Planned gifts require thought and careful planning on the part of the donor before they are made. They are typically one of the largest charitable gifts ever made by the donor, motivated by emotional connection and a deep commitment to an organization, its mission and those served by the organization. Planned gifts are popular because they can provide valuable tax benefits and/or income for life.
Planned gifts include bequests, trusts and charitable gift annuities. Whether a donor uses cash or other assets, such as securities, mutual funds, real estate, life insurance, retirement assets or other interests and properties, the benefits of funding a planned gift can make this type of charitable giving very attractive to both the donor and charity. With the assistance of a well-informed development officer and a financial adviser, anyone can craft a planned gift to meet his or her charitable and financial goals.
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Benefits of Planned Giving
Although a donor may want to make a significant donation to a favorite charity, the importance of maintaining financial stability and economic freedom to live comfortably in retirement are critical factors in determining whether or not to make a planned gift and, if so, what kind of a planned gift.
Some benefits in the decision-making process to consider are:
- The ability to set aside supplemental retirement income during working years
- An increase in current income for the donor or others
- The opportunity to pass assets to family at a reduced tax cost
- A way to reduce the donor's income tax
- A way to avoid capital gains tax
- An opportunity to diversify heavily concentrated securities
- To provide a stream of income for an elderly or disabled loved one
- To dispose of assets that require special management or are hard to sell
- To facilitate the transfer of a closely held corporation to children
The School for Social Work collaborates with the college's Office of Planned Gifts and Bequests. See their Web site for the latest annuity rates, a planned giving calculator and more.