Realize tax benefits with planned gifts
Have you ever wondered what all the fuss is about when people talk about "planned giving?" In short, planned giving refers to charitable gifts that require planning before they are made in order to ensure the gift can provide valuable tax benefits and/or income for life.

Whether you choose to use cash or other assets, such as real estate, stocks, or partnership interests, the benefits of funding a planned gift can make this type of charitable giving very attractive to both the donor and the charitable organization.

Types of planned gifts include a bequest, gift annuity, pooled income fund, charitable remainder trust, charitable lead trust, and retained life estate.

When a donor decides to leave assets to charity in his or her will, s/he is making a bequest.

A gift annuity is a contract between the charitable organization and a donor. In return for a donation of cash or other assets, the charity agrees to pay a fixed payment for life to the donor or to a friend or family member of the donor's choosing.

With a pooled income fund, the charity accepts gifts from many donors into a fund and distributes the income of the fund to each donor or recipient of the donor's choosing. Each income recipient receives income in proportion to his or her share of the fund.

A charitable remainder trust makes payments, either a fixed amount (annuity trust), or a percentage of trust principal (unitrust) to whomever the donor chooses to receive income. A charitable lead trust makes payments, either a fixed amount or a percentage of trust principal, to charity during its term. At the end of the trust term, the principal can either go back to the donor or to heirs named by the donor.

A donor can also make a gift of his or her personal residence or farm to charity and retain the right to live there for the remainder of his or her life. This is called a retained life estate. The Baddour Center recommends consulting your financial advisor to establish giving plans specific to your needs.

Please contact Karen Dunn, Director of Development & Public Relations, toll-free at 1.888.4BADDOUR, ext. 1-229, if we can be of any assistance.