Gift Options that Help Children
Planned Giving integrates a donor’s charitable gifts into his or her overall financial, tax, and estate planning objectives in order to maximize benefits to both the donor and TFI Planned gifts typically come from a donor’s assets rather than income and hold many benefits in the area of tax deductions.
There are basically three types of giving—immediate gifts, deferred gifts, and planned gifts that give back.
Immediate gifts are popular due to their simplicity and the instant gratification of seeing your generosity put to work on behalf of children.
Cash gifts are the simplest type of charitable donation, providing benefits and immediate support to TFI You may deduct a cash gift for income tax purposes during the year in which you contribute it. Cash gifts are deductible for up to 50 percent of your adjusted gross income for the taxable year.
Another popular option is a gift of securities. The best stocks to donate are those that have highly appreciated in value. Stock gifts are often deductible for up to 30 percent of your adjusted gross income, and you may avoid tax on the immediate capital gain. Registered securities should be sent unassigned to TFI Stock or bond powers endorsed with guaranteed signatures should be sent under a separate cover.
TFI will consider any potential gift of real estate, but reserves the right to refuse it. This includes property with either no mortgage or one with a mortgage (if the property is worth substantially more than the mortgage). Gifts of appreciated real estate can produce significant tax benefits, depending on the circumstances.
All three of the above assets may be used to fund a planned gift.
Deferred gifts are planned now but do not go into effect for TFI until a specified later time or event.
A bequest or memorial gift can specify a certain amount of money, a particular asset, or a portion of your estate be given to TFI Residuary gifts offer a way to help others once your family and heirs are provided for by indicating that the remainder of your estate is left to TFI This is a wonderful opportunity to continue making a difference in a child’s life far into the future, and it can be as simple as a sentence or two included in your will.
Life Insurance is another planned giving option. If TFI is named as beneficiary and owner of the policy, the gift will provide you with a tax deduction for the present cash value of the policy and/or future premiums.
Gifts that give back combine your gift with sustained income or benefits for you or your beneficiaries.
These plans are popular because they allow you to make a sizable gift to TFI while continuing to receive life income. The following plans give a general idea of how they work. If you are interested in learning more, please contact our Finance Department and we will set up a meeting to explore any of these options with you.
Charitable gift annuities are perhaps the most popular giving option in this category. You simply give a certain amount of money or assets to TFI, and in return, you or your beneficiaries could receive an annual set income for the rest of your life. The payout rate is usually determined by the donor’s age on the date of the gift. Charitable gift annuities allow you to make a generous contribution to TFI without depriving you of present and future income.
Other options are also available. The charitable lead trust places certain assets into a trust that pays out income and/or interest to TFI Once the trust “matures,” either at a fixed amount or after an established period of time, whatever remains is returned to you or your designated beneficiaries.
With a charitable remainder trust, assets are irrevocably transferred to the organization under a trust agreement, and then income or interest is paid to you for life or for a term of years. The advantages of this trust include income for life, avoiding capital gains tax if the trust is funded with appreciated securities, receiving immediate charitable income tax deduction, the possibility of reducing your estate tax, and the satisfaction of supporting TFI
This website is not intended as legal or tax advice, and it is highly recommended that donors consult with their own tax or legal advisors and our development professionals prior to making a planned gift to TFI To find out more about ways you can help, please contact our Finance Department at 877-942-2239.