Outright giving is a great way to assist SCLF in providing the necessary services to those in need and allow you to see your gift have immediate results. However, there are excellent alternatives that allow you to safeguard your assets and still make a powerful impact with your gift.
Planned giving is an excellent option to consider. A planned gift can be revocable - a charitable bequest in your will, for example - that allows you to make changes to your gift at any time. Planned gifts can also be irrevocable (just as outright gifts are), so you can personally benefit from an immediate income tax deduction.
The attraction of irrevocable planned gifts is that they are deferred. You can choose to gift an asset today, but the actual transfer of the asset to the SCLF is delayed - often until after your lifetime. During that time in between, you are able to receive benefits from the gift.
There are three types of Planned Gifts:
- Outright gifts that use appreciated assets as a substitute for cash;
- Gifts that return income or other financial benefits to the donor in return for the contribution;
- Gifts payable upon the donor's death.
For example, with a charitable remainder trust (just one of many planned giving options), you receive lifetime income from the asset after it's placed in a trust, and then the SCLF receives the remainder of the trust after your passing. Or, you can choose to deed SCLF a remainder interest in your home and still retain the right to live in it for life. At any rate, the key feature of planned gifts like these is that they allow you, the donor, to benefit as well as the beneficiaries of SCLF.
Many Planned Gifts offer not only immediate Income Tax Deductions, as mentioned above, but also can provide you with an Estate Tax deduction.
Some other benefits of Planned Gifts:
- Donors can contribute appreciated property, like securities or real estate, receive a charitable deduction for the full market value of the asset, and pay no capital gains tax on the transfer.
- Donors who establish a life-income gift receive a tax deduction for the full, fair market value of the assets contributed, minus the present value of the income interest retained; if they fund their gift with appreciated property they pay no upfront capital gains tax on the transfer.
- Gifts payable to charity upon the donor's death, like a bequest or a beneficiary designation in a life insurance policy or retirement account, do not generate a lifetime income tax deduction for the donor, but they are exempt from estate tax.
For a complete list of Planned Giving Options, please refer to our brochure interior's Planned Giving Chart.