| Current / Outright Gifts |
Cash, appreciated securities, closely held securities, real estate, personal property |
No minimum or maximum |
Usually fully deductible for 100% of the fair-market value, subject to certain limitations |
Funds are immediately available for use |
| Will Provisions |
Cash, appreciated securities, closely held securities, real estate, personal property |
No minimum or maximum |
Charitable estate-tax deduction is available for the full fair-market value of the bequeathed asset; may reduce estate and death taxes, thereby increasing the size of the estate available for heirs |
A very high percentage of will provisions are never revoked, giving promise of future support to the DRI |
| Life-Income Gifts (irrevocable) |
| A. Charitable Gift Annuities |
Cash, securities, some closely held securities |
$5,000 |
Guaranteed fixed income, immediate tax deduction equal to DRI's remainder interest in the gift, favorable tax treatment of annuity payments |
Ensures future funding of the designated purpose |
| B. Deferred-Payment Charitable Gift Annuities |
Cash, securities, some closely held securities |
$5,000 |
Immediate tax deduction equal to the DRI's remainder interest in the gift; favorable tax treatment of annuity payments |
Ensures future funding of the designated purpose |
| C. Charitable Remainder Unitrusts |
Cash, securities, some closely held securities, real estate |
$50,000 |
Immediate tax deduction equal to the DRI's remainder interest in the gift; variable income that may provide a hedge against future inflation; favorable capital-gain tax liability on gifted property. Can be tailored to your situation; permits more than two income beneficiaries; allows deferred income if desired; excellent vehicle for real estate gifts |
Ensures substantial future funding of the designated purpose; donor may select the trustee; the DRI could, if desired, use trust as collateral for loan |
| D. Charitable Remainder Annuity Trusts |
Cash, appreciated securities, some closely held securities |
$50,000 |
Immediate tax deduction equal to the DRI's remainder interest in the gift; fixed income; favorable capital-gain tax on gifts of appreciated property; may provide tax-free income |
Same as unitrust |
| Revocable Trusts |
Cash, appreciated securities, closely held securities, real estate |
|
All or part of the amount placed in the trust is available if needed by the donor; if a commercial trustee is chosen, may relieve the donor of the responsibilities and headaches of asset management; no tax deduction is available for this kind of trust |
A very high percentage of revocable trusts are never revoked, giving promise of future funding to the DRI |
| Charitable Lead Trusts |
Cash, appreciated securities, closely held securities, real estate |
|
Freezes value of assets contributed for gift- and estate-tax purposes |
Provides steady flow of income for a period of years |
| Gifts of Insurance - if the DRI is made the owner and beneficiary of a permanent policy |
|
|
Immediate income-tax deduction for the net cash surrender value of the policy at the time of transfer; future premium payments may be deducted annually as gifts |
Ensures substantial future funding of the designated purpose; the DRI may also borrow against the policy or cash it in |
| Gifts of Insurance - if the gift is a paid-up policy |
|
|
Immediate income-tax deduction for the net cash surrender value of the policy at the time of transfer |
Ensures substantial future funding of the designated purpose; the DRI may also borrow against the policy or cash it in |
| Gifts of Insurance - when the DRI is the beneficiary but not the owner |
|
|
No tax deduction but this enables you to leverage your gift substantially; you may change the beneficiary later or borrow against the policy |
Promise of future support to the DRI |
