The key feature of a planned gift is that it allows you — the donor — to benefit, as well as the charitable organization. In giving, you have the satisfaction that comes from knowing you’ve made a difference in the lives of others. But in fact, the best gift plans also improve the donor’s financial and tax situation, often right away.
An example of this would be deeding to a charitable organization a remainder interest in your home or other real property, while you retain full use of the property for life and potentially receive income, capital gains, and gift tax savings now from that future gift. The key feature of a planned gift is that it allows the donor to benefit, as well as the charitable organization. This example shows how you can donate the asset today to receive income and tax benefits, while the actual receiving of the asset is deferred for a period of time — often your lifetime and that of a surviving beneficiary, if you wish.
Some of the other ways you can benefit financially through a planned gift:
- You receive a money-saving income tax deduction for a portion of the current value of your contribution. You’ll also avoid the tax on long-term capital gains on gifts of appreciated property.
- You can actually increase your income when you give to a trust, producing a higher yield than the property you donate. Some plans even enable you to receive part of the income tax-free
- You free yourself of investment responsibilities and secure professional management on the assets you donate.
Careful estate planning preserves your wealth, lowers estate and income taxes, perpetuates your values and provides for your family and loved ones. You can perpetuate what you believe in through giving to organizations that carry on the work that you believe is important. If these goals are important to you, several planning tools are available to you. Let’s take a moment to explore the possibilities and opportunities for creative gift-giving and see how your philanthropic giving can combine with your own financial needs and tax planning.
Estate Planning: If you have possessions, you have an estate. The disposition of your possessions when you die is called estate settlement. Deciding in advance how this will be done is known as estate planning. Yet, in the course of our busy lives, proper estate planning is often neglected due to a variety of reasons. If you want to ensure that your family and favorite charities are taken care of after you die, estate planning is absolutely essential. To learn more, click here: Estate Planning
Your Will: A bequest is one of the easiest and most cost-effective ways of ensuring that your family and friends are provided for while helping Rangjung Yeshe Gomde serve the Dharma for many generations to come. To prepare your estate plan, follow these simple steps:
- List the people important to you
- List the charitable institutions important to you
- List your assets
- Decide on the distribution of your assets
- Gather your facts
- Visit your attorney
If your wish to remember Gomde in your will, a simple codicil is all that is needed. If you need sample forms, email firstname.lastname@example.org; or click on the following link: Bequests: A Life’s Gift
Real Estate and Appreciated Stock: You may be surprised to learn that your personal residence, farm, vacation home, commercial property, or parcel of undeveloped land can make a tax-smart donation, allowing for substantial income tax deduction. Real estate or “long-term” appreciated securities (stock you have owned at least a year and a day) are among the most advantageous “ways of donating to your favorite charity. With gifts of stock or real estate, you can avoid capital gains taxes on the profits that you have made, garner substantial income tax savings and avoid estate and gift taxes on the property given to the charity. Most importantly, your gift will further the mission of Rangjung Yeshe Gomde in a substantial way. To learn more, click here: Gifts of Real Estate and Stock
Insurance: You can establish or transfer an insurance policy naming Rangjung Yeshe Gomde California as owner and/or as beneficiary. This may be a way for you to make a more substantial gift than you ever thought possible, while avoiding the estate taxes that your estate would otherwise have to pay on the life insurance proceeds.
Insurance can also be a valuable way of replacing the assets that you have given to charity. You can replace those assets by using the tax savings and increased income to purchase life insurance for your heirs through a wealth replacement life insurance trust. This allows you to make a substantial gift to charity while also passing on the substantial equivalent of those assets to your spouse, your children or other relatives. To learn more, click here: Insurance
Endowment: Giving to the endowment of Rangjung Yeshe Gomde is one of the best ways to ensure that your gift lasts forever. Any funds given to Rangjung Yeshe Gomde endowment will not themselves be used. They will be invested and the interest from that money will be used to further the mission of Rangjung Yeshe Gomde. Again, this is one of the best ways to create a legacy for the future. To learn more, click here: Endowments
Trusts: People who want to make a substantial gift to charity while increasing the income from their assets and potentially avoiding capital gains, income, estate, and gift taxes on their assets often find it helpful to establish a charitable trust. There are many types, including: Charitable Remainder Unitrust, Charitable Remainder Annuity Trust and Charitable Lead Trusts. Most of these trusts provide the donor with income for life. After providing this lifetime income, Rangjung Yeshe Gomde receives whatever remains in the trust.
With a charitable trust, you receive income tax benefits as well as possibly reducing capital gains taxes that would have been due on your property and potentially reducing the estate tax burden on your estate. Lastly and most importantly, your gift will help Rangjung Yeshe Gomde continue to spread the Dharma for many years to come. To learn more about charitable trusts, click here: Charitable Trust
A revocable living trust is an arrangement you create during your lifetime to provide for yourself and your family both before and after your death. You transfer assets to fund the trust and select a trustee (this can even be yourself) to manage it. While it lacks many of the tax advantages of charitable trusts, the living trust allows you maximum flexibility over your property while you are alive, and also reduces your estate taxes through your contributions to charitable organizations. To learn more about living trusts and how they can help your plan for the future, click here: Living Trusts
Other Ways of Giving: Whether you have ancient Buddhist texts, statues, famous modern artwork, or antique jewelry, you may think that you have an asset that is not a typical gift to a charity. You are right, but those assets, if appropriate, could be preserved for many future generations to view, admire, and/or use. Even if not Buddhist, those precious items could be used to beautify one of the buildings occupied by Rangjung Yeshe Gomde.
In addition, if you have retirement accounts, Totten trusts, or Payable-On-Death accounts, those assets can be valuable gifts to your favorite charity. Retirement accounts in particular can make a wonderful gift for you because you can avoid any federal income or capital gains taxes that would otherwise have had to be paid.
If you have any further questions about giving through a will or a trust, or about the mission of Rangjung Yeshe Gomde, please email email@example.com.