Enhanced Gifting through Planned Giving

"Planned Giving" is a term that many of us hear regularly when involved with our special charity. But do we ever stop to think what it can mean to each of us personally and to the various charities which are a part of our lives? The term simply means, "planning" our "giving." On the face of it, it is an uncomplicated statement; however, depending upon the level of both your capacity and desire, planned giving can become extremely complex. Planned giving can also be extremely beneficial to you and the object of your generosity. While our connection with a charity is the primary motivator for our desire to "give," the U.S. Congress has provided us with mechanisms to enhance the amount we can deliver (i.e., the tools for "planning").

For example, you just finished reading your favorite charity's newsletter and want to contribute $10,000. You take out your checkbook and notice you don't have enough in your checking account, so you call your broker and ask her to sell some stock and forward the proceeds to your checking account. You send your check in and feel great.

Time passes, and you need to do your taxes. Among other things your CPA lets you know that while your gift generated $4,500 in tax savings, $1,200 of Capital Gains tax is now due on the stock you sold. Well, what if we told you the $1,200 tax you paid to "Uncle Sam" could have been completely avoided with a little planning? Smart planning can significantly enhance gifts, whether they are $100 or over $1,000,000. By planning, you can change you gift's impact, benefiting you and your charity.

This is one example of how planning can benefit you and your charity of choice. Whether you want your pledge to be effective now, in the future, or at your demise; whether it involves cash, stock, bonds, real estate, art, retirement plans or any other assets, planning will assure that you and the organizations to which you give are using the tools that Congress provided and reaping the benefits, including:

• Helping the charitable organizations you want to support
• Producing income tax reductions
• Avoiding capital gains tax
• Increasing your cash flow
• Increasing amounts passing to your heirs

This article is for information and education purposes only and does not constitute a personal recommendation or take into account the particular investment objectives, financial situations or needs of individual clients. Clients should evaluate the merits and risks associated with relying on any information provided.