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Also known as a
deferred gift, a planned gift is a “gift” and irrevocable once it is made. The
gift does not go immediately into the fund. It is held by a trustee for the lifetime of
the donor. During that time, the donor receives income from the gift.
Because the gift is
irrevocable, the donor is entitled to a charitable income tax deduction in an amount that
is calculated to ultimately go to the fund. The donor is entitled to the tax deduction in
the year in which the gift is made. If the gift is made with appreciated assets, such as
stock, no capital gains tax is paid. Because the gift is irrevocable, it is removed from
the donor’s estate and is not subject to estate taxes. Therefore, the tax benefits
are threefold: a tax deduction, avoidance of capital gains tax, and reduction or
elimination of estate taxes.
We suggest reading the following articles
for more information:
Help
your neighbor and yourself. For more information about making a planned gift to the
Fellowship Endowment Fund, call Joseph P.L. Payne at (434) 386-3507 or
contact us by email with your
questions.
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