A planned gift is a philanthropic gift and legacy that is funded either during or after the donor’s lifetime. The gift is part of a larger estate-planning, tax-saving process in which the donor decides how certain assets are distributed to a charity. The tax advantages can be substantial, especially on appreciated securities and properties. The probate expense savings can be dramatic in relation to the amount transferred. It is also possible to receive an income for life through planned giving. Following are a few planned giving ideas.
Planned Giving Options
Include a Charitable Bequest
A bequest is a provision in your will, retirement plan or trust that gives a charitable organization such as AACA a specific gift or a percentage of your estate. Large or small, a bequest is an easy and flexible way to support AACA far beyond your lifetime. You may include the following wording in your will: “I give to the Asian American Civic Association (AACA), the sum of______ (or a description of the specific asset), for the benefit of AACA and its general purpose.”
Make a Gift of Life Insurance
You can name AACA as the beneficiary of a new life insurance policy or donate an existing policy that is no longer needed for you and your family, naming AACA as owner and/or beneficiary. You will receive a number of tax benefits, including reduced income taxes and estate taxes.
Give from Your IRA or Retirement Plan
By naming AACA as the beneficiary as part or all of the remainder of your IRA or retirement plan, 100% of the donation will be applied to AACA’s mission, since the distribution avoids both income and estate taxes.
Donate Appreciated Securities
Securities are the most common form of property given to non-profits. These are usually gifts of stocks, bonds, stock options and mutual funds. With a gift of appreciated securities held for the required holding period, you are entitled to a charitable deduction for the full market value.
Establish a Charitable Gift Annuity
You can donate cash, marketable securities or other assets to AACA, and in addition to an immediate tax deduction for a portion of the value of your gift, you will receive a guaranteed income for your lifetime. You can defer payments to a later date if you do not need the income now.
Establish a Charitable Remainder Trust
A Charitable Remainder Trust is a tax-exempt irrevocable trust especially effective for appreciated assets. By donating assets into the trust, you can defer the gains tax and the trust can pay you and/or your spouse income for life or for a set term of years. Once the trust expires, the remainder in the trust can pass to AACA free of taxes in your estate.
Before making a meaningful legacy gift to AACA, please consult your financial advisor for the most suitable planned giving option.
For inquiries and to arrange your giving plan, please contact:
(617) 426-9492 ext. 205
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