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Ways to Give - Planned Gift

Ways to Give - Planned Gift

Planned gifts include bequests, trusts and contracts between a donor and a charity. The potential benefits of a planned gift are:
  • To increase current income for the donor or others.
  • To reduce the donor's income tax
  • To avoid capital gains tax
  • To pass assets to family at a reduced tax cost
  • To make significant donations to charity
     

Please call 806-371-5107 for an appointment with one of our fundraising professionals.

 

Types of Planned Gifts:
 
  • Bequest – A bequest is when a donor decides to leave assets to charity in his/her will. The donors estate will receive a charitable estate tax deduction at the death of the donor, when the gift is made to charity.
  • Gift Annuity – A gift annuity is a contract between a charity and a donor. In return for the donation of cash or other assets, the charity agrees to pay a fixed payment for life to the donor or person of the donor’s choosing. The donor also can claim a charitable tax deduction. If a donor funds a gift annuity with long-term capital gain property, the donor will have to report some of the gain and may be able to report it in installments over many years.
     
  • Charitable Remainder Trust – This type of trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to whomever the donor chooses to receive income. The donor may claim a charitable income tax deduction and may not have to pay any capital gains tax if the gift is of appreciated property. At the end of the trust term the charity receives whatever amount is left in the trust. Charitable reminder uni-trust provides some flexibility in the distribution of income and can be very helpful in retirement planning.
     
  • Charitable Lead Trust – This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to charity during its term. At the end of the trust term, the principal can either go back to the donor (a grantor lead trust) or to heirs named by the donor (a non-grantor lead trust). The donor may claim a charitable income tax deduction for funding a grantor lead trust or a charitable gift tax deduction for funding a non-grantor lead trust. Since lead trusts are typically used to pass assets to heirs, non-grantor lead trusts are far more common that grantor lead trusts.
     
  • Retained Life Estate – A donor may make a gift of her personal resident, farm or ranch to charity and retain the right to live there for the reminder of his or her life. The donor receives an immediate income tax deduction for the gift. At the donor’s death, the charity can use or sell the property.


 


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