Donors to the Three Rivers Community Foundation have several options for structuring their gifts, from outright gifts to planned giving vehicles, each of which offers different tax advantages:
Irrevocable gifts, whether made available for current use or committed now for future use, qualify for immediate income tax deductions, which can be taken annually up to a portion of adjusted gross income and carried forward an additional five years. These include outright gifts made during one’s lifetime, certain charitable lead trusts, charitable remainder trusts, and some gifts of life insurance.
Estate and gift tax relief can also be achieved through several of the types of gifts mentioned above. Bequests, in particular, are helpful for donors seeking to reduce or even eliminate estate taxes.
Capital gains tax savings are possible when long-term appreciated property (e.g., securities and, in some cases, real estate) is donated through outright gifts or charitable remainder trusts.