Types of gifts
- Bequests in wills and trusts
Goal: Make a posthumous gift.
Benefit: Donations are fully exempt from federal estate tax and you retain control of your assets.
Sample bequest language
- Charitable gift annuities
Goal: Receive guaranteed fixed income that is partially tax-free.
Benefit: Current and future savings on income taxes plus fixed, stable payments.
- Deferred charitable gift annuities
Goal: Receive a larger, guaranteed fixed income that is partially tax-free but does not begin immediately.
Benefit: Current and future savings on income taxes plus larger, fixed, and stable payments timed to your needs.
- Charitable remainder trusts
Goal: Secure payments for life while reducing market risks.
Benefit: Potential increased income and tax benefits.
- Retained life estate
Goal: Donate your residence, vacation home, or farm subject to a life estate.
Benefit: Tax advantages plus use of the property for your lifetime or a term of years while continuing to be responsible for all property taxes and upkeep.
- Charitable lead trusts
Goal: Pass assets to heirs at potential tax savings.
Benefit: A charitable tax deduction and favorable estate tax circumstances.
- Charitable bargain sales
Goal: Reduce capital gains on appreciated property.
Benefit: Cash to pay off your mortgage or other loans and a charitable tax deduction for the gift portion.
Assets to consider
- Retirement assets
Goal: Avoid the twofold taxation on IRA or other employee benefit plans.
Benefit: Allows you to leave your family other assets that carry less tax liability.
- Appreciated stock
Goal: Avoid capital gains tax on securities sale.
Benefit: No capital gains tax and charitable deduction based on fair market value.
- Real estate
Goal: Avoid capital gains tax on the sale of a home or other real estate.
Benefit: A charitable tax deduction with the possibility of reducing or eliminating capital gains tax.
- Life insurance
Goal: Make a large gift with little cost to you.
Benefit: Potential current and future income tax deductions.
- Tangible personal property
Goal: Make a gift of tangible property, such as coins, stamps, antiques, or art.
Benefit: A charitable tax deduction and the possibility of income for life if established through a trust.