Tax & Estate Planning

A Charitable Gift Account can serve as a valuable tool for estate planning purposes, and — unlike most planned giving alternatives — has no set-up costs, low ongoing expenses, and no additional taxes assessed.

For some donors, the account is an attractive alternative to a private foundation. For others, the Charitable Gift Account can serve as a strategic complement to an existing foundation, trust, or supporting organization.

Preferred Tax Treatment

• Assets contributed to a Charitable Gift Account are removed from your taxable estate. These assets will avoid all transfer and income taxes, leaving more money available for charity.
• Appreciated assets contributed to a Charitable Gift Account avoid capital-gains taxes and are typically eligible for an income-tax deduction at full value.1
• Unlike most other planned giving alternatives, there are no additional taxes or filing requirements.

A Legacy of Charitable Giving

• You can name the account (e.g., “The Jane Smith Fund for the Arts”), and decide whether you want to recommend grants anonymously, or with acknowledgment.
• You can involve your family in recommending grants, to engage them in family philanthropy and encourage a tradition of giving.
• You can name successors to the account in order to ensure a legacy of charitable giving for future generations.

We are happy to talk with you or with your advisor to discuss how the Charitable Gift Account can be integrated into your estate plan.

¹Contributions of securities held for one year or longer are fully deductible at fair market value (FMV); securities held for less than one year have the same AGI limits as cash contributions (50%), but the valuation is based on the lesser of the cost basis or FMV. Contributions that exceed AGI limitations may be carried forward and deducted for five years. A donor’s ability to claim itemized deductions may be subject to further limitations depending upon the donor’s specific tax situation.