Winter 2013 Issue - De La Salle Institute

Planned giving is a method of supporting non-profit organizationsand charities that enables individual donors to make larger gifts thanthey would normally make from their annual income. While someplanned gifts can provide a life-long income to the donor, othersuse estate and tax planning techniques to provide for the charityand family members in ways that maximize the gift benefiting boththe donor and the charity.A planned gift is any gift made during one’s lifetime, or at death, aspart of a donor’s overall financial and/or estate plan. By contrast,annual gifts are made from a donor’s discretionary income, andwhile they may be budgeted for, they are not “planned”.Whether a donor uses cash, appreciated securities/stock, realestate, artwork, life insurance or a retirement plan, the benefits offunding a planned gift can make this type of charitable giving veryattractive to both the donor and the charity.There are three types of planned gifts a donor can consider whichinclude a variety of correlating tax benefits.1. Outright gifts use appreciated assets as a substitute for cash.Donors can contribute appreciated property, like securities orreal estate, receive a charitable deduction for the full marketvalue of the asset and pay no capital gains tax on the transfer.2. Gifts that return income or other financial benefits tothe donor in return for the contribution, are another option.Donors who establish a life-income gift receive a tax deductionfor the full, fair market value of the assets contributed, minusthe present value of the income interest retained; if they fundtheir gift with appreciated property they pay no upfront capitalgains tax on the transfer.3. Finally, gifts payable to the charity upon the donor’s death,like a bequest or a beneficiarydesignation in a life insurancepolicy or retirement account,do not generate a lifetimeincome tax deduction for thedonor, but they are exemptfrom estate tax.Source: www.plannedgiving.comDEVELOPMENTWhy Make a Planned Gift?The IRA charitable rollover isback for 2013.Donors age 70½ or older are onceagain eligible to move up to $100,000from their IRAs directly to qualifiedcharities without having to payincome taxes on the money.So, what are the benefits of making a planned gift toDe La Salle?• Using appreciated assets to make your gift can deliver moretax benefits to you than using cash.• Giving De La Salle personal property or business interestsmay be more beneficial than continuing to maintain them.• Your bequest helps ensure that De La Salle will continue toprovide excellent educational opportunities to young men andwomen far into the future without affecting your assets duringyour lifetime.• De La Salle offers a wise, charitable alternative to the doubletaxation awaiting your retirement plan in your estate.• You can turn surplus life insurance coverage into a charitablegift to De La Salle.• You can give De La Salle your home and continue to live there.• You will receive stable lifetime payments that are taxedattractively when you create a charitable gift annuity.• You can receive income to help you meet many familyobligations.• You can increase your estate for your children while deliveringyears of income to De La Salle.We encourage you to plan your gift thoughtfully. Your gift cantake multiple forms and can help you address a variety of personalfinancial goals. Now is the time to consider how your gift canbenefit you, as well as De La Salle. Your generosity will help usmeet our current goals and reach farther in the future.De La Salle is ready to work with you and your financial advisorto craft a gift plan that best meets your goalsand objectives. For additional information,please contact Iris Gist Cochran, Director ofDevelopment, at 312.842.7355, ext. 152 orcochrani@dls.org.De La Salle Institute, its employees orrepresentatives, do not offer legal or financialadvice. We strongly urge prospective donors toconsult with their attorney, financial advisor,estate planning professional, accountant orother appropriate professional before makingany material decisions based on informationwe provide.Development 31