A Bequest

Today or anytime

Although it is not required, most people work with an attorney

At the donor’s death

There is no benefit for the donor other than the satisfaction of supporting a mission of importance. However, at your passing, if your estate is subject to estate tax, this could reduce your liability.

yes

A Gift from my IRA today** 

Today 

No* 

Immediately 

If this is from donor’s Required Minimum Deduction, they are exempt from income tax on the amount. If it is from the IRA otherwise, taxes are paid but it is also a tax-deductible charitable gift. There is also an IRA option in creating a $50,000 CGA from your Retirement account and receiving incomes as below.

No 

A gift from my IRA upon my death 

Today 

No* 

Upon your death. 

The donor gets no deduction, and beneficiaries pay income tax on the inheritance; therefore the beneficiary might benefit more from a different bequest. A nonprofit beneficiary would not pay any tax.

Yes, as often as you like. 

Insurance: a paid-up policy with cash value. 

Today, if you donate the policy itself 

No* 

Immediately 

Donor may take a tax deduction if the policy is donated to the organization.

No 

Insurance: a policy that requires premium payments 

Today, but someone must pay the premiums 

No* 

Upon your death, providing all the premiums have been paid! 

A tax deduction if the policy is donated to the organization; if the donor continues to premiums these may not be deductible.

Yes 

A Charitable Gift Annuity  (CGA)

Today 

Yes 

Upon your death (or a second beneficiary’s death) 

A charitable deduction at the time of the gift AND income for life at a reduced income tax level for those payments. The remainder goes to charity at the donor’s death. This often requires a third-party nonprofit with significant assets to serve as trustee.

No 

A Charitable Remainder Trust ( CRT or CRUT)

Today 

Yes 

Upon your death (or a second beneficiary’s death) 

A charitable deduction at the time of the gift AND income for life. The donor can serve as Trustee and manage the Trust.

No 

A Charitable Lead Trust ( CLT) 

Today 

Yes 

Today, and for the duration of the trust. 

The donor can bequeath these assets to a second generation but does not receive a tax deduction. During the donor’s life, the nonprofit receives annual payments.

No 

A Gift of Property 

Today, and the organization can use or sell the property now.  

No* 

Today 

A tax deduction based on the fair market value or an adjusted value dependent on the item and its use for the nonprofit. Depending on the value and nature of the organization, this may need approval by the organization, or environmental review paid by the donor. A gift over $5000 must be appraised.

No 

A life estate of property (such as a house) 

Today, and the donor may continue to use the property for life.

Yes 

Upon your death 

An adjusted tax deduction based on the value and the life expectancy of the donor. You should discuss this with your attorney prior to discussion with the organization.

No