What Is Planned Giving?
Planned giving is a major charitable contribution made in lifetime or at death that is part of a donor’s overall financial and estate plan. Planned giving can take many forms, with gifts ranging from the bequest made in a will or estate plan, to charitable gift annuities, charitable remainder trusts, charitable lead trusts, and non-cash assets.
Why Does Planned Giving Matter?
Planned giving can be used to sustain our programs and facilities, add capacity, or launch major new initiatives. We are committed to working with you on your planned giving because there is no better way to plan for the future growth and strength of our organization.
If you are interested in learning more about planned giving, please contact Kathryn Yuma at (970) 663-4200 or kathryn@heartsandhorses.org.
What Kinds of Planned Giving Exist?
Charitable Bequest
This is a provision in a will, trust, or estate plan that allocates a gift to a designated organization. The most common gifts to non profit beneficiaries are cash, securities, and real property including homes and personal property.
Non-Cash Assets
This is an asset such as securities (shares of corporate stock or mutual funds, bonds, stock options, limited partnership units), life insurance policies, CDs, retirement accounts, real property, etc.
IRA
A Qualified Charitable Distribution (QCD) is a tax-savvy way to meet Required Minimum Distribution (RMD) obligations. By donating RMDs to charities like Hearts & Horses, you can reduce your taxable income while ensuring your charitable intentions are honored. This strategy can also help minimize taxes on IRA assets that would otherwise go to non-charitable beneficiaries.
Donor Advised Fund
DAFs offer a flexible and tax-efficient way to support your favorite charities. By contributing assets to a DAF, you can immediately receive a tax deduction while maintaining control over how and when the funds are distributed. This allows you to align your giving with your philanthropic goals and values over time.
Charitable Gift Annuity
This is an irrevocable transfer of property in exchange for a contract to pay the donor or the donor’s designee an annuity for life.
Charitable Remainder Trust
This is an irrevocable trust that pays a specified annual amount to one or more people for a fixed period of years. At the end of the term of the trust, the remaining trust assets are distributed to the charity.
Charitable Lead Trust
This is similar to a charitable remainder trust, except that the annual payments are given to a charitable organization and the principal reverts to the donor or beneficiaries at the end of the trust term.