What Is Planned Giving?
Planned giving involves finding ways to make charitable gifts now or after your lifetime while enjoying financial benefits for yourself.
These gifts are so named because they require some planning and, often, help from your professional advisors. Unlike cash donations, they are typically made from assets in your estate rather than disposable income, and come to fruition upon your death.
The most common planned gift is a bequest in your will or living trust. Other planned gifts include:
- Gifts of Life Insurance
- Retirement Gifts
- Gifts of Real Estate
- Charitable Remainder Trust
- Charitable Lead Trust
- Charitable Gift Annuity
Please consult with a financial advisor before making planned gift commitments.
Bequests: The transfer of wealth that occurs upon a donor's death that can include transfers by means of a will or trust. The types of bequests include: specific bequest, general bequest, percentage bequest and residual bequest.
Gifts of Life Insurance: Naming Spalding as a beneficiary in your new or existing Life Insurance policy and can be a low-cost way to make a planned gift.
Retirement Gifts: Naming Spalding (or any tax-exempt organization) as a beneficiary in your 401(k), 403(b) or IRA can be a great option to make an impactful planned gift, as typically retirement assets can be the most costly to distribute to loved ones.
Gifts of Real Estate: Gifting real estate to Spalding by bequeathing the property, giving the property outright, transferring the property into a charitable remainder trust, or setting up a retained life estate can help you avoid capital gains tax while giving you a charitable income tax deduction.
Charitable Remainder Unitrust (CRUT): This type of charitable trust provides an annual straight percentage payout that is based on the fair market value of the assets valued annually. Therefore the payout will increase or decrease based on the appreciation or depreciation of the market value. A CRUT can accept additions to the trust at any time.
Charitable Remainder Annuity Trust (CRAT): This type of charitable trust provides an annual payout based on the market value of the assets as of the date the trust is established. Therefore, this payout will remain constant over time. Also, a CRAT can only be funded at the time of acquisition and cannot accept additions to the trust after the initial contribution.
Charitable Lead Annuity Trust (CLAT): A charitable lead annuity trust must have a fixed dollar amount distributed at least as often as annually. It does not have to state a dollar amount, but can be based on a percentage of the assets as valued at the inception of the trust. A guaranteed annuity need not be the same dollar amount each year. As long as the annuity payments are determinable from the outset, the annuity may vary. What is not permitted is an annuity formula that will produce a variable annuity tied to a fluctuating index.
Charitable Lead Unitrust (CLUT): A unitrust interest is a payment equal to a fixed percentage of the net fair market value of the trust property, determined annually and distributed not less often than once a year. Unlike a charitable remainder net income trust, there can be no reduction in the unitrust payout from a lead trust if annual trust income is less than the unitrust interest.
Charitable Gift Annuity: A charitable gift annuity is a contractual arrangement between the donor and the school. The donor transfers money or property to the school in exchange for a promise to pay an annuity to the donor and/or another named beneficiary for a specified period of time
Please consult your financial advisor for professional advice prior to making a planned gift to Archbishop Spalding. We are grateful for your support!
For any questions, or to make a donation please contact our Director of Giving, Mrs. Jennifer A. Weissmueller, at email@example.com or 410-969-9105 ext. 242.
All donors who have created or made a planned gift to Archbishop Spalding High School will be recognized in the Trinity Society.