Overview
Certain gifts, because of size and/or other circumstances, may need to be completed over a longer period of time. Including charitable giving as part of long-range financial and estate planning is a wise investment for some. Such gifts can be made through provisions in a well-drafted will, through revocable living trust arrangements, as beneficiary designations of life insurance policies and retirement plans, and other planning vehicles. Remember, there are no limits on the amount that can be devoted to charitable use while completely bypassing federal gift and estate taxes.
Non-Cash Gifts
While cash is the most common method of making charitable gifts, there can be significant advantages in making charitable gifts using non-cash property you may own. Stocks, bonds, mutual funds, real estate, and other properties can make excellent charitable gifts. Making gifts in this manner may allow you to give with minimum impact on your level of spendable income.
Another reason to make gifts in the form of non-cash property is to enjoy the dual tax incentives the U.S. Congress has provided for this type of gift. When you give property that you have owned longer than a year that has increased in value since you acquired it, you are usually entitled to an income tax deduction for the full current value of the asset, not just your cost basis. You also avoid capital gains tax that would have been payable had you sold the property. Gifts of appreciated assets are generally deductible in an amount up to 30% of adjusted gross income. Any excess deductions can be carried over into as many as the next five tax years. For further information on non-cash gifts email us!
Wills and Living Trusts
Giving through a will can be a convenient way to leave a charitable legacy. After providing for your loved ones, you may decide to give a specific asset, a certain amount, a percentage of your estate, or all or a portion of what remains after other commitments have been satisfied.
Giving through revocable living trusts is another avenue to consider. Many people are now using living trusts to provide for their management and final distribution of their assets. Charitable gifts can be rewarding additions to living trusts. Or you may prefer to make a gift today and retain income for the remainder of your life (and/or that of a loved one) through the use of charitable remainder trusts and similar gift plans. For further information about wills and living trusts email us!
Summary
Including your favorite charity and making provision for continued contributions beyond your lifetime may be something you want to talk to your attorney and tax accountant about. If you would like more information, we work with one or more financial consultants who have hearts for missionary outreach and ministry and who are both equipped and able to help you walk through the various options and opportunities. If you want more information, contact us at: 1-888-847-6950 (toll free).
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