| How does it work? |
Give cash |
Give appreciated securities |
Give appreciated real estate |
Give artwork, collectibles, equipment or other types of tangible property |
Simplest form of gift planning (plan now, give later) |
Name NPO as the beneficiary of the plan |
Name NPO as beneficiary and owner of a policy donor owns |
Give real estate but keep the right to use and enjoy it for life |
Sell real estate or other valuable property to NPO for less than fair value |
Simple gift contract that provides lifetime payments to one or two persons |
Trust that pays income for life or a term of years to donor and/or others. Assets ultimately benefit NPO |
Trust that makes payments to NPO for a period of years. Assets ultimately pass to donor or heirs |
Trust that pays income for life to donor and/or others. Assets ultimately benefit NPO |
| A good fit for donors who want to… |
Maximize the deduction; minimize the gift details |
Avoid tax on capital gains; afford a larger gift to NPO |
Make a substantial gift, avoid capital gains tax, receive a large income tax deduction |
Put assets donor no longer needs or can maintain to good use |
Make a gift that costs nothing during donor's lifetime |
Avoid double taxation at death; give tax-advantaged assets to heirs |
Make a gift at little cost |
Make a significant gift that doesn't affect donor's lifestyle |
Make a significant gift that doesn't affect donor's lifestyle |
Supplement income with steady payments that are partially tax-free |
Diversify assets, avoid or defer capital gains tax, secure often-greater income and possible inflation protection |
Reduce gift and estate taxes on assets donor passes to heirs; lower income tax liability; retain control of assets |
Diversify assets, avoid or defer capital gains tax, secure often-greater income and possible inflation protection |
| How does donor make the gift? |
Write a check or give online now |
Contribute longterm appreciated stock or other marketable securities |
Donate the property to NPO |
Donate tangible personal property related to NPO's tax-exempt function |
Name NPO in will or living trust by designating a specific amount or a share of the residue |
Name NPO as whole or partial successor beneficiary on your plan's form |
Donate a paid-up policy donor no longer needs |
Give real estate to NPO but retain lifetime use |
Sign a contract to sell property to NPO at a discounted value |
Establish a gift annuity contract with NPO that pays a set income for life |
Create a trust that pays income to donor and/ or others; principal (remainder) ultimately goes to NPO |
Create a trust that pays income to NPO, principal (remainder) ultimately returns to heirs or donor |
Create an income beneficiary agreement that pays income and possible capital gains to donor and/or others; principal (remainder) ultimately goes to DAF/NPO |
| Reduce estate tax |
Removes taxable assets from the estate |
Removes taxable assets from the estate |
Removes taxable assets from the estate |
Removes taxable assets from the estate |
Donation exempt from federal estate tax |
Donation exempt from federal estate and income tax |
Donation exempt from federal estate tax |
Removes taxable assets from estate |
Removes gifted portion of value of asset from taxable estate |
Removes taxable assets from estate |
Removes taxable assets from estate |
Can remove taxable assets from estate |
Removes taxable assets from estate |
| Reduce income tax |
Immediate deduction for full value |
Immediate deduction for full value |
Immediate deduction for full value |
Immediate deduction for full value if NPO can use the asset |
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Heirs will avoid income tax |
Current income tax deduction for paidup policy. |
Deduction for value of the asset, less value of your right to keep using it |
Deduction for gift portion of asset |
Deduction for gift portion of asset |
Deduction for gift portion of asset |
Limited |
Substantial deduction for gift portion of asset (much higher than charitable gift annuity or charitable remainder trust from "young" pooled income fund) |
| Reduce or eliminate capital gains tax |
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Complete avoidance |
Complete avoidance |
Complete avoidance |
Complete avoidance |
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Complete avoidance |
Partial avoidance |
Partial avoidance |
Partial avoidance |
Varies |
Partial avoidance |
| Get income back from the gift |
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Fixed payments for life for one or two individuals |
Variable or fixed income for life |
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Variable income for life |
| Give an asset but keep enjoying it |
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Control of assets during lifetime |
Continue to take withdrawals from plan during lifetime |
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Use of asset during lifetime |
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Property reverts to donor, or to heirs with reduced gift and estate taxes |
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Still like the stock? Use cash to buy at today's price and lock in a higher cost basis |
Coordinate with charity before making donation |
Can be used to make a significant gift without cash outlay |
Make a substantial gift when donor no longer needs the assets |
Often overlooked and easily given |
Simple to set up; small financial commitment for large ultimate gift |
Coordinate with charity before making donation |
Use proceeds to help fund needs at a later stage in life (retirement facility, etc.) |
Great retirement income supplement |
Significant income and estate tax advantages |
Best for assets expected to appreciate rapidly |
Highest income potential: all ordinary income, all short-term gains possible, a portion of the realized post gift, long-term capital gain possible. |
| How does it benefit NPO? |
Delivers immediate benefits |
Delivers immediate benefits |
Delivers immediate benefits |
Delivers immediate benefits |
Ensures NPO's future strength |
Ensures NPO's future strength |
Ensures NPO's future strength |
Ensures NPO's future strength |
Delivers immediate benefits |
Ensures NPO's future strength |
Ensures NPO's future strength |
Delivers immediate benefits |
Ensures NPO's future strength. Its possible for multiple NPOs to share remainder |