Lifelong Giving

Everyone wants to make a difference in the world. Charitable giving is an excellent way to support the mission of an organization you believe in, but it’s easy to feel like you don’t have the means to make large donations that break ground on new buildings or save thousands of children from starvation. Fortunately, the reality is you can make a significant charitable impact without having to write six- or seven-figure checks. 

In fact, there are several lifelong giving options that allow you to adequately meet your family’s needs and can also provide meaningful support to the nonprofit organization you wish to support. 

That’s why Planned Giving & Trust Services (PGTS) offers free consultation to help you determine what fits best with your financial situation. You might even be pleasantly surprised to find out some options allow you to:

• Make a larger charitable gift than you originally thought possible
• Provide additional cash flow from your assets
• Plan for the financial needs of a loved one
• Provide inheritances for your beneficiaries with reduced taxes
• Reduce income tax by receiving a charitable gift deduction
• Defer, minimize or avoid capital gains tax

Common Options for Lifelong Charitable Giving

Your PGTS representative can help you assess your financial situation and determine which giving options can care for your family while also providing the best benefit to the organization of your choice. Here is an overview of giving methods that will likely be discussed.

Donation of appreciated assets—a charitable gift of appreciated noncash items such as stocks, bonds, mutual funds, vehicles, insurance policies, art, collectibles, precious metals, etc. The value of this asset can be used as a charitable tax deduction and you no longer have to go through the hassle of selling it. Plus, when you give an outright donation of assets that increased, in value you completely avoid paying capital gains tax!

Donation of real property—by giving a gift of real estate directly, instead of selling the property and donating cash, you can avoid capital gains tax and allow for a charitable tax deduction. This can be your personal residence, commercial property, a farm, a cottage, or even a vacant lot. 

Retained life estate—the donation of your home or property to an organization while you still can enjoy lifetime use of the home. With this option you can ensure a gift of your real estate to the organization you support while also receiving an immediate income tax reduction. After you have died full title of the property is transferred to the organization designated as the interest holder.  

Closely held stock—If you own stock in a closely-held corporation, you can receive significant benefits by turning over all or part of it into a gift. It can also help you avoid capital gains tax if you are planning on selling the stock. (This type of gift would require legal counsel.)

IRA charitable rollover—a gift option available each year for donors older than 70.5 years of age. It allows you to transfer a sum of money directly from your IRA as a “qualified charitable distribution.” This can count toward your minimum distribution for the year and avoid additional taxable income, which may allow you to be taxed at a lower income bracket if the numbers line up. 

Charitable Lead Trust—an irrevocable, split-interest trust. It can be thought of as a “reverse” charitable remainder trust, since payments are first made to the charity during the established term. Then what is left at the end of the term is reverted to the grantor of the trust, or the designated beneficiaries.

This giving option can work well with donors of high net worth with both philanthropic and tax objectives. Properly structured, this can allow you to make a gift of income to charity for a period of time and then pass on an asset to your beneficiaries with reduced tax. 

There are many different types of charitable lead trusts, and your PGTS representative will be able to help you determine which one best fits your situation and intentions.