For many Christians, supporting the local church is a top priority, and planned giving can mean including a regular tithe in their budget. But as Christians lay out their financial lives, including their church or favorite charities in their long-term planning can be an added gift. NCF can help you plan these gifts. Read on to learn some of the options.
Simply put: planned giving is the process of making a significant charitable gift during a donor’s life or at death that is part of his or her financial or estate plan.
By taking into account the various assets donors have and how they are structured, it is possible to produce a result that is very worthwhile to all parties,” explains Daniel Geltrude, Managing Partner of Geltrude & Company and Director of the firm’s Family Office Practice.
Planned gifts make use of legal and tax strategies and/or financial products requiring donors to turn to professionals for assistance. In contrast, a charitable donation made from a person’s cash flow is not defined as a planned gift.
Planned gifts take a number of forms. There are outright gifts of assets such as appreciated securities or artwork. Other types of planned gifts provide a financial benefit on top of tax deductions for donors. Charitable remainder trusts provide an income stream for individuals, and at the death of the donor, the charity receives what is left in the trust. A charitable lead trust, on the other hand, produces a stream of funds for a charity, and at the death of the donor, the donor’s heirs receive what remains in the trust. Some planned gifts are payable upon the donor’s death such as a life insurance policy where the beneficiary is a charitable organization.