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Jenkins Fenstermaker, PLLC

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By Anna Melissa Price Of Jenkins Fenstermaker, PLLC on 10/27/2020
Planning Your Legacy: Six Types of Charitable Giving

Planned giving can be a valuable and meaningful piece of your overall estate plan. Developing a charitable giving plan allows you to support causes that are important to you while also preserving wealth for your family. When your legacy is at stake, don’t leave the details to chance. Understanding the different types of charitable giving options is vital to managing your wealth in the most beneficial way for all of your beneficiaries. For those in West Virginia (WV), Kentucky (KY), and Ohio (OH), consulting with a planned giving attorney from Jenkins Fenstermaker, PLLC is a perfect place to begin.

This blog is the first in a series of seven regarding different types of charitable giving. The blogs to follow will provide more in-depth information on each of the six options for planned giving discussed here.

An Overview of Six Types of Charitable Giving

Donating to a beloved charity is a rewarding act. It benefits a cause you believe in and builds relationships. When you know how to structure charitable gifts and include gift planning in your estate plan, the advantages can be even greater for both the donor and the recipient. The benefits of planned giving vary, depending upon the tool or tools you use to transfer and protect the funds in question.

These are some of the types of charitable giving to consider including in your estate plan:

  • Charitable lead trusts;
  • Charitable remainder trusts;
  • Donor-advised funds;
  • Pooled income funds;
  • Charitable gift annuities; and
  • Family foundations

There is no one-size-fits-all charitable giving plan. An experienced planned giving attorney can help you develop a strategy and identify giving tools customized to your specific goals and wishes, as well as the needs and preferences of the organization or organizations you support.

What Is Planned Giving?

Planned giving is the term used to describe specific types of charitable giving that take advantage of legal and tax strategies to maximize the benefits of the gifts for both the donor and recipient. Because the strategies and vehicles employed are often complex and sometimes irrevocable, it is recommended—and sometimes required—that a planned giving attorney or other qualified professional help you determine how to structure charitable gifts as part of your estate plan.

What Are the Benefits of Planned Giving?

Planning your gifts has obvious benefits for the organizations or entities you choose to support. With advance knowledge of your support, those groups know generally what funds will be available and can plan accordingly. Having a charitable giving plan can also benefit the donor and his or her family and heirs.

The benefits of planned giving can include the following:

  • Tax advantages, including possible reductions in estate taxes as well as income or capital gains taxes;
  • More control over how contributions will be used;
  • Creating a stream of income while supporting a worthy cause; and
  • Building a legacy for yourself and your family

The benefits of planned giving vary depending on the legal and financial tools used to manage and convey the funds and assets in question. Consulting and working with a knowledgeable planned giving attorney is the best way to ensure you receive the full and appropriate benefits of planned giving in WV, KY, or OH.

Understanding the Types of Charitable Giving and How to Structure Charitable Gifts

Knowing how to structure charitable gifts properly is critical to maximizing the benefits of planned giving for both the donor and the recipient. Donors must prioritize their goals and consider the specifics of the situation. These are some questions a gift planning attorney might ask to help you determine the best options for your charitable giving plan:

  • Are tax credits or deductions a primary factor?
  • Do you want to reduce your income taxes?
  • Do you wish to reduce taxes on a gift or gifts?
  • Do you need to offset capital gains?
  • Do you want to create a situation that benefits a charity while providing you and your dependents with regular income?
  • Do you have assets that are likely to appreciate or depreciate over the years?
  • Do you have family or other non-charity beneficiaries to whom you wish to transfer assets?
  • Would you like to combine your assets with the assets of others for greater impact?
  • Have you selected a charitable cause or group to which you wish to give?
  • Does the charitable organization have preferences or limitations regarding the types of charitable gifts it is able to receive?

With the answers to these and other relevant questions, your planned giving attorney can craft a charitable giving plan that will protect your wealth, foster a worthy cause and/or make a difference in your community, and shape your legacy.

Discuss Your Charitable Giving Plan with a Planned Giving Attorney in WV, KY, and OH

Perhaps a charitable trust is the best way to achieve your goals, or maybe a donor-advised fund or charitable gift annuity would better suit your needs. If you are managing family wealth, a pooled income fund or family foundation might be the way to go.

The blogs that follow will discuss these types of charitable giving in detail, providing a comprehensive guide to get you started. However, reading an article is no substitution for the guidance of a planned giving attorney with years of experience. Anna M. Price of Jenkins Fenstermaker, PLLC is eager to provide best-in-class service to help clients maximize the benefits of planned giving for everyone involved. Call Anna at (304) 523-2100 or complete the firm’s online contact form to discuss your charitable giving plan today.