| How does it work? | Give cash | Give appreciated securities | Give appreciated real estate | Give artwork, collectibles, equipment or other types of tangible property | Simplest form of gift planning (plan now, give later) | Name nonprofit organization as the beneficiary of the plan | Name nonprofit organization as beneficiary and owner of a policy donor owns | Give real estate but keep the right to use and enjoy it for life | Sell real estate or other valuable property to nonprofit organization for less than fair value | Simple gift contract that provides lifetime payments to one or two persons | Trust that pays income for life or a term of years to donor and/or others. Assets ultimately benefit nonprofit organization | Trust that makes payments to nonprofit organization for a period of years. Assets ultimately pass to donor or heirs |
| A good fit for donors who want to… | Maximize the deduction; minimize the gift details | Avoid tax on capital gains; afford a larger gift to nonprofit organization | Make a substantial gift, avoid capital gains tax, receive a large income tax deduction | Put assets donor no longer needs or can maintain to good use | Make a gift that costs nothing during donor’s lifetime | Avoid double taxation at death; give tax-advantaged assets to heirs | Make a gift at little cost | Make a significant gift that doesn’t affect donor’s lifestyle | Make a significant gift that doesn’t affect donor’s lifestyle | Supplement income with steady payments that are partially tax-free | Diversify assets, avoid or defer capital gains tax, secure often-greater income and possible inflation protection | Reduce gift and estate taxes on assets donor passes to heirs; lower income tax liability; retain control of assets |
| How does donor make the gift? | Write a check or give online now | Contribute longterm appreciated stock or other marketable securities | Donate the property to nonprofit organization | Donate tangible personal property related to nonprofit organization’s tax-exempt function | Name nonprofit organization in will or living trust by designating a specific amount or a share of the residue | Name nonprofit organization as whole or partial successor beneficiary on your plan’s form | Donate a paid-up policy donor no longer needs | Give real estate to nonprofit organization but retain lifetime use | Sign a contract to sell property to nonprofit organization at a discounted value | Establish a gift annuity contract with nonprofit organization that pays a set income for life | Create a trust that pays income to donor and/ or others; principal (remainder) ultimately goes to nonprofit organization | Create a trust that pays income to nonprofit organization, principal (remainder) ultimately returns to heirs or donor |
| Reduce estate tax | Removes taxable assets from the estate | Removes taxable assets from the estate | Removes taxable assets from the estate | Removes taxable assets from the estate | Donation exempt from federal estate tax | Donation exempt from federal estate and income tax | Donation exempt from federal estate tax | Removes taxable assets from estate | Removes gifted portion of value of asset from taxable estate | Removes taxable assets from estate | Removes taxable assets from estate | Can remove taxable assets from estate |
| Reduce income tax | Immediate deduction for full value | Immediate deduction for full value | Immediate deduction for full value | Immediate deduction for full value if nonprofit organization can use the asset | | Heirs will avoid income tax | Current income tax deduction for paidup policy. | Deduction for value of the asset, less value of your right to keep using it | Deduction for gift portion of asset | Deduction for gift portion of asset | Deduction for gift portion of asset | Limited |
| Reduce or eliminate capital gains tax | | Complete avoidance | Complete avoidance | Complete avoidance | Complete avoidance | | | Complete avoidance | Partial avoidance | Partial avoidance | Partial avoidance | Varies |
| Get income back from the gift | | | | | | | | | | Fixed payments for life for one or two individuals | Variable or fixed income for life | |
| Give an asset but keep enjoying it | | | | | Control of assets during lifetime | Continue to take withdrawals from plan during lifetime | | Use of asset during lifetime | | | | Property reverts to donor, or to heirs with reduced gift and estate taxes |
| More | | Still like the stock? Use cash to buy at today’s price and lock in a higher cost basis | Coordinate with charity before making donation | Can be used to make a significant gift without cash outlay | Make a substantial gift when donor no longer needs the assets | Often overlooked and easily given | Simple to set up; small financial commitment for large ultimate gift | Coordinate with charity before making donation | Use proceeds to help fund needs at a later stage in life (retirement facility, etc.) | Great retirement income supplement | Significant income and estate tax advantages | Best for assets expected to appreciate rapidly |
| How does it benefit nonprofit organization? | Delivers immediate benefits | Delivers immediate benefits | Delivers immediate benefits | Delivers immediate benefits | Ensures nonprofit organization’s future strength | Ensures nonprofit organization’s future strength | Ensures nonprofit organization’s future strength | Ensures nonprofit organization’s future strength | Delivers immediate benefits | Ensures nonprofit organization’s future strength | Ensures nonprofit organization’s future strength | Delivers immediate benefits |
