Planned Giving: Comparing Options

Type of Gift Form of Gift Size of Gift Advantages to Donor
Outright Gifts Cash
Securities
Real Estate
Life insurance
Personal Property
Unlimited • Deductible for income Tax
Bequest by Will or Living Trust Real Estate, incl. home
Cash
Securities
Unlimited • Use of assets during lifetime
• Life Income gifts and lead trusts may be made in testamentary form
• Enables significant Future Gifts
• Simplicity: designate YBBBS Foundation as beneficiary in will or living trust
Retained Income Gifts (Irrevocable)

1 – Charitable Gift Annuity

Click here for more info

Appreciated Securities
Cash
Life insurance
$25,000 Minimum, no maximum • Simple to establish
• Fixed Payments
• Payments guaranteed by YBBBS Foundation
• Annuity administered by Yavapai County Community Foundation
• Tax deduction when gift is made
• Reduced, prorated capital gains tax on gift of appreciated property
• Permits deferred annuity payout, if desired
• Cannot add to, but easy to set up additional gift annuities
2 – Charitable Remainder Unitrust

Click here for more info

Securities
Cash
Real Estate
$300,000 recommended minimum • Payout Percentage established by donor at trust formation
• Can be tailored to donor’s situation
• Can provide income to one or more non charitable beneficiaries
• Can be for life or term of years (up to 20)
• Tax deduction in year gift made
• Permits deferred income if desired
• Excellent for Gifts of Real Estate
• Can make additional contributions to trust
• No Capital Gains tax on gift of appreciated assets
3 – Charitable Remainder Annuity Trust

Click here for more info

Cash
Securities
$300,000 recommended minimum • Same as CRUT except:
• Fixed income established by donor at trust formation
• Cannot make additional contributions
Charitable Lead Trusts

Click here for more info

Securities
Cash
Real Estate
Usually over $500,000; minimum sometimes $300,000 • Allows property to be passed to others with little or no shrinkage due to taxes
• Immediate charitable gift tax deduction
• Assets and the appreciation on those assets excluded from donor’s taxable estate
Insurance Policies
YBBBS Foundation as Owner and beneficiary of continuing policy
$20,000 minimum; no maximum • Donor gets income tax deduction for value of policy when transferred
• Ongoing gifts to charity deductible; charity pays premium
• Donor can make large gift in future at small cost now
Giving paid-up policies Unlimited • Tax deduction based on current value of policy
YBBBS Foundation as beneficiary but not owner Unlimited • Enables donor to make large future gift at small cost
• Donor may change beneficiary later
• Donor may borrow on policy
Deferred Income Buildup Plans Qualified pension plans
IRAs, Keoughs
Commercial deferred annuities
Employee Stock Option Plans
Unlimited • From a tax perspective, often the single best asset for testamentary charitable gift – avoids income tax liability
• Enables very large future gift
• Allows use of assets during lifetime
• Simplicity; just designate YBBBS Foundation on beneficiary instrument of retirement account
Change this in Theme Options
Change this in Theme Options
Share This