How, When and Why Should I Consider Planned Giving
Published: September 30, 2013 by Johnson County Community Foundation
The term planned giving can describe a wide variety of choices that enable you to give to a charity during your lifetime and/or after your death. Planned giving is typically done as part of one’s estate planning and is a viable option for donors of all income levels.
Here’s a little cheat sheet to help you plan and fulfill your charitable goals:
Cash | Securities/Stocks | Bequests | |
| How does it work? | Give cash | Give appreciated securities | Plan now, give later |
| What do YOU want to do? | Maximize the deduction; minimize the gift details | Avoid tax on capital gains; be able to afford a larger gift | Make a gift that costs nothing during your lifetime |
| How do you make the gift? | Write a check or donate online now | Contribute long-term appreciated stock or other marketable securities | Name us in your will or living trust by designating a specific amount or percentage |
Donor Benefits | |||
| Reduce Estate Tax | Removes taxable assets from your estate | Removes taxable assets from your estate | Donation exempt from federal estate tax |
| Reduce Income Tax | Immediate deduction for full value | Immediate deduction for full value | |
| Reduce or Eliminate Capital Gains | Complete avoidance | Complete avoidance | |
| Give an Asset But Keep Enjoying It | Control of assets during lifetime | ||
| More | Still like the stock? Use your cash to buy at today’s price and lock in a higher cost basis | Make a substantial gift when you no longer need the asset | |
There are many more ways in which to fulfill your charitable goals. Please contact us for more details. Please consult your professional advisor to assist you with your planned giving objectives.
(Excerpts from PlannedGiving.com)
