Planned Giving

Planned giving is a collection of various thoughtful ways for donors to support tax exempt organizations and charities, often through asset-based gifts. While donors typically set up planning gifts during their lifetimes, the benefits are often paid out to the organization(s) after the death of the donor or the death of the donors last named beneficiary. Whether planned giving takes the form of cash, stock, real estate, life insurance, or any other form, the tax benefits to both the donor and the charity are numerous.

In choosing to make planned gifts, donors benefit from being able to contribute appreciated property or otherwise unused financial instruments, receive charitable deductions for the full (or a substantial portion of) fair market value of the gift, and pay no capital gains tax on the gift. The designated charity also benefits by a substantial infusion of funds, often with clear instructions on specific uses. While the formalities can be complex, this type of planning is typically quite flexible and allows for achievement of clear objectives through time-honored methods.

Potential donors may also wish to arrange for payment of their gifts to commence at a future date. This technique is often referred to as a deferred gift annuity which entitles the donor to a higher income rate and a larger charitable deduction than could be secured from gift annuities whose payments begin immediately.

Planned gifts allow donors to share their wealth, often through non-cash assets.

Benjamin Franklin is reported to have said that “In this world nothing is certain but death and taxes.” Planned giving allows donors to realize that although they will face death, they can reduce or avoid taxes.

LLG attorneys and staff are available to help clients across the spectrum of the charitable giving process and we welcome any questions about the process.