Planned Giving
Giving to Big Brothers Big Sisters can be a win – win.
Comprehensive Charitable Planning
Giving to Big Brothers Big Sisters can provide many benefits and opportunities. Big Brothers Big Sisters, of course, benefits from a donation that can help to further its cause. As the donor, you may receive tax benefits along with the satisfaction that comes with making the gift. The ways in which gifts can be made to Big Brothers Big Sisters vary and can be tailored to achieve specific planning objectives.
Gifts of almost any type of asset can be made to Big Brothers Big Sisters, including cash, securities, real estate, and even life insurance.
Benefits of making charitable gifts. When making charitable gifts, you and Big Brothers Big Sisters benefit in a number of different ways:
- Big Brothers Big Sisters receives a gift it can count on to further its cause.
- In most cases, Big Brothers Big Sisters will benefit from the full value of the asset transferred since taxes may not apply.
- You may benefit from the savings associated with a charitable income tax deduction.
- You may be able to avoid a lump-sum capital gains tax on a highly appreciated asset.
- You may achieve significant gift tax savings and minimize estate taxes.
- You may be able to retain an income from the transferred asset for lifetime or for a period of years.
- You can diversify a concentrated stock position without incurring immediate taxes.
- The asset given to Big Brothers Big Sisters can be replaced at a discount with life insurance.
How Charitable Gifts Can Be Made
- Gifts of cash, securities, or real estate: When an asset is given away to Big Brothers Big Sisters, typically Big Brothers Big Sisterswill sell the asset without any tax consequences, since it is a tax-exempt entity. Then Big Brothers Big Sisters will use the proceeds from the sale for its charitable purposes.
- Gifts of life insurance policies: A gilt of a life insurance policy on your life (or the joint lives of you and your spouse) can benefit Big Brothers Big Sisters significantly, though the benefit is delayed until death, and scheduled premiums, if any, must be paid by Big Brothers Big Sisters in order to sustain the policy. However, you can also make annual cash gifts to Big Brothers Big Sisters equal to the premium due and you may receive a charitable income tax deduction.
- Transfer an existing policy. When a gift of an existing policy and all its rights are made to Big Brothers Big Sisters, the value of the income tax deduction will be based on the cost-basis in the policy or its fair market value, if lower.
- Gift of an asset for an income stream (Charitable Gift Annuity): You can also give an asset directly to Big Brothers Big Sisters in return for an unsecured promise by the charity to fund an annuity for your lifetime or a period of years. The charitable income tax deduction is based on the present value of the remaining asset balance, net of the annuity paid to you.
Please see your tax advisor to determine how these strategies may affect your specific tax situation.
If you’re considering making Big Brothers Big Sisters part of your trust, bequest, or endowment, please contact Paul Perino Jr. at paul.c.perino@ampf.com or 856-690-9232.