Planned giving, sometimes referred to as gift planning, is defined as a way of supporting charities that enables you to make larger gifts than you could otherwise make from your regular income.
While some planned gifts provide a life-long income to the donor, others use estate and tax planning techniques to provide for charity and other heirs in ways that maximize the gift and/or minimize its impact on your estate.
So, a planned gift is any major gift, made in lifetime or at death as part of a donor’s overall financial and/or estate planning. By contrast, gifts made annually are made from a donor’s discretionary income, and while they may be budgeted for, they are not planned.
Whether a donor uses cash, appreciated securities/stock, real estate, artwork, partnership interests, personal property, life insurance, a retirement plan, etc., the benefits of funding a planned gift can make this type of charitable giving very attractive to both donor and charity.
What are the tax benefits of planned gifts?
- Donors can contribute appreciated property, like securities or real estate, receive a charitable deduction for the full market value of the asset, and pay no capital gains tax on the transfer.
- Donors who establish a life-income gift receive a tax deduction for the full, fair market value of the assets contributed, minus the present value of the income interest retained; if they fund their gift with appreciated property they pay no upfront capital gains tax on the transfer.
- Gifts payable to charity upon the donor’s death, like a bequest or a beneficiary designation in a life insurance policy or retirement account, do not generate a lifetime income tax deduction for the donor, but they are exempt from estate tax.
Gemma's Angels is able to accept stock gifts. These gifts are sold and the proceeds help support the numerous programs offered by the Gemma's Angels.
Leave a legacy of your commitment to support the mission of Gemma's Angels and your dedication to improving the lives of homeless children and families through planned giving. There are simple options regarding wills, bequests and trusts available to maximize your impact and your benefit.
Make a significant impact on our community by being a pillar of support for Gemma's Angels when you give the gift of an endowment in your family’s name. Each block of $10,000 that you contribute will become a perpetual named endowment in your family’s name that generates interest income each year. The interest income is donated to Gemma's Angels as an unrestricted gift.
To find out more about planned gifts, see the advice of your attorney or financial advisor. Please note that Gemma's Angels Ltd. is a non-profit organization as determined by the Federal Internal Revenue Service section 501(c)3.
A bequest is a loving way to provide for Gemmas Angel's future by making a gift in your will. In addition to leaving a lasting legacy for you, bequests offer tax advantages.
Here are some options to consider:
- Cash bequest: Designate a specific dollar amount or percentage of assets for Gemma's Angels in your will.
- Property bequest: Donate the proceeds of sold property, including securities or real estate, to Gemma's Angels.
- Estate bequest: Direct whatever is remaining from your estate to Gemma's Angels once all else has been paid off and satisfied.
- Retirement bequest: List Gemma's Angels as the beneficiary of your retirement plan, including IRAs, tax-sheltered annuities, qualified pension, or profit-sharing plan.
- Insurance policies: List Gemma's Angels as the beneficiary (or one of the beneficiaries) of your life insurance policy.
- Contingent bequest: List Gemma's Angels as the beneficiary only in the event of the death of all other beneficiaries.
To make a charitable bequest to Gemma's Angels in your will, contact Gemma's Angels for our tax ID and make use of the following language:
"I give and bequeath the sum of $___________ (or ____% of my estate) to Gemma's Angels Ltd., to be used in support of its general charitable purposes."
Once you have completed arrangements with your lawyer or financial planner, you may choose to send a copy of the section of your will or trust document that details your charitable plans. You can also request to be listed as a member of Gemma's Angels in our annual report, serving as an inspiration for others to support Gemma's Angels.
Consult your attorney or financial planner to learn how to set up a bequest.