Planned Giving: Points to Ponder
As the year came to a close, you may have considered your options for charitable giving. Typically, people think of donating to a charity by check or cash, but there are additional ways to give that often go overlooked.
Planned giving is thoughtful review and preparation of your finances that allows you to plan a charitable gift that will benefit you, your loved ones, and the not-for-profit organization you wish to support. A planned gift is legally provided for during the donor’s lifetime, but the gift does not take effect until a future time, generally after the donor’s passing.
There are tax and financial benefits to planned gifts that enable donors to make much larger gifts than they thought possible. The following points may be helpful when considering a planned gift.
- You can give securities rather than cash.
If you’ve held stocks, mutual funds or bonds for more than one year, you can donate the appreciated securities and receive more income-tax savings than if you donated cash. Donating securities is convenient because all you need to do is transfer them rather than sell them.
- You can donate a required minimum distribution (RMD) tax-free to charity.
If you are age 70½ or older, you can transfer your required minimum distribution (RMD) from your IRA to charity. It will count as your RMD without increasing your adjusted gross income. The money must be transferred straight from the IRA to the charity to be considered tax-free.
- You can create a charitable remainder trust (CRT).
A charitable remainder trust (CRT) allows you to convert cash or property into a lifetime income while providing you and your heirs with a tax break. With this planned gift option, the donor establishes a trust, and then transfers cash or property to the trust that the donor intends to gift to a charity. The charity serves as the trustee by managing and investing the trust funds, and pays the donor, or someone designated by the donor, a portion of income the trust accumulates. A CRT can provide valuable tax savings.
Did you know?
- Nearly 70 percent of Americans make gifts to charity during their lifetime, yet fewer than 10 percent give planned gifts. This is often because non-profits fail to ask their supporters to consider a planned gift.
- Planned gifts are often made from assets and are not dependent on discretionary income or cash flow.
- Almost everyone has the ability to make a planned gift. For most people, it is the largest gift they can make.
- Planned gifts can further our mission and benefit students at Gross Catholic for generations to come.
Planned gifts are easy to create and there are many planned giving options available. Please consult your financial or tax advisor to determine your planned gift’s tax deduction eligibility and individual tax benefits.
About Gross Catholic High School
One of Nebraska’s premier private schools, Gross Catholic High School is a faith and family-based community committed to developing Christian leaders through academic excellence in the Marianist tradition. Recognized locally for its outstanding education, welcoming atmosphere, competitive sports programs, engaging activities, robust faith, and boundless service work, Gross Catholic has energized the Omaha area for nearly 50 years. Gross Catholic recently received the Omaha World-Herald Omaha’s Choice award for private schools.
To discover the Gross Catholic difference, contact us at 402.734.2000 or visit our Admissions page at grosscatholic.org.