Planned Giving encompasses a variety of ways that gifts can be made. It usually involves financial or estate planning; however, it is not reserved only for the wealthy.  

Planned giving is a means by which anyone concerned with the wise use of their personal resources makes a considered choice about their ultimate disposition.

 Planned Giving:

• Establishes a way to provide for family members while remembering the church
• Often enables the donor to provide more for his or her heirs and to make a larger gift than thought possible
• Often reduces taxes
• Can be designated for general funds or endowment
• Is either an outright gift or a deferred gift.

 Bequest in a Will

Perhaps the easiest and most common way of making a planned gift is through a will, yet over 50% of Americans do not have a will.
 
If you die without a will the state will:

• Divide your assets among your spouse and children (regardless of their age)
• Appoint a paid administrator
• Appoint guardians, who may or may not have been your choice, for your dependents
• Make no charitable contributions, ensuring that your estate pays as much tax as possible

By making a will you

• Appoint your own administrator
• Name the guardian of your dependents
• Control applicable taxes
• Can create a family or charitable trust
• Can share your resources with family, church, or other groups you choose

 Life Income Gifts

Life income gifts provide you or your designated beneficiary income for life in exchange for your gift. The most common types:
 
Pooled Income Fund
Gifts ($2,500 gift minimum) are “pooled” with other gifts and invested in a professionally managed investment portfolio. Benefits include:

• Guaranteed income for life, depending on the  rate of return on the fund’s investments
• Income can also flow to another beneficiary
• Immediate federal income tax deduction, usually based on the age of the donor and/or beneficiaries
• If funded through appreciated securities such as stocks, bonds, or mutual funds, the elimination of capital gains taxes
• Possible reduction in estate taxes

At the death of the final beneficiary, the property goes to your charity.
 
Charitable Gift Annuity
Benefits of are similar to that of the pooled income fund with these differences:

• Minimum gift is $5,000
• Income for life is guaranteed at a fixed amount
• A portion of the gift is deductible
• A portion of the income received is tax exempt

 Charitable Remainder Annuity Trust

• Available to donors giving $100,000 or more
• Can be funded with various types of assets,     including real estate
• Provides income for life, an income tax deduction, relief from capital gains taxes (if funded through appreciated property), and a possible reduction in estate taxes
• Income fluctuates based on the performance of the portfolio

 
Charitable Lead Trust

• Enables you to transfer assets to a trust that pays its income to the church for a set period of time
• At the end of the term, the principal and all capital appreciation returns to you or whoever you name.

 

Gifts of Special Assets

Real estate, securities, and personal property can be gifted to the church.
Examples include:
 
Charitable Life Estate Contract

• Deed your home, vacation home, farm, ranch, or condominium to the church and retain the right to live on the property and/or receive income from the property for as long as you live
• Receive an income tax deduction and normally avoid any capital gains taxes
• Inheritance and estate taxes may be reduced at the time of your death
• Gifts of appreciated real estate or securities allow you to avoid capital gains taxes, if transferred to the church prior to selling. However, if it has decreased in value, sell the assets before making the gift, establishing a capital loss

 
Tangible Personal Property

• Gifts of tangible personal property, such as jewelry, coins, works of art, automobiles, etc. may  be donated
• It is your responsibility to set an appraised value of the gift; any gift over $5,000 must be independently appraised.

 
Life Insurance

• Purchase a new policy and make the church the owner and beneficiary of the policy; you may be able to make a much larger gift than otherwise possible
• Make the church the owner and beneficiary, or contingent beneficiary of an existing policy
• Name the church to receive the proceeds if the designated beneficiaries predecease the insured

 
Retirement Accounts

• The remainder value of many retirement accounts can be heavily taxed when left to friends and family, but pass tax-free to your church upon your death.