Comparing the Benefits
Use the links below to compare at a glance the major features of
some of the different giving ideas. Your attorney or other professional advisor
can help you in evaluating the benefits. Each person’s unique circumstances
make different giving plans appealing.
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| Donor Receives: |
The satisfaction of knowing that a meaningful gift has been arranged. |
| Tax Savings |
Federal estate tax deduction for amount
bequeathed to charity. |
| Other Advantages to the Donor |
Opportunity to make a substantial gift without
depleting funds needed during life. May be revised at any
time. |
| Charity Receives: |
A substantial gift to further its mission. |
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| Donor Receives: |
Fixed annual income to donor and/or other beneficiary(ies).
Income amount defined in trust agreement (at least 5% of
initial trust assets). |
| Tax Savings |
Income tax charitable deduction for the part of the assets placed in trust that
is expected to
go to charity. Value of trust assets at death generally deductible from estate for tax purposes. |
Other Advantages
to the Donor |
Asset preservation. Supplement income for the donor or others. May be created for a term of years in order to provide income for short-term needs. Professional management of funds. |
| Charity Receives: |
A substantial gift when the trust terminates.
Knowledge of the gift helps charitable entities in
planning to meet future needs. |
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| Donor Receives: |
Variable annual income to donor and/or other
beneficiary(ies). Rate of income defined in trust agreement
(at least 5% of trust assets). |
| Tax Savings |
Income tax charitable deduction for a portion of the value
of the assets placed in trust. Value of trust assets at
death generally deductible from estate for tax purposes. |
Other Advantages
to the Donor |
Asset preservation. Supplement to income of the donor
and/or others. May be created for a term of years in order
to provide income for short-term needs. Professional
management of funds. |
| Charity Receives: |
A substantial gift when the trust terminates.
Knowledge of the gift helps charitable entities in
planning to meet future needs. |
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| Donor Receives: |
Donor receives no income from the trust. Check with
advisors on specific tax treatment of different types of
charitable lead trusts. |
| Tax Savings |
In most cases either a current income tax charitable
deduction or gift and estate tax deductions. |
Other Advantages
to the Donor |
May provide a means to make a significant gift and have
assets returned to donor, or transferred to loved ones at
reduced cost. |
| Charity Receives: |
Either fixed or variable payments for the
term of the trust. |
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| Donor Receives: |
Income earned by trust may be paid to donor, charity, or
other(s). |
| Tax Savings |
No income tax benefits (unless income goes to charity).
When property passes to the charitable beneficiaries at death
of donor, estate tax deduction applies against any
applicable federal estate tax. |
Other Advantages
to the Donor |
Opportunity to change the trust (and gift), if desired.
Avoidance of probate. Opportunity for professional
management of assets in trust. |
| Charity Receives: |
Substantial gift, in many cases larger than
the donor could comfortably give otherwise. |
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| Cash |
Convenient and accessible. |
Income tax deductible for itemizers up to 50% of adjusted gross income
(AGI). Any excess is deductible over the next five years. |
| Appreciated Property |
Conserves cash for other uses. |
Income tax deductible as above, but up to 30% of
AGI. Capital gains tax not incurred; full value of asset is
deductible. |
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