Introduction to Planned Giving

Friday, June 19th, 2009

A term that’s commonly used to describe donating to charity during one’s lifetime or after death is called “planned giving.”  This is done while meeting your current needs as well as providing for your heirs.  Also, it’s typically done with estate planning.

From the perspective of the donor, planned giving may be attractive for many reasons.  First, it allows you to give larger gifts out of your existing assets.  And it may also reduce your estate taxes or capital gains, earn higher investment yield, or give you an income stream for life, depending on how you set it up.  These planned gifts normally appeal to people who are not sure how much assets they’ll need during their lifetimes, and at the same time, want to benefit charitable organizations.

Planned gifts may be used to start a private foundation, create a support organization, establish your own fund at any community foundation, or give to a specific nonprofit organization.  The most common planned giving vehicles are beneficiary designations, charitable requests, charitable lead trusts, charitable remainder trusts, and gift annuities.

For more information on these programs, consult an attorney or professional advisor.  You can find them in any attorney listings or directories online.

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