What is planned giving?
Planned giving, sometimes referred to as gift planning, may be defined as a method of supporting non-profits and charities that enables philanthropic individuals or donors to make larger gifts than they could make from their income. While some planned gifts provide a life-long income to the donor, others use estate and tax planning techniques to provide for charity and other heirs in ways that maximize the gift and/or minimize its impact on the donor’s estate. Thus, by definition, a planned gift is any major gift, made in lifetime or at death as part of a donor’s overall financial and/or estate planning.
How do I get started planning my estate?
Your attorney can create a plan for your estate to make sure your intentions are met. An estate plan will also allow your family to avoid the hassle and expenses that often occur when a loved one passes away without a will. Barberton Community Foundation is happy to work with you and your attorney to determine a plan that is right for you. Ask your attorney to contact our staff if necessary.
Can anyone leave a legacy?
Yes. Bequests are a simple way of allowing you to support your community in perpetuity. By including Barberton Community Foundation in your will, you can make a contribution above and beyond what you could have afforded during your lifetime. Because you do not have to be wealthy to leave an estate, it is a wonderful way to make a lasting difference.
What assets can I use to make a gift to Barberton Community Foundation?
Cash, securities or real estate. Through your will or with a distribution from a retirement plan or life insurance policy, your gift can be designated to Barberton Community Foundation in accordance with your wishes.
Is it important to designate specific instructions in my will?
To ensure that your wishes are met, you should clearly state your charitable intents in your will. Without a will, property and finances are settled according to the state’s laws, even despite the family’s wishes. Thankfully, Barberton Community Foundation can help you work with your professional advisor to draft a plan that fulfills your charitable goals.
What tax deduction will I receive for my gift?
Tax benefits depend on several factors, including the type of gift, timing of the gift, whether it is outright or deferred, and whether it has any income payments. We suggest you consult your tax advisor on tax issues, however, in general, the following guidelines apply:
- Outright gifts to Barberton Community Foundation generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair-market value, with no recognition of capital gains – a great tax benefit!
- Bequests do not generate a lifetime income tax deduction. They are exempt from estate tax.
- Similarly, life insurance distributions to Barberton Community Foundation are not income-tax deductible, but they are exempt from estate tax. If you have made us the irrevocable owner and beneficiary of a policy during your lifetime, you may deduct annual gifts that offset premium payments (see below).
The charitable deduction for a gift that returns income to you, such as a charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest you retain.
Should I still continue to make annual contributions to the foundation in addition to my Planned Gift?
Yes. Any gift you make is greatly appreciated and contributes to the Foundation’s mission. We encourage you to make individual gifts in addition to your planned gift.
Can make a gift for a specific purpose?
Yes. Barberton Community Foundation is committed to honoring your charitable goals. You can establish a fund in your name that will make grants to the causes and organizations you care about.
Should I tell Barberton Community Foundation about my estate plans?
If you have included the foundation in your estate plans, please let us know. We would love to thank you during your lifetime. You will also become a member of the O.C. Barber Legacy Society. Please contact us for more information.