Our supporter Lawrence J. Gross, Esq. kindly contributed to this guide to planned giving.
Many charities are the beneficiaries of planned giving. A case in point was a gift of $32,000 from dedicated supporter Lynne Elson, a special woman who believed in Kulanu’s mission. Gifts like this make a huge difference to a small nonprofit like Kulanu, allowing us to serve our partner communities in life-changing ways.
Planned giving simply means including charitable giving in your estate plan and/or related retirement plan. This kind of giving is tax-deductible [link to 990s/financials], often at the point that you make a commitment to a future gift. As well as a monetary contribution, you can also plan to give assets like stocks and bonds, real estate, a work of art, and more. You still receive a tax deduction for its current value and pay no capital gains tax.
There are five common ways to participate in planned giving. These are:
- Lifetime trust.
- Provision in your will, whether by percentage of estate or a physical asset.
- Retained life asset, such as real estate. This means you have the use of the property during your lifetime plus an immediate charitable income tax deduction upon making the gift.
- Making Kulanu the beneficiary (or partial beneficiary) of your retirement plan/IRA or an insurance policy.
- Charitable annuity plan. An annuity is usually created by giving an asset or monies to a charitable annuity (a form of trust) which promises to pay you fixed or variable periodic interest for a period of time at the end of which, payments cease and the balance is retained by Kulanu.
One easy way to participate in planned giving is to donate appreciated stock. You can send stocks to a donor advised fund run by a community foundation, Jewish Federation, Bnai Brith, or Fidelity Charitable Gift Fund, and then advise the fund when you want your donated funds to be passed on to Kulanu. You only need to report one donation of stock to the IRS even if your gift eventually goes to many different charities at different times. You get the full deduction in the year you donate the stock to the donor advised fund. Using a donor-advised fund to donate appreciated stock saves you money and also saves a lot of work for you and for the charity that might otherwise receive your stock.
This website provides more details about the options for planned giving:
PlannedGiving.com: What is Planned Giving?
We encourage you to contact us if you are interested in setting up planned giving, and to speak with your financial advisor about your plans. Thanks for keeping Kulanu in mind.