Planned giving
From Wikipedia, the free encyclopedia
Planned Giving is an area of fundraising that refers to several specific gift types that can be funded with cash, equity, or property. These gift vehicles are commonly based on United States tax law, but Canada, the United Kingdom, and other nations are beginning to establish similar laws. In the United States, the specific rules of planned giving are defined by the United States Congress and the Internal Revenue Service.
Planned gifts are referred to as such because they require more planning, negotiation and counsel than an outright gift. Planned gifts involve an arrangement between a donor and a non-profit organization, whereby the donor takes a partial tax deduction for the gift and then receives an income stream from the non-profit.
Planned Giving programs are popular among thousands of colleges, universities, hospitals, museums and community foundations in the United States.
[edit] Types of Planned Gifts
By far, the most commonly utilized planned gift is the bequest of property through a person's final will. Other types include:
- Charitable Bargain Sale
- Charitable Gift Annuity (CGA)
- Charitable Remainder Annuity Trust (CRAT)
- Charitable Remainder Unitrust (CRUT)
- Charitable Lead Annuity Trust (CLAT)
- Charitable Lead Unitrust (CLUT)
- Donor Managed Investment Account
- Pooled Income Fund (PIF)
- Retained Life Estate
- Testamentary Life Income
