Many organizations have recently begun to promote the benefits of planned giving to their most loyal donors. It is important for everyone to know that planned giving is not just for the extremely wealthy or the elderly. Now is always a good time to think about estate planning. The choices available offer options that can complement your personal and financial objectives.
The Gleaners office of Planned Giving can personally help you make an informed decision about how your donation can benefit the community and also:
- Pay you a stream of income for life
- Increase the yield you may receive compared to current investments
- Provide a charitable income tax deduction
- Reduce or eliminate capital gains taxes or estate taxes
If you or your financial or investment advisor would like more information, contact Anne Schenk, Vice President of Advancement, at 866-GLEANER ext. 242 or firstname.lastname@example.org.
Various financial methods have been developed that provide important benefits to you, your family, and the charity of your choice. Following are some of the most popular ways that you can include charitable giving in estate planning:
- Bequests are a way to include a gift of cash, life insurance, securities (stocks, bonds, mutual funds), or real estate in your will. This is the simplest way to make sure that your intentions are realized.
- Gift Annuities are the most popular way for you to benefit a nonprofit while receiving an income for the rest of your life along with significant tax advantages. All annuities pay you a fixed percentage return on your gift based on your contribution and your age. (Rates of return are lower than the rates offered by commercial insurance company annuities so that a significant amount will remain for the charity.)
Example: for someone age 65, a gift annuity of $50,000 can pay out 5% annually. Annual income from the annuity would be $2,500 and the income tax deduction (depending on the donor's age) would be $17,220.
- Deferred Gift Annuities are similar to Gift Annuities, but allow donors to fund the annuity at an earlier age, then defer annuity payouts until they reach retirement age. This allows donors to make their contributions earlier and enjoy the tax advantages of charitable giving while their income is higher.
- Pooled Income Funds work somewhat like a mutual fund, paying donors a variable income for life, and perhaps for another beneficiary's lifetime. The rate is market-sensitive and may increase or decrease. The donor also claims an income tax deduction in the year the gift is made. The fund is called "pooled" because the donor's gift is pooled with those of other donors, giving the opportunity for a higher rate of return. This type of fund is especially attractive to donors with highly appreciated stocks, because they can completely avoid capital gains taxes on their gift.
- Charitable Remainder Trusts provide income to donors and beneficiaries, and upon the death of the beneficiaries or at the termination of the trust term (not more than 20 years), the remainder is transferred to benefit the nonprofit.
Achieve Your Goals
As you can see, there are many ways to meet your philanthropic and financial goals. The array of choices can be intimidating and seem very complex, but the concept is simple: if you have the ability to include a charitable organization that you care about in your family's estate planning, there is no better time than now to do so. If you or your financial or investment advisor would like more information, contact Anne Schenk, Vice President of Advancement, at 866-GLEANER ext. 242 or email@example.com.
A gift to the Gleaners Endowment Fund will help ensure Gleaners is able to meet the needs of hungry children, families and seniors well into the future.
Learn more about Endowment »
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