuity payments are treated as part tax-free return of principal, part long-term capital gain (if you made a gift of appreciated assets), and part ordinary income.
A charitable remainder trust (CRT). A CRT combines an income for you and/or other beneficiaries (for life or for a period of up to 20 years) with a charitable gift of whatever remains in the trust at the end of the payment period. While more complex than a CGA, it also offers more flexibility to meet a variety of planning goals. It qualifies for an income tax deduction for the present value of the anticipated remainder interest.
A charitable lead trust (CLT). This trust makes payments to us first, then distributes the remainder to named beneficiaries (typically family members). This minimizes estate and inheritance taxes for the beneficiaries.
A donor-advised fund (DAF). A DAF removes assets from your estate and puts them in a managed account. This qualifies for a current charitable income tax deduction, even though you can recommend grants to qualifying charities like ours at any point in the future. You may also be able to name us as the beneficiary of whatever remains in the DAF upon your death.
As you make plans for your estate, we thank you for considering ways to make a significant and enduring impact on our organization and those we serve. Please reach out if you are interested in exploring these charitable giving options further. We are happy to assist you and your advisors in determining a planned giving strategy that aligns with your values and goals.