Planned Giving

Carefully-Planned Donations Can Increase Benefit To Donor and Organizations

Recognizing the value of charitable donations to the society in which we live, the U.S. Government has provided opportunities for donors to qualified not-for-profit organizations to structure their gifts in a way that maximizes the benefits to both the donor and the recipient organization. Knowing some of the basic approaches to gift giving can increase your charitable impact while maximizing tax benefits provided by the I.R.S.


Leaving a charitable gift through a properly-structured will is the most common means of making a planned gift. But did you know that bequests of tax-deferred assets such as remainder values in IRA’s or other tax-deferred instruments can also help you avoid huge estate taxes on those earnings?


Many well-intentioned donors have cashed appreciated stocks and donated the proceeds to their favorite charity. The unforeseen consequence? Paying capital gains on the sale. Had the donor merely transferred the shares of stock to a qualified charity, a tax deduction for the current market value could be realized, and capital gains taxes avoided.


The IRS also allows the establishment of trusts that can allow the donor or designee to enjoy life-time receipt of the income generated by the trust and the transfer of the remaining amount in the trust to a charity upon their death (a charitable remainder trust) or to allow a charity to enjoy the earnings from a trust during the lifetime of the donor and have the trust then transfer to another individual (or individuals) upon their death (a lead trust).

Know your charitable options and discussing them with the charity of your choosing and your financial advisors, can help you accomplish more with your charitable gift. And that’s the purpose behind planned gifts.

For more information on planned giving to the Credit Union Foundation, contact Leigh Philibosian, Director, at (443) 325-0768.