Charitable Giving Techniques

Technique	When to Consider	Our Thoughts
Outright Gift – Cash	Being able to take advantage of end of year tax deductible donations. Employer offering matching gift programs and whenever you are willing and able to make a gift.	Appropriate for donors who want to see their charitable dollars at work during their lifetime.
Gifts of Real Estate, Investments Securities, Tangible or Intangible Personal Property	If you have a property that you’re no longer using and would have to pay a large tax if you sold the property, you may find that donating that property or investment to charity is a good option.	If you are still living in the property that you’d like to give away, you can set it up to become a charitable contribution by having the deed to your real estate transferred after your death. At that point, the value of the home will be taken out of your estate, lowering your estate taxes. You may also find a great tax benefit by donating real estate. In some cases, you may be eligible for a tax deduction equal to the fair market value of the real estate.
IRA Qualified Charitable Distribution (QCD)	At age 70 ½ or over. A qualified charitable distribution is an otherwise taxable distribution from an IRA owned by an individual who is age 70 ½ or over that is paid directly from the IRA to a qualified charity.	Maximum amount that can be donated through a QCD is $111,000 per year per IRA owner. Key benefit of QCD is that the distribution amount is not included on the 1040 as income.
Life Insurance	Donors with paid up policies who are interested in making gifts. Charity should consider whether there is any chance that premiums could be due in the future.	Can be a nice option for donors who do not need life insurance for liquidity.
Charitable Gift Annuities	Donor is charitably inclined but concerned about retaining a stream of income during lifetime. Charity needs sufficient liquidity to meet its obligations, and charitable gift annuity program should be set up with counsel for charity.	Typically valued so that remainder interest is about 50%. Allows donors to annuitize non-liquid assets if charity is willing to take non-liquid assets.
Gifts of Remainder Interest in House or Farm	Consider when organization needs land around its operations and open land not readily available. Great for donors leaving everything to charity but who wish to retain right to live or use farm during lifetime.	Irrevocable transfer, so different from beneficiary deed.
Transfers on Death	Donors who are leaving entire estate to a charity but want or need to keep the asset just in case. Donors who want something simple or who aren’t quite ready to make irrevocable gifts.	Very simple technique, but no guarantee that asset will, in fact, pass to charity. POD/TOD designation is revocable and client could spend money on account.
Beneficiary Deeds	Donors who want to leave a particular piece of property to charity but aren’t ready to make an irrevocable gift of the remainder interest. If property has a mortgage on it, the Beneficiary Deed should not trigger a due on sale clause.	Simple technique Revocable
IRA Charitable Beneficiaries	Donor wants to retain control and income of IRA during their lifetime. Remaining balance after donor’s death will go to charity.	No guarantee of how much, if any, will be left to go to charity upon donor’s death.
Charitable Trusts	Typically best for sophisticated donors who are familiar with trusts. Charitable Remainder Trusts great for donors who want the income until death with balance passing to charity. Charitable lead trusts frequently used for donors where they do not have a need for the income now, but want family to get whatever is left over later.	Definitely need to involve legal counsel if trusts are being considered. Lots of tax issues to avoid.