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What is Charitable Gift Planning?

Charitable gift planning is the process of cultivating, designing, facilitating, and stewarding gifts to charitable organizations.

Charitable gift planning:

uses a variety of financial tools and techniques for giving,
requires the assistance of one or more qualified specialists,
utilizes tax incentives that encourage charitable giving, when appropriate, and
covers the full spectrum of generosity by individuals and institutions, and is based on powerful traditions of giving in the United States.

The techniques of charitable gift planning include both revocable and irrevocable arrangements, gifts available for use at the time they are given and gifts that may not be available until a future date and split-interest gifts intended to balance financial, personal and charitable objectives. These techniques are called planned gifts.

The tools of charitable gift planning include all types of real and personal property and tangible and intangible assets.

Donors should seek charitable gift planning advice from professionals with integrity, expertise, and experience in law, investments, property, tax, and charitable transfers in order to assure both the technical merits of the transfer and the philanthropic quality of the gift.

What are Planned Gifts?

Planned gifts are a variety of charitable giving methods that allow you to express your personal values by integrating your charitable, family and financial goals. Making a planned charitable gift usually requires the assistance of the charity’s development professional and/or a knowledgeable advisor such as an attorney, financial planner, or CPA to help structure the gift.

Planned gifts can be made with cash, but many planned gifts are made by donating assets such as stocks, real estate, art pieces, or business interests—the possibilities are endless. Planned gifts can provide valuable tax benefits and/or lifetime income for you and your spouse or other loved one. The most frequently-made planned gifts are bequests to charities, made through your will. Other popular planned gifts include charitable trusts and charitable gift annuities.

Why should I make a planned gift?

Many people want to make charitable gifts but need to do so in a way that helps meet their other personal, family, or financial needs. Planned gifts give you options for making your charitable gifts in ways that may allow you to:

Make a larger charitable gift than you thought possible
Increase your current income
Plan for the financial needs of a spouse or loved one
Provide inheritances for your heirs at a reduced tax cost
Reduce your income tax and/or avoid capital gains tax
Diversify your investment portfolio
Receive income from your personal residence or farm
Plan for the transfer of your business
Leave a charitable legacy for future generations