Planned Giving

The term “planned giving” refers to charitable gifts that require some planning before they are made. Planned gifts are popular because they can provide valuable tax benefits and/or income for life. Whether a donor uses cash or other assets, the benefits of funding a planned gift can make this type of charitable giving very attractive to both the donor and charity. Potential benefits of planned gifts:

  • Increase current income for the donor or others
  • Reduce the donor’s income tax
  • Avoid capital gains tax
  • Pass assets to family at a reduced tax cost
  • Make significant donations to charity

With the assistance of a well-informed development officer and/or financial advisor, anyone can craft a planned gift to meet his or her charitable and financial goals. Planned gifts include bequests, trusts, and contracts between a donor and a charity.

Types of planned gifts

Bequest X
When a donor decides to leave assets to charity in his or her will, he or she is making a bequest. The donor’s estate will receive a charitable estate tax deduction at his or her death, when the gift is made to charity. Believers need a Christian will
X
When a donor decides to leave assets to charity in his or her will, he or she is making a bequest. The donor’s estate will receive a charitable estate tax deduction at his or her death, when the gift is made to charity. Believers need a Christian will.
  X

A Charitable Gift Annuity is an agreement between an individual/couple and a qualified charitable organization. The individual or couple transfers assets to the charity and, in turn, receives fixed payments for the remainder of their lives, guaranteed by the full worth of the charity, usually at a greater return than current investments. For example, let’s say an individual age 70 buys a gift annuity from Child Of The King  Children’s Services  for $10,000. If the Gift Annuity Rate for a person of that age is 6.7% annually (for current rates used by Child Of The King  Children’s  Inc , he or she would get $670 per year for their lifetime. The rate is determined by the person’s age when the contract is made. Payments may be made monthly, quarterly, or annually. Income from a gift annuity can be deferred for a period of years. Deferred gift annuities are often set up by younger donors to supplement retirement income.

  X
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Charitable Lead TrustThis trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to charity during its term. At the end of the trust term, the principal can either go back to the donor (a grantor lead trust) or to heirs named by the donor (a non-grantor lead trust). The donor may claim a charitable income tax deduction for funding a grantor lead trust or a charitable gift tax deduction for funding a non-grantor lead trust. Since lead trusts are typically used to pass assets to heirs, non-grantor lead trusts are far more common than grantor lead trusts. X
This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to charity during its term. At the end of the trust term, the principal can either go back to the donor (a grantor lead trust) or to heirs named by the donor (a non-grantor lead trust). The donor may claim a charitable income tax deduction for funding a grantor lead trust or a charitable gift tax deduction for funding a non-grantor lead trust. Since lead trusts are typically used to pass assets to heirs, non-grantor lead trusts are far more common than grantor lead trusts
Retained Life Estate

A donor may make a gift of his or her personal residence or farm to charity and retain the right to live there for the remainder of his or her life. The donor receives an immediate income tax deduction for the gift. At the donor’s death, the charity can use or sell the property.

All gifts to Child Of The King  are tax-deductible, and all are deeply appreciated.

Child Of The King inc  welcomes donations of any kind, including:

• Cash • Real estate
• Stocks • Personal property
• Bonds • In-kind goods or services
• Certificates of Deposit (CDs)  

if you have any questions please email Elsie Mckenzie  elsie@childofthekinginc.org