What is Planned Giving?

By Natalie Birk

Imagine having part of your legacy on this earth ensuring that Tuleyome’s conservation efforts are successful and everlasting.  It’s easier than you think and you certainly need not be rich to make a difference.

Planned giving may be defined as a method of supporting non-profits that enables philanthropic individuals or donors to make larger gifts than they could make from their income. Thus, by definition, a planned gift is any major gift, made in lifetime or at death as part of a donor’s overall financial and/or estate planning.  By contrast, gifts to the annual fund or for membership dues are made from a donor’s discretionary income, and while such gifts may be budgeted for (and also hugely important!), they are not planned.

Whether a donor uses cash, appreciated securities/stock, real estate, artwork, partnership interests, personal property, life insurance, a retirement plan, etc., the benefits of funding a planned gift can make this type of charitable giving very attractive to both donor and charity.

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.

There are tax benefits to planned giving. First, 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.

Second, 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.

Third, 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.

Of course, there are other advantages. In future newsletters we will talk about the most popular planned gifts including bequests, charitable gift annuity, charitable remainder annuity trust, life insurance, retirement plans, etc. 

You don’t have to wait until then, however.  We would be delighted to meet with you and discuss the various options.

For more information, please contact Brendan O'Hara, Development Officer at This e-mail address is being protected from spambots. You need JavaScript enabled to view it