Planned Giving

"We are all like one-winged angels. It is only when we help each other that we can fly."
Luciano de Crescenzo

Most donors agree that their philanthropy was not motivated by possible tax benefits. However, it is appropriate to briefly discuss different taxes and how they may be affected by a charitable gift. This information is intended to be general and individuals should consult with their own tax and estate experts to discuss their personal circumstances. It should also be understood this is not an exhaustive discussion and many significant tax aspects will not be discussed in this brief discussion.

Income taxes. The Internal Revenue Services, by allowing those who itemize to take a charitable tax deduction, encourages donations to, and thus support of, charitable organizations. If you itemize deductions and make a gift of cash to a charitable organization, tax deductions may be taken for a gift to a public charity (up to 50% of Annual Gross Income -AGI) and to qualifying private foundations (up to 30% of AGI). Amounts exceeding these limits may be carried forward for up to five years.

There are other rules regarding other types of gifts, such as tangible property and gifts of appreciated assets. It is best to discuss these circumstances with a qualified tax advisor.

Estate Taxes. There are a variety of ways to make donations and reduce the burden of existing estate taxes. These may be done while you are still alive or through your will upon your death. Especially in light of the 2001 Estate Tax law changes, it is wise to consult with an estate planning attorney or qualified tax specialist.

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Please note, individual financial circumstances will vary. The information on this site does not constitute, nor is it intended to constitute, legal or tax advice. As with all tax and estate planning, please consult your attorney or estate specialist. This Planned Giving section has been developed by Future Focus. All material is protected by copyright. This information is not to be reproduced in any fashion without the express, written permission of Future Focus. Please report any problems to section webmaster.