Planned giving or “charitable gift planning” refers to the process of making a charitable donation of assets to one or more nonprofit organizations. Gifts of this type require careful consideration and planning taking into account the donor’s overall estate plan. Planned giving usually requires some form of legal documentation and often requires the assistance of a qualified professional advisor. Because of the size and potential impact on the donor’s estate, a donor should consult his or her professional advisor before completing the process.

Planned gifts are usually deferred meaning that they are identified and gifted now and fulfilled later. Examples include incorporating into a will a bequest to a nonprofit organization or the establishment of a charitable trust.

Planned gifts can be revocable, such as a bequest in a will, or irrevocable, such as a charitable gift annuity. Even though a deferred gift may not benefit a charity for many years, the gift arrangement can generate an immediate charitable tax deduction to the donor because the future gift has been established and cannot be revoked. Revocable gifts, such as bequests in wills, do not provide immediate tax benefits to the donor as they can be revoked.

The following are planned gift giving arrangements accepted by the OEHF:

• Bequests
• Retirement Plans
• Gifts that provide the donor with income during their life
• Gifts that provide income to the charity
• Gifts of real estate or other property
• Life Insurance

This information reflects, in very general terms, how a gift might affect specified tax liabilities. This is not an effort to reflect your current tax picture or suggest that a particular gift will have the indicated result in your case; only your lawyer and accountant can do that. We suggest you consult your professionals before acting upon the concepts reflected here.