Planned Giving Vehicles
Cash: A cash gift is the simplest and most convenient means of making a gift. Cash gifts qualify as a charitable contribution for federal income tax purposes and are fully deductible up to 50% of AGI in the year of the gift. Deduction amounts exceeding this limit may be carried forward for up to five (5) additional years.
Appreciated Securities: Gifts (stocks, bonds, and stock in closely help companies) may be used to create a fund at Heritage Fund or they can be added to an existing fund. Transfer of bonds or stock may completely avoid capital gains tax, while securing an income tax deduction for the full current year market value, equaling up to 30% of AGI in the year of the gift. Procedures for making gifts of securities can be found at Stocks/Securities Gift Procedures.
Real Estate: A gift of real estate yields a deduction for the full fair market value of the property and avoids capital gains.
Planned, or “deferred” gifts can play an important role in estate planning and have the added potential of contributing back to the community. The tax benefits vary depending upon the planned giving option used by a donor. The options available at Heritage Fund include the following:
Bequests: Through a will, donors can include gifts to Heritage Fund in the following forms: cash, securities, real estate. Donors can donate a specific item or amount of money (specific bequest) or designate the remainder of their assets after all expenses and other specific requests have been paid out (residual bequest). Charitable bequests may be added to an existing will through a codicil. Heritage Fund staff can help you with suggested wording.
Charitable Lead Trusts: Established by contribution of an income-producing asset to Heritage Fund for a period of time; asset transfers back to family members or heirs with significantly reduced gift or estate taxes.
Charitable Remainder Trusts: Established by contribution of asset to Heritage Fund; provides income for life to donor (and designee) with remainder of asset going to Heritage Fund when term expires. Tax deduction made at time trust is created; may reduce estate taxes.
Life Insurance: Donor can name Heritage Fund as owner and beneficiary of a life insurance policy. Donor may be entitled to immediate tax deduction for cash value and for future premium payments.
IRA’s: Donor can make Heritage Fund beneficiary of an IRA or retirement plan. Gift may reduce/minimize estate and income taxes. Click here for an analysis of the 2010 and 2011 IRA Charitable Rollover.