Planned Giving

Planned Giving refers to significant donations made either during a donor’s lifetime or as part of their estate plan upon death. It involves strategic financial planning to maximize the impact of the gift while potentially offering tax benefits to the donor. Here are some key points about Planned Giving:

Types of Gifts:

Cash: Direct monetary donations.
Appreciated Securities/Stocks: Donations of investments that have increased in value.
Real Estate: Property donations.
Business Interests: Donations of partnership interests in businesses.
Personal Property: Valuable items like art or collectibles.
Life Insurance: Donating life insurance policies.
Retirement Plans: Contributions from retirement savings.

Benefits:

Tax Savings: Properly planned gifts can reduce income taxes, capital gains taxes, and estate taxes.
Increased Impact: Strategic giving allows donors to contribute more effectively and significantly to their chosen causes.
Financial Efficiency: Coordinating donations with financial planning ensures that gifts are made in the most tax-efficient manner.

Challenges:

Complexity: The financial intricacies can be daunting, leading many donors to default to simpler methods like cash donations, which might not be as tax-efficient.
Lack of Knowledge: Many potential donors are unaware of the full range of options and the benefits of planned giving.

Getting Started: If you’re uncertain about how to proceed with Planned Giving, professional advice can be invaluable. Financial advisors or organizations specializing in Planned Giving can help you explore your options and determine the best strategy for your situation. For assistance, you can contact experts in this field, such as by calling 253-770-6991, to discuss your best options for making a meaningful impact on causes you care about, like St. Francis House.