Or, as we call them, “Gifts Anyone Can Make.”
These gifts are popular for both the nonprofit and for the donor. Why? They are easy to market, easy to give, and easy to receive. In many instances all it takes is a signature and usually does not require a lawyer.
All brochures on specific giving vehicles incorporate a diagram on how the gifting process works.
Bequests (Gifts Through Will or Trust)
Here’s a simple informational on how Bequests work. This is a daily bread and butter brochure for any nonprofit. Available in English and Spanish.
Stocks and Appreciated Assets
Donors can use appreciated stocks, bonds and/or mutual fund shares they’ve held “long-term” (more than one year) to make their gift. They will be able to claim a federal income tax charitable deduction for the full, appreciated value of the securities (not the lesser amount they originally paid for them). In addition, they will pay no capital gains tax on the transaction. This means the after-tax cost is less than a gift of cash.
Appreciated securities are often more beneficial than giving cash. The brochure discusses how they work and the benefits.
Gifts of Life Insurance
Often referred to as the “gift forgotten about that’s in the back of your drawer,” gifts of life insurance are popular among donors whose family no longer needs the policy.
Gifts of Real Estate
Over 45% of this nation’s wealth is in real estate. And gifts of real estate are easier than you think! This brochure outlines the benefits to donor and to charity.
Optional section: Retained Life Estates (“donate a property, receive a deduction, yet continue using it”).
Gifts of Retirement Plans
Many donors leave cash, stock, or other property to charity and leave family or heirs the balance remaining in their retirement accounts. The unintended result is less money to heirs than they would have received if the donor had reversed this asset distribution.
The IRA Rollover (QCD)
The IRA Rollover (QCD) is also marketed as the “tax free” gift. Why? Because it does not “count” towards your minimum required distributions (MRD).
The QCD has become increasingly popular, especially among those who do not need income from their IRA and believe in supporting your mission.
Donor Advised Fund (DAF)
Donor Advised Funds are becoming increasingly popular. Why? A donor can receive a deduction “today and gift within a few years,” plus, the “future donation” is likely to be more than intended since it is invested in a fund. It’s a simple way to give and this brochure illustrates how.
Your donor has created and funded a donor-advised fund with another charity such as a community foundation, the National Philanthropic Trust or the charitable arm of one of the big brokerage firms. Over time, the donor has made significant charitable gifts to the fund. Upon the donor’s death, the donor has three options:
- Designate someone else, typically children or grandchildren, to make future distributions from the fund (if the fund allows for this).
- Allow the remainder in the fund to go to the sponsoring charity for it to utilize according to its mission.
- Designate your organization to receive the remainder, or a portion of it, from the fund.
Personal Property
Donors may offer your organization artwork, collectibles, books, equipment, or other items of tangible personal property. With a few exceptions, a completed gift will yield them a charitable deduction for the items’ fair market value, with no capital gains liability to the donor or organization.
This brochure outlines how and explains the process so you do not have to.