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ANNUAL GIVING
Planned giving is usually an ongoing activity tied
to your annual budget and the tax year, allowing you to maximize
the tax advantages of philanthropy. Amounts equal to as much
as 50% of your adjusted gross income are tax deductible each
year. For gifts of appreciated stocks, the deductible percentage
of adjusted gross income is 30%. Amounts that exceed these
percentages can be carried forward for five years to provide
future tax benefits.
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FACTS
& FIGURES
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College
graduates (who also have the highest incomes)
are most likely to contribute to charity - 81%
contribute, but only a reported average 2% of
their household income, below the national average
of 2.1%.
More Facts
& Figures
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Planned annual giving by donors also benefits nonprofit organizations.
It can help stabilize the organization's cash flow and enable
the organization to better plan its future. There is often
a flurry of giving activity at the end of the year when people
are moved by a charitable spirit during holiday season or
when they are looking for tax deductions before December 31.
Generally, it doesn't matter when donations are made, but
from a budget standpoint, you should make your donations when
you planned to make them.
RESPONDING TO A CRISIS
Responding to crises is not planned giving, but you can plan
to set aside a specific portion of your annual giving budget
to enable you to respond to the needs of victims of disasters
and others you feel moved to help. By setting aside emergency
response funds, you will know how much you can afford to give
without having to redo your budget or use funds set aside
for a planned priority.
A word to the wise:
When you feel inclined to respond to a crisis, don't
agree to send money based on a telephone solicitation, unless
the solicitor is a close family member or friend. Even in
a crisis, insist that the solicitor mail you information about
the organization, and investigate the organization.
LEAVING A LEGACY
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PROFILES
IN GIVING
Ann Pearson
 "Get
involved. It's not so much about the money. It's
about taking the time to mentor a child or be a
lifeline for a single-parent family. When you do
that, the ripple effect goes on forever." Read
more |
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Giving generously and focusing your giving on a special cause
throughout your life and through your will may enable you to
leave a legacy that continues well beyond your lifetime. Endowments
and foundations are tools that help donors leave legacies. Through
their will or through beneficiary designations, donors also
may leave sizeable assets to charities, including such assets
as real estate, retirement accounts, and insurance benefits.
With good planning you can minimize inheritance taxes on
your estate and also leave a greater legacy. Estate taxes
currently start at 37% for amounts exceeding $675,000 for
an individual and can rise as high as 55%. In your will, charitable
bequests are not taxed if they name the recipient and the
amount of your gift. That is not the case if you merely leave
verbal instructions.
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