Planned Giving

Planned Giving at the Isaiah House

via plannedgiving.com

So, what is planned giving?

Planned giving is sometimes referred to as gift planning or legacy giving. Think of it as a contribution that is arranged in the present and allocated at a future date. It is a way to support the Isaiah House from sources other than ordinary income; often as part of your estate or tax plan. Ideally, planned giving will provide for both Isaiah House and your heirs and beneficiaries in ways that maximize your gifts and/or minimize the impact on your estate.

What are some types of planned gifts?

In addition to cash, almost any type of asset or personal property may be gifted immediately – including stocks, real estate, artwork, life insurance and retirement plans, &c. Some gifts (certain trusts or charitable annuities) may return lifelong income or other financial benefits to you in return for your contribution. Lastly, bequests of all types made through your will or beneficiary designations as described above. The benefits of funding a planned gift may make this type of giving very attractive to you, your family and Isaiah House.
Potential tax benefits of planned gifts:
You can contribute appreciated property, like securities or real estate, receive a current charitable deduction for the full market value of the asset, and pay no capital gains tax on the transfer.

Individuals who establish a life-income gift receive a current tax deduction for the full, fair market value of the assets contributed, minus the present value of the income interest retained; if they fund their gift with appreciated property they pay no upfront capital gains tax on the transfer.

Gifts payable to charity upon the donor’s death, like a bequest or a beneficiary designation in a life insurance policy or retirement account, do not generate a lifetime income tax deduction for the donor, but they are exempt from estate tax.

Common planned giving vehicles:

Bequest intention: a provision in your will directing that a gift be paid to Isaiah House upon death. The bequest can be very flexible and is controlled by the specific provisions within the document.

Life insurance: another flexible option which allows you to donate your life insurance policy to Isaiah House or to make Isaiah House a beneficiary of your policy.

Retirement plans: you may name Isaiah House as a beneficiary of your qualified retirement account or make annual RMDs directly to Isaiah House thereby reducing your taxable income.

Charitable gift annuities and charitable trusts: in return for a contribution of cash, securities or other property you receive some combination of current income and income tax incentives depending on how the particular vehicle is structured.

Please consult your tax advisor, financial advisor and/or attorney to help decide which planning strategy is suitable for you.