• Tax deductible if donor itemizes deductions.
• Up to 50 percent of adjusted gross income can be deducted in any one year.
• Excess can be deducted over the next five years.
• Actual savings depends on tax rate.
• The higher the tax rate, the greater the savings.

• Payable over a three to five-year period.
• Deductible in the year a payment is made.

• Takes advantage of programs offered by many employers.
• Maximizes your gift to a higher level.

• If a long-term capital asset (owned more than a year), property should be given outright.
• Avoids payment of capital gains tax due if property were sold.
• Deduction given for full value of property, limited to 30 percent of adjusted gross income.
• Excess beyond 30 percent can be carried forward for five years.

• Donor sells property, takes loss for tax purposes, contributes cash received from sale.
• Deduction allowed for both the loss and the charitable gift.

• Donor can make gift of residence, farm or vacation home, reserving right of occupancy for as long as donor and spouse live.
• Irrevocable gift qualifies for immediate tax deduction based on present value of remainder interest.

• Donor can make a gift of stocks, bonds, or mutual funds
• Assign directly to your ministry of choice or, preferably, transfer through broker.
• Amount of contribution is fair market value on the date of transfer.
• Produces a current tax deduction equal to the fair market value of the marketable security.

Deferred Gifts

Charitable Gift Annuity

• Provides a fixed income for the lifetime(s) of one or two annuitants.
• Amount paid determined by rates recommended by American Council on Gift Annuities.
• The older the annuitant, the higher the level of income.
• Portion of gift is tax deductible.
• Portion of income may be tax-free.

• Offers increased income and tax benefits.
• Includes all basic features and benefits of a gift annuity.
• Income delayed until a future date chosen by donor.
• Rate of return and tax deduction dependent on length of income delay.

• Operates much like a mutual fund.
• Contributions pooled and managed by investment advisors.
• Income paid to donor and second person, if desired, until beneficiaries are deceased.
• Income fluctuates based on earnings of fund.
• Immediate tax deduction for portion of gift.
• Avoids capital gains tax if appreciated securities are given.
• Gifts to Pooled Income Fund are irrevocable.

• Trust assets are funds or property contributed by donor (usually $100,000 or more).
• Flexibility in type of property that can be donated.
• Real estate and municipal bonds may be used.
• Provides a fixed amount of income. (Charitable Remainder Annuity Trust)
• Provides a variable level of income. (Charitable Remainder Unitrust)

• Donor provides assets for use for a limited period of time.
• Funds are invested to provide income to the ministry of your choice.
• Assets returned to donor or to estate at end of designated period.
• Can fulfill a pledge while reducing estate and gift taxes that might otherwise be due on assets given outright to heirs.

• Protects inheritance interests of heirs.
• Contributes assets to the ministry of your choice outright or through planned giving vehicles.
• Using resulting tax savings, donor purchases a life insurance policy with heirs as beneficiaries.

Life Insurance

• Name your chosen ministry sole owner and beneficiary of paid-up policy.
• Receive income tax deduction for the cash surrender value of policy.
• If policy not fully paid, continue to pay premiums.
• Receive tax deduction for annual premium amounts.

• Outright bequests, as well as certain bequests in trust, are not subject to estate taxes.
• Actual cost is less than face value of gift because of tax benefits to estate.
• Bequest can take any of following forms:
  1. Bequest of a dollar amount of particular securities or other property.
  2. Residual bequest of all or portion of estate after payment of specific amounts to other beneficiaries.
  3. Contingent bequest to take effect if other beneficiaries die before the donor.
  4. A bequest can often be arranged simply with the addition of a codicil amending an existing will.

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