A charity may buy an asset such as land from you for a discounted price. You receive a tax deduction for the fair market value less the sale price. You also escape capital gains tax on this charitable gift portion of the bargain sale.
A bequest is a statement in a will or trust that may define a gift to charity at your death. Bequests may include gifts of specific items of property or cash, or stated as a percentage of your estate.
Charitable Gift Annuity
A contract between you and a charity that pays a fixed and guaranteed income to you and/or loved ones designated by you for a lifetime. Gift annuities may provide substantial income tax, capital gains tax and estate tax savings. For example, donating appreciated property for a charitable gift annuity, not only escapes capital gains tax and provides a current (discounted) income tax deduction, but will also pay an income to you and/or loved ones designated by you.
Charitable Lead Trust
A trust that pays income to charities for a term of years, then the assets held by the trust are returned to you or loved ones. A lead trust may provide substantial gift and estate tax savings.
A charitable legacy is unique for each person and/or family. A legacy may support one or more charities or charitable causes. A legacy may be established in a will or trust bequest, life insurance or retirement plan beneficiary designation, or with the use of planned gifts such as charitable remainder trusts, lead trusts or gift annuities. A legacy may involve a gift that is available totally for current use, or a gift to endowment that will be held in perpetuity with the annual income used for the charity or charitable cause.
Charitable Remainder Trust
An irrevocable trust that pays income to you and/or loved ones designated by you during life or for a term of years, at the end of which time, what remains in the trust is donated to charities selected by you. These trusts may be annuity trusts (paying a fixed income) or unitrusts (paying a variable income based on the earnings of the trust). Charitable remainder trusts may provide substantial income tax, capital gains tax and estate tax savings. For example, donating appreciated property to a charitable remainder trust, not only escapes capital gains tax and provides a current (discounted) income tax deduction, but will also pay an income to you and/or loved ones designated by you.
Charitable endowments may be established with your favorite charity or at your local community foundation. Endowments allow for investment of your gift with annual income used to support charity programs, provide scholarships, etc.
You may donate to charity a remainder interest in certain real property, retaining for yourself a life estate, i.e., the right to live on and use the property while you are alive. Income and estate tax savings are available from such a gift.
Pooled Income Fund
A trust that co-mingles gifts from many donors and pays a lifetime income to you and/or loved ones designated by you. Pooled fund trusts may provide substantial income tax, capital gains tax and estate tax savings.
A legal arrangement that may be established while you are alive (living or inter vivos trust) or at death (testamentary trust), that allows for the management of assets by a trustee (you or someone designated by you) for the benefit of yourself or others. Bequests to charities may be included in trusts. Some trusts provide significant estate planning advantages (e.g., marital trusts, irrevocable life insurance trust, etc.) and should be discussed with your legal and financial counsel.
A legal document executed in compliance with applicable state laws that provides for the disposition of your assets at death to provide for loved ones, important charitable causes, etc.