Planned Giving: A Win-Win for EveryonePosted: April 13, 2012
You’re planning your estate, dealing with lawyers, your kids, maybe grandkids, friends, everyone trying to figure out what you’re going to leave them when you go. If you aren’t sure exactly what to do with everything, why not follow in Barron Hilton’s footsteps and leave your estate to charity? In particular, planned giving is a great option to consider. You may be wondering, What exactly is planned giving? Also referred to as “gift planning,” planned giving is the planned donation to charity of some or all of your assets, whether during your lifetime or upon death. This particular type of donation is advantageous not only for the recipient charitable organization, but also for the donor, in terms of both estate and tax advantages and the opportunity to leave a legacy.
What are the Benefits of Gift Planning?
Aside from the charitable organization’s obvious advantage in receiving the donation, the donor benefits from a planned gift in more ways than one. An increase in good karma may be enough of a return to satisfy some donors, but in addition to contributing to the good of the world, the planned gift donor receives significant tax deductions and exemptions. For example, the planned donation of appreciated assets such as real estate or stocks could give the donor a tax deduction for the market value of the asset, in addition to the exemption from capital gains taxes on that particular transfer. As another example, a planned gift agreed to be paid upon the donor’s death, such as a life insurance policy, would be exempt from estate tax—resulting in more money for the charity than if the donation were not planned but instead made posthumously, without any pre-planning.
Gift planning also allows the donor to leave a legacy after their time has passed. Donors can bequeath part or all of their estate to a cause that they strongly believe in, improving the lives of future generations. Donors can forever associate themselves with their philanthropic interests and causes, and possibly even help bring these causes to prominence. For instance, a donor’s large bequest to their favorite charitable organization might influence friends, family, acquaintances, or whoever else to donate to and support that particular charity or cause. Famous donors have helped causes not only through their own direct monetary donations, but also through their association with the cause, which inspires others to recognize and contribute to those particular causes.
Just imagine the problems in this world that you want to fix…and imagine yourself directly related to the improvement or solution of those problems. By making a planned gift, you can maximize your donation to your charity of choice, unlike with a “discretionary” or “unplanned” gift, on which taxes would be deducted before the donation.
Gift Planning in the New Orleans Area
If you’re looking to make a planned gift to a respected, diverse charity in the New Orleans area, choose the Volunteers of America of Greater New Orleans. This is an organization with deep roots in the New Orleans area and a commitment to serving a wide range of individuals in need throughout a 16-parish area. You can rest assured that your contribution will benefit people right in your own community. Planned gifts to VOAGNO are tailored to each donor’s personal estate planning and tax situation in order to create the most beneficial situation for all involved. For more information, you can visit www.voagno.org or call (504) 482-2130 to make a planned gift.