Charitable Planned Giving
Here’s how to help the Path to Peace Foundation (“PTP”) by charitable planned giving. There are many ways to support the Path to Peace Foundation including making an outright gift, remembering the foundation in your last will and testament or engaging in charitable planned giving.
Remembering the PTP in your last will and testament is as easy as including the following language in your will,
I give, devise and bequeath to the Path to Peace Foundation the sum
of _____ (or otherwise describe the gift or specify a percentage of the Estate.)
While the first two options are relatively simple, for some, a planned charitable giving program may seem overwhelming. A planned giving program is not the same as giving a donation to a charity or in making a bequest in a person’s last will and testament. Planned giving is arranged while the donor is still living through one or more programs and come in all sizes and amounts. If you wish to make any of these commitments, you and your financial adviser will want to determine the type of gift that best suits your personal situation.
The following is a brief introduction aimed at providing some basic ideas about a few of the planned giving vehicles that prospective donors can use to support the work of the PTP.
What is a Planned Gift?
A planned gift is an irrevocable or revocable gift, given in a creative way to charitable organizations using many different types of assets. It is a way for donors to make gifts to organizations to receive financial benefits and to make larger gifts than they thought possible. It is also a way to help donors achieve philanthropic and financial objectives as follows:
- Make a major gift and obtain a charitable income tax deduction
- Avoid or reduce paying capital gains taxes if the donation includes increased valued assets
- Avoid probate costs, reduce estate taxes and reduce federal income taxes
- Increase current yield from stocks and bonds
- Plan for retirement and for family
- Provide permanent support for charitable organization
How Can a Planned Gift be Funded?
There are many ways that these gifts can be funded. Here are some examples:
This mode is simple. The donor writes a check or transfers assets (such as stocks, bonds, Treasury Bills, art work, jewelry, heirlooms and antiques, copyrights and licenses, or real estate) to the charity.
Gifts of Insurance
In this mode, the donor makes the charity the owner and beneficiary of a life insurance policy. The bonus that the donor receives is an income tax deduction on the premiums. This gift might work as follows: An individual purchases a $500,000 life insurance policy for him/herself. The policy is to be funded by ten annual payments of $5000 to the charity for a total cost of $50,000. The charity pays the premium with these annual donations. At the inception of the policy the donor signs over to the charity the ownership to the policy making it the sole beneficiary at the time of his/her death. The benefits to the donor are that s/he will receive an income tax deduction on the premium payments annually and the charity will eventually receive a half-million dollars upon the donor’s death.
Gifts of Annuities
In this mode, you give a gift annuity whereby you transfer a specified amount of cash or stocks to the PTP. In exchange, you receive a guaranteed fixed regular payment for your life and/or that of your spouse or friend (the older the beneficiaries, the higher the rate.) In addition, you can take a sizable charitable deduction.
In this mode, the gift is contingent upon a certain level of funding from another source, such as the donor’s place of employment. For example: A donor might donate $1000 to the charity and his/her place of employment will match the $1000, making the total donation to the charity $2000.
Charitable Remainder Trust
This mode of giving is using a vehicle to donate assets after a period of time by a trust established by the donor and his/her lawyer in conjunction with the charity. This mode is usually funded with substantial assets that have significantly appreciated in value over the years. The donor must pay exorbitant capital gains taxes if s/he redeems the asset. However, when the donor donates these assets, which are placed in a trust, and the donor takes an annual fixed percentage of the trust assets as income, his/her tax obligation is much less. This vehicle of giving allows the donor to distribute a fixed percentage of the trust assets annually for a fixed period. At the end of the term, the remainder trust also becomes the property of the charity.
Gifts of Cash
Maximize your charitable deduction and deliver immediate benefits to the PTP.
Gifts of Appreciated Securities
The IRS allows you one of its most significant tax breaks for gifts of appreciated securities.
Gifts of Real Estate
Make a substantial gift through a transfer of residential, commercial, or undeveloped real estate.
Gift of Personal Property
Donate art work, heirlooms, jewelry and antiques to PTP.
Gifts by Will or Living Trust
Leave your legacy by making a gift in your will to friends, family and charitable organizations.
Gifts of Retirement Plans
Your retirement plan may be worth more when donated to the PTP than to your heirs.
Gifts of Life Insurance
Create a significant endowment without dipping into your capital assets.
Charitable Gift Annuities - Immediate
Receive a fixed payout and significant tax benefits.
Charitable Gift Annuities - Deferred
Build retirement earnings by deferring the onset of annuity payments.
Charitable Lead Trusts
A charitable lead trust can provide a significant charitable gift through your estate and provide an inheritance to your children.
Charitable Remainder Annuity Trusts
Combine a charitable gift with a predictable fixed-income payout by placing your donation into an individually managed trust.
Charitable Remainder Unitrusts
Choose from several options that best meet your personal financial situation.
If you have questions about Planned Giving to the Path to Peace Foundation, please contact us at 212-370-9614.