Exactly what is planned giving? It is the process of making a contribution that is arranged and allocated at a future date commonly donated through a will or trust. You have the power to make a lasting impact on the Vallejo Center of the Arts through your will, trust or other financial plan. A well-planned gift communicates your legacy; it tells a story of what you hold as most important and valuable in your life and community.
Benefits of Planned Gifts
There are many types of planned gift. From a fiscal perspective, the tax breaks are a huge advantage to making a planned giving arrangement. The specifics will vary according to a range of factors, so you’ll need to evaluate the possibilities on a case-by-case basis. You can make a current gift with appreciated securities, a deferred gift through a bequest, a life income gift through a charitable remainder trust, or reducing your taxable income by donating directly from your IRA.
Planned Giving Options
The charitable bequest is an official statement in a will, trust, or estate plan that designates a gift to a specific charity. Gift amounts are stated in three main ways in charitable bequests. A specific amount is the exact amount of money that you will give. A percentage amount is a percentage of what you will give (such as a percentage of your estate). A remainder amount is the leftover funds that VCAF will receive once you have paid your other bequests.
CHARITABLE REMAINDER TRUST
A charitable remainder trust is a trust given to a charity that pays an annual amount to you, the trustee(s). Once the trust is complete, the charity receives the remaining funds.
CHARITABLE LEAD TRUST
In a charitable lead trust, the charity receives an annual amount from the trust fund, and the beneficiaries receive the remainder of the funds when the trust term ends.
If you are 70½ years old or older, you can take advantage of a simple way to benefit VCAF and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as ours without having to pay income taxes on the money.
This law no longer has an expiration date so you are free to make annual gifts to our organization this year and well into the future.
Advantages of an IRA Rollover Gift
Your gift will be put to use today, allowing you to see the difference your donation is making.
You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
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