R.H. Montgomery Inc, charitable planned giving consultants, wrote: “Charitable planned giving (gifts) are popular because they could provide valuable tax benefits and/or income for life. But charitable gifts require planning before they are made.”

Gifts are usually bestowed on people without the recipients expecting gifts in return. Gifts are used to express friendship, admiration and affection. But when ordinary gifts are presented, that is usually the end of them. A high percentage of gift recipients do not bother to send thank-you notes or to acknowledgment gifts.

Charitable planned gifts are not treated in this awful manner. Gifts presented to foundations at higher education institutions, hospitals, zoos, museums, churches, etc., are provided extreme courtesies. Benefactors receive thank-you letters, reduced tax costs, possible income for donors or others, the avoidance of capital gains tax, etc. Numerous lawful benefits exist.

Charitable planned gifts are important to educational and charitable organizations. The College of Charleston was recently awarded a $60 million planned gift. Gifts contribute to the organizational capacity to maintain and enhance high standards. Initiatives carried out by the American Red Cross and the United Way bestow special blessings on humankind.

Wrote American statesman, writer, inventor Benjamin Franklin (1706-1790): “One today is worth two tomorrows.” Charitable planned gifts grant privileges to benefactors through personal or trust assets during their lifetime. Others also benefit from the gifts.

According to the Social Welfare Research Institute at Boston College, Americans will transfer at least $44 trillion between 1998-2052. This study concluded that a “golden age of philanthropy is dawning.” Tax-exempt organizations will be among these beneficiaries.

Here are 10 categories associated with charitable planned gifts that Rev. Whittaker Middleton, vice president for Institutional Advancement at Claflin University, suggests for consideration as planned gifts:

1. Cash gifts

2. Bequeaths in wills or codicil

3. Closely held stocks and bonds

4. Tangible or intangible personal property

5. Real property

6. Interest in residences and farms

7. Life insurance and testamentary proceeds

8. Endowment fund gifts

9. Gifts-in-kind

10. Marketable securities

Charitable planned gifts are among the wishes of persons or families passing their assets to others. But said John Green of Waddell and Reed Financial Services, “Charitable planned giving can be complex. Seek reliable professional assistance with these intentions.”

Reach T&D Columnist Howard D. Hill, Ph.D., via educationconsultant@sc.rr.com

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