Charitable giving (or philanthropy or planned giving) is purposeful, intentional and deliberate giving to charities. Philanthropic gifts to charities fall into two primary categories. Giving-while-living provides the donor a chance to see his/her money at work during his/her lifetime, while gifts that are made to the charities at death through directives in wills or trusts are known as testamentary gifts.
Individuals making gifts to recognized IRS charities (non-profits) have the opportunity to reduce income and/or estate taxes as a result of their gifts. Charitable giving strategies have been in the tax code since 1917 and fall under the general areas of estate and tax planning.
Strategies for individuals and families may include, but are not limited to:
- Outright gifts of cash or appreciated assets
- Beneficiary designation on retirement plans and/or life insurance policies
- Charitable remainder or charitable lead trusts providing both income and estate reduction for the donor
- Charitable annuities
- Donor advised funds
- Wealth Replacement trusts
Best of all, the charity may receive a gift outside of its normal funding sources.
We work with individuals and families, as well as provide consulting for non-profit organizations.