The term planned giving refers to charitable gifts that require some preparations before they are made. Planned gifts are popular because they can provide valuable tax benefits and/or income for life. Whether a donor uses cash or other assets, the benefits of funding a planned gift can make this type of charitable giving very attractive to both the donor and charity.
With the assistance of a well-informed development team and/or financial planner, anyone can craft a planned gift to meet their charitable and financial goals. Planned gifts include bequests, trusts, contracts between a donor and a charity and more.
Charitable Gift Annuity
A Charitable Gift Annuity is an agreement between an individual or couple and a qualified charitable organization. The individual or couple transfers assets to the charity and, in turn, receives fixed payments for the remainder of their lives, guaranteed by the full worth of the charity. The rate is determined by the person’s age when the contract is made. Payments may be made monthly, quarterly, or annually. Income from a gift annuity can be deferred for a period of years.
When a donor decides to leave assets to charity in his or her will, he or she is making a bequest. The donor’s estate will receive a charitable estate tax deduction at his or her death, when the gift is made to charity.
Everyone should have a will.
Charitable Remainder Trust
This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to whomever the donor chooses to receive income. The donor may claim a charitable income tax deduction and may not have to pay any capital gains tax if the gift is of appreciated property. At the end of the trust term, the charity receives whatever amount is left in the trust.
Common Planned Giving Options
Anyone who includes American Children's Home in their estate plans will become part of our 1925 Society. Our way of honoring those who have remembered ACH with a future gift.
Please contact our development team if you have already included American Children's Home in your estate plans and we can contact you about the 1925 Society!