What is a planned gift?
A planned gift may be an outright gift or a life-benefit gift. An outright gift is just that, a direct contribution. It may be in the form of cash, property, insurance, or other type of financial asset. A life-benefit gift, on the other hand, is a type of giving that allows you to retain some benefit such as income or use of your residence while you are living. Upon your death, Catholic Charities receives the benefit of your gift. A planned gift is made during an individual’s lifetime.
Types of Gifts
Most people think of leaving a certain amount of money to Catholic Charities by including the gift in their will. However, giving cash or other assets is just one way to make a bequest. There are many other types of planned giving opportunities:
- Cash: A simple way to give, with tax-deductible benefits, cash provides immediate assistance to Catholic Charities.
- Investments and Property: Stocks, mutual funds, and other assets can be donated as a planned gift. The donor receives a charitable income tax deduction for the full market value of the investment on the transfer date, thus avoiding the payment of capital market value of the donated asset if higher.
- Wills and Trusts: A bequest is a gift that is designated to Catholic Charities through a Will or a Trust. Upon your death, we receive a specific amount of money or property, a percentage of your estate, or the remainder of your estate after expenses.
- Gift Annuities and Deferred Gift Annuities: Some planned gifts enable you to receive income from your charitable donation for the remainder of your life, or the life of your spouse or other loved one. You receive a substantial charitable tax deduction in the year you make the gift, and the gift produces income each year, a portion of which could be tax free. A Deferred Gift Annuity allows you to defer income until a later time. This feature is especially attractive to younger individuals who may not need the immediate income.
- Charitable Remainder Trusts: This type of gift also provides you with a safe, secure source of income during your lifetime. By permanently transferring personal assets to a Charitable Trust you receive a charitable tax deduction now, and income for the rest of your life, while making a substantial gift to Catholic Charities. Upon your death the remainder of the assets in the Trust plus accrued income is transferred to Catholic Charities.
- Charitable Lead Trusts: A Charitable Lead Trust is the reverse of a Charitable Remainder Trust. It may be set up during your lifetime or at the time of death. When the trust ends, the remaining property including all appreciation passes to the beneficiaries you choose.
- Life Insurance: You may own a life insurance policy which was purchased for a specific purpose that no longer exists. Donating a paid-up life insurance policy enables you to make a substantial charitable gift upon your death, while entitling you to a charitable tax deduction during your lifetime.
- IRAs/Qualified Retirement Plans/US Savings Bonds: A tax-deferred account like an IRA or 401(k) may be subject to both estate and income taxes at death. Therefore, a tax-deferred account makes an ideal charitable gift, because Catholic Charities is not subject to these taxes.
- Donor Advised Funds: The distribution of the charitable funds may be spread out over many years. You can provide direction each year as to which charities receive annual distributions from the fund.
- Gift Residence: A life estate is a type of planned gift that enables you to donate a residence to Catholic Charities. You receive a charitable income tax deduction for the gift, while you and your spouse or loved one may continue to live in the home until death.
For more information about the gift opportunities described above, please contact Aleisha Mulnix | email@example.com at (314)256-5955