Planned Giving

Many people create a personal or family legacy by partnering with a charitable organization such as Vanderbilt University Medical Center. Some donors make an outright gift or multi-year pledge, but there are also “Planned Giving” options.

Planned gifts include:

• Bequests under wills
• IRA beneficiary designations, and
• Life income gifts (charitable gift annuities and charitable trusts where the donor or family members receive income in exchange for a gift, usually for life).

Benefits of planned giving:

• It provides peace of mind. For example, an individual who does not feel comfortable giving away $25,000 or more during life, may be open to the idea of leaving such an amount as a bequest.
• It makes gifts possible. Consider a donor who feels that she cannot afford to give away $10,000 to charity. She may be able to make a gift if it will mean that she receives 6 percent of $10,000 paid to her quarterly for her lifetime, guaranteed.

Other options:

• Bequest under a will: There is no cost to the donor during his lifetime, yet the gift is valuable to the charitable program and can be for a fairly high amount. The donor retains control of his assets and has access to principal in emergency situations.
• Designating a charity as beneficiary of your IRA: This is easy to do — the donor can add the charity’s name online or by calling the IRA manager (TIAA-CREF, Fidelity, Vanguard or other). Depending on the donor’s situation, the IRA to charity can simplify the estate administration and benefit survivors (Idea: Leave taxable IRAs to charity, non-taxable property to family.)
• Charitable Gift Annuities: A donor (at least age 65) makes a gift (minimum $10,000) and receives income for life. A tax deduction is available immediately and the payments are partially tax-free. Payout rates are based on age: Age 65 — 5.7 percent; age 70 — 6.1 percent; age 80 — 7.6 percent, and so on.

Gifts of Stock and Securities
When making an outright gift to charity, remember to think about appreciated stock you may have in your accounts. If you have held the stock for more than one year and it is worth more than you paid for it, use that stock for your charitable giving. Stock gifts can provide valuable tax advantages.

Memorial Gift
A gift made in memory of an individual is a special way to remember a friend or loved one and express sympathy to their family. A public obituary request may advise friends and families how to honor a cherished life.