Planned Giving Instruments

There are a number of ways to make long-term plans for donating funds to non-profit organizations. The planned giving instruments listed below are used most often.

CHARITABLE REMAINDER TRUST: Donors may transfer cash, securities or other appreciated property into a trust. The trust makes fixed or variable annual payments to the donor or to persons whom the donor names. When the trust ends, the remaining funds move to the charitable organization.

BEQUEST: Donors can provide a future gift to a charitable organization by including a bequest provision for a charitable organization in their will or revocable trust.

REAL ESTATE: Donors may transfer their residence, farm, or vacation home to non-profit organizations in a life estate. Donors can continue to live in the property for life or a specified term of years and will be responsible for all taxes and upkeep. The property will move to the non-profit organization when the life estate ends.

RETIREMENT ACCOUNTS: Donors may name a non-profit organization as a beneficiary of their IRA, 401(k) or other qualified plan. Any funds left in the plan after the donor’s death will move tax-free to the organization.

LIFE INSURANCE: Donors may transfer ownership of a paid-up life insurance policy to non-profit organizations. The organization may elect to liquidate the policy at the time of donation or to keep it and receive the death benefit later.