TOOLS FOR DONORS AND FINANCIAL PLANNERS

Easy To Use Planned Gifts

Planned gifts are an easy and cost-effective method of estate planning to support communities and causes you care about after providing for loved ones while avoiding or reducing potentially costly estate taxes. Following are brief descriptions of a number of planned giving tools. 

Gifts of Cash
Gifts of Appreciated Property
Gifts of Life Insurance
Gifts by Will or Trust
Gifts Which Provide Income


For more information on any of these planned giving possibilities through the Nebraska Community Foundation, please contact: 
Jeff Yost, Foundation President and CEO

Jim Gustafson, Planned Giving Director

GIFTS OF CASH
Given outright or in the form of a pledge made over several years, gifts of cash are a convenient way of establishing a fund.

GIFTS OF APPRECIATED PROPERTY
Tax laws offer special incentives for gifts of non-cash property (real estate, marketable securities, etc.), especially when the property has been held long-term and has increased in value since it was acquired. Gifts of appreciated property, before sale, generally allow the donor an immediate income-tax deduction for the property's current fair market value. Capital gains taxes that would be due, if the assets were sold rather than gifted, are generally not recognized by the donor. 

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GIFTS OF LIFE INSURANCE
Life insurance can offer an attractive way to fulfill charitable intent. The donor may elect to name a charity as a beneficiary for all or part of a policy already owned. The policy proceeds payable to a charity at death will qualify for a charitable deduction in the donor’s estate. The donor may obtain an immediate income tax deduction approximately equal to the cash value by naming the charity as both owner and beneficiary of the policy and obtain additional charitable deductions when annually gifting future premium payments to the charity. Life insurance is often the least costly, most flexible and simplest vehicle for making a gift. 

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GIFTS BY WILL OR TRUST
Charitable gifts may also be made by provisions in a will or trust. Donors may designate a percentage or specific dollar amount of their estate to be given to charity, or the charity can be named as the final estate's beneficiary, thereby receiving whatever remains after providing for loved ones. A charitable gift in a will or trust will qualify for the charitable deduction at the time the assets are given to charity, and will provide the estate tax savings.  View *Wills & Bequests Brochure.

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GIFTS WHICH PROVIDE INCOME
Charitable Gift Annuity

A charitable gift annuity is a contract in which property (generally limited to cash or marketable securities) is transferred to the charity in exchange for a promise from the charity to pay a fixed income for the donor’s lifetime or the lifetime of the donor and one other individual. Income payments may begin immediately or be deferred to a future date. Charitable gift annuities will provide a donor an immediate income tax deduction for the charitable gift value of the annuity. If there is no annuitant other than the donor or donor’s spouse, the gifted property passes outside the donor’s estate. The donor generally does not recognize capital gain on the value of appreciated property that is considered a gift. The rest of any capital gain will be spread out over the annuitant’s lifetimes. Gift annuity payments often generate increased income for the donor.  Submit your name and address here to receive a Gift Annuity Brochure by mail.  To access a Gift Annuity Brochure you will need Adobe Acrobat, version 4.0 or later.  Download  Acrobat for free. 

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A charitable remainder trust is a separate legal entity established by the donor and to which the donor transfers property (cash, real estate, securities) to the trust. The trust may provide for the donor or others to be paid a fixed income or an income that will vary with the earnings on investments in the trust. Upon the death of the last income recipient, the remaining assets in the trust are transferred to the designated charity or charities to be used for purposes specified by the donor in the trust instrument. If there is no income recipient other than the donor or donor’s spouse, the gifted property passes outside the donor’s estate. The donor can receive increased income by placing assets that have increased in value, but earn little income, into a charitable trust, then sold and reinvested in higher income earning assets. Since the trust is tax-exempt, the capital gains generated by the sale are not recognized by the donor. The entire proceeds of the sale are thus available to generate income. 

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For more information please contact: 
Jeff Yost, President & CEO, at 402/323-7332, or
Jim Gustafson, Planned Giving Director, 402/323-7341.
Doug Deitchler, Planned Giving Legal Counsel, 402/474-1075

*These documents are only viewable with Adobe Acrobat Reader version 3.0 or later software.