Generally speaking, philanthropy can take two forms: direct giving, in which an individual (the "donor") gives an immediate gift of cash, art or other property to a charitable organization: and deferred giving, in which a donor pledges future benefits to a charity. Although the income-tax benefits of lifetime gifts vary, they can be substantial, thereby making philanthropy an important part of estate planning.
Participating in GLAAD's Legacy Circle program is a great way to help ensure the future of our work, which is rooted in the fundamental belief that words and images matter -- that they have a profound effect on the way our lives and our community are viewed by our society. Our work is about changing attitudes -- one image at a time and leaving a legacy to GLAAD can help change the world we live in.
Cash is still the most popular way to make charitable gifts. Your cash contribution to GLAAD could provide great benefits at tax filing time. For example, if you make a $2,000 gift to GLAAD this year, and are in the 28% marginal tax bracket, your donation could save you $560 in taxes.
To qualify for tax benefits of a gift of life insurance, the charity must be named as the owner and beneficiary of the policy. No incidents of ownership should be retained by the donor. If the policy is paid out, your charitable contribution is generally the replacement value or cost basis of the policy, whichever is less. Ongoing premiums paid on a gifted life insurance policy also qualify for charitable deductions.
Many donors make significant charitable gifts through a will or other arrangement taking effect at death. If properly structured, such gifts can be deductible for estate tax purposes and can reduce the estate taxes which would otherwise be payable in an estate. A charitable bequest can take various forms, such as a specific amount of money, a valuable item or a percentage of the estate. It may also be a charitable lead trust (CLT) or a charitable remainder trust (CRT), which benefit both charity and individuals.
Gifts of Appreciated Securities or Stocks
Gifts of appreciated property, such as marketable securities, may have greater tax benefits than outright gifts of cash. With public charities, a donor may deduct the full market value of the gift when it is made, up to 30 percent of the donor's AGI. Suppose a donor paid $3,000 for securities that are worth $50,000 when they are donated. The donor can deduct $50,000, the fair market value of the stock, and avoid paying capital gains tax on the $47,000 of appreciation.
Charitable Reminders Trust (CRT)
A CRT allows a donor to retain an interest in contributed property for a fixed number of years or for life expectancy, and only have the property pass to charity at the end of the term. The donor gets an up-front income tax deduction for the present value of the property passing to charity at the end of the term. More importantly, the CRT can sell appreciated property without incurring an immediate capital gains tax. This can create tremendous opportunities for income tax deferral.
Charitable Lead Trust (CLT)
In contrast with the CRT, the CLT pays charity an up-front interest, usually for a fixed number of years. At the end of the period, the property passes to the donor's heirs. Gift and estate taxes are reduced because the present value of the remainder interest to the donor's heirs is reduced by the charitable income interest.
Some Gifts Options: cash, stocks, bonds, real estate, insurance, annuities, art, IRAs
GLAAD offers many planned gift options that may fit your situation, such as Charitable Trusts or Bequest Provisions. Many of these gift vehicles can provide life income for the donor and major support for GLAAD. The information provided on this site is not intended as legal, tax or investment advice. For such advice, please consult with an attorney, tax professional and/or investment professional.
To name GLAAD as a beneficiary in your will, please use our legal name, the Gay & Lesbian Alliance Against Defamation, Inc. GLAAD is incorporated in Delaware and our federal tax identification number is 13-3384027.
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For more information about GLAAD's Legacy Circle, please contact: