Outright Gift |
Any |
Income tax deduction, in most cases, for full market value |
Can be used for current needs |
Bequest |
Any |
Estate tax deduction for full market value |
When received, can be used for any stated purpose |
Beneficiary of Retirement Funds |
IRA, 401(k), etc |
Proceeds not subject to income tax and estate tax. Estate tax deduction for their value |
When received, can be used for any stated purpose |
Gift Annuity |
Cash, Publicly traded securities |
Guaranteed payments for life. Income tax deduction for portion of contribution |
Residuum can be used for any stated purpose |
Charitable Remainder Unitrust |
Cash, Publicly traded securities, Closely held stock (C), Real Estate |
Variable income for life or a term of years; Income tax deduction for present value of remainder interest |
Remainder can be used for any stated purpose |
Charitable Remainder
Annuity Trust |
Cash, Publicly traded securities |
Fixed income for life or a term of years; Income tax deduction for present value of remainder interest |
Remainder can be used for any stated purpose |
Grantor Charitable Lead Trust |
Cash, Publicly traded securities, Closely held stock (S and C), Real Estate |
Income tax deduction, principal returned when trust terminates |
Income can be used for current needs |
Non-Grantor Charitable Lead Trust |
Cash, Publicly traded securities, Closely held stock (C), Real Estate |
Gift or estate tax deduction, transfer of assets to heirs |
Income can be used for current needs |
Retained Life Estate |
Residence or Farm |
Income tax deduction, can continue using property |
When received, can be used for any stated purpose |
Bargain Sale |
Real Estate and occasionally other property |
Income tax deduction and sales proceeds |
Difference between sales and purchase price can be used for current needs |
Life Insurance (Charity owner of policy) |
Life Insurance policy |
Income tax deduction |
Can use cash value now or death proceeds later |
Life Insurance (Charity beneficiary but not owner of policy) |
Life Insurance policy |
Estate tax deduction |
Proceeds can be used for any stated purpose |