Choose a Planned Giving Option that Works For You
Bequests
By far the most popular, bequests are a provision made in a donor’s will, through which an organization receives cash and/or other assets at the time of the donor’s death. Three common types of bequests are:
- Specific bequest – Sum of money, % of estate, or specific property(ies) such as real estate, stocks, bonds, jewellery, works of art, or other items
- Rest and residue of estate – The Charity is given all or a percentage of what remains of the estate after paying debts, taxes, expenses, and other bequests.
- Contingent bequest – This gift takes place only if the Testator is not survived by certain individuals.
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Charitable Gift Annuity
A legal contract between the donor and the organization, through which the donor exchanges cash, stocks, or other assets for an agreed-upon income for life.
Retirement Funds (IRA, 401k)
The IRA Rollover provision of the Pension Protection Act of 2006 allows a donor who has reached a defined age to exclude any IRA funds withdrawn and transferred to a charity from his or her income when filing a tax return for that year.The provision is applicable only to direct gifts of cash to charitable organizations (capped at $100,000 annually) from donors age 70½ or older. In late 2008 the provision was extended to run through December 31, 2009. The charitable sector is working to get it made permanent and to extend it to a broader range of giving opportunities.
Charitable Trusts
Charitable trusts provide payments to the donor or their designated individual(s), while offering income tax and capital gains benefits to the donor. They come in two main forms, Charitable Remainder Trusts and Charitable Lead Trusts. Within these two types exist a variety of customizations that can meet the donor’s unique needs. While there are many benefits to creating a charitable trust, they perform best with an initial investment of $1 million or more. Charitable Gift Annuities are excellent alternatives for donor’s who intend to make contributions less than $1 million. Please be aware that charitable trusts are irrevocable and thus require extensive planning and review.
- Charitable Remainder Trust – The donor and/or listed beneficiaries receives a fixed or variable income for a set term (life or otherwise). The remaining amount then goes to the charitable organization at the end of the trust’s lifespan.
- Charitable Lead Trust – The trust provides payments to a nonprofit like MountainTrue for the duration of its lifespan, typically a set number of years. Upon completion, the remaining amount goes to the donor and/or their listed beneficiaries.
Property
Gift of property can come in many forms. This type of gift ranges from tangible items to intangible assets. In the case of tangible personal property, the charity does not assign value to the donation. It is the donor’s responsibility to assess the gift’s value. Generally, we accept these items as long as they can be used in the immediate future, or can be sold quickly to support the mission.
- Real Estate – A donor can deed their property such as their home, land, and commercial building to MountainTrue. The organization will then will sell the property and use the proceeds to support our work. Occasionally, MountainTrue will use the property to fulfill our mission.
- Personal Property
- Tangible Personal Property – This type of personal property is often referred to as in-kind giving, or an in-kind donation, and often includes things like cars, machinery, electronics, jewelry, and art. MountainTrue will work with you to determine if the gift is either of value to our work, such as equipment or electronics, or has significant financial value.
- Intangible Personal Property – This is often property that you own but cannot be held in your hand. Think royalties from a song, book, or film or patents and copyrights.