Planned giving is finding a way to make a charitable gift during one’s lifetime or at death as part of a donor’s overall financial and or estate planning. Whether a donor uses cash, appreciated securities/stock, the income from the sale of real estate, artwork, partnership interests, personal property, life insurance, a retirement plan, etc., the benefits of funding a planned gift can make this type of charitable giving very attractive to both donor and charity.
Planned gifts require thoughts and preparation for the future and, often, help from your financial advisor. Unlike cash gifts to an annual fund, a planned gift is typically made from assets in your estate rather than one’s discretionary income, and typically come to fruition upon ones death.
One of the easiest ways to give is to leave a bequest. You do this by designating St. Michael Parish as a beneficiary of your asset by will, trust or beneficiary designation form.
Donating part or all of your unused retirement assets such as a gift from your IRA, 401(k), 403(b), pension or other tax-deferred plan is an excellent way to make a gift to our organization.
Donors can contribute appreciated property, like securities or real estate, receive a charitable deduction for the full market value of the asset, and pay no capital gains tax on the transfer.
Donors who establish a life-income gift receive a tax deduction for the full, fair market value of the assets contributed, minus the present value of the income interest retained; if they fund their gift with appreciated property they pay no upfront capital gains tax on the transfer.
Gifts payable to charity upon the donor’s death, like a bequest or a beneficiary designation in a life insurance policy or retirement account, do not generate a lifetime income tax deduction for the donor, but they are exempt from estate tax.