JPII Planned Giving

Sometimes called deferred gifts, the term planned gifts refers to specific strategies that (in most cases) benefit charity at some point in the future while offering immediate benefits to the donor.

Our tax laws not only encourage the support of charitable organizations; the tax code provides benefits that make it possible for the philanthropic spirit to be expressed through many forms of giving.

The gift of a paid-up life insurance policy is a good example. By designating a qualified charity as owner and beneficiary of such a policy, you will receive a charitable income tax deduction that, in most cases, is equal to your cost basis in the policy.

Forms of Planned Giving

• The Charitable Remainder Trust (CRT) is perhaps the most versatile charitable giving tool (why not start with the most versatile). With the CRT, it is possible to bypass capital gains tax on the sale of highly appreciated assets, generate an increase in income, receive an attractive charitable income tax deduction, and fulfill your philanthropic objectives.

The CRT is a legal trust that can be constructed to produce a predictable annuity payment each year or take advantage of investment growth opportunities with income payments based on a growing trust principal.

 Next to writing a check, Charitable Bequests are perhaps the best known vehicle for philanthropy. A bequest makes it possible for you to make your wishes known today without relinquishing needed assets during your lifetime. Bequests can transfer a specific asset. You can also give a percent of the estate after costs and taxes. Another good idea is to transfer property to a testamentary trust.

 Giving Stocks or Bonds may provide great tax benefits. If you have owned securities for more than one year and the fair market value has increased since you purchased them, you can avoid capital gains tax and receive a charitable income tax deduction equal to the fair market value.

 A gift of Real Estate that has been held for more than a year also has the advantage of providing you with a charitable deduction based on the current fair market value, as well as bypassing capital gains tax on the appreciation.

 Selected Artwork, Books, and Antiques are examples of gifts of personal property that can, in certain situations, be an appropriate gift. However, to ensure that any tangible personal property qualifies for a favorable charitable tax deduction, contact our Advancement Office prior to making a gift.

 The Gift Annuity is a great example of how a gift generates income for the donor. This is actually a contract between a donor and a charity that is part gift and part annuity. In addition to the annuity payment, the donor receives a charitable income tax deduction and a portion of each annuity payment may be tax-free.

 The Deferred Payment Gift Annuity (in which annuity payments are delayed for a number of years) offers rates that make it an attractive supplement to retirement income.

For more information on finding a donation option that is right for you, please call us at 610-777-0605 or click below.